The operator of an investment trading scheme that promised to generate profits from futures trading using a proprietary trading algorithm is being sentenced to four years in jail in the U.S. for fraud.
In 2023, the promoter of an investment vehicle known as “Price Physics” — Matthew Melton — was charged by both the U.S. Securities and Exchange Commission (SEC) and U.S. law enforcement, which alleged that he was actually running a Ponzi scheme.
According to court filings, starting in 2019, Melton promised investors high guaranteed returns from his purported trading algorithm. However, authorities alleged that the algorithm didn’t exist, and that investors’ money was largely used to pay personal expenses, and to pay returns to earlier investors.
They also alleged that Melton actually did almost no trading with investors’ money and the trading he did carry out was largely unprofitable.
After being extradited to the U.S. in late 2025, Melton ultimately pleaded guilty to securities fraud earlier this year.
On Wednesday, he was sentenced to 51 months in prison and ordered to forfeit US$3.8 million by a U.S. district court judge in the Southern District of New York. He was also ordered to pay restitution in an amount that will be determined within 90 days.
In its complaint, which charged Melton with violating federal securities laws, the SEC is also seeking permanent injunctions, disgorgement plus interest and civil penalties.