Rexburg man pleads guilty to wire fraud
A Rexburg day-trader pleaded guilty Tuesday to wire fraud and engaging in illegal monetary transactions, according to U.S. Attorney Wendy J. Olson.
Under a plea agreement, Michael Justin Hoopes, 41, admitted he engaged in a scheme to defraud investors in various investment opportunities from 2007 through February 2011. During that time, Hoopes received more than $9 million from investors and spent $620,000 for personal use. Contrary to monthly account statements showing positive returns, he lost most of the money in day trading and other failed investments.
According to Olson, Hoopes solicited investors to provide him with capital he said he would use in commodities future day trading activities and to invest in Connected Lyfe, a publicly traded company.
Hoopes did not invest all of the capital he received and used much of it for personal expenses. According to Olson, Hoopes paid “positive” returns to existing investors from the capital raised from new investors.
Hoopes will appear for sentencing before U.S. District Judge Edward Lodge on May 12 at the federal courthouse in Pocatello.
The charge of wire fraud is punishable by up to 20 years in prison, a maximum fine of $250,000, and up to three years of supervised release. The charge of engaging in monetary transactions in property derived from specified unlawful activity is punishable by up to 10 years in prison, a maximum fine of $250,000, and up to three years of supervised release.
