A federal grand jury unsealed an indictment on January 31, charging Thomas Paul Madden, 66, of Washington City, Utah, and Jeremy Tyler Grabow, 54, of Ladera Ranch, California, with multiple financial crimes, including wire fraud, conspiracy, and money laundering. The charges stem from their involvement in a long-running Ponzi scheme that defrauded investors out of millions of dollars.
According to court documents, the two men orchestrated a fraudulent investment scheme that began in September 2017. Madden allegedly used his company, Cascade IR LLC, to deceive investors by promising them lucrative opportunities to buy penny stocks. Instead of using the investors’ money for legitimate stock purchases, Madden diverted the funds to make Ponzi payments to earlier investors and to cover his personal expenses. As a result, Madden is accused of obtaining more than $23 million from over 200 investors.
In 2021, Madden and Grabow expanded their fraudulent activities through another company, Savitar Systems LLC. The two men convinced investors that Savitar was involved in a high-profile casino and resort project in Mexico. They promised high returns based on partnerships with various entities. However, the U.S. Attorney’s Office confirmed that Savitar lacked any real business partnerships and had no legitimate operations. Instead, the money was funneled into a Ponzi scheme. This new phase of the scheme allegedly defrauded investors out of more than $2 million from at least 10 individuals.
Madden faces four counts of wire fraud, while both Madden and Grabow are charged with wire fraud conspiracy and money laundering conspiracy. The indictment represents only the charges brought against the defendants, and they are presumed innocent until proven guilty beyond a reasonable doubt in court.
The U.S. Attorney’s Office stressed the seriousness of the charges, stating that these fraudulent schemes not only harmed investors but also undermined trust in legitimate financial ventures. As of now, Madden and Grabow face significant legal consequences, including possible lengthy prison sentences if convicted.