Indictment unveiled for wire fraud and money laundering in Colorado
A Denver grand jury has unveiled an indictment today, charging two Colorado individuals with wire fraud, conspiracy to commit wire fraud, and money laundering in connection with their operation of a multi-million-dollar investment fraud scheme known as the « ROI Cash Flow Fund. »
According to the indictment, Timothy McPhee from Estes Park, Colorado, and Heath Posey from Denver, solicited over $8 million from more than 50 investors between January 2023 and February 2024. They promised investors that their money would be used for foreign exchange trading to generate a 3% monthly return on their investment.
However, the indictment alleges that instead of investing the funds as promised, McPhee and Posey used the money to pay monthly returns to other investors and diverted millions for their own benefit. From June 2023 to December 2023, McPhee transferred over $2 million to his personal bank account, using the funds for personal expenses and investments. Additionally, in February, the pair allegedly transferred nearly half a million dollars to a separate account for personal and business expenses.
Potential consequences and legal proceedings
If found guilty, McPhee and Posey could face up to 20 years in prison for each count of wire fraud, up to 20 years for conspiracy to commit wire fraud, and up to 10 years for each count of money laundering. The final sentence will be determined by a federal district court judge after considering various factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division announced the indictment, while the FBI is currently investigating the case. The prosecution is being handled by Trial Attorneys Lauren K. Pope and Amanda R. Scott of the Tax Division.
It is important to note that an indictment is not a conviction, and all defendants are presumed innocent until proven guilty in a court of law beyond a reasonable doubt.
Source : www.justice.gov