FBI seeking former Arizona DPS officer in a $9M fraud scheme

PHOENIX – The FBI is looking for a retired Arizona Department of Public Safety officer who is wanted in connection with a $9 million fraud scheme.

FBI officials in Phoenix said Tuesday that a reward of up to $25,000 is being offered for information leading to the arrest of 54-year-old Frederick Arias, who worked for DPS from 1987-2008 as a patrol officer and in both Maricopa County and Pinal County as a detective.

They said that between December 2015 and October of 2017, Arias allegedly told investors that The Joseph Project was a safe and secure investment with guaranteed profits.

But Arias allegedly withdrew funds to pay personal expenses and wired funds overseas.

Arias reportedly has ties to Canada, Norway, Australia, the Czech Republic and the Dominican Republic.

In June 2019, a warrant was issued for Arias’ arrest on suspicion of forgery, theft, conspiracy, fraudulent schemes and artifices, money laundering and illegal control of an enterprise.

He was arrested in Kirkland, Washington and was released on bond but failed to appear for an extradition hearing.

Federal authorities issued another warrant for Arias’ arrest in March 2020 for unlawful flight to avoid prosecution.