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Brian Corty, 53, Sentenced to 2 Years for ‘Bud and Breakfast’ Fraud Scheme
A Delta Junction man was sentenced to two years in prison and is required to pay over $580,000 in restitution for running a years’ long scheme to defraud nearly two-dozen investors out of over $600,000.
According to court documents, from January 2017 to January 2020, Brian Corty was the organizer and manager of a conspiracy to use false and fraudulent claims to gain investments for a potential business and use the investments for personal gain.
As part of the scheme, Corty sold investors units in Ice Fog Holdings LLC to raise capital for a ‘Bud and Breakfast’ which was described as a marijuana theme park, where they would grow, cultivate and sell marijuana, and allow customers to use marijuana on site.
Corty purchased a building on the Richardson Highway near Salcha, Alaska, as the proposed location of the business. Corty falsely told investors that they were already growing marijuana and generating income and that the business would make millions of dollars in annual sales.
Based on these misrepresentations, at least 22 people invested over $600,000 into the fraudulent scheme and the defendant used the money for personal gain, including to refinance his home and pay off debt.
Corty pleaded guilty in January to one count of conspiracy to commit wire fraud.
“Mr. Corty manipulated unknowing investors by promising millions in proceeds and used their money for his personal gain,” said U.S. Attorney S. Lane Tucker for the District of Alaska. “Ensuring that white collar criminals, like Mr. Corty, are held accountable is a priority for my office.”
“Mr. Corty lured investors with promises of prosperity and guaranteed returns, when in truth, he diverted the investor money to fund his own lifestyle,” said Special Agent in Charge Rebecca Day of the FBI Anchorage Field Office.
The FBI Anchorage Field Office, Fairbanks Resident Agency, with assistance from the Alaska Department of Law, investigated the case.
Assistant U.S. Attorneys Tom Bradley and Ryan Tansey prosecuted the case.
Key Facts
- State: Alaska
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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