Delta Junction man sentenced in 'bud and breakfast' fraud scheme

A Delta Junction man was sentenced to serve two years in prison and to pay $580,000 in restitution for defrauding more than two dozen investors.

Brian Corty, 53, pleaded guilty in January to one count of conspiracy to commit wire fraud for defrauding more than two dozen investors of approximately $600,000, according to a news release from the Department of Justice.

According to court documents, Corty purchased the Midway Lodge on the Richardson Highway near Delta Junction and told investors he would turn it into a "bud and breakfast." Corty said the lodge would be a "marijuana theme park" and would include glass ceilings so customers could lie in bed and watch the northern lights. Corty also said he would also grow, cultivate and sell marijuana.

Corty solicited investors to buy shares of stock in the company Ice Fog Holdings LLC between 2017 and 2020, the news release stated. Corty allegedly told investors that Ice Fog was already generating income for security services and that Ice Fog would make more than $3.85 million by the end of the first year, more than $13 million by the end of the second year, and more than $23.2 million by the end of the third year, while knowing that Ice Fog had no meaningful current or prospective revenue stream. Corty also told investors the return on the business would be 30 times what shareholders invested.

A DOJ release from 2023 said that Corty also told investors that the Alaska Marijuana Control Office had performed inspections on the lodge and was nearing approval of his application to become a licensed marijuana grow and dispensary.

Corty used the money for personal gain, including refinancing his home and paying off debt.

"Mr. Corty manipulated unknowing investors by promising millions in proceeds and used their money for his personal gain," U.S. Attorney S. Lane Tucker for the District of Alaska said. "Ensuring that white collar criminals, like Mr. Corty, are held accountable is a priority for my office. No one is above the law. We will continue work with our law enforcement partners to pursue prosecutions against individuals who choose to exploit unknowing victims through fraudulent means."

"Mr. Corty lured investors with promises of prosperity and guaranteed returns, when in truth, he diverted the investor money to fund his own lifestyle," Special Agent in Charge Rebecca Day of the FBI Anchorage Field Office said. "Those who engage in fraudulent schemes at the expense of others will be investigated and held accountable."

Contact Haley Lehman at 907-459-7575 or by email at hlehman@newsminer.com.