Garrett Elder, who ran a Ponzi scheme in Alaska and scammed millions of dollars from overly trusting Alaskan investors, was sentenced on Monday to 10 years in federal prison — more than the 87 months federal prosecutors had asked for, and less than his own attorney had asked for.
Elder had pleaded guilty to the charges in May.
As many as 177 victims came forward to say they were scammed by Elder and his Tycoon Trading, LLC and Daily Bread Fund, LLC, which were not licensed to trade securities.
The State Division of Banking and Securities, upon discovery of the nefarious investment scheme, ordered Elder to cease and desist selling securities. Early on, the estimate was that less than $2 million had been scammed, but that was later found to be low. Elder convinced investors to give him $30 million, and he lost $26 million, while living a lavish lifestyle with fancy cars and expensive vacations.
But Federal Judge Joshua Kindred noted in his sentencing comments that Elder “preyed on people closest” to him.