Matthew Melton has been extradited from the United Kingdom to face charges of securities and wire fraud.
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 on Tuesday.
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.
Melton was operating a Ponzi scheme in which he used investor money to fund his luxury lifestyle and make payments to 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.
“This alleged scheme victimised 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 fiercely pursue those who seek to defraud others.”
According to the allegations contained in the indictment and bail hearing, 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 per cent per month, of which he said he would keep only two per cent 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 did make 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.
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.
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.
