November 17, 2025
The District of Utah’s U.S. District Court sentenced Thomas Paul Madden of Washington City to 100 months in prison for his role in defrauding more than 200 investors of over $23 million. The Utah Division of Securities (“Division”) investigated Madden and his partner, Jeremy Grabow, for allegedly defrauding victims nationwide, including those in California, Colorado, Nevada, and North Dakota. Grabow faces a federal jury trial in May of 2026 for one count of wire fraud conspiracy and one count of money laundering conspiracy. Whereas Madden pled guilty in June of 2025 to Wire Fraud and Conspiracy to Commit Wire Fraud.
“Mr. Madden preyed on investors’ trust, promising high returns with little to no risk while knowingly concealing his significant disciplinary history and criminal past,” said Division Director Robert Cummings. “This sentencing sends a clear message that the Utah Division of Securities, working closely with our federal partners, is committed to holding those who violate securities laws fully accountable.”
As outlined in the federal indictment, Madden used the new investors’ money to pay purported returns to earlier investors, a classic Ponzi scheme maneuver, while diverting significant amounts for his personal expenses and payments to associates. Madden guaranteed high returns with little to no risk, even promising to personally guarantee the investments or repay short-term loans through Cascade IR, LLC, and later alongside Grabow through Savitar Systems, LLC. Madden routinely offered investors stock, falsely claiming he had control over the shares and making false representations about the companies’ operations, financial performance, and future gains.
A crucial element of Madden’s fraud was his intentional concealment of his troubling legal and regulatory past. Madden failed to disclose that both the State of Washington and the State of Arizona had issued orders finding that he made untrue statements or misleading omissions of material facts in offering securities. Madden also failed to inform investors of a separate 2024 felony conviction in Utah’s Fifth District Court for issuing bad checks.The Division reminds investors to always verify if the person or company offering an investment is properly licensed to sell securities in Utah and to be extremely skeptical of promises of guaranteed high returns with little to no risk. If an investment sounds too good to be true, it likely is. Investors who suspect they have been a victim of securities fraud in Utah can file a complaint or call (801) 530-6600.
