Suspended Ann Arbor Commodities Trader Sentenced To 33 Months in Federal Prison After Defrauding Local Church and Over 100 Other Victims in Multi-Million-Dollar Fraud Scheme

DETROIT - Brian Mitchell was sentenced today to 33 months in federal prison after having pleaded guilty to executing a multi-million-dollar commodities trading fraud scheme, United States Attorney Jerome F. Gorgon, Jr. announced.

Gorgon was joined in the announcement by Special Agent in Charge Jennifer Runyan, Federal Bureau of Investigation.

Mitchell, 44, of Ann Arbor, previously pleaded guilty to wire fraud and admitted that he defrauded multiple third-party investors, causing a loss of over $2.7 million.

"This defendant caused regular folks to lose millions of dollars. That was not enough for him, so he targeted a church to cover his scheme. He is shameless," stated U.S. Attorney Gorgon.

"This defendant built a multi-million-dollar fraud scheme on lies, false promises, and the hard-earned money of people who trusted him. Those who make a business out of stealing from investors should expect the FBI to make a case out of them," said Jennifer Runyan, Special Agent in Charge of the FBI Detroit Field Office. "Our FBI Ann Arbor Resident Agency conducted a meticulous investigation that helped expose this scheme and bring justice for the victims.

According to court records, Mitchell acknowledged that he caused false representations to be made regarding the security, profitability, and use of investor funds. Mitchell used various entities to solicit investor money, including "Young Pros Investment Group" ("YPIG") and "My Nest Egg." As part of his scheme, Mitchell made-and caused-repeated misrepresentations that investor principal was protected against loss and was "guaranteed." Mitchell also made, and caused, misrepresentations regarding future earnings. After suffering significant trading losses, Mitchell lied to investors about why their investment principal was no longer guaranteed, as he had previously claimed. Mitchell falsely told investors that the Commodity Futures Trading Commission ("CFTC") had seized assets that he described as "back-up money."

While executing his fraud scheme, Mitchell entered into a settlement with the CFTC relating to earlier violations of the Commodity Exchange Act that occurred between January 2018 and January 2019. Under that settlement, Mitchell was barred for three years from engaging in commodity futures trading activity and from soliciting, receiving, and accepting funds for such activity. Despite that ban, Mitchell continued to solicit, accept, and trade third-party investment funds in commodity futures and failed to disclose his trading bar to investors.

Mitchell solicited and obtained a $150,000 investment from a local church while he was suspended from trading activity. Mitchell falsely promised that church a 72% annual rate of return, which he claimed would result in investment earnings of $4,798,153 over five years.

Mitchell admitted that his conduct violated his prior settlement agreement with the CFTC and the regulatory requirements of the Commodity Exchange Act.

According to court records, Mitchell's scheme victimized at least 128 individuals and organizations.

Mitchell was ordered to pay restitution of $2,749,210.60 and serve 2 years on supervised release following the completion of his custodial sentence.

The case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Andrew J. Yahkind.