In a recent development in Utah's federal courts, Jacob Welch Dalton from Saratoga Springs has been given a 24-month federal prison term after pleading guilty to securities fraud. As reported by the U.S. Department of Justice, the 28-year-old was accused of swindling approximately 45 individuals out of $1.6 million through a scheme leveraging personal connections and social media networks.
The scheme, which operated from October 2022 to December 2023, involved Dalton falsely representing his business, Rogue Liquidity, LLC, as an investment liquidity fund promising guaranteed, risk-free returns of up to 60%. Instead of allocating investor funds to a liquidity pool, Dalton used these investments principally for his expenses. As a consequence, U.S. District Court Judge Jill N. Parrish also ordered Dalton to three years of supervised release and restitution in the amount of $1,553,806.
As part of this conviction, court documents and statements during Dalton's plea and sentencing hearings revealed that he had crafted and circulated falsified documents and fictitious investor track records to entice investments. These actions were central to persuading investors to part with their money under the illusion of a secure and highly profitable venture.
Acting U.S. Attorney Felice John Viti of the District of Utah underscored the seriousness of the crime, citing Dalton's exploitation of trust within the community for his gain. The investigation into Dalton's fraudulent activities was a collaborative effort between the Utah Division of Securities and the FBI Salt Lake City Field Office, Provo Resident Agency. Assistant United States Attorney Mark E. Woolf carried out the prosecution of the case.
