In a major financial scandal, Scottsdale businessman Aaron Wagner, known for his ventures in real estate and restaurant development, has been arrested by the FBI over allegations of defrauding investors out of millions of dollars. Federal agents detained Wagner in Salt Lake City, Utah, on October 24, charging him and his business partner, Michael Mains, with 16 counts, including wire fraud, conspiracy, and money laundering. Prosecutors allege Wagner diverted investor funds for personal luxuries instead of funding legitimate business ventures.
Ponzi-Like Schemes Targeting Investors
According to the U.S. Attorney’s indictment, Wagner and Mains have been running what prosecutors describe as Ponzi-like schemes since at least 2021. Investors believed their money would be used for restaurant and business expansions. Instead, the funds were allegedly funneled to support Wagner’s lavish lifestyle or to reassure early investors, creating a cycle that depended on new investments to keep up appearances.
The court filings reveal that Wagner manipulated his background to build investor confidence, claiming he rose from “sports reject” to “billion-dollar portfolio manager”—claims the indictment states are false. Prosecutors point out that Wagner exaggerated his credentials, stating he never played in the Rose Bowl and never managed the billion-dollar assets he claimed.
Luxury Purchases and Misused Funds
The charges outline Wagner’s significant purchases using investor funds, including a $4 million down payment on a Scottsdale home, an $8 million private aircraft, and a $4.5 million Scottsdale restaurant development named Swags. He also purchased an $8 million real estate property in Missoula, Montana, with the money entrusted by investors.
In Scottsdale, Wagner was developing Swags, a high-end restaurant in the city’s Entertainment District. Records indicate Wagner spent over $4.5 million on property, legal expenses, and planning for the three-story establishment on East Shoeman Lane. Despite initially winning a 4-3 council vote, Wagner’s project failed to secure the “super majority” required for rezoning due to vocal opposition from nearby property owners like Shawn Yari, who argued Swags would increase noise and parking issues.
Alleged Social Media Coercion and Intimidation
The indictment also includes claims of Wagner using intimidation tactics to suppress online criticism. Prosecutors allege he coerced social media companies into deleting accounts of critics, including former investors and employees. Shockingly, he allegedly submitted a fake death certificate to remove a disgruntled former investor’s social media profile.
Concerns Over Wagner’s Flight Risk
Given Wagner’s access to a private plane, pilot’s license, and Canadian citizenship, prosecutors argued he poses a significant flight risk. His non-U.S. passport could allow international travel outside of U.S. jurisdiction. Nonetheless, Wagner was released on his own recognizance, with GPS monitoring imposed to restrict his movements ahead of his trial on February 3.
The Future of Wagner’s Investments
Following Wagner’s arrest, the future of his properties, including Swags, remains uncertain. Federal prosecutors are seeking to seize assets tied to the alleged fraud, which could impact his holdings in Scottsdale and other areas. This high-profile case underscores the growing scrutiny around real estate and investor dealings in Scottsdale and signals potential implications for the Valley’s luxury market as more details emerge in the coming months.
