Two Colorado Men Charged with Operating Multi-Million-Dollar Investment Fraud Scheme

A grand jury in Denver returned an indictment, unsealed today, charging two Colorado men with wire fraud, conspiring to commit wire fraud and money laundering related to their operation of a multi-million-dollar investment fraud scheme called the “ROI Cash Flow Fund.”

According to the indictment, from about January 2023 to February 2024, Timothy McPhee, of Estes Park, Colorado, and Heath Posey, of Denver, caused more than 50 investors to send approximately $8 million to bank accounts they controlled based on the false representation that the investors’ money would be sent to a borrower and leveraged for foreign exchange or “forex” trading. McPhee and Posey also allegedly told ROI Cash Flow Fund investors that they would receive a 3% monthly return on their principal investment from the forex trading profits.

As the indictment further alleges, however, McPhee and Posey did not send the investors’ funds to a borrower to be leveraged for forex trading. Instead, they allegedly used investor funds to make monthly payouts to other investors and misappropriated millions of dollars in investor funds for their own financial gain. From about June 2023 to December 2023, McPhee and Posey allegedly transferred more than $2 million in investor funds to a bank account McPhee controlled. McPhee then spent those funds on personal expenses and investments. Likewise, in February, McPhee and Posey allegedly transferred nearly half a million dollars to a bank account they controlled and used for expenses related to their other mutual business endeavors, including to pay Posey’s salary.

If convicted, McPhee and Posey face a maximum penalty of 20 years in prison for each count of wire fraud, a maximum penalty of 20 years in prison for conspiring to commit wire fraud and a maximum penalty of 10 years in prison for each count of money laundering. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.

The FBI is investigating the case.

Trial Attorneys Lauren K. Pope and Amanda R. Scott of the Tax Division are prosecuting the case.

An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

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Source: Justice.gov