"A financier has been extradited from the United Kingdom to the United States to face allegations that he cheated investors who were promised monthly 10% gains in what was actually a Ponzi scheme, authorities said. Matthew Melton, 61, of Boulder, Colorado, has remained jailed at a federal lockup in Brooklyn after appearing in court Saturday to face securities fraud and wire fraud charges."
"But U.S. Attorney Jay Clayton said Melton was not doing anything groundbreaking or cutting-edge in the scheme, which he used to fund a luxurious lifestyle from 2018 to 2020. "In reality, Melton was allegedly operating one of the oldest scams around, taking new investors' money to pay old investors and pocketing funds for himself along the way," Clayton said in a statement."
Matthew Melton, 61, was extradited from the United Kingdom to the United States and remains jailed in Brooklyn facing securities fraud and wire fraud charges. He is accused of running Price Physics and falsely claiming a proprietary trading algorithm produced record returns while promising investors monthly 10% gains. At least 20 investors allegedly contributed nearly $3.4 million between 2018 and 2020. Prosecutors allege the operation functioned as a Ponzi scheme, using new investor funds to pay earlier investors while Melton diverted money for a luxurious lifestyle, including mortgage payments and sailing excursions. U.S. Attorney Jay Clayton characterized the operation as an old-fashioned scam used to pocket funds.
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