Man Uses Sham Business To Defraud Investors $470,000: Authorities

SACRAMENTO — A Sacramento County man used a sham business to take nearly half a million dollars from investors and spent the money on gambling and personal expenses, according to authorities.

Michael Andrew Scott, 38, of Fair Oaks, was sentenced Tuesday to 33 months in prison for fraud and ordered to pay $376,044 in restitution, authorities said.

Between June 2018 and June 2022, Scott told investors either he or his company, Trusted Medical Partnership, received orders from health providers for medical devices but lacked capital to fill them, taking loans from his victims, according to the U.S. Department of Justice.

In reality, Scott did not have purchase orders from providers and Trusted Medical Partnership was not a legitimate business, authorities said, adding it paid no taxes, submitted no employment records and was suspended in December 2021.

Scott spent the money on gambling at local casinos, personal expenses and payments to other investors to keep the scheme going, defrauding at least 16 victims of almost $470,000, authorities said.