Michael Todd Osborn, Stock Trading Scheme, New York 2024

New York City’s Michael Todd Osborn, 46, has been sentenced to 77 months in federal prison for orchestrating a massive stock trading scheme. Judge Christine M. Arguello handed down the sentence last week, along with a $100,000 fine and a requirement to pay $695,000 in restitution.

Osborn and his co-conspirator, Corey Earl Engelen, were indicted by a federal grand jury in Denver in 2015. Osborn admitted guilt in February 2016 and was sentenced the following December. His fraudulent scheme involved selling investors units in non-existent funds while falsely portraying himself as an experienced stock trader.

According to court documents, from October 2009 to July 2010, Osborn told investors he would trade stocks with their money but instead used the funds for personal expenses such as a Mercedes-Benz and family vacations. The scheme was fueled by false claims of prime trading accounts and investor protection through Lloyds of London fidelity bonds.

Acting U.S. Attorney Robert C. Troyer called Osborn ‘the worst kind of thieves,’ noting that IRS Criminal Investigators were instrumental in tracking down the scammer. Special Agent in Charge Steven Osborne emphasized the partnership between IRS-CI and the U.S. Attorney’s Office, stating they will continue to combat investor fraud.

Corey Earl Engelen, who pleaded guilty to money laundering, awaits his January 2017 sentencing before Judge Arguello. The investigation was led by the Internal Revenue Service – Criminal Investigation with assistance from the Special Enforcement Program of the IRS.

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