The former CEO and majority owner of a hedge fund was sentenced to 100 months in federal prison after pleading guilty to stealing $39 million from investors via wire fraud.
Andrew H. Middlebrooks, the former majority owner, chief investment officer, and portfolio manager of EIA All Weather Alpha Fund 1 Partners, lost over $34 million that belonged to 97 investors.
Middlebrooks, 33, solicited clients for EIA by telling them he was able to exploit “inefficiencies” in global equity markets which would result in large returns for investors. But the EIA’s fund failed to produce the predicted returns and suffered catastrophic losses.
Middlebrooks also created and distributed false documents claiming that EIA’s performance was exceptional. In Fall 2019, he falsely claimed that EIA’s track record included a cumulative return of 476.81% with 81.82% of monthly trading showing a profit.
Eventually, Middlebrooks’ scheme collapsed.
“This financial charlatan used sophisticated methods and a complex web of deception to trick unsuspecting victims into trusting him with their money,” United States Attorney Jerome F. Gorgon Jr. said in a statement. “Con artists like this will be prosecuted to the full extent of the law."
The Department of Justice posted on X.
"Detroit Investment Fund Owner Sentenced to 100 Months in Prison in $39 Million Wire Fraud Scheme to Defraud Investors. Read more: https://justice.gov/usao-edmi/pr/detroit-investment-fund-owner-sentenced-100-months-prison-39-million-wire-fraud-scheme"
Detroit Investment Fund Owner Sentenced to 100 Months in Prison in $39 Million Wire Fraud Scheme to Defraud Investors. Read more: https://t.co/ZuL7dcEbzQ pic.twitter.com/vJtQMzaQL6
— FBI Detroit (@FBIDetroit) August 19, 2025
Gorgon was joined in the announcement by Reuben Coleman, Acting Special Agent in Charge of the Federal Bureau of Investigation.
"The sentencing of Andrew Middlebrooks underscores the significance of white-collar crimes and the lasting harm they impose on hard-working Americans” said Reuben Coleman, Acting Special Agent in Charge of the FBI Detroit Field Office. "White-collar crimes threaten the integrity of our financial systems and undermine the trust and security of communities. The FBI in Michigan will continue to investigate those who violate federal laws and ensure they are held accountable."
Consumers reported losing more than $12.5 billion to fraud in 2024, a 25% increase over the prior year, according to Federal Trade Commission data released in March. Nearly half of that amount, $5.7 billion, was lost to investment scams.
“The data we’re releasing today shows that scammers’ tactics are constantly evolving,” said Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection. “The FTC is monitoring those trends closely and working hard to protect the American people from fraud.”
The FTC received fraud reports from 2.6 million consumers last year. Criminals often pretend to be a local government, utility worker, or law enforcement officer. People reported losting $789 million in 2024 to government imposter scams in 2024.
The agency displays it's fraud reports here. The dashboard provides data by state and metropolitan areas.