Michael Andrew Scott, 38, from Fair Oaks, California, was sentenced on Wednesday to 33 months in federal prison for his involvement in a fraudulent medical device sales scheme. The U.S. Attorney’s Office for the Eastern District of California also ordered Scott to pay $376,044 in restitution to the victims of his scam.
From June 2018 to June 2022, Scott masterminded a scheme to deceive investors in his company, Trusted Medical Partnership (TMP). Scott falsely claimed that TMP had received purchase orders for medical devices from health care providers but lacked the capital to fulfill them. He used these fabricated claims to solicit loans from investors, promising large, risk-free returns in a short period.
In reality, TMP had no legitimate purchase orders and was never a functioning business. Scott doctored documents, sending fraudulent purchase orders that misrepresented the transactions. Health care providers listed in the documents later confirmed that the orders were either fake or altered with inflated figures.
The company, which was incorporated in California, did not conduct actual business operations, file taxes, or keep any legitimate records. TMP was suspended in December 2021, just before Scott continued to solicit funds from his victims.
Instead of using the funds for the supposed medical device purchases, Scott used the money for gambling, personal expenses, and payments to earlier investors to maintain the fraudulent operation. The scheme defrauded at least 16 victims of nearly $470,000.
Scott’s sentence serves as a reminder of the severe consequences of fraudulent schemes targeting vulnerable investors. He will be required to repay a portion of the funds to those he defrauded.
