David A. Shelofsky, 53, of West Linn, Oregon, is headed to federal prison for 70 months after swindling millions from investors through a web of lies involving fake real estate developments, a nonexistent hemp seed empire, and a bogus precious metals mining operation. The self-styled entrepreneur posed as a high-flying developer and agribusiness magnate, spinning elaborate tales of profit and progress—all of it fabricated to siphon cash into his own pockets.
Court documents reveal that beginning in 2013, Shelofsky launched multiple investment fraud schemes across Oregon, falsely claiming to operate successful real estate projects in Bend and West Linn, and a thriving hemp seed cultivation and distribution business. He dangled promises of big returns, all backed by nonexistent collateral and fictional success. In reality, the ventures were hollow shells, their supposed productivity nothing more than smoke and mirrors designed to lure in unsuspecting individuals looking for unconventional opportunities.
Shelofsky also co-founded a so-called precious metals mining venture that claimed to use a proprietary method to extract gold and silver from sand tailings. While minimal efforts were made to launch the operation, Shelofsky repeatedly misled investors about its progress, using fake updates and forged documentation to maintain the illusion. He hired a lawyer to draft misleading legal papers and an assistant to open bank accounts under the names of shell LLCs, further legitimizing his fraud in the eyes of victims—many of whom had deep ties to Oregon communities.
Investor funds weren’t funneled into development or research—they bankrolled Shelofsky’s lavish lifestyle. Luxury expenses, personal bills, and high-end living were all paid for with money ripped from the life savings of dozens of individuals. The damage is measured not just in dollars—millions lost—but in shattered trust and broken financial futures for those who believed Shelofsky’s golden promises.
“David Shelofsky tried every possible ploy to trick investors out of their money, and, unfortunately, was quite successful in doing so,” said Scott Erik Asphaug, Acting U.S. Attorney for the District of Oregon. The FBI and IRS Criminal Investigation pursued the case relentlessly. “Victim investors—most of whom have ties to Oregon—lost millions while their money funded Shelofsky’s lavish lifestyle,” said Kieran L. Ramsey, Special Agent in Charge of the FBI in Oregon.
Shelofsky was charged by criminal complaint on June 5, 2020, with wire fraud and money laundering. A 17-count indictment followed on October 20, 2020. He pleaded guilty on August 26, 2021. A restitution hearing is scheduled for January 7, 2022, before U.S. District Court Judge Michael H. Simon. Assistant U.S. Attorney Claire M. Fay prosecuted the case, with Assistant U.S. Attorney Katie DeVilliers serving as forfeiture counsel. Federal authorities vow to keep targeting fraudsters who prey on hardworking Americans.
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Key Facts
- State: Oregon
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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