Kansas City man Ryan Scott Luscombe, 45, was convicted today on six federal counts after a jury found him guilty of running a near-half-million-dollar investment fraud scheme through his unregistered company, Five Star Trading Group, Inc. After a two-day trial in U.S. District Court, the jury deliberated just over two hours before delivering a unanimous verdict on all counts: three of wire fraud, two of mail fraud, and one of money laundering.
Luscombe lured investors by falsely claiming he was a successful day trader with years of experience and a track record of generating millions. He promised low-risk, high-return stock trading opportunities, telling victims he would use their funds to capitalize on market trends. In reality, none of the $483,482 collected from investors in 2013, 2014, and 2015 went toward trading or returns—every dollar was funneled into Luscombe’s personal lifestyle.
Court evidence revealed Luscombe spent investor money on luxury items and indulgences, including a 2010 BMW 750I and a trip to Bermuda. Other expenditures included $83,088 in cash withdrawals, $78,542 at retail stores, $67,990 on restaurants and entertainment, and $52,925 on vehicle costs. He also spent $45,940 on travel, $41,058 on rent and utilities, $39,673 covering trading losses and fees, and $21,144 on nutrition, fitness, and beauty services—all while never disclosing these uses to investors.
Luscombe further manipulated victims by fabricating a fictitious $50 million trading operation supposedly funded by three wealthy investors in Arizona. He claimed he needed assistants and offered to train individuals—for a fee—using his proprietary strategy. He then allowed select friends and family to ‘piggyback’ on the fake portfolio, deepening the illusion of legitimacy. Regular updates from Luscombe falsely reported strong returns, keeping victims in the dark as their money vanished.
At no point were investors informed that their funds would cover Luscombe’s salary or personal expenses. They never authorized such use. Federal records confirmed Luscombe was not registered with the Financial Industry Regulatory Authority, nor was Five Star Trading Group registered with the Missouri Secretary of State’s Securities Division—clear red flags ignored by no oversight, exploited by the defendant.
The conviction was announced by Timothy A. Garrison, United States Attorney for the Western District of Missouri. Luscombe now faces significant prison time under federal sentencing guidelines. No restitution has been paid to date. Sentencing is scheduled for a later date before U.S. District Judge Roseann Ketchmark.
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Key Facts
- State: Missouri
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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