New York — A UK financier has been extradited to the United States to face allegations that he defrauded investors who promised 10% monthly gains in what was actually a Ponzi scheme, authorities said.
Matthew Melton, 61, of Boulder, Colorado, remained jailed in a federal prison in Brooklyn after appearing in court Saturday to face charges of securities fraud and wire fraud. His lawyer did not immediately respond to a message seeking comment.
Melton falsely told at least 20 investors that his investment fund, Price Physics, used a proprietary trading algorithm to invest in futures and achieve record returns, authorities said.
But US Attorney Jay Clayton said Melton did nothing innovative or sophisticated with the scheme, which he used to finance a luxury lifestyle from 2018 to 2020.
“In fact, Milton was allegedly running one of the oldest scams in existence, taking new investors’ money to pay old investors and pocketing the money for himself along the way,” Clayton said in a statement.
Milton allegedly used part of the approximately $3.4 million he brought in to pay his mortgage and sailing trips.