Fraudster Sentenced To 51 Months In Prison For Running Ponzi Scheme

United States Attorney for the Southern District of New York, Jay Clayton, announced today that MATTHEW MELTON was sentenced to 51 months in prison for committing securities fraud by running a Ponzi scheme. MELTON pled guilty in April 2026 to securities fraud before U.S. District Judge Arun Subramanian, who imposed today’s sentence. “Matthew Melton sold investors on a sophisticated trading strategy and guaranteed extraordinary returns,” said U.S. Attorney Jay Clayton. “In reality, the supposed algorithm did not exist, and he used investor money to fund his lifestyle and sustain his scheme before fleeing the country. Our Office and our partners are committed to holding financial fraudsters personally accountable, and if you defraud our retail investors, we will bring you to justice. In the past 18 months, our Office has criminally charged 27 CEOs and corporate leaders with fraud, charged 12 individuals with insider trading, and doubled the number of insider trading investigations year over year.” According to the Indictment and statements made in public filings and public court proceedings: MELTON promoted an investment vehicle he called “Price Physics,” which purported to invest in futures contracts using a proprietary trading algorithm. He promised investors guaranteed returns of up to 12% per month, of which he said he would keep only 2% as compensation. In reality, there was no proprietary trading algorithm, and MELTON invested almost none of the millions of dollars he raised in the manner promised to investors. The few times that MELTON did make trades, it was not in futures contracts, and the trading was generally unprofitable. For the most part, instead of trading, MELTON used his investors’ money to pay his personal expenses—including mortgage payments and sailing excursions—and to pay earlier investors in Ponzi-like fashion. On approximately December 15, 2020, MELTON received word of a criminal investigation. Four days later, MELTON fled the United States and stopped using his email account, credit cards, bank accounts, and phone number, and soon after, MELTON soon stopped communicating with investors. MELTON remained at large for the next three years, until he was apprehended by law enforcement in October 2023, while he was traveling through the United Kingdom. MELTON was extradited back to the United States in December 2025. * * * In addition to the prison term, MELTON, 62, of Boulder, Colorado, was ordered to pay restitution, in an amount to be determined within 90 days, and forfeiture in the amount of $3,756,135, representing proceeds from his illegal scheme. Mr. Clayton praised the outstanding work of the Federal Bureau of Investigation. Mr. Clayton also expressed appreciation for the assistance of the U.S. Securities and Exchange Commission. This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Special Assistant U.S. Attorney Michael S. DiBattista is in charge of the prosecution.