April 30, 2024 - SACRAMENTO, Calif. — A federal grand jury returned a four-count indictment on April 25, 2024, against Michael Andrew Scott, 38, of Fair Oaks, charging him with wire fraud, U.S. Attorney Phillip A. Talbert announced. The indictment was unsealed today following Scott’s arrest.

According to court documents, between June 2018 and June 2022, Scott devised a scheme to defraud investors in his company, Trusted Medical Partnership. Scott told investors that either he or Trusted Medical Partnership received purchase orders from various health care providers in Northern California for medical devices but lacked the capital to fulfill the orders. Scott solicited and obtained loans from these investors, and, in exchange, promised them substantial returns in a relatively short time with zero risk. In order to convince some of his victims to lend him money, Scott sent them fabricated copies of these purchase orders. Scott’s victims lent him money on the basis of his false statements, including the fraudulent purchase orders, however, they received little to no returns on their investments. Instead, Scott spent the money on gambling, personal expenses, and payments to prior investors in order to keep the scheme running.

This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Dhruv M. Sharma is prosecuting the case.

If convicted, Scott faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Source: DOJ Release