A Las Vegas man accused of falsely claiming to be a Harvard Business School graduate and combat veteran to defraud dozens of investors out of millions of dollars was arrested in San Diego on Tuesday evening, the FBI announced.
Justin Costello, 42, was indicted on 25 counts of wire fraud and securities fraud last week for the years-long scheme, in which he allegedly orchestrated a pump-and-dump over social media and used his investors’ money to pay for his own wedding.
“Mr. Costello allegedly told many tall tales to convince victims to invest millions of dollars – money he then used for his own benefit,” Nick Brown, U.S. Attorney for the Western District of Washington, said in a statement.
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Starting in 2017, Costello provides banking services to marijuana businesses in several states where the drug is legal. He’s accused of diverting $3.7 million from three of the businesses he worked with between 2019 and 2021.
Costello also allegedly caused about 7,500 investors to lose $25 million by lying about plans for his company to purchase 10 other firms.
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He’s also accused of orchestrating pump-and-dump schemes over Twitter and lying in official Securities and Exchange Commission forms.
“In a complex scheme involving shell companies, penny stocks, and financial services for marijuana businesses, Mr. Costello used Twitter, press releases, securities filings, and claims of great wealth to paint a picture of fabulous financial success. In truth that picture was a mirage,” Brown said.
