A South Charleston man has been sentenced to seven years in federal prison for orchestrating two real estate investment schemes that defrauded more than 180 investors out of nearly $400,000. The sentence also includes an order to pay full restitution to the victims.
Theodore Miller, 35, cultivated a glamorous online persona as the “Wolf of West Virginia” to lure investors, while federal prosecutors revealed he was facing significant personal debt and delinquent taxes.
Key Takeaways
- Theodore Miller, 35, was sentenced to seven years in federal prison for wire fraud.
- He must pay $398,533.52 in restitution to over 180 victims.
- Miller used the alias “Wolf of West Virginia” on social media to portray himself as a successful investor.
- His mother, Deanna Drumm, has also pleaded guilty to a related charge and awaits sentencing.
The 'Wolf of West Virginia' Persona
From spring 2022 to September 2024, Theodore Miller promoted himself on social media platforms as a highly successful real estate tycoon with global connections. Using the nickname “Wolf of West Virginia,” he created an image of wealth and expertise to gain the trust of potential investors.
However, court documents presented by prosecutors painted a starkly different picture. Far from being a successful investor, Miller had poor credit, significant personal debt, and was delinquent on his taxes. This false image was a critical component of his strategy to defraud individuals.
Scheme by the Numbers
- Total Defrauded: $398,533.52
- Number of Victims: Over 180
- Prison Sentence: 7 years
- Supervised Release: 3 years
Details of the Investment Schemes
Miller operated two primary fraudulent schemes to solicit funds. The first scheme focused on supposed development projects on Bigley Avenue in Charleston, while the second was a pooled investment fund called “Bear Lute.”
The Bigley Avenue Projects
In one scheme, Miller solicited direct investments for real estate developments on Bigley Avenue. He promised investors that their money would fund construction and renovation projects.
Investors were told they would receive returns once the projects were completed, along with a portion of future rental income. According to federal investigators, this scheme successfully raised approximately $95,000 from unsuspecting victims.
The 'Bear Lute' Fund
The second, more lucrative scheme was marketed as a pooled real estate investment fund named “Bear Lute.” Miller guaranteed investors a minimum return of at least 6% on their investment.
He also claimed that investors could withdraw their funds with just 60 days' notice, adding a false sense of security and liquidity to the fraudulent fund. This scheme attracted about $303,950 from victims across the country, including individuals in California and Texas who transferred thousands of dollars based on his promises.
What is Wire Fraud?
Wire fraud is a federal crime that involves using any form of electronic communication, such as the internet, phone, or email, to devise a scheme to defraud someone of money or property. Miller's use of social media and electronic fund transfers to operate his schemes led to the wire fraud charges.
Legal Proceedings and Sentencing
Theodore Miller pleaded guilty to two counts of wire fraud. U.S. District Judge Irene C. Berger handed down the sentence, which includes seven years in federal prison followed by three years of supervised release.
In addition to his prison term, Miller was ordered to pay back the full amount he defrauded from his victims, totaling $398,533.52 in restitution.
The case was prosecuted by Assistant U.S. Attorney Joshua Hanks and former Assistant U.S. Attorney Holly Wilson. The sentence reflects the severity of the crimes and the significant financial harm caused to a large number of people.
A Coordinated Investigation and Accomplice
The investigation into Miller's activities was a collaborative effort involving multiple federal and state agencies. The Federal Bureau of Investigation (FBI), the West Virginia Fusion Center, the West Virginia Securities Commission, and the U.S. Securities and Exchange Commission (SEC) all contributed to unraveling the schemes.
Court records also revealed the involvement of Miller’s mother, Deanna Drumm, 61. Prosecutors stated that Drumm managed the finances for the operation, including transferring funds, while Miller was living overseas between 2021 and 2024.
Last November, Drumm pleaded guilty to a charge of aiding and abetting the sale of unregistered securities. Her sentencing is scheduled for October 9, 2025. Miller's case stands as one of the more significant real estate investment fraud cases prosecuted in West Virginia in recent years.
