Colorado man pleads guilty, sentenced for multi-million dollar investment fraud scheme
A Colorado man pleaded guilty and was sentenced this week to running a scheme that cheated investors out of over $3.7 million.
Tra Jay Scarlett of El Paso County was sentenced Wednesday to 12 years in community corrections for third-degree felony securities fraud. He was also ordered to pay over $3.6 million in restitution to the victims of the investment scheme.
Authorities said from February 2016 to January 2021 Scarlett raised money from investors under a business called "Chatfield PCS, Ltd." During that time, approximately 34 investors provided capital for a second company, "GO ECO Manufacturing, Inc." Scarlett falsely told investors the company was founded to provide ecological packaging and bottle services for corporate clients and promised them 15-20% in annual returns.
He told investors GO ECO already had "strategic partnerships" with drink manufacturers and commercial clients, pitching the company as a low risk, high reward investment. Authorities said he falsified statements, faked contracts with sports drink companies and used funds for personal expenses rather than business needs.
The Colorado Attorney General's Office warned the public to be wary of promises of massive returns in comparison to their investments, as it's a common sign of a scam.
