Alaska Man Sentenced for Bilking Investors out of Millions
An Alaska man accused of defrauding investors out of millions by running a Ponzi scheme, is sentenced to ten years in prison after pleading guilty. The sentence comes as the nation marks the 24th annual Fraud Awareness Week.
In the Alaska case, federal prosecutors say Garrett Elder of Anchorage defrauded 177 clients out of more than $26 million in a scheme that ran from 2016 to October 2022. Some of the victims were Elder’s family and friends.
"Mr. Elder’s case is one of the worst fraud cases our office has handled with respect to the number of victims and amount of money he stole. This case shows that white-collar crime can impact anyone and cause immense damage to people, families and communities and that no person or company is above the law,” said U.S. Attorney S. Lane Tucker for the District of Alaska.
According to court documents, Elder ran the scheme through his two investment entities, Tycoon Trading LLC and the Daily Bread Fund LLC, soliciting investments “based on misstatements and omissions about his trading methods and returns.”
A federal investigation revealed that while Elder told investors that they made over $11 million, those profits were non-existent. Investigators say Elder actually lost around $20 million trading and used the remainder of the investor money he collected to fund a “lavish lifestyle, finance commissions and payments to business associates, purchase assets and gifts, and pay other personal expenses.” Those purchases included cars, a camper, a boat, jewelry, and other items.
The FBI Anchorage Field Office investigated the case with assistance from Alaska state officials.
In addition to prison time, Elder must make full restitution to the victims.
Still, some of the victims say the 10-year sentence did not go far enough. Mike Tittle lost his entire retirement savings.
“I am conflicted. I don’t know that I understand justice in the way that the court system does. Justice is, he owes my family and several others $30 million. That’s justice, not here’s a spanking. I absolutely am conflicted over that,” Tittle told Alaska News Source.
International Fraud Awareness Week
The Elder sentence comes during International Fraud Awareness Week.
The annual event, hosted by the Association of Certified Fraud Examiners (ACFE), is meant to raise awareness about the importance of fraud prevention and fraud detection.
Events include webinars, live chats, publicity campaigns, social media campaigns, and more.
According to a recent survey from SAS, 70 percent of people surveyed in 16 countries admitted to falling victim to fraud at least once. 40 percent experienced fraud multiple times.
And SAS executives are worried that the growing prominence of artificial intelligence (AI) could spur even more fraud.
“Even as consumers signal increased fraud vigilance, generative AI and deepfake technology are helping fraudsters hone their lucrative craft,” said Stu Bradley, Senior Vice President of Risk, Fraud and Compliance at SAS.
Federal agencies such as the Internal Revenue Service (IRS) are also taking part in the event.