Miami, FL – A second man, Simon G. Outhwaite, Jr., 26, of Miami, Florida, has pleaded guilty for his role in a Ponzi scheme that defrauded investors of over $27 million through Peoples Equity Group (PEG). Outhwaite entered his guilty plea on May 26, 2026, before United States District Judge Sheryl H. Lipman, admitting to one count of conspiracy to commit wire fraud.
Outhwaite conspired with Dakota Smith, who was previously sentenced to 188 months in federal prison on May 8, 2026, after pleading guilty on November 18, 2025. The pair misrepresented to investors that PEG, an investment company based in Miami, owned small, profitable e-commerce and aviation companies. Smith, as the public face of PEG, solicited investments by promising ownership interests in these entities.
In reality, both Outhwaite and Smith knew that PEG and its affiliates had no ownership or control over the marketed companies. Outhwaite's specific contributions to the fraudulent scheme included opening and maintaining the bank accounts used to facilitate the operation.
U.S. Attorney D. Michael Dunavant emphasized the commitment to justice, saying, "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.” Special Agent in Charge Terence G. Reilly of the FBI Nashville Field Office added, “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.”
Outhwaite is scheduled for sentencing on September 3, 2026, and faces a maximum of five years in federal prison. The Federal Bureau of Investigation (FBI) investigated the case, with Assistant United States Attorney Scott P. Smith prosecuting on behalf of the government.