Elderly Investors Defrauded In Multimillion-Dollar Scheme; Malibu Man Sentenced: DOJ

MALIBU, CA — A Malibu man was sentenced to four years in prison for his role in two high-yield investment schemes to defraud elderly and vulnerable victims out of millions of dollars, according to authorities.

Daniel Thomas Broyles Sr. previously pleaded guilty to mail fraud, money laundering, and two counts of conspiracy to commit mail fraud and wire fraud, and was sentenced Thursday, authorities said.

Broyles, 66, participated in schemes involving Niyato Industries Inc. — a sham company — and EarthWater Limited, according to the U.S. Department of Justice.

Broyles and others falsely portrayed Niyato as a leader in electric vehicle manufacturing and converting vehicles to run on compressed natural gas when he knew or intentionally avoided learning the company lacked operational facilities and proprietary technology, authorities said. Investor funds were disbursed among co-conspirators and not used to promote the business, according to the department.

Additionally, he and others sold EarthWater stock, claiming the company used the money from victim investors to run its business when the funds largely went to personally benefit the schemers, authorities said.

In June 2016, Broyles learned federal agents were investigating Niyato and moved to Mexico, according to the department. Two months later, he became aware of his indictment, relocated to a new address in the country and started using the alias “Daniel Cruz Torrez,” authorities said. He was extradited in March 2022, according to the department.

Seven other defendants have been convicted in connection with the Niyato scam and 11 other defendants have pleaded guilty in connection with the EarthWater fraud, authorities said.