Attorney General Phil Weiser announced that a Colorado man pleaded guilty to third degree felony securities fraud and was sentenced yesterday to 12 years in community corrections after cheating investors out of over $3,700,000 in a fraudulent investment scheme.
Tra Jay Scarlett, 55, was ordered to pay over $3.6 million in restitution to the victims of his elaborate investment scheme, one that used a multitude of businesses and employees to misrepresent – or blatantly omit – key information to prospective investors. This included falsifying financial statements, faking contracts with sports drink companies, and using funds for personal expenses rather than the reported business needs.
“Investment fraud can destroy entire families and futures,” said Weiser. “Holding fraudsters accountable for this type of serious financial theft is key to protecting the public and preventing similar crimes from happening down the road.”
RECOVER FUNDS HERE
Under a business called “Chatfield PCS, Ltd,” Scarlett raised capital from approximately 34 investors for a second company of theirs, “GO ECO Manufacturing, Inc” from February 2016 to January 2021. GO ECO was purportedly founded to provide ecological packaging and bottle services to corporate clients – promising investors that their money would generate 15-20% in annual returns. Not only did GO ECO not provide bottling or packaging services, but it also didn’t generate any revenue during this time.
Pitched as a low risk, high reward investment that came with share certificates for their contributions, Scarlett told investors GO ECO already had “strategic partnerships” with drink manufacturers and commercial clients. Making his business seem like a guarantee for investment profit, Scarlett spent five years making fraudulent sales of securities to investors, never once mentioning any of the actual risks associated with their investments.
The case number is 22CR3654 and was filed in El Paso County District Court.
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