Former Phoenix officer gets 5 years for Ponzi scheme

A Phoenix man has been sentenced to five years in prison and seven years' probation after his involvement in a million-dollar Ponzi scheme.

Jeffrey Heady pleaded guilty in Maricopa County Superior Court to four counts of fraudulent schemes and artifices after stealing more than $1 million from 15 families, Attorney General Mark Brnovich said in a press release issued Monday.

The Attorney General's Office said Heady, a former Phoenix police officer, was selling bridge loan investments through his company, Investment Acquisition Group. Heady told investors that he would use their money to purchase and resell commercial properties, which he said would give a return on investment ranging from 11 to 19 percent per year. Investors were given promissory notes and the money was given to Heady.

The Attorney General's Office said investigators found that the money Heady got from new investors was used to pay back previous investor funds and was never used to purchase property as he had promised. The money was also used to pay for a car, private jet charters and personal expenses.

Scottsdale family arrested in $1.3M Fannie Mae fraud case

The Attorney General's Office said Heady was not registered to sell securities with the Arizona Corporation Commission and was ordered to pay more than $1,000,000 in restitution to the victims.

“Heady’s victims trusted him to invest their money in real estate,”  Brnovich said. “His victims had no idea Heady was using their money to pay his bills and fund his lavish lifestyle. Our office will continue to prosecute scammers and con artists who steal from hardworking Arizonans.”