DOJ says Simon G. Outhwaite, Jr. pleaded guilty to conspiracy to commit wire fraud for his role in defrauding investors through Peoples Equity Group (PEG). Prosecutors allege misleading representations about PEG’s ownership of small companies.

A DOJ release from the U.S. Attorney’s Office for the Western District of Tennessee states that Simon G. Outhwaite, Jr. pleaded guilty to conspiracy to commit wire fraud in connection with a Ponzi scheme that prosecutors say took in more than $27 million from investors. The announcement follows earlier developments tied to the investigation and alleged participation by others associated with Peoples Equity Group (PEG). According to DOJ, Outhwaite was involved in defrauding investors through PEG using communications that allegedly included false or misleading claims. Prosecutors specifically allege that the defendants made representations concerning PEG’s ownership of small companies—statements that, according to the government, were designed to induce investors to provide money under false pretenses. Ponzi schemes commonly rely on manufactured business narratives, fabricated operational claims, and investor-facing assurances that money is being used as promised. DOJ’s framing ties the case to wire-fraud conspiracy, indicating that interstate communications were part of how the scheme was carried out and how investors were solicited. The case serves as a reminder that investment fraud can be driven by credibility signals—such as claims of ownership, operations, or legitimate control—that may be difficult for outsiders to verify without documentation. When that documentation is falsified, investors can suffer substantial losses.