A man was extradited from the United Kingdom to the U.S. to face charges of securities and wire fraud.
Matthew Melton, 61, of Boulder, Colorado, was charged with one count of securities fraud and one count of wire fraud, each carrying a maximum term of 20 years in prison.
United States Attorney for the Southern District of New York, Jay Clayton, and Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation, Christopher G. Raia, announced the news.
The charges in the Indictment arise from an alleged scheme by Melton to raise millions of dollars from investors by falsely representing that his investment fund, “Price Physics,” was investing in futures contracts using a proprietary trading algorithm.
In fact, Melton operated a Ponzi scheme, using investor money to fund his luxury lifestyle and pay earlier investors. Melton arrived in the United States on December 19, 2025, and was presented on December 20, 2025, before Magistrate Judge Gary Stein. Melton's case is assigned to U.S. District Court Judge Arun Subramanian.
“As alleged, Matthew Melton told investors he was using groundbreaking technology and cutting-edge trading techniques to generate record returns,” said U.S. Attorney Jay Clayton. “In reality, Melton was allegedly operating one of the oldest scams around, taking new investors’ money to pay old investors and pocketing funds for himself along the way. With the assistance of our dedicated law enforcement partners, our Office will continue to aggressively prosecute financial fraud and protect our markets.”
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Melton promoted an investment vehicle he called “Price Physics,” which purported to invest in futures contracts using a proprietary trading algorithm. He promised investors guaranteed returns of up to 12 percent per month, saying he would keep only 2 percent as compensation. In reality, there was no proprietary trading algorithm, and Melton invested almost none of the millions of dollars he raised. The few times Melton made trades, they were not in futures contracts, and the trading was generally unprofitable. For the most part, instead of trading, Melton used his investors’ money to pay his own personal expenses—including mortgage payments and sailing excursions—and to pay earlier investors in a Ponzi-like fashion.
“This alleged scheme victimized many and caused millions of dollars in victim losses,” said FBI Assistant Director in Charge Christopher G. Raia. “FBI New York is committed to eradicating all unlawful schemes fueling an unearned life of luxury by those who prey on others. We remain focused on disrupting financial fraud operations and will continue to pursue those who seek to defraud others fiercely.”
u.s. v. Melton Indictment by scott.mcclallen
The maximum potential sentences in this case are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
Mr. Clayton praised the outstanding work of the FBI and thanked the Department of Justice’s Office of International Affairs for its assistance. Mr. Clayton also thanked the U.S. Securities and Exchange Commission, which previously filed a separate civil action against MELTON.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorney Adam S. Hobson is in charge of the prosecution.
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