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Commission Finds Former Arizona Man Preyed Upon Investors with Multimillion-Dollar Investment Scheme

The Corporation Commission ordered former Arizona resident Frederick Arias to pay $9,075,000 in restitution and a $135,000 administrative penalty for defrauding investors with a multimillion-dollar investment scheme. 

In its default order, the Corporation Commission found Arias falsely represented to investors in “The Joseph Project” that their proceeds would be used for after-hours trading that would generate profits for the investors and for religious and humanitarian projects. The Commission also found Arias falsely represented to investors that the investment was totally safe. However, the Commission found most of the investor funds were misappropriated.

To date, none of the investors have received their promised returns. In June 2019, the state of Arizona indicted Arias on seventeen felony counts relating to this unlawful conduct. Mr. Arias was subsequently arrested in the state of Washington, posted bond, but failed to appear at his extradition hearing.

All documents relating to this agenda item can be found in the Corporation Commission's online docket at https://edocket.azcc.gov and entering docket number S-21125A-20-0294.

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Arizona Corporation Commission

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