The U.S. Department of Justice (DOJ) announced that Daniel Thomas Broyles Sr., also known as Dan Thomas, a 66-year-old from Malibu, California, has been sentenced to four years in prison for his involvement in two separate high-yield investment fraud schemes, which swindled millions of dollars from elderly and vulnerable individuals. Broyles and his accomplices ran a deceptive operation through the sham company Niyato Industries Inc. (Niyato).
Niyato posed as an electric vehicle manufacturing leader and a specialist in converting vehicles to run on compressed natural gas. In reality, Niyato lacked operational facilities and proprietary technology and was primarily a facade for diverting investor funds among the conspirators. Broyles, alongside Niyato’s CEO, Robert Leslie Stencil, 66, and other accomplices, orchestrated this elaborate fraud.
The deceit extended to Broyles fleeing to Mexico in June 2016 upon learning of a federal investigation into Niyato. After being indicted in August 2016, he further evaded law enforcement by relocating within Mexico and adopting the alias “Daniel Cruz Torrez”.
Broyles’ fraudulent activities also encompassed a second scheme involving EarthWater Limited. Teaming up with EarthWater’s CEO, Cengiz Jan Comu, 63, of Dallas, and others, Broyles misled investors into purchasing EarthWater stock with false assurances. Contrary to their claims of using the raised funds for business development, Broyles and his co-conspirators largely funneled these investments for personal gain.
Extradited from Mexico in March 2022, Broyles pleaded guilty in June 2022 to multiple charges, including conspiracy to commit mail fraud and wire fraud, mail fraud, and money laundering in relation to the Niyato scam. He also admitted to conspiracy to commit mail fraud and wire fraud in connection with the EarthWater fraud.
The Niyato scam has seen seven other defendants convicted, including Stencil, who received a sentence of over 12 years in prison. Similarly, eleven defendants pleaded guilty in the EarthWater fraud case, with Comu sentenced to a decade behind bars.
This case highlights the ongoing battle against financial fraud and the rigorous efforts of law enforcement agencies to bring perpetrators to justice, even across international borders. The sentencing of Broyles serves as a cautionary tale for potential fraudsters and a relief for victims who fell prey to these sophisticated investment scams.
