DETROIT — A federal judge sentenced former FBI special agent Jeffrey Royer to 71 months in prison on Thursday, Oct. 15, for a wire fraud scheme that prosecutors say drained hundreds of thousands of dollars from investors who trusted him with their money. The sentence, handed down in U.S. District Court in Detroit, also orders Royer to pay $575,999.58 in restitution and to serve three years of supervised release after his prison term.
TL;DR: Former FBI agent Jeffrey Royer was sentenced Oct. 15, 2026, to 71 months in federal prison for wire fraud after admitting he lied to investors and fabricated documents about how their money was performing. The judge ordered him to repay nearly $576,000 to his victims. This is Royer’s second federal conviction — he previously served five years in prison after an insider-trading scheme in which he used his FBI position to steal confidential information.
The Fraud Case
Royer pleaded guilty in June to one count of wire fraud, a charge that carries up to 20 years in prison, according to Michigan Lawyers Weekly. A federal grand jury had indicted him in October 2024, and the case was prosecuted in the Eastern District of Michigan.
Authorities alleged that Royer, who worked as a special agent with the FBI from 1996 until 2001, defrauded multiple investors by lying about how he would use their money and fabricating documents that showed how their investments were performing. In reality, investigators said, he used part of the money for personal expenses while telling investors their funds were protected from losses.
The sentencing was announced by Jerome Gorgon, the U.S. Attorney for the Eastern District of Michigan.
A Second Federal Conviction
What makes Royer’s case extraordinary is the history behind it. Officials said the wire fraud conviction is his second federal conviction. In 2012, he was released from federal prison after serving five years for racketeering conspiracy, securities fraud conspiracy, securities fraud, obstruction of justice, and witness tampering.
In that earlier case, authorities said Royer used his position as an FBI agent to steal confidential law enforcement information about companies under investigation. He passed the information to a trader in exchange for the promise of cash and other benefits, investigators said. The trader then used the inside information to establish short positions in the stocks of those companies.
Years later, prosecutors say, Royer ran a new scheme — this time as a free man trading on his credentials and the trust of people who gave him their savings.
What His Lawyer Said
Royer’s attorney, Rhonda Brazile, was not immediately available for comment after the sentencing. But in a sentencing memo submitted to the court on her client’s behalf, she said Royer admits that he lied to people who trusted him and took their money. She also said both he and his wife lost money of their own in the process.
The memo noted Royer had been a high school salutatorian, earned a business degree cum laude and a master’s degree, and served as a Marine Corps officer with an honorable discharge.
“He does not cite these advantages as excuses; the government is right that he squandered them,” Brazile wrote. “He cites them because they show what he can still do: work, repay, and give back.”
The judge was not moved enough to spare him prison. The 71-month term — nearly six years — reflects both the scale of the losses and Royer’s status as a repeat federal offender who once wore a badge himself.
A Fall in Two Acts
Royer’s career arc is almost symmetrical in its downfall. First, an FBI agent who sold confidential investigative information to feed a trading scheme. Then, after five years in federal prison, a man who reinvented himself as a money manager — only to fabricate investment records and siphon investor funds for personal use.
The $575,999.58 restitution order will follow him for years, along with three years of supervised release once his sentence is complete.
Photo: The Theodore Levin U.S. Courthouse in Detroit, where Royer was sentenced, via Wikimedia/NPS coverage. Source image: detroit1701.org.
Frequently Asked Questions
Who is Jeffrey Royer?
Jeffrey Royer is a former FBI special agent who worked for the agency from 1996 until 2001. He was sentenced Oct. 15, 2026, to 71 months in federal prison for wire fraud.
What was the sentence?
A federal judge in Detroit sentenced Royer to 71 months in prison, ordered him to pay $575,999.58 in restitution to his victims, and imposed three years of supervised release after his prison term.
What did Royer do?
He defrauded investors by lying about how he would use their money and fabricating documents about investment performance. Investigators said he used part of the money personally while telling investors their funds were protected from losses.
When did he plead guilty?
Royer pleaded guilty in June to wire fraud. A federal grand jury had indicted him in October 2024.
What is the maximum penalty for wire fraud?
Wire fraud is punishable by up to 20 years in prison.
Was this Royer’s first conviction?
No. This is his second federal conviction. He was released in 2012 after serving five years in prison for racketeering conspiracy, securities fraud conspiracy, securities fraud, obstruction of justice, and witness tampering.
What did Royer do in his earlier case?
As an FBI agent, he stole confidential investigative information about companies and passed it to a trader for promised cash. The trader used it to establish short positions in those companies’ stocks.
What did his attorney say at sentencing?
His attorney said Royer admits he lied to people who trusted him and took their money. She noted his strong background — salutatorian, business degree, master’s, Marine Corps officer — advantages she said he “squandered.”
Who announced the sentencing?
Jerome Gorgon, the U.S. Attorney for the Eastern District of Michigan, announced the sentencing.
What happens after Royer serves his prison term?
He will serve three years of supervised release and must pay $575,999.58 in restitution to his victims.
