Jerome F. Gorgon, Jr., U.S. Attorney’s Office for the Eastern District of Michigan | Department of Justice
Andrew H. Middlebrooks, former majority owner and chief executive officer of EIA All Weather Alpha Fund 1 Partners (EIA), has been sentenced to 100 months in federal prison after pleading guilty to wire fraud charges. The sentence was announced by United States Attorney Jerome F. Gorgon, Jr., who was joined by Reuben Coleman, Acting Special Agent in Charge of the Federal Bureau of Investigation.
Middlebrooks, age 33, led EIA as its chief executive officer and portfolio manager. He solicited clients by claiming he could exploit inefficiencies in global equity markets to deliver large returns for investors. However, the fund failed to achieve the predicted gains and suffered significant losses.
Instead of informing investors about the fund's poor performance, Middlebrooks continued to solicit new investments using false statements regarding the fund’s performance. He also misled existing investors with inaccurate information about their investment returns and created false documents that claimed exceptional results for EIA. In one such document from fall 2019, he stated that EIA had achieved a cumulative return of 476.81% with profitable trading in over 80% of months—claims which were untrue. The scheme ultimately collapsed, resulting in losses exceeding $34 million for 97 investors.
“This financial charlatan used sophisticated methods and a complex web of deception to trick unsuspecting victims into trusting him with their money. Con artists like this will be prosecuted to the full extent of the law,” said United States Attorney Jerome F. Gorgon Jr.
"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. I want to thank the dedicated members from our FBI Detroit Field Office and our partners at the U.S. Attorney’s Office for the Eastern District of Michigan for their tireless work in bringing this case to justice.”
The Federal Bureau of Investigation conducted an investigation into Middlebrooks' activities with support from both the United States Attorney’s Office and assistance from the Securities and Exchange Commission.
