United States of America v. Dakota A. Smith

Memphis, Tennessee criminal defense lawyers represented the Defendant charged with attempt and conspiracy to commit mail Fraud.

Reported by Kent Morlan

Dakota Smith, age 35, and his co-conspirator defrauded investors by misrepresenting to them that PEG owned small, profitable companies in e-commerce and aviation. Smith solicited investments based on promises that the investors would obtain ownership interests in the companies owned by PEG and its affiliated entities. In fact, Smith and his co-conspirator knew that neither PEG nor its affiliated entities had any ownership interest or control over the companies it marketed.

As a part of the fraudulent scheme, Smith presented fraudulent financial documents which purportedly showed the financial success of the acquired companies while on monthly video calls with investors located across the United States, including investors in West Tennessee and abroad.

On May 8, 2026, Chief United States District Judge Sheryl H. Lipman sentenced Smith to 188 months of imprisonment and three years of supervised release. Restitution was left open for a period of 90 days to continue allowing victims to make claims. There is no parole in the federal system.

U.S. Attorney D. Michael Dunavant said: "Ponzi schemes and crimes of dishonesty will be rooted out and punished. This sentence holds this thief accountable for his deceptive criminal scheme, protects investors, and will recover ill-gotten proceeds on behalf of victims.”

“Dakota Smith and his co-conspirator defrauded innocent victims through false promises of protected investments and guaranteed returns,” said Special Agent in Charge Terence G. Reilly of the FBI Nashville Field Office. “These schemes not only steal hard-earned money, but also erode the financial security and trust of victims and their families. The FBI will continue to work with our law enforcement, private sector, and international partners to protect the public’s investments and hold accountable those who facilitate these scams for their own gain.”

The case was investigated by the Federal Bureau of Investigation (FBI).

Assistant United States Attorney Scott P. Smith prosecuted this case on behalf of the government.

The Defendant was found guilty and was sentenced to 188 months, followed by 3 years of supervised release with special conditions including: prohibition of alcohol purchase, possession, or use, with testing and treatment as directed; prohibition from opening new lines of credit without approval; providing access to all financial information; submission to third-party risk notification; and participation in mental health assessment and counseling as directed. A special assessment of $100.00 was ordered due immediately, and restitution remains open for 90 days.