Fair Oaks man gets prison for medical device scheme that cheated investors out of nearly $500K

A Fair Oaks man was sentenced Tuesday to 33 months in prison after he stole nearly $500,000 from 16 investors — including family members — under a scheme purporting to sell medical devices but he instead used the funds for personal expenses, according to federal prosecutors.

Michael Andrew Scott, 38, pleaded guilty to wire fraud and was ordered to pay $376,044 in restitution to his victims, prosecutors with the U.S. Attorney’s Office for the Eastern District of California said.

Scott, between June 2018 and June 2022, promised victims he sought medical devices from health care companies but did not have the money to pay them with his company, Trusted Medical Partnership. The investors lent money as Scott promised “zero risk” in a relatively short time, prosecutors said in a news release.

But Scott had not placed orders — in some cases, he doctored or fabricated documents detailing a purported order to coax victims to pay. His company was not a legitimate business. It paid no taxes and was suspended in December 2021 before Scott sought some funds from his investors, the news release said.

Scott spent the money, almost $470,000, at casinos, personal expenses or payments to other victims to keep the scheme afloat, prosecutors said.

In a statement provided to the judge handling his case, the father of three expressed remorse for his actions.

“Everyone went through something with me that wasn’t right,” Scott’s statement said. “I hurt each person in a certain way and I am sorry for that.”

His mother, Tamille Folcik, said Scott planned to enlist in the Navy after college, but he suffered a traumatic neck injury which halted his plans. As he recovered, she noticed Scott became hooked on online gambling, she said in a letter sent to the judge.

“I see the guilt on his face when he looks at his children knowing the lasting effect this will have on their lives,” Folcik said in the letter. “He knows this same effect is what his victims are going through as well.”