Source: Office of United States Attorneys
URBANA, Ill. – Brett Michael Bartlett, 37, of Fountain Valley, California, was sentenced on November 25, 2024, to 188 months in prison for wire fraud, mail fraud, securities fraud, and money laundering. Bartlett was also ordered to serve a three-year term of supervised release following his imprisonment and to pay $22,502,092.66 in restitution to his victims.
During his previous plea of guilty, Bartlett admitted that, using his California-based companies, Dynasty Toys, and 7M E-group, he devised a scheme to defraud investors and obtain their money by making materially false and fraudulent pretenses, representations, and promises. Bartlett, through Dynasty Toys and 7M E-group, purchased items at liquidation sales and resold those items online, especially through Amazon. Bartlett solicited and accepted money from Central Illinois investors, first to purchase inventory to be resold by 7M E-group at promised annual returns of 20% to 40% and later to purchase Dynasty Toys’ preferred stock shares, which Bartlett claimed were expected to double in value.
Bartlett admitted that he induced investors to invest by dramatically overstating the success of the companies and the returns that the companies generated for investors, lying about the companies’ assets, failing to disclose the companies’ struggles even while continuing to solicit investments, and using investors’ funds for Bartlett’s own benefit. For example, Bartlett falsely told investors their existing shares were worth approximately $30 million in total, that Dynasty Toys owned hundreds of millions of dollars of gold assets, and that another company was going to purchase Dynasty Toys for $120 million. As a result, over 1,000 individuals, including over 50 investors from Central Illinois, invested over $22.5 million with Bartlett, 7M E-group, and Dynasty Toys.
Bartlett further admitted that in May 2020, he mailed to Central Illinois investors checks totaling millions of dollars, but the checks bounced. Nonetheless, after that, Bartlett transferred hundreds of thousands of dollars to his personal bank account and took his family members and employees to a luxury business retreat at Big Bear Lake in California. The Court found that
investors lost approximately $22.5 million as a result of Bartlett’s fraud.
At the sentencing hearing, the prosecution presented evidence that numerous victims experienced substantial financial hardship as a result of Bartlett’s fraud scheme, in some cases losing their entire retirement savings. Many of the victims were devastated not only by the financial loss, but also the sense of betrayal because they had trusted Bartlett, who had repeatedly told the investors that they were his “family” and that he shared their faith in God.
The prosecution told the sentencing judge that many of the victims felt guilty because they had encouraged other family members, friends, and church associates to invest with Bartlett based on his false representations.
Also at the hearing, U.S. District Judge Colin S. Bruce found that a sentencing enhancement was appropriate because Bartlett’s scheme involved sophisticated means, including offering to convert investor’s shares to “gold contracts” that turned out to be worthless. Judge Bruce also ordered the criminal forfeiture of a property held in Tennessee in the name of one of Bartlett’s corporations.
Bartlett faced a penalty of up to twenty years in prison on each fraud charge and a penalty of up to ten years in prison on the money laundering charge. Bartlett also faced a penalty of up to three years of supervised release on each charge. Although the charges also carried maximum fines of up to $6.25 million, the prosecution did not request a fine so that any money recovered from Bartlett would to go to restitution for his victims.
“The defendant’s reprehensible conduct had life-changing and devastating repercussions for his victims in Central Illinois and across the country,” said U.S. Attorney Gregory K. Harris. “Our office is dedicated to pursuing those who deal in fraudulent investments. We are grateful to our federal law enforcement partners’ critical work in accomplishing that mission.”
“Brett Bartlett’s greed left a trail of victims in the path of his fraudulent schemes,” said FBI Springfield Special Agent in Charge Christopher Johnson.” And while the victims lives and financial futures were sadly changed forever, this significant sentence brings justice and underscores the investigative efforts of FBI Springfield and the FDIC–Office of Inspector General.”
“It is fitting that Mr. Bartlett was brought to justice for having engaged in a massive fraud that brought financial ruin to more than 1,000 unsuspecting and trusting investors,” said Special Agent in Charge Vincent R. Zehme, of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC OIG), Chicago Region. “His prison sentence and the restitution ordered is just punishment for luring investors with false representations and promises; betraying their trust; and selfishly using more than $22 million of their hard-earned funds for his personal benefit and to support his scheme. Adding insult to injury—he mailed some of them millions of dollars in checks that bounced. The FDIC OIG will continue to work tirelessly with our law enforcement partners to bring a halt to such schemes that harm innocent consumers and undermine the integrity of our Nation’s banks.”
The charges are the result of an investigation by the Federal Bureau of Investigation, Springfield Field Office, and the Federal Deposit Insurance Corporation – Office of Inspector General. Supervisory Assistant U.S. Attorney Eugene L. Miller represented the government in the prosecution.