Few’s Investment Scheme Exposed: Frew’s Web of Deceit
A 70-year-old former Bay Area resident, Michael James Frew, has been indicted on charges of wire fraud, mail fraud, and money laundering in a brazen investment scheme that left numerous victims reeling in California.
According to the indictment, Frew solicited investments from numerous individuals, promising them that their money would be invested into real estate in the United States and abroad. However, instead of investing the funds as he promised, Frew used the money to support his personal lifestyle, speculate on the stock market, and repay other victims a portion of their investments.
The indictment alleges that Frew convinced his victims to transfer money to him under false pretenses, claiming that he would make investments in foreign real estate, particularly in areas affected by natural disasters. One couple, for instance, transferred $380,000 in cash to Frew for a 10% return on a short-term investment. However, instead of investing the money as promised, Frew used it to fund his personal expenses and speculate on the stock market.
The indictment describes similar transactions between Frew and four other victims during the period 2010-2014. Frew faces two counts each of wire fraud, mail fraud, and money laundering. If convicted, he faces a maximum sentence of 20 years’ imprisonment on each count of wire fraud and mail fraud, and 10 years’ imprisonment on each count of money laundering. In addition, Frew faces fines of $250,000 on each count and restitution for the losses he is alleged to have caused.
Frew was arrested in Beatty, Nevada, on July 26, 2018, and made his initial appearance in United States District Court in Las Vegas, Nevada, where he was released on certain conditions, including the surrender of his passport. A local initial appearance in San Francisco is scheduled for August 21, 2018, before U.S. Magistrate Judge Jacqueline Scott Corley.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. However, the severity of the charges and the brazen nature of the scheme suggest that Frew’s web of deceit may finally be unraveling.
The case is being prosecuted by Assistant U.S. Attorney Robert David Rees with assistance from Bridget Kilkenny. The investigation was conducted by the Federal Bureau of Investigation and the IRS-CI.
Key Facts
- State: California
- Category: White Collar Crime|Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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