An indictment was unsealed in St. George, Utah, after the arrest of a man accused of defrauding investors out of millions. A federal grand jury indicted Thomas Paul Madden, 66, from Washington City, Utah, and Jeremy Tyler Grabow, 54, from Ladera Ranch, California. The charges include multiple financial crimes related to a scheme that has been ongoing since September 2017.
Court documents reveal that Madden used his company Cascade IR, LLC to deceive investors about his ability and intent to sell penny stocks. Instead of fulfilling promises to investors, Madden reportedly used their money for Ponzi payments and personal expenses. This part of the operation allegedly allowed Madden to collect over $23 million from more than 200 investors.
In 2021, Madden and Grabow allegedly expanded their fraudulent activities through Savitar Systems LLC. They claimed that Savitar was collaborating with partners on a casino and resort project in Mexico promising high returns. However, these partnerships did not exist and Savitar had no legitimate business operations. Investor funds were instead funneled into the Ponzi scheme. The Savitar scheme purportedly resulted in over $2 million being taken from at least ten investors.
Madden faces four counts of wire fraud while both Madden and Grabow are charged with wire fraud conspiracy and money laundering conspiracy. Madden's initial court appearance is set for February 3, 2025, before a U.S. Magistrate Judge in St. George. Grabow will appear on February 24, 2025.
The announcement was made by United States Attorney Trina A. Higgins for the District of Utah.
The case is under investigation by the Utah Division of Securities alongside the FBI Salt Lake City Field Office.
Assistant United States Attorneys Stephen P. Dent and Joseph M. Hood are handling the prosecution.
Individuals who believe they may be victims can find information on the U.S. Attorney’s Office Victim Witness Assistance page.
It is important to note that an indictment only contains allegations; all defendants are presumed innocent until proven guilty beyond a reasonable doubt in court.