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Investment Advisor Indicted for Defrauding Investors in Minnesota
Sean Meadows, a 41-year-old investment advisor from Eden Prairie, Minnesota, has been indicted for operating a Ponzi scheme that defrauded investors out of over $10 million.
According to the indictment, Meadows used his financial planning and asset management firm, Meadows Financial Group (MFG), to solicit investments from clients in Minnesota, Indiana, Arizona, and elsewhere. The victims were promised high rates of returns, up to 10 percent annually, but in reality, Meadows did not invest their funds and did not have a legitimate means by which to make interest payments.
Instead, Meadows used funds from new investors to make payments to existing investors, a classic hallmark of a Ponzi scheme. The indictment alleges that Meadows made payments to one victim of over $500,000, which was actually comprised of newly invested funds from other victims.
Meadows used the illicit proceeds of the Ponzi scheme to pay personal expenses, including making ‘salary’ payments to himself, paying expenses on personal investment properties, and spending over $100,000 at adult entertainment establishments in Minnesota and Las Vegas.
U.S. Attorney Andrew M. Luger praised the work of the Minnesota Department of Commerce Fraud Bureau, the United States Postal Inspection Service, and the Internal Revenue Service-Criminal Investigation Division for their assistance with the investigation.
The case is being prosecuted by Assistant U.S. Attorney Benjamin Langner. Meadows faces charges of Mail Fraud, Wire Fraud, and Money Laundering. He is presumed innocent unless and until proven guilty.
Key Facts
- State: Minnesota
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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