Jury convicts Scottsdale man for $20 million investment fraud
PHOENIX — A federal jury convicted an Arizona man and a California man on multiple counts that resulted in over $20 million of investment fraud from 2011-17.
David Alcorn, 78, from Scottsdale and Aghee William Smith II, 70, of Roseville, California, face charges of conspiracy to commit mail and wire fraud, wire fraud, and money laundering in connection with a nationwide investment scheme involving fraudulent wireless spectrum and dental franchise investments, IRS Criminal Investigation said in a press release.
Alcorn, Smith and other associates deceived hundreds of investors, mostly elderly, by convincing them to invest in companies owned by the men.
Severely speculative investment vehicles were sold through material misrepresentations and were then occupied as vehicles for fraud, according to a press release.
Investors then were duped into pulling out of 401(k)s or retirement funds without knowing the men were taking anywhere from 20-70% of the money as fees.
The victims suffered over $20 million in losses, according to the release.
Alcorn faces up to 200 years in prison when he is sentenced on June 23.