A Los Angeles resident has confessed to orchestrating a significant wire fraud scheme that deceived investors out of $12.5 million, as unveiled by U.S. Attorney Nicholas J. Ganjei. This scam, taking place during the early years of the COVID-19 pandemic, targeted investors within the Southern District of Texas.
Robert Maxwell, aged 30, presented himself to investors as having secured a manufacturing deal with a Chinese company for personal protective equipment (PPE), including masks and gloves. He also claimed to have domestic agreements in place to sell these products. He used fake bank records, agreements, and other documents to acquire millions in investments, ultimately pocketing the funds as the PPE never existed.
Additionally, Maxwell entered an agreement to develop an at-home aerosol product purported to kill the coronavirus. He convinced investors that he was collaborating with a Texas-based manufacturing plant and an out-of-state distributor. Maxwell falsely claimed that major retailers were selling out of the product and ordering additional units, prompting further investments. However, the entire operation was bogus. The product was never manufactured, and retailers were unaware of both the product and Maxwell.
Maxwell's fraudulent activities resulted in the theft of more than $12.5 million. "The Southern District of Texas takes an aggressive approach against would-be fraudsters and swindlers," stated Ganjei. "Those who take advantage of a national emergency to enrich themselves by false pretenses will find themselves where they belong - in prison."
Sentencing by U.S. District Judge Alfred H. Bennett is scheduled for July 17. Maxwell faces up to 20 years in prison and a possible fine of up to $250,000. He remains on bond pending the sentencing.
The FBI, with the Houston Police Department, conducted the investigation. Assistant U.S. Attorneys Thomas Carter and Christian Latham prosecuted the case.