Jacob Welch Dalton, a 28-year-old resident of Saratoga Springs, Utah, has been sentenced to two years in prison for running a $1.6 million affinity fraud scheme. In addition to his prison term, Dalton will face three years of supervised release and must pay restitution amounting to $1,553,806. The sentencing was delivered by U.S. District Court Judge Jill N. Parrish after Dalton pleaded guilty to securities fraud on September 30, 2024.
Dalton's fraudulent activities spanned from October 2022 to December 2023 and involved deceiving approximately 45 investors through personal connections and social media channels. He misled investors into buying securities in his company, Rogue Liquidity, LLC, by providing falsified documents and false information both electronically and over the phone.
The court heard that Dalton falsely promoted Rogue Liquidity as an investment liquidity fund promising guaranteed risk-free returns of up to 60% on principal investments. However, there was no actual liquidity pool; instead, investor funds were largely used for Dalton's personal expenses. He also fabricated investor track records to further entice investments.
Acting United States Attorney Felice John Viti announced the sentence following investigations conducted by the Utah Division of Securities and the FBI Salt Lake City Field Office's Provo Resident Agency. The case was prosecuted by Assistant United States Attorney Mark E. Woolf from the U.S. Attorney’s Office for the District of Utah.