He promised investors 10% gains. Now, he’s accused of using their money for sailing excursions in an alleged Ponzi scheme

A financier has been extradited from the United Kingdom to the United States to face allegations that he cheated investors who were promised monthly 10% gains in what was actually a Ponzi scheme, authorities said.

Matthew Melton, 61, of Boulder, Colorado, has remained jailed at a federal lockup in Brooklyn after appearing in court Saturday to face securities fraud and wire fraud charges. His lawyer did not immediately respond to a message seeking comment.

Authorities said Melton falsely told at least 20 investors that his investment fund, Price Physics, used a proprietary trading algorithm to invest in futures contracts and produce record returns.

But U.S. Attorney Jay Clayton said Melton was not doing anything groundbreaking or cutting-edge in the scheme, which he used to fund a luxurious lifestyle from 2018 to 2020.

“In reality, Melton was allegedly operating one of the oldest scams around, taking new investors’ money to pay old investors and pocketing funds for himself along the way,” Clayton said in a statement.

Melton is alleged to have used some of the nearly $3.4 million he brought in to pay his mortgage and for sailing excursions.

This story was originally featured on Fortune.com