Texas Man Defrauds $12 Million from Victims, Gambles It in Vegas

AUSTIN, TX — A man from Manor, Texas, a city roughly 15 miles from Austin, was sentenced to 40 years in federal prison on Wednesday, December 4, after being convicted of four counts of wire fraud and one count of money laundering. The conviction stems from a scheme in which he defrauded 32 victims of more than $12 million.

According to the U.S. Attorney's Office, Western District of Texas, Saint Jovite Youngblood, 52,  convinced his victims that he could protect them from violent Mexican drug cartels. He falsely claimed to be a former member of the U.S. Army’s elite Delta Force special operations unit and offered security in exchange for large investments. Youngblood assured his victim "investors" that their money would be used to protect them from cartel violence while also promising significant returns on their investments.

However, instead of using the money for security, Youngblood spent most of it on junkets to Las Vegas, where he gambled in casinos. He also failed to deliver on his promise of high returns, leaving his victims with nothing.

Youngblood’s scheme lasted several years before being arrested on July 31, 2023. After a trial in April 2024, a federal jury found him guilty of wire fraud and money laundering. In addition to his 40-year prison sentence, Youngblood was ordered to pay his victims full restitution of $12,766,384.

U.S. Attorney Jaime Esparza described Youngblood’s actions as a "deliberate betrayal of trust," noting that he used deception and false promises to destroy the financial stability of his victims. 

“This sentence and the restitution ordered today demonstrate the seriousness of his crimes,” Esparza said. “We hope that the victims are able to recover from the financial harm he caused.”

FBI Special Agent in Charge Aaron Tapp added that many of Youngblood’s victims were terrified, believing that their families were in danger due to his false claims of cartel threats.

“Youngblood’s actions were not only financially devastating but emotionally traumatic for his victims,” Tapp said. “The FBI is committed to exposing scams like this and ensuring that those who prey on innocent people are held accountable.”

The FBI investigated Youngblood’s activities, and the FBI and the U.S. Attorney’s Office worked together to secure a conviction.