Michael Andrew Scott, 38, of Fair Oaks, was sentenced to 33 months in federal prison and ordered to pay $376,044 in restitution for defrauding investors through his company, Trusted Medical Partnership. Scott was convicted of fraud after obtaining nearly $500,000 from investors by claiming the company sold medical devices, according to the U.S. Attorney's Office.
Between June 2018 and June 2022, Scott obtained about $470,000 from at least 16 investors by claiming his company, Trusted Medical Partnership, needed money for medical device purchase orders. The orders were fabricated, and the company had little to no business activity before being suspended in December 2021. Scott used the funds for personal expenses and gambling but continued to seek money from investors, as stated by the U.S. Attorney's Office.
Scott was sentenced to federal prison and ordered to pay restitution after an FBI investigation uncovered his Ponzi scheme. "Scott’s victims lent him money on the basis of his false statements, including the fraudulent purchase orders, but received little to no returns on their investments." He used the funds for gambling at local casinos and to pay previous investors instead of for business purposes. Assistant U.S. Attorney Dhruv M. Sharma stated that the scheme misled investors and affected trust in medical device businesses, as reported by the U.S. Attorney's Office.
