AG Brnovich Announces Prison Sentence for Ponzi Scheme Defendant

Phoenix - A Phoenix man involved in a multi-million dollar Ponzi scheme will spend the next five years in prison announced Arizona Attorney General Mark Brnovich. On Friday, a judge sentenced Jeffrey Heady to five years in prison and seven years probation upon his release. Heady pled guilty to four counts of Fraudulent Schemes and Artifices, Class 2 felonies. An investigation by the Attorney General's Office revealed the defendant stole more than $1,000,000 from 15 families.

“Heady’s victims trusted him to invest their money in real estate,” said Attorney General Mark Brnovich. “His victims had no idea Heady was using their money to pay his bills and fund his lavish lifestyle. Our office will continue to prosecute scammers and con artists who steal from hardworking Arizonans.”

In 2014, the Arizona Attorney General’s Office received complaints from investors regarding bridge loan investments that were sold to them by Heady through his company, Investment Acquisition Group.  The investigation revealed that Heady, who was a former Phoenix Police Officer, was not registered to sell securities with the Arizona Corporation Commission. Investors were told orally and in writing that the defendant would use their money to purchase and resell commercial properties for profit. Once the investment properties were acquired and sold, the investors were told they would receive a return on their investment ranging from 11% to 19% per year. 

The investors were then given promissory notes for their investments and the money was provided directly to Heady. The investigation revealed that the money obtained from new investors in the scheme was used to pay back previous investor funds and was never used to purchase commercial property.  Investor money was also used to pay for private jet charters, a vehicle purchase, and for personal expenses. Heady was ordered to pay the victims more than $1,000,000 in restitution.

Assistant Attorney General Joseph Waters prosecuted this case.

For more information, members of the media may contact Mia Garcia, Spokesperson and Director of Media Relations at (602) 339-5895 or Mia.Garcia@azag.gov