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78-year-old Oregon man, son guilty of swindling investors out of millions in gold mining scheme

Harry Proudfoot, 78, and his son Matthew Proudfoot stole $3.2 million from 140 investors in a five-year scam, according to the District Attorney's Office.
Credit: Ingram Publishing
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A 78-year-old man who used to live in Tigard was convicted of running a fraudulent gold mining investment scheme which profited millions. His son previously pleaded guilty to wire fraud and money laundering.

Harry Proudfoot and his son Matthew Proudfoot stole $3.2 million from 140 investors in a five-year scam, according to the U.S. Attorney's Office in Oregon.

“Harry Proudfoot and his children made many promises to their investors—promises they never intended to fulfill. They now join a long list of financial criminals whose schemes were cut short by diligent investigators working on behalf of victims. Pursuing criminals who prey on unknowing investors is a top priority for federal law enforcement in Oregon,” said Billy J. Williams, U.S. Attorney for the District of Oregon.

Proudfoot created a company, which he operated from 2008-2012, to gain investors for a gold mining operation in Ohio. However, the funds given by investors were not used as promised and were instead used for personal things such as cars, travel, credit card debt, and medical payments, Williams said.

Proudfoot and his children withheld important facts from investors including a cease and desist order from the states of Alaska and Oregon for selling unregistered securities through material misrepresentations in 1992, 1993, and 2003, and that Matthew Proudfoot had filed for bankruptcy in 2010, Williams said.

Proudfoot was convicted of conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering and money laundering.

Harry Proudfoot faces a maximum of 20 years in prison, a $250,000 fine and an additional three years of supervised release on each count of wire fraud, and 10 years in prison and a $250,000 fine and three years of supervised release on each count of money laundering.

Proudfoot's son pleaded guilty to wire fraud and money laundering. He will be sentenced on Jan. 9, 2019.

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