An Ann Arbor commodities trader told investors their money was protected from loss. Federal prosecutors say the promise was false, and the trader has now admitted to a fraud scheme that caused more than $2.7 million in losses.
Brian Mitchell, 43, pleaded guilty to one count of wire fraud in federal court, according to the U.S. Attorney’s Office for the Eastern District of Michigan. As part of the plea, Mitchell admitted that he defrauded multiple third-party investors and caused false claims to be made about the security, profitability, and use of investor funds.
Investors were told their principal was “guaranteed,” prosecutors said, even though Mitchell had previously entered into a Commodity Futures Trading Commission settlement that barred him for three years from certain commodity futures trading activity and from soliciting or accepting funds for that activity.
Prosecutors Say Investors Were Promised Protected Principal
Mitchell used entities including Young Pros Investment Group, also known as YPIG, and My Nest Egg to solicit investor money, according to DOJ. Prosecutors said Mitchell repeatedly represented that investor principal was protected against loss and guaranteed, while also claiming set earnings would occur and that investor funds would be available for return at certain points.
Those promises were false, according to the plea announcement. After Mitchell suffered significant trading losses, prosecutors said, he lied to investors about why their principal was no longer guaranteed even though he had previously claimed it was protected.
Mitchell agreed to pay $2.7 million in restitution to victims as part of his plea agreement. He is scheduled to be sentenced Oct. 7, 2026, before U.S. District Judge Laurie J. Michelson and faces up to 20 years in federal prison.
The CFTC Claim Became Part Of The Cover Story
One of Mitchell’s false explanations involved the same regulator that had already taken action against him. DOJ said Mitchell falsely told investors that the CFTC had seized assets he described as “back-up money.”
That claim mattered because the alleged “back-up money” was part of the story about why investors’ principal was no longer protected. Prosecutors said Mitchell used false explanations after losses had already occurred.
ClickOnDetroit reported that Mitchell admitted to making false claims about how secure and profitable the investments were, as well as how investor funds would be used.
He Had Already Entered A CFTC Settlement
While carrying out the fraud scheme, Mitchell entered into a CFTC settlement connected to earlier violations of the Commodity Exchange Act that occurred between January 2018 and January 2019, according to DOJ.
Under that settlement, Mitchell was barred for three years from engaging in commodity futures trading activity and from soliciting, receiving, or accepting funds for that activity. Prosecutors said he continued to solicit, accept, and trade third-party investment funds in commodity futures despite the bar, and failed to disclose the trading restriction to investors.
The CFTC’s 2021 order required Mitchell to pay a $150,000 civil monetary penalty and imposed a three-year ban tied to trading on CFTC-registered entities and activities requiring CFTC registration.
The CFTC Also Filed A Civil Complaint
The CFTC filed a separate civil complaint in November 2025 against Mitchell, Kevin Mack Jr., and Young Pros Investment Group LLC. The agency said the complaint alleged roughly $1 million was fraudulently solicited and accepted from about 33 commodity-pool participants.
According to the CFTC, the defendants allegedly made false guarantees of profit and loss protection while failing to disclose futures-trading risks. The agency also alleged that the defendants incurred losses in most months they traded on behalf of the pool, issued false account statements, and used funds from new participants to make Ponzi-type payments to earlier participants.
The FBI Is Still Seeking Potential Victims
The FBI is still asking potential victims connected to Young Pros Investment Group, My Nest Egg, or other investment activity involving Mitchell to come forward through a victim-information form.
The FBI form asks whether people invested with Young Pros Investment Group, My Nest Egg, Brian Mitchell, Kevin Mack Jr., or another related person or entity. It also asks how payments were made, including bank transfers, wire transfers, checks, Venmo, PayPal, Zelle, and cash.
Jennifer Runyan, special agent in charge of the FBI Detroit Field Office, said the scheme caused significant financial harm to investors who placed their trust in Mitchell. The case was investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Andrew J. Yahkind.
