Detroit-Area Man Scams Investors Of $2.7M In Trading Scheme: Feds

ANN ARBOR, MI — An Ann Arbor man is facing up to 20 years in prison after scamming investors out of more than $2.7 million, according to federal officials.

Brian Mitchell, 43, pleaded guilty to wire fraud and admitted that he defrauded multiple third-party investors.

Mitchell is scheduled to be sentenced on Oct. 7. He faces up to 20 years in prison. He must also pay his victims restitution of $2.7 million, officials said.

Officials said Mitchell lured investors with false representations about the security, profitability and use of their funds.

Two groups officials said Mitchell targeted included "Young Pros Investment Group" ("YPIG") and "My Nest Egg." Officials said he falsely told the groups their investment was protected against loss and was "guaranteed."

After suffering significant trading losses, Mitchell lied to investors about why their investment principal was no longer guaranteed, as he had previously claimed, officials said.

He falsely told investors that the Commodity Futures Trading Commission ("CFTC") had seized assets that he described as "back-up money," officials said.

Officials said that Mitchell had already signed onto a settlement with the CFTC for federal violations he committed between January 2018 and January 2019.

Under that settlement, Mitchell was barred for three years from engaging in commodity futures trading activity and from soliciting, receiving and accepting funds for such activity, officials said.

Despite that ban, Mitchell continued to solicit, accept and trade third-party investment funds in commodity futures and didn't tell investors about it, officials said.

"The FBI refuses to let scammers get away with perpetually stealing from and betraying hardworking Americans," Jennifer Runyan, Special Agent in Charge of the FBI Detroit Field Office, said. "This scheme caused significant financial harm to investors who placed their trust in the defendant, and today’s guilty plea is another reminder that those who commit these crimes will be held accountable."