One of the Valley’s millionaire restaurant entrepreneurs is accused of defrauding investors out of millions for personal gain, including using funds for a home, out-of-state real estate and an $8 million private airplane.
Aaron Wagner, a part-time Scottsdale resident planning to open restaurants in Gilbert and Scottsdale, was arrested by FBI agents on Oct. 24 in Salt Lake City, Utah.
Wagner and his business partner, Michael Mains, face 16 counts, including four counts of wire fraud, one count of conspiracy to commit wire fraud, six counts of transactional money laundering, and five counts of concealment money laundering.
Since at least 2021, Wagner, Mains and unnamed co-conspirators allegedly ran Ponzi-like schemes, tricking investors into sending millions to entities they controlled, according to the U.S. Attorney’s indictment.
The indictment states that instead of funding restaurants and other businesses as promised, the money was diverted for personal gain or used to maintain the appearance of success for earlier investors.
Wagner also allegedly misrepresented his background to investors to gain trust.
“He would tell a story of growing ‘from sports reject and broke college kid to playing the Rose Bowl to becoming a billion-dollar portfolio manager.’ But Wagner never played in the Rose Bowl, and he never managed a billion-dollar portfolio,” the indictment read.
Prosecutors say Wagner and Mains used investor funds to make down payments on a $4 million Scottsdale home, the private airplane and an $8 million real estate property in Missoula, Montana. Some funds were also reportedly redirected to Swags, Wagner’s planned Scottsdale restaurant, which was sold shortly after his arrest.
When past investors and employees complained about Wagner online, some had their social media accounts suspended. Court documents allege that Wagner coerced social media companies into deleting accounts of his critics and, in one instance, used a fake death certificate of a former investor to have their profile removed.
Prosecutors argued Wagner should remain in custody, citing his private plane access, pilot’s license and Canadian citizenship, which would allow him to travel on a non-U.S. passport. However, the court released Wagner on his own recognizance with GPS monitoring. His trial is scheduled for Feb. 3.
This article originally appeared on Arizona Republic: AZ businessman Aaron Wagner faces federal charges in Ponzi-type scheme
