Former Arizona DPS Officer Order To Pay “The Joseph Project” Investors Over $9 Million

justice

A former Arizona DPS patrol officer, Frederick Arias, was order to pay $9,075,000 in restitution and a $135,000 administrative penalty for defrauding investors with a multimillion-dollar investment scheme.

Arias, who worked for DPS from 1987-2008 and in both Maricopa County and Pinal County as a detective, ran the scheme between December 2015 through October of 2017.

In its default order, the Arizona Corporation Commission found Arias falsely represented to investors in “The Joseph Project” that their proceeds would be used for after-hours trading that would generate profits for the investors and for religious and humanitarian projects. The Commission also found Arias falsely represented to investors that the investment was totally safe. However, the Commission found most of the investor funds were misappropriated.

To date, none of the investors have received their promised returns. In June 2019, the state of Arizona indicted Arias on seventeen felony counts relating to this unlawful conduct. Arias was subsequently arrested in the state of Washington, posted bond, but failed to appear at his extradition hearing.

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