Colorado Resident Admits Guilt and Receives Sentence for Massive Investment Fraud

From the Rockies to Ruin: A Coloradan’s Con

A Colorado guy, Tra Jay Scarlett, threw a real curveball by swindling over $3.7 million from investors. What was he thinking, operating this sketchy scheme from February 2016 to January 2021? The charade involved a supposed eco-friendly business called “Chatfield PCS, Ltd.” But this week, justice caught up with him.

A Scheme Unraveled

On Wednesday, Scarlett was hit with a 12-year sentence in community corrections for third-degree felony securities fraud. On top of that, he’s got a hefty tab to pick up: more than $3.6 million in restitution to his bamboozled investors.

During the scheme, about 34 investors put their cash into another fraudulent venture, “GO ECO Manufacturing, Inc.” Scarlett spun tales about it being a sustainable packaging provider with slick returns of 15-20% annually. But his false promises floated like a brownstone facade.

False Claims, Real Trouble

Scarlett claimed “GO ECO” had sweet partnerships with drink manufacturers and big-time clients. Faked contracts and bogus statements were all part of his act. Instead of funding business needs, Scarlett drained accounts for personal play. To see how similar scams operate, check out [How to Recognize and Avoid Common Investment Scams](https://www.sec.gov/oiea/investor-alerts-bulletins/ib_coinofferings).

A Wake-Up Call From the Attorney General

The Colorado Attorney General’s Office has issued a stern warning. Keep your guard up against too-good-to-be-true offers of monstrous returns. It’s textbook scam behavior.

Investment Red Flags

– **Too Good Returns**: Promises exceeding market norms.
– **Lack of Transparency**: Shady financials or unclear business models.
– **High Pressure Tactics**: Urgency over investment decisions.
– **Unregistered Companies**: Verify SEC registration and reports.

For a deep dive into potential rip-offs, visit the [SEC’s official guide](https://www.sec.gov/oiea/investor-alerts-bulletins).

Wrapping Up

Maybe Scarlett thought a city like El Paso County was the perfect playground for his eco-hoax. But, as the saying goes, you can’t con a true New Yorker without paying the price. At least justice is served, and the local investor community can sigh in relief.

More From CBS News

Christa Swanson, holding the fort as a Digital Media Producer over at CBS Colorado in Denver, is sharing this wild ride. Stay updated through CBS for more stories that’ll make your eyes pop.