Detroit Man Took $39M From Investors Before Fraud Scheme Collapsed

A Detroit man has been sentenced to 100 months in prison after pleading guilty to wire fraud charges stemming from a scheme that defrauded investors of approximately $39 million.

Fraud Scheme Details

Federal prosecutors say Andrew Middlebrooks orchestrated the fraud, promising lucrative returns to 97 investors while diverting millions of dollars for his personal use. According to court documents, Middlebrooks used a web of false documents, phony investment accounts, and misleading statements to lure victims into his scheme.

Authorities say the scheme collapsed when Middlebrooks could no longer cover investor withdrawals, ultimately prompting a federal investigation. As part of his plea agreement, Middlebrooks also agreed to forfeit a significant portion of the stolen funds.

“Middlebrooks used an apparently legitimate company, sophisticated methods, and a complex web of lies to deceive his victims, but his crime amounts to nothing more than theft and unbridled greed,” U.S. Attorney Dawn Ison said in a statement. “Middlebrooks’s ability to convince the victim-investors that his false promises were true allowed him to steal their money.”

The scheme ultimately collapsed, resulting in losses exceeding $34 million to 97 investors.

Restitution for Victims

As part of his sentence, Middlebrooks was ordered to pay restitution to his victims. Federal authorities say the forfeited funds will be distributed to the 97 investors who suffered losses, though officials caution that many victims may only recover a portion of their investments.