Source: Office of United States Attorneys
ST. GEORGE, Utah – An indictment was unsealed today after a fraudster was arrested following a federal grand jury’s return of an indictment this week charging him and his business partner with multiple financial crimes.
According to court documents, Thomas Paul Madden, 66, of Washington City, Utah; and Jeremy Tyler Grabow, 54, of Ladera Ranch, California, engaged in a scheme from September 2017 to the present, to defraud investors in Cascade IR, LLC and Savitar Systems LLC. Using his entity, Cascade, Madden lied to investors about his ability and intent to sell them penny stocks, repeatedly using investors’ money for Ponzi payments and personal expenses. This part of the scheme resulted in Madden taking in over $23 million from over 200 investors.
Beginning in 2021, Madden and Madden and Grabow used their entity Savitar, to further defraud investors. They told investors that Savitar was working with various partners on a large casino and resort project in Mexico that would generate high returns on investments. But Savitar did not have the represented business partnership and lacked any legitimate business operations. Instead, Madden and Grabow diverted investors’ money to the Ponzi scheme. The Savitar scheme resulted in Madden and Grabow obtaining over $2 million from at least 10 investors.
Madden is charged with four counts of wire fraud. Madden and Grabow are both charged with wire fraud conspiracy and money laundering conspiracy. Madden’s initial appearance on the indictment is February 3, 2025, at 10:00 a.m. before a U.S. Magistrate Judge in St. George. Grabow’s initial appearance is scheduled for February 24, 2025, at 10:00 a.m. before a U.S. Magistrate Judge in St. George.
United States Attorney Trina A. Higgins for the District of Utah made the announcement.
The case is being investigated jointly by the Utah Division of Securities and the FBI Salt Lake City Field Office.
Assistant United States Attorneys Stephen P. Dent and Joseph M. Hood of the U.S. Attorney’s Office for the District of Utah are prosecuting the case.
If you think you are a victim in this case, information can be found on the U.S. Attorney’s Office Victim Witness Assistance page.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.