Memphis, TN – A Florida man has pled guilty to his part in defrauding investors through a company called Peoples Equity Group (PEG), an investment company based in Miami, Florida that operated from 2021 to 2024. D. Michael Dunavant, United States Attorney for the Western District of Tennessee, announced the guilty plea today.
Simon G. Outhwaite, Jr. , 26 , of Miami, Florida, pled guilty on May 26, 2026 before United States District Judge Sheryl H. Lipman to one count of conspiracy to commit wire fraud. According to information presented in court, Outhwaite conspired with Dakota Smith in the execution of a scheme to defraud investors. For his role in the offense, Smith previously pled guilty on November 18, 2025 and was sentenced on May 8, 2026 to 188 months in federal prison.
Through their conspiracy, the pair misrepresented to investors that PEG owned small, profitable companies in e-commerce and aviation. Smith, who was the face of PEG, solicited investments based on promises that the investors would obtain ownership interests in the companies owned by PEG and its affiliated entities.
In fact, Smith and Outhwaite knew that neither PEG nor its affiliated entities had any ownership interest or control over the companies it marketed. Outhwaite’s contributions to the conspiracy included opening and maintaining the bank accounts used in the scheme.
Outhwaite is scheduled to be sentenced on September 3, 2026. He faces up to five years in federal prison.
U.S. Attorney D. Michael Dunavant said: "Ponzi schemes and crimes of dishonesty do not pay and will be exposed. This case represents our commitment to root out fraudulent schemes, protect investors, hold offenders accountable for their dishonest criminal conduct, and to recover ill-gotten proceeds on behalf of victims.”
“Simon G. Outhwaite, Jr. and his co-conspirator, Dakota Smith, built a Ponzi scheme on lies, exploiting trust to steal millions of dollars that left innocent people paying the price,” said Special Agent in Charge Terence G. Reilly of the FBI Nashville Field Office. “Schemes like this exploit trust and can devastate victims’ and their families. The FBI will continue to aggressively pursue those who weaponize fraud and deception against investors and bring them to justice.”
The case was investigated by the Federal Bureau of Investigation (FBI).
The case was prosecuted on behalf of the government by Assistant United States Attorney Scott P. Smith.
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Source: U.S. Attorney’s Office — Western District of Tennessee — U.S. Department of Justice press release.