Florida Man Receives 15-Year Sentence for Ponzi Scheme That Defrauded Investors of $20 Million

MEMPHIS, Tenn. — Dakota A. Smith, 35, of Florida, received a sentence of more than 15 years in federal prison on May 14, 2026, for his role in a Ponzi scheme that operated from 2021 to 2024 through Peoples Equity Group, a Miami-based investment company.

Smith pleaded guilty on November 18, 2025, to one count of conspiracy to commit wire fraud. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the sentence. Court records show Smith and a co-conspirator misrepresented PEG as the owner of small, profitable companies in e-commerce and aviation.

Investors were told their funds would purchase ownership interests in those companies and affiliated entities. In reality, the companies either did not exist or generated no profits, and investor money funded personal expenses and payments to earlier participants.

Losses to victims exceed $20 million. The scheme targeted individual investors who provided funds based on the false promises of ownership stakes and returns. Per the Department of Justice release, the total amount defrauded through the conspiracy reached at least that figure, though the exact number of victims is not specified in the charging documents.

The sentence imposes 15 years and one day of incarceration, followed by three years of supervised release. Full restitution remains mandatory, with the court to determine the precise amount at a later hearing. Smith must also forfeit any assets traceable to the fraud. Prior to sentencing, Smith had been detained since his guilty plea.

The case forms part of the Justice Department’s ongoing enforcement against investment fraud schemes. The original scheme ran for three years until authorities shut down operations in 2024. This sentencing follows similar Ponzi-scheme prosecutions in federal districts nationwide, where wire-fraud conspiracy convictions under 18 U.S.C. § 1349 routinely carry penalties of this magnitude when losses surpass eight figures.

Downstream, the Western District of Tennessee U.S. Attorney’s Office must now coordinate with the U.S. Probation Office on supervised-release conditions and with the U.S. Marshals Service on asset forfeiture. Victims can submit claims through the restitution process, which the clerk of court will administer.

The sentence also activates standard post-release restrictions on financial activity that apply to all wire-fraud convicts.

The plea and sentencing conclude the federal case against Smith. His co-conspirator’s status is not detailed in the May 14 release.