Federal prosecutors say a Sacramento man collected more than $500,000 through a bogus cannabis investment operation that targeted people he met while socializing at casinos, bars and restaurants across California.
A federal grand jury indicted 49-year-old Keinyatey Deboros Chambers on 10 wire fraud counts tied to the alleged scheme. Court records show Chambers was expected to appear in court Friday for his first hearing in the case, according to the U.S. Attorney’s Office for the Eastern District of California.
Investigators believe the operation stretched from December 2017 through March 2026. Prosecutors said Chambers told potential investors he worked in the cannabis business and promised unusually large profits within a matter of days or weeks if they invested money with his company.
Authorities said those claims were false. Investigators allege Chambers had no legitimate role in California’s cannabis industry and never invested the money the way he promised victims he would.
According to prosecutors, the money instead went toward personal spending, casino gambling and payments to associates connected to him. Authorities also said Chambers repeatedly pressured victims to invest additional money and encouraged them to recruit friends or relatives into the operation.
The investigation centered on people Chambers allegedly approached during casual encounters at gambling venues and nightlife spots throughout the state. Federal authorities said he used those settings to build trust before persuading victims to hand over money.
California Attorney General Rob Bonta said the case reflects continuing efforts to crack down on financial scams targeting residents.
“The California Department of Justice is committed to safeguarding the public and ensuring a fair, transparent marketplace for everyone,” said Attorney General Bonta in a press release. “To uphold this promise, our team works tirelessly to investigate, expose, and dismantle the complex financial crimes and fraudulent schemes that threaten our communities. Those who exploit trust of innocent people to enrich themselves will face the full consequences of the law.”
The FBI and the California Department of Justice’s Bureau of Gambling Control handled the investigation. Assistant U.S. Attorney Jessica Delaney is leading the prosecution.
The federal case arrives as Sacramento-area authorities continue pursuing other gambling-related crimes. Investigators recently announced the dismantling of an illegal gambling network in the region, while another Sacramento gambling case resulted in a defendant receiving a 301-years-to-life prison sentence after a violent robbery conviction.
Federal officials urged anyone who believes they lost money through Chambers’ alleged operation, or anyone with information tied to the investigation, to contact the nearest FBI office.
If convicted on the wire fraud charges, Chambers could face up to 20 years in prison and a $250,000 fine for each count. Prosecutors noted the charges remain allegations, and Chambers is presumed innocent unless proven guilty beyond a reasonable doubt.
Featured image: Canva
