Scottsdale Man Convicted Of Fraud, Other Charges By Federal Jury

NORFOLK, VA —A Scottsdale man was convicted of fraud and other charges by a federal jury in Virginia Wednesday in connection with a fraudulent investment scheme that operated out of several states, including Arizona, according to the Internal Revenue Service.

David Alcorn was convicted of conspiracy, wire fraud and money laundering and faces a maximum penalty of over 200 years in prison, authorities said.

Also convicted Wednesday, was one of Alcorn's co-conspirators, Aghee Williams Smith II, of Roseville, California, who was convicted of conspiracy and wire fraud. He faces a maximum penalty of over 90 years in prison.

Both men will be sentenced on June 23, though authorities said actual sentences for federal crimes are typically less than the maximum penalties.

Seven other co-conspirators —including Arizona couple Kent Maerki and Norma Jean Coffin —previously have been convicted and/or sentenced as part of the scheme. Maerki pleaded guilty to conspiracy and was sentenced to 16 years in prison in March 2021, while Coffin pleaded guilty to conspiracy and will be sentenced in March.

According to court records and evidence presented at trial, the scheme took place between 2011 and 2017 and involved the deception of hundreds of unsuspecting investors, many of whom were at retirement age.

Authorities said the co-conspirators convinced the investors to invest in or send money to wireless spectrum and dental franchise companies owned by some of the conspirators, including Alcorn.

Alcorn and others, authorities said, then misappropriated significant portions of the investment funds to pay for their criminal enterprise and lavish lifestyles, as well as to pay exorbitant commissions to Smith and other salesmen.

"Based on these fraudulent misrepresentations, unsuspecting investors cashed out of 401(k) and other retirement accounts to invest without knowing that Alcorn, (Daryl) Bank (already convicted and sentenced to 35 years) and Maerki were immediately transferring 20 percent to 70 percent of the funds to other companies that they controlled in the form of purported 'fees,'" The IRS said in a statement. "As a result of this investment fraud scheme, the victims suffered losses in excess of $20 million."

According to the IRS, several federal agencies assisted with the investigation, including: U.S. Attorney for the Eastern District of Virginia, the Criminal Investigations Unit of the Internal Revenue Service, FBI, U.S. Postal Inspection Service and the Virginia State Corporation Commission

Assistant U.S. Attorneys Melissa O'Boyle, Elizabeth Yusi and Andrew Bosse are prosecuting the case.

"Combatting elder abuse and financial fraud targeted at seniors is a key priority of the Department of Justice," according to a statement by the DOJ. "Elder abuse is an intentional or negligent act by any person that causes harm or a serious risk of harm to an older adult."

The DOJ continued: "Together with our federal, state, local and tribal partners, the Department of Justice is steadfastly committed to combatting all forms of elder abuse and financial exploitation through enforcement actions, training and resources, research, victim services and public awareness. This holistic and robust response demonstrates the department's unwavering dedication to fighting for justice for older Americans."