United States of America v. Michael Andrew Scott

Sacramento, California criminal defense lawyer represented the Defendant charged with Fraud in Connection with Medical Device Sales

Sacramento County Man Sentenced to 33 Months in Prison for Fraud in Connection with Medical Device Sales

.Michael Andrew Scott, 38, of Fair Oaks, was sentenced by Senior U.S. District Judge Kimberly J. Mueller to 33 months in prison for fraud in connection with a medical device sales scheme, Acting U.S. Attorney Michele Beckwith announced. In addition, Scott was ordered to pay $376,044 in restitution to his victims.



According to court documents, between June 2018 and June 2022, Scott devised a scheme to defraud investors in his company, Trusted Medical Partnership. Scott told investors that either he or Trusted Medical Partnership received purchase orders from health care providers for medical devices but lacked the capital to fulfill the orders. Scott solicited and obtained loans from these investors, and, in exchange, promised them substantial returns in a relatively short time with zero risk.



In reality, Scott's representations to these prospective investors were false because Scott did not have purchase orders from health care providers. To some of his victims, Scott sent purchase orders that he had doctored or fabricated in order to convince them to lend money. The health care providers listed on these purported purchase orders confirmed that the orders were fake altogether or altered to reflect inflated amounts or other false information. Trusted Medical Partnership was not a legitimate business — while incorporated in the State of California, it conducted no legitimate business transactions, paid no taxes, submitted no wage or employment-related records, and was suspended in December 2021 before Scott solicited investments on its behalf from some of his victims.



Scott's victims lent him money on the basis of his false statements, including the fraudulent purchase orders, but received little to no returns on their investments. Instead, Scott spent the money on gambling at several local casinos (sometimes the same day he received the victims' money), personal expenses, or payments to other, prior investors in order to keep the scheme running. Collectively, Scott defrauded at least 16 victims of almost $470,000.



This case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Dhruv M. Sharma prosecuted the case.