A Sacramento County man has admitted to swindling investors through a scheme centered on non-existent medical device sales, according to U.S. Attorney Phillip A. Talbert. 38-year-old Michael Andrew Scott of Fair Oaks entered a guilty plea to wire fraud charges as a result of his deceitful business practices with his company, Trusted Medical Partnership, according to the U.S. Attorney's Office.
As detailed in court records between June 2018 and June 2022, Scott managed to secure loans from investors by claiming that his company received hefty purchase orders from health care providers, which were, in fact, nonexistent. He promised these investors substantial returns, assured them of zero risk, and used fake or altered purchase orders to prove the legitimacy of his claims. Meanwhile, his company, while legally registered, was suspended by December 2021 and was not operational in any legitimate sense. It conducted no real transactions, avoided tax payments, and did not maintain necessary employment records.
The victims, led to believe in the profitability of their investments, ended up lending money that Scott used not for business development but for personal indulgences such as gambling at nearby casinos. He also used fresh investments to pay off older investors, perpetuating the facade of a profitable business. The U.S. Attorney's Office reports that more than 10 victims suffered financial losses ranging from $250,000 to $550,000 due to Scott’s fraudulent activities.
An investigation by the Federal Bureau of Investigation brought Scott’s deceptive practices to light. Assistant U.S. Attorney Dhruv M. Sharma is handling the prosecution. As of now, Scott is anticipated to face his sentencing on January 14, 2025, with possible penalties including a maximum of 20 years in jail and a fine either of $250,000 or twice the amount of the financial damage he caused—whichever is higher. Scott has also committed to repaying his victims an amount that lies somewhere between $338,843 and $550,000. However, the final decision about Scott’s punishment will be made by the U.S. District Judge Kimberly J. Mueller, taking into account statutory considerations and the Federal Sentencing Guidelines.
