Two businessmen, one from Utah and another from California, are facing serious charges after being indicted for a multi-million-dollar investment fraud scheme that lasted for years. The U.S. Department of Justice announced that Thomas Paul Madden, from Washington City, Utah, and Jeremy Tyler Grabow, from Ladera Ranch, California, allegedly deceived investors through their companies, Cascade IR, LLC, and Savitar Systems LLC, as revealed in an indictment that was unsealed following Madden's arrest.
According to the U.S. Department of Justice, the indictment alleges that since September 2017, the duo fleeced more than 200 investors by promising to sell penny stocks through Cascade, with investors' money purportedly being used for Ponzi payments and personal expenses, Madden alone reportedly taking in over $23 million. In a similar vein beginning in 2021, through their entity Savitar, Madden and Grabow told investors about a lucrative casino and resort project in Mexico, that in reality, did not exist, this ruse led to them securing over $2 million from at least 10 investors.
Madden is charged individually with four counts of wire fraud, and together with Grabow, both men are charged with wire fraud conspiracy and money laundering conspiracy. Madden is scheduled to make his initial court appearance on February 3, in St. George, Utah, while Grabow's appearance is set for February 24, also in St. George. U.S. Attorney Trina A. Higgins for the District of Utah, who announced the indictments, commented on the gravity of these charges and the ongoing investigation, which is a collaborative effort between the Utah Division of Securities and the FBI's Salt Lake City Field Office.
