(EL PASO COUNTY, Colo.) — A Colorado man has been sentenced to 12 years in community corrections and ordered to pay over $3.5 million in restitution after pleading guilty on fraud charges. According to Colorado Attorney General (AG) Phil Weiser's Office, 55-year-old Tra Jay Scarlett pleaded gui lty to third degree felony securities fraud in connection to a scheme in which he cheated investors out of over $3.7 million. The AG's Office said Scarlett's scheme involved a multitude of businesses and employees that misrepresented – or blatantly omitted – key information to prospective investors. This included falsifying financial statements, faking contracts with sports drink companies, and using funds for personal expenses rather than the reported business needs. “Investment fraud can destroy entire families and futures,” said Weiser. “Holding fraudsters accountable for this type of serious financial theft is key to protecting the public and preventing similar crimes from happening down the road.” Under a business called “Chatfield PCS, Ltd,” Weiser said Scarlett raised capital from approximately 34 investors for a second company, “GO ECO Manufacturing, Inc” from February 2016 to January 2021. GO ECO was purportedly founded to provide ecological packaging and bottle services to corporate clients, promising investors that their money would generate 15-20% in annual returns. Weiser said not only did GO ECO not provide bottling or packaging services, but it also didn’t generate any revenue during this time. Pitched as a low-risk, high-reward investment that came with share certificates for their contributions, Scarlett told investors GO ECO already had “strategic partnerships” with drink manufacturers and commercial clients. Making his business seem like a guarantee for investment profit, Scarlett spent five years making fraudulent sales of securities to investors, never once mentioning any of the actual risks associated with their investments. Investment scams all have telltale signs, with the common theme of promising massive returns that are exponential in comparison to your investment. For more information on how to spot these investment scams, or to file a complaint about a suspected investment scam, visit StopFraudColorado.gov. ...read more read less