Chandler Man Sentenced to 33 Months for Defrauding Investors

Chandler man sentenced to 33 months for defrauding investors. Learn about the fraudulent scheme that deceived victims of over $1.2 million.

On December 12, 2022, Jeffrey D. McHatton of Chandler, Arizona, was sentenced to 33 months in prison by United States District Judge Rosemary Márquez. McHatton, along with his co-defendants Robert Sproat and Robert Moss, were found guilty for their involvement in a scheme that defrauded investors of over $1.2 million. The defendants used a religious charitable organization as a front to deceive victims into investing in the recovery of lead, gold, and diamonds, despite none of these items ever being produced. The FBI and the Arizona Corporation Commission conducted the investigation, while the Financial Crimes and Public Corruption Section of the United States Attorney’s Office handled the prosecution.

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Case Background

Chandler Man Sentenced to 33 Months for Defrauding Investors

In a recent case that has attracted significant attention, Jeffrey D. McHatton, a 68-year-old man from Chandler, Arizona, has been sentenced to 33 months in prison by United States District Judge Rosemary Márquez. McHatton was found guilty by a jury on 10 counts of Securities Fraud. Another co-defendant, Robert Sproat, 60, of Mesa, Arizona, was previously sentenced to 30 months in prison, while a third co-defendant, Robert Moss, 56, of Gilbert, Arizona, pleaded guilty and was sentenced to 30 months in prison. These individuals were involved in a complex scheme that defrauded investors and targeted elderly victims.

Defendants and Sentences

Jeffrey D. McHatton

Robert Sproat

Robert Moss

Jeffrey D. McHatton, Robert Sproat, and Robert Moss were all involved in defrauding investors through their deceptive investment scheme. McHatton has been sentenced to 33 months in prison for his role in the fraud. Sproat and Moss received sentences of 30 months each. These individuals played key roles in promoting fraudulent investments and misusing funds for personal gain.

Scheme Details

Use of religious charitable organization

Targeting elderly victims

Promotion of fraudulent investments

The defendants utilized a religious charitable organization as a front to deceive and entice victims to invest over $1.2 million. One particularly alarming aspect of their scheme was the deliberate targeting of elderly individuals. Exploiting the trust and vulnerability of these victims, the defendants promoted fraudulent investments in the recovery of low alpha lead from Central America, gold from the Philippines, and diamonds from Africa. It is important to note that none of these supposed investments ever materialized.

Misuse of Funds

Personal use of investment funds

Lack of return on investments

In addition to their fraudulent investment scheme, McHatton, Sproat, and Moss were found to have misused a significant portion of the investment funds for their personal benefit. This selfish behavior further exacerbates the harm caused to their victims. Despite promises of high returns, the investors never saw a return on their investments apart from minimal “interest” payments that were derived from the money of other victims.

Investigation and Prosecution

FBI and Arizona Corporation Commission involvement

Role of the Financial Crimes and Public Corruption Section

The investigation into this case was led by the Federal Bureau of Investigation (FBI) and the Arizona Corporation Commission. These agencies worked diligently to uncover the extent of the defendants’ fraudulent activities and gather the necessary evidence for prosecution. The Financial Crimes and Public Corruption Section of the United States Attorney’s Office, District of Arizona, Tucson, played a crucial role in prosecuting McHatton, Sproat, and Moss. Their expertise in handling cases of this nature ensured that justice was served.

Case Number and Release


2022-224_McHatton et al.

This case is officially identified as CR-18-2220-TUC-RM. The release number associated with it is 2022-224_McHatton et al. These references allow for easy identification and retrieval of case-related information.

U.S. Attorney’s Office

District of Arizona

Contact Information

For more information on the U.S. Attorney’s Office, District of Arizona, individuals can visit the official website at This website serves as an authoritative source of information regarding the office’s operations and initiatives. For specific inquiries or concerns, interested parties can contact the U.S. Attorney’s Office using the provided contact information.

Related Content

Press Release: Law Enforcement Disrupts Networks Used to Transfer Fraud Proceeds

Press Release: Arizona Licensed Insurance Agent Charged with Scheme to Defraud Elderly Clients

Press Release: Tucson Couple Sentenced to 5 Years for Stealing $5 Million from Investors

This case is not isolated, as there have been other instances of fraudulent activities and financial crimes. In a recent press release, law enforcement agencies announced their successful disruption of networks used to transfer fraud proceeds. This highlights the ongoing efforts to combat financial fraud and protect innocent victims. Additionally, another press release documented the charges brought against an Arizona licensed insurance agent for her involvement in a scheme to defraud elderly clients. Furthermore, a Tucson couple received a severe punishment of 5 years in prison for stealing $5 million from investors.

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District of Arizona Information

Main Office

Contact Information

The U.S. Attorney’s Office for the District of Arizona is headquartered in the Main Office located at Two Renaissance Square, 40 N. Central Avenue, Suite 1800, Phoenix, AZ 85004. This office serves as the central hub for the office’s operations and supports its mission of upholding justice and prosecuting offenders. For inquiries or assistance, individuals can reach out to the U.S. Attorney’s Office using the provided contact information.

Stay Connected


To stay updated on the latest news and developments from the U.S. Attorney’s Office, District of Arizona, interested individuals can follow their official Twitter account @USAO_AZ. By following this account, members of the public can access real-time information, press releases, and other relevant updates.

In conclusion, the case involving Jeffrey D. McHatton and his co-defendants serves as a glaring example of the devastating consequences of securities fraud. Through their deceptive investment scheme, these individuals exploited elderly victims and misused investor funds for personal gain. The diligent efforts of law enforcement agencies and the U.S. Attorney’s Office led to their arrest, prosecution, and subsequent sentencing. This case underscores the importance of investigating and prosecuting financial crimes to protect investors and maintain the integrity of the financial system.

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