Detroit Fund Owner Sentenced 100 Months $39M Fraud

Andrew H. Middlebrooks, former CEO and majority owner of EIA All Weather Alpha Fund 1 Partners, was sentenced to 100 months (over eight years) in federal prison after pleading guilty to wire fraud for a scheme that defrauded investors of more than $39 million. Middlebrooks promised large returns by exploiting supposed "inefficiencies" in global equity markets but the fund instead suffered catastrophic losses. Rather than disclose the fund's failing performance, he misled existing investors with false statements and solicited new investors using fabricated documents, including claims of a cumulative return of 476.81%. The scheme collapsed leaving 97 to 100 investors with losses exceeding $34 million. Authorities, including the FBI and SEC, uncovered the fraud, and U.S. Attorney Jerome Gorgon Jr. condemned Middlebrooks' sophisticated deception, emphasizing prosecution to the fullest extent of the law. Acting FBI Special Agent Reuben Coleman highlighted the threat white-collar crimes pose to financial systems and community trust.