Scottsdale Man Convicted of Investment Fraud

In a recent development, a Scottsdale man named David Allen Harbour has been convicted of investment fraud. Last week, Harbour was found guilty by a federal jury on six counts of Wire Fraud and 11 counts of Transactional Money Laundering. Harbour, who acted as a self-styled investment advisor, defrauded numerous victims between 2007 and 2021, resulting in a total loss of over $20 million. Harbour’s extravagant expenditures, including private jet travel, luxury hotel stays, and a private concert by the Eagles for his 40th birthday, were funded by the diverted investments. Sentencing is scheduled for June 5, 2023, before United States District Judge Douglas L. Rayes. This case demonstrates the commitment of the U.S. Attorney’s Office to deterring investment fraud and holding wrongdoers accountable for their actions.

Table of Contents

Overview

Investment fraud is a serious crime that can cause significant financial harm to victims. In a recent case, David Allen Harbour, a 49-year-old man from Scottsdale, Arizona, was found guilty of investment fraud by a federal jury. Harbour acted as a self-styled investment advisor and defrauded numerous victims between 2007 and 2021. The total loss to investors exceeded $20 million, which Harbour used to fund his extravagant lifestyle. Harbour’s sentencing is scheduled for June 5, 2023, before United States District Judge Douglas L. Rayes. This article will provide an overview of the case against Harbour, the investigation agencies involved, the prosecution team, and the impact on the victims.

Background

David Allen Harbour, a resident of Scottsdale, Arizona, was the mastermind behind a long-running investment fraud scheme. For a duration of 14 years, from 2007 to 2021, Harbour deceived numerous individuals and caused significant financial losses. The amount of loss incurred by the victims exceeded $20 million, marking the magnitude of Harbour’s fraudulent activities.

Harbour’s Activities

Harbour presented himself as an investment advisor, offering financial advice and promising lucrative returns on investments. However, his claims were nothing more than a facade to attract unsuspecting victims. Harbour utilized various methods of fraud, including misrepresentations, false promises, and manipulation of financial data. He created an elaborate scheme to divert funds from investors’ accounts for personal use while hiding the truth about the whereabouts of their investments. Instead of the promised returns, victims were left with substantial financial losses.

To maintain his extravagant lifestyle, Harbour spent the diverted funds on indulgent expenditures. Some of these lavish expenses included private jet travel, country club memberships in Arizona, Coeur d’Alene, Idaho, and Cabo San Lucas, Mexico, million-dollar speedboats, stays at luxury hotels, expensive jewelry, and even a private 40th birthday concert by the Eagles. Harbour’s disregard for the financial well-being of his victims is evident in his extravagant and selfish lifestyle choices.

Legal Proceedings

Following a thorough investigation, David Allen Harbour was found guilty by a federal jury on six counts of Wire Fraud and 11 counts of Transactional Money Laundering. In a separate development, Harbour pleaded guilty to one count of Tax Evasion, resolving two pending trials that were scheduled for later this month. The guilty verdict on multiple charges highlights the extent of Harbour’s fraudulent activities and the severity of the crimes he committed.

The upcoming sentencing on June 5, 2023, will determine the consequences Harbour will face for his actions. United States District Judge Douglas L. Rayes will preside over the proceedings and assess the appropriate punishment for Harbour’s crimes. This sentencing is a crucial step towards achieving justice for the victims and holding Harbour accountable for his fraudulent actions.

Law Enforcement Efforts

The investigation into David Allen Harbour’s investment fraud scheme was a collaborative effort between the Internal Revenue Service Criminal Investigation and the Federal Bureau of Investigation. These two federal law enforcement agencies worked diligently to uncover the evidence necessary to prosecute Harbour and bring him to justice. Their expertise and dedication to the case were instrumental in securing a guilty verdict and building a strong case against Harbour.

Prosecution Team

The prosecution of David Allen Harbour was led by Assistant United States Attorneys Kevin M. Rapp and Coleen Schoch from the District of Arizona. These experienced attorneys have extensive knowledge and expertise in prosecuting financial crimes. Their dedication to seeking justice for the victims of Harbour’s fraud and their commitment to holding wrongdoers accountable is commendable.

Assistant United States Attorney Kevin M. Rapp played a crucial role in presenting the case against Harbour to the federal jury. He effectively argued the evidence and convincingly demonstrated Harbour’s guilt. Assistant United States Attorney Coleen Schoch also contributed significantly to the prosecution efforts, ensuring that Harbour faced the consequences of his fraudulent actions. The collaboration between the prosecutors and law enforcement agencies highlights the importance of a coordinated approach to combatting investment fraud.

Impact on Victims

The investment fraud scheme orchestrated by David Allen Harbour had a significant impact on a large number of victims. The exact number of victims has not been disclosed publicly, but it is known that the total loss to investors exceeded $20 million. These individuals trusted Harbour to handle their investments and provide them with a secure financial future. Instead, they were left devastated and financially harmed by his fraudulent activities.

Efforts are currently underway to recover the funds lost by the victims. While the process of recovering stolen assets can be challenging, the combined efforts of law enforcement agencies and legal authorities will continue until every avenue has been explored. The victims deserve justice, and every effort will be made to ensure that Harbour’s ill-gotten gains are returned to their rightful owners.

Importance of Accountability

The conviction of David Allen Harbour serves as a powerful deterrent against investment fraud. By holding Harbour accountable for his crimes, the justice system sends a clear message that fraudulent activities will not be tolerated. This case serves as a warning to others who might contemplate engaging in similar fraudulent schemes. The potential consequences of significant financial losses, severe legal penalties, and the destruction of one’s reputation are significant deterrents to would-be fraudsters.

Accountability is also crucial for the protection of individuals’ financial security. Investment fraud can have devastating consequences for victims, who may lose their life savings or face significant financial hardship as a result. By prosecuting individuals like Harbour, law enforcement and prosecutors send a message that they are committed to safeguarding citizens’ financial well-being. This commitment is vital in maintaining trust in the financial system and protecting individuals from falling victim to fraudulent schemes.

Conclusion

The case against David Allen Harbour highlights the grave consequences of investment fraud. Harbour’s actions caused significant financial harm to numerous victims, diverting over $20 million for personal use. The guilty verdict and upcoming sentencing send a clear message that fraudulent activities will be met with severe legal consequences.

The collaborative efforts of the Internal Revenue Service Criminal Investigation and the Federal Bureau of Investigation were instrumental in uncovering Harbour’s fraudulent activities and building a strong case against him. The prosecution team, led by Assistant United States Attorneys Kevin M. Rapp and Coleen Schoch, demonstrated their commitment to seeking justice for the victims and deterring future investment fraud.

The impact on the victims cannot be understated, as they suffered substantial financial losses. However, efforts are being made to recover the stolen funds and provide some relief to the victims. Ultimately, accountability in cases of investment fraud is crucial to protecting citizens’ financial security and maintaining trust in the financial system.