AZ Trio Jailed for $1.2M Investment Scam

Chandler resident Jeffrey McHatton is headed to federal prison for 33 months after a jury convicted him of masterminding a brazen investment scheme that fleeced victims out of more than $1.2 million. McHatton, 68, along with co-conspirators Robert Sproat, 60, of Mesa, and Robert Moss, 56, of Gilbert, preyed on investors with false promises of riches from recovered metals – riches that never existed.

Federal prosecutors secured convictions against all three men. Sproat and Moss each received 30-month sentences, capping a case that exposed a calculated effort to steal life savings. The scheme relied on a religious charitable organization as a deceptive front, masking the true intent: to line the pockets of the perpetrators. Judge Rosemary Márquez handed down the sentences on December 12, 2022, in Tucson federal court.

The con centered around bogus investments in the recovery of “low alpha lead” from Central America, gold from the Philippines, and diamonds sourced from Africa. The pitch was simple: invest now, and reap massive returns. But the reality was far different. No lead, gold, or diamonds were ever recovered. Instead, the money flowed directly into the personal accounts of McHatton, Sproat, and Moss.

Investigators discovered the trio specifically targeted elderly victims, exploiting their trust and vulnerability. They dangled the promise of financial security, knowing these individuals were often less likely to question the legitimacy of the investment. Investors received minimal “interest” payments, but these were simply recycled funds from newer victims, a classic hallmark of a Ponzi scheme.

The FBI and the Arizona Corporation Commission teamed up to unravel the complex web of lies and financial transactions. Agents traced the stolen funds and gathered evidence proving the scheme was a deliberate fraud. The Financial Crimes and Public Corruption Section of the U.S. Attorney’s Office for the District of Arizona then built a rock-solid case, ultimately leading to the guilty verdicts and prison sentences.

This wasn’t just about money; it was about trust betrayed. The feds say McHatton, Sproat, and Moss didn’t just steal funds, they stole peace of mind from vulnerable individuals. The case, identified as CR-18-2220-TUC-RM, serves as a stark warning: those who prey on others for personal gain will face the consequences. Release number 2022-224_McHatton et al.

The investigation continues to look at any potential assets that can be seized and returned to the victims, though recovering the full $1.2 million is considered unlikely. Federal officials urge anyone who believes they were a victim of this scheme to contact the FBI’s Phoenix field office.

The sentences handed down represent a significant victory for the Arizona Corporation Commission and the FBI, demonstrating a commitment to protecting citizens from financial predators. The U.S. Attorney’s Office confirmed they will pursue all available avenues to hold accountable anyone involved in similar fraudulent schemes.