Two Men Arrested for Multi-Million Dollar Casino Ponzi Scheme
Utah federal authorities have indicted two men in connection to operating a Ponzi scheme worth about $25 million.
LISTEN TO THIS ARTICLE:Together, they convinced victims to invest in a completely fake casino project in Mexico. The men arrested are Thomas Paul Madden, 66, of Washington City, Utah, and Jeremy Tyler Grabow, 54, of Ladera Ranch, California.
A federal grand jury returned an indictment last week, leading to the arrests. Madden is charged with four counts of wire fraud, while Grabow and he are both charged with wire fraud conspiracy and money laundering conspiracy.
Claimed to Be Working with Massive Companies
Through a made-up computer systems company, Savitar, Madden, and Grabow were able to dupe at least 10 people into investing in the so-called project. They claimed to be working with not only MGM Resorts International but also a Mexican tour outlet, Cabo Paradise, a data center company, Datapod, and even the Mexican Lottery.
They said the casino would be built in Cabo San Lucas and that Savitar had already received a bunch of money in investments prior to soliciting them from the victims.
This Savitar scheme earned them about $2 million, which they used to pay earlier investors and for personal expenses. This comes while Madden had been conducting another Ponzi scheme related to penny stocks. He was able to get about $23 million from nearly 200 victims.
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Past Arrests and Probation
In 2023, Madden was arrested for giving out bad checks to those who invested with him. He continued to seek new investments even after he was convicted of a felony in the Utah Fifth District Court in 2024.
During the March 7, 2024, court appearance, he requested a probationary sentence so he could “meet restitution obligations to investors.”
He even told the judge that the “project down in Cabo … could be funded as soon as next week, which will bring in substantial funds,” court documents showed.
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