FAIRBANKS, Alaska (KTVF) – A man in Delta Junction was sentenced on Friday to two years in prison for running a year long scheme to defraud an estimated 24 investors out of over $600,000.
Brian Corty, 53-year-old organizer of a conspiracy to use fraudulent claims to gain investments for business and used them for personal gain. According to court documents, from January 2017 to 2020, Corty sold investors units in Ice Fog Holdings LLC for private equity for “Bud and Breakfast” which was described as a marijuana theme park. His idea for this park involved growing, cultivating then selling the marijuana to patrons of the park for them to smoke on site.
Corty actually bought a building near Salcha for the location of for “Bud and Breakfast”. He lied to investors, saying they were already growing the marijuana and receiving a steady stream of income and that the business was projected to make millions of dollars in annual sales.
This resulted in at least 22 investors putting in over $600,000 into Corty’s fraud scheme. He used the thousands of dollars to pay off his personal debt and refinance his home.
He pleaded guilty in January to one count of conspiracy to commit wire fraud. He also has to serve three years of supervised release as a part of his two year prison sentence.
“Mr. Corty manipulated unknowing investors by promising millions in proceeds and used their money for his personal gain,” said U.S. Attorney S. Lane Tucker for the District of Alaska.
“Ensuring that white collar criminals, like Mr. Corty, are held accountable is a priority for my office. No one is above the law. We will continue to work with our law enforcement partners to pursue prosecutions against individuals who choose to exploit unknowing victims through fraudulent means.” Tucker added.
Mr. Corty lured investors with promises of prosperity and guaranteed returns, when in truth, he diverted the investor money to fund his own lifestyle,” said Special Agent in Charge Rebecca Day of the FBI Anchorage Field Office. “Those who engage in fraudulent schemes at the expense of others will be investigated and held accountable.”
The FBI Anchorage Field Office, Fairbanks Resident Agency, with assistance from the Alaska Department of Law, investigated the case.
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