A West Virginia man who created an online persona as the “Wolf of West Virginia” has been sentenced to seven years in federal prison for orchestrating a real estate investment fraud that affected over 180 individuals. Theodore Miller, 35, was also ordered to pay nearly $400,000 in restitution to his victims.
According to the U.S. Attorney’s Office for the Southern District of West Virginia, Miller pleaded guilty to two counts of wire fraud. The schemes, which ran from the spring of 2022 to September 2024, involved soliciting funds for unregistered real estate ventures while projecting a false image of wealth and success on social media.
Key Takeaways
- Theodore Miller, known as the “Wolf of West Virginia,” was sentenced to seven years in prison for wire fraud.
- He was ordered to pay $398,533.52 in restitution to more than 180 victims.
- Miller operated two fraudulent real estate investment schemes: a direct property development project and a pooled fund called “Bear Lute.”
- His mother, Deanna Drumm, also pleaded guilty for her role in managing the finances of the operation.
Details of the Prison Sentence and Restitution
On Monday, a federal judge sentenced Theodore Miller to 84 months, or seven years, in prison. Following his release, Miller will be subject to an additional three years of supervised release. The court's judgment also includes a mandatory restitution order for $398,533.52, the total amount federal prosecutors said he defrauded from investors.
The sentence follows Miller's guilty plea to two counts of wire fraud, which he admitted to carrying out over a period of more than two years. The case highlighted a significant disconnect between his public image and his private financial troubles.
The Social Media Deception
Court documents revealed that Miller carefully cultivated an online identity as a successful, globe-trotting real estate investor. He used social media platforms to portray a lifestyle of luxury, suggesting he had significant capital and expertise. However, prosecutors established that during this time, Miller was actually facing substantial personal debt, was delinquent on property taxes, and had defaulted on multiple loans.
The Two Fraudulent Investment Schemes
Miller admitted to operating two distinct but related fraudulent schemes designed to attract investors with false promises of high returns. Both ventures were presented as legitimate real estate opportunities but were not legally registered with federal authorities.
The Bigley Avenue Project
In the first scheme, Miller solicited direct investments for purported property developments on Bigley Avenue in Charleston, West Virginia. He promised investors that they would receive a percentage of the profits once the projects were finished. He also claimed they would earn a share of ongoing rental income from the properties.
This scheme successfully drew approximately $95,000 from various investors. One specific instance cited in court records involved an investor from California who wired Miller $20,000 in July 2022 for the Bigley Avenue project.
The 'Bear Lute' Investment Fund
The second scheme involved a pooled investment fund Miller created and named “Bear Lute.” He marketed this fund as a secure investment vehicle, assuring participants they would receive a minimum return of six percent.
To add a layer of perceived legitimacy, he told investors they could monitor their funds through a dedicated website and had the option to withdraw their money with 60 days' notice. This fund was more lucrative for Miller, collecting roughly $303,950 from investors. A victim from Texas who wired $2,500 in December 2022 was among those defrauded by the Bear Lute scheme.
Financial Breakdown of the Fraud
- Total Restitution Ordered: $398,533.52
- Number of Victims: Over 180
- Funds from 'Bear Lute' Scheme: Approximately $303,950
- Funds from Bigley Avenue Scheme: Approximately $95,000
Legal Violations and Investigation
A central element of the prosecution's case was that neither the Bigley Avenue investments nor the Bear Lute fund was registered as required by federal securities laws. Furthermore, neither investment qualified for any legal exemption from registration, making their sale illegal.
The investigation by federal authorities unraveled the schemes and traced the flow of money from victims to accounts controlled by Miller. The wire fraud charges stemmed from the use of electronic communications, such as wire transfers, to execute the fraudulent transactions across state lines.
Miller lived abroad for a significant portion of the time the fraud was active, from mid-2021 until he was arrested in August 2024. The financial operations were managed domestically by a family member.
Accomplice Pleads Guilty
The investigation also led to charges against Miller’s mother, Deanna Drumm, 61, of Charleston. According to court records, Drumm was responsible for managing the finances and money transfers for her son’s fraudulent operations while he resided overseas.
Last fall, Drumm pleaded guilty to a charge of aiding and abetting the sale of unregistered securities. Her sentencing is scheduled for October 9. Her involvement underscores the operational complexity of the scheme, which required a trusted individual in the United States to handle the incoming funds from deceived investors.
