Federal inmate convicted of using his time in prison to defraud local family and others

BEAUMONT, Texas - A federal prison inmate has been convicted in an investment fraud scheme in the Eastern District of Texas, announced U.S. Attorney Jay R. Combs.

Riley Graham, 60, also known as David Drake, was found guilty by a jury of conspiring to commit wire fraud. The verdict was reached on October 15, 2026, following a five-day trial before U.S. District Judge Marcia A. Crone.

According to information presented in court, from June 2019 through October 2024, Graham, while imprisoned at the low security correctional facility at the Bureau of Prisons Federal Correctional Complex (BOP-FCC) in Beaumont, conspired with others to devise and execute a scheme to defraud others, including a Beaumont pastor, his family, and the owners of a North Carolina construction business, of over $1.4 million. Graham, who had previously been convicted of perpetrating a federal fraud scheme, began another scheme to defraud those he had access to - including a fellow inmate and his family.

The maximum statutory sentence prescribed by Congress is up to 30 years in federal prison, a potential fine, and restitution at sentencing. The maximum statutory sentence is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of presentence investigations by the U.S. Probation Office.

This case was investigated by the FBI, Internal Revenue Service-Criminal Investigation, Homeland Security Investigations, and Bureau of Prisons and prosecuted by Assistant U.S. Attorneys John B. Ross and Chris Jackson.

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