Two men, one from Utah and the other from California, are facing significant criminal charges following an indictment for running a long-running multi-million-dollar investment fraud scheme. The U.S. Department of Justice revealed that Thomas Paul Madden, from Washington City, Utah, and Jeremy Tyler Grabow, from Ladera Ranch, California, are accused of defrauding investors through their companies, Cascade IR, LLC, and Savitar Systems LLC.
The indictment details how, since September 2017, the pair allegedly swindled over 200 investors by promising to sell penny stocks through Cascade. However, investors’ funds were reportedly misused for personal expenses and to make Ponzi-style payments. Madden alone is believed to have taken in more than $23 million from these fraudulent activities.
The scheme continued into 2021 when Madden and Grabow, under their company Savitar, pitched a non-existent casino and resort project in Mexico to investors. This fraudulent venture secured more than $2 million from at least 10 people.
Madden faces four individual counts of wire fraud, while both men are charged with conspiracy to commit wire fraud and money laundering. Madden is scheduled to appear in court on February 3 in St. George, Utah, while Grabow’s initial court date is set for February 24, also in St. George. U.S. Attorney Trina A. Higgins, who announced the indictments, emphasized the seriousness of the charges and the ongoing investigation, which is being conducted in collaboration with the Utah Division of Securities and the FBI’s Salt Lake City Field Office.
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