A financial professional has been extradited from the U.K. to the U.S. to confront claims that he defrauded investors by guaranteeing them monthly 10% profits through what authorities describe as a Ponzi scheme.
Matthew Melton, 61, from Boulder, Colorado, is being held in a federal detention center in Brooklyn following a court appearance Saturday on charges of securities fraud and wire fraud. His attorney has not yet replied to a request for comment.
Prosecutors state that Melton misled a minimum of 20 investors by claiming his fund, Price Physics, employed a unique trading algorithm to invest in futures and generate exceptional returns.
However, U.S. Attorney Jay Clayton stated that Melton’s scheme, which financed an extravagant lifestyle between 2018 and 2020, involved no innovative or advanced practices.
“Instead, Melton is accused of running a classic fraud, using money from new investors to pay earlier ones while keeping funds for his personal use,” Clayton said in a statement.
It is alleged that Melton utilized a portion of the approximately $3.4 million he collected to cover his home loan and pay for sailing trips.