In a recent development, an Alaska couple has been charged in a $700,000 investment fraud scheme centered around a fictitious Alaska marijuana “Bud and Breakfast.” The husband and wife team from Delta Junction, Alaska, allegedly defrauded nearly two-dozen investors through false and fraudulent claims, luring them to invest in Ice Fog Holdings, LLC. The defendants promised investors the opportunity to be part of a marijuana-themed park, complete with glass ceilings for viewing the northern lights and the cultivation and sale of marijuana. However, it is alleged that the defendants misappropriated the majority of the funds for personal use. The case is being investigated by the Federal Bureau of Investigation with assistance from the Alaska Department of Law. U.S. Attorney S. Lane Tucker of the District of Alaska made the announcement.
Alaska Couple Charged in $700,000 Investment Fraud Scheme Based on Fictitious Alaska Marijuana “Bud and Breakfast”
In a shocking case of investment fraud, a husband and wife from Delta Junction, Alaska, have been indicted on charges of conspiracy and wire fraud. Brian Keith Corty, 52, and Candy Corty, 47, are accused of defrauding nearly two-dozen investors out of over $700,000 dollars through their company, Ice Fog Holdings, LLC. The couple allegedly used false and fraudulent claims to solicit investors, promising lucrative returns from a fictitious “Bud and Breakfast” concept centered around marijuana cultivation and a unique tourism experience. This scheme has left investors devastated and serves as a reminder of the importance of due diligence when it comes to investment opportunities.
The indictment against Brian Keith Corty and Candy Corty outlines the charges of conspiracy and wire fraud that they are facing. According to court documents, the couple engaged in a years-long scheme that deceived investors into purchasing shares of stock in Ice Fog Holdings, LLC. The company was purportedly established to operate in the medical and recreational marijuana markets in Alaska and beyond. The defendants used false and fraudulent claims to entice investors, making promises of significant returns and an innovative marijuana-themed lodging experience known as a “Bud and Breakfast.”
Length and Scope of the Scheme
The scheme allegedly carried out by Brian Keith Corty and Candy Corty lasted from 2017 until 2020. During this time, the couple solicited investments from at least 22 individuals, raising approximately $722,000 dollars through the sale of “shares” in Ice Fog Holdings. The scheme’s scope encompassed misrepresentations about the viability of the business, its revenue generation, and the regulatory approval process for operating a marijuana grow and dispensary. These false claims allowed the defendants to misappropriate the majority of investor funds for their personal use.
False Claims and Misrepresentations
Brian Keith Corty and Candy Corty made numerous false claims and misrepresentations to investors in order to induce them into purchasing shares in Ice Fog Holdings. These included misrepresentations about the company’s income generation and sales projections, as well as false claims about inspections conducted by the Alaska Marijuana Control Office. The defendants falsely represented that Ice Fog was already generating income through contracts for security services and projected that the company would make millions of dollars in annual sales. These false claims painted a picture of a lucrative investment opportunity, enticing unsuspecting investors to part with their hard-earned money.
Misappropriation of Investor Funds
Perhaps the most egregious aspect of this investment fraud scheme is the misappropriation of investor funds by Brian Keith Corty and Candy Corty. Of the approximately $722,000 dollars raised from investors, the couple allegedly misused the majority of the funds for their personal use. This flagrant disregard for the trust placed in them by investors highlights the devastating impact that fraud can have on individuals seeking to invest their money in legitimate ventures. It serves as a stark reminder of the need for thorough due diligence and skepticism when evaluating investment opportunities.
Investigation and Prosecution
Recognizing the severity of the allegations against Brian Keith Corty and Candy Corty, the investigation of this investment fraud scheme involved the Federal Bureau of Investigation (FBI). The FBI worked closely with investigators from the Alaska Department of Law to gather evidence and build a case against the defendants. Assistant U.S. Attorneys Ryan Tansey and Tom Bradley for the District of Alaska are spearheading the prosecution of the case, ensuring that justice is pursued for the victims of this fraudulent scheme.
Legal Process and Presumption of Innocence
It is important to remember that an indictment is merely an allegation and does not constitute guilt. Brian Keith Corty and Candy Corty, like all defendants, are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. The legal process allows for a fair and thorough examination of the evidence and gives the defendants an opportunity to present their case. Upholding the presumption of innocence is crucial to ensuring a just outcome.
Background of the Defendants
Brian Keith Corty and Candy Corty, both residents of Delta Junction, Alaska, are the individuals at the center of this investment fraud scheme. Although the indictment provides limited information about their personal backgrounds, it highlights their alleged involvement in the fraudulent activities carried out through Ice Fog Holdings. As the legal proceedings unfold, more details about the defendants and their motivations may come to light.
Description of Ice Fog Holdings, LLC
Ice Fog Holdings, LLC was the company established by Brian Keith Corty and Candy Corty to carry out their fraudulent scheme. The company claimed to be involved in various activities related to the medical and recreational marijuana markets. One of the main selling points of Ice Fog Holdings was its “Bud and Breakfast” concept, which aimed to provide tourists with a unique lodging experience centered around marijuana cultivation. Additionally, the company claimed to offer opportunities for northern lights viewing, further adding to its appeal as a potential investment opportunity.
False Claims and Misrepresentations
Brian Keith Corty and Candy Corty used false claims and misrepresentations to deceive investors and give the appearance of a successful and legitimate business endeavor. One of the key false claims made by the defendants was the assertion that Ice Fog Holdings was already generating income through contracts for security services. They also projected substantial sales figures, promising investors returns of 30 times their initial investment within a few years. To create further legitimacy, the defendants falsely represented that inspections by the Alaska Marijuana Control Office had taken place, implying that regulatory approval was imminent.
Investor Impact and Misappropriation
The impact on investors who fell victim to this investment fraud scheme cannot be understated. At least 22 individuals invested in Ice Fog Holdings, contributing a total of approximately $722,000 dollars to the venture. Unfortunately, the majority of this money was misappropriated by Brian Keith Corty and Candy Corty for their personal use. The financial losses suffered by the investors serve as a stark reminder of the importance of conducting thorough due diligence before investing and remaining vigilant for potential red flags.
Role of U.S. Attorney S. Lane Tucker
U.S. Attorney S. Lane Tucker of the District of Alaska has assumed the responsibility of announcing the charges and overseeing the prosecution of the case against Brian Keith Corty and Candy Corty. With an extensive background in law, U.S. Attorney Tucker brings the necessary expertise and commitment to justice to this complex case. By ensuring the fair and impartial pursuit of justice, U.S. Attorney Tucker plays a crucial role in holding the defendants accountable for their alleged actions.
Conclusion and Legal Disclaimer
In conclusion, the indictment of Brian Keith Corty and Candy Corty in relation to their investment fraud scheme demonstrates the devastating impact such schemes can have on unsuspecting investors. It serves as a reminder of the importance of thorough due diligence and skepticism when evaluating investment opportunities. It is crucial to remember that an indictment is merely an allegation, and the defendants are presumed innocent until proven guilty in a court of law. By upholding the presumption of innocence and allowing the legal process to unfold, justice can be sought and served for the victims of this fraudulent scheme.