On Thursday, October 7, 2011 Rober Schroy, of California, pleaded guilty to wire fraud and tax evasion for his role in a $1 million investment fraud scheme. Schroy pleaded guilty to one count of wire fraud and one count of tax evasion.
According to filed documents in this case:
Schroy said from 2004 through 2009 he solicited people to invest in an alleged “international bank trade.” Schroy admitted he and his co-schemers falsely promised prospective investors extraordinary gains – ranging between 10 and 100 percent per week for a minimum period of 25 weeks – plus the return of their principal investment. Based on Schroy’s misrepresentations, numerous investors from multiple states in the US wired investment monies to accounts controlled by Schroy and his co-schemers. The money was wired to the designated accounts, however, Schroy admitted it was not invested in any supposed bank trade. Instead it was used by Schroy and his co-schemers for personal expenditures, including automobiles, vacations, and meals at restaurants. In total, Schroy admitted he and his co-schemers misappropriated at least $1 million in investor money.
Schroy admitted in his guilty plea that he failed to file his 2007 tax return and did not report $479,566 of taxable income which $151,781 of that was owed to the IRS.
Schroy now faces a maximum of up to 25 years in prison and a $500,000 fine. Wire fraud has a maximum penalty of 20 years and tax evasion, 5. Each count caries a fine up to $250,000 – Source.
$1 Million Investment Fraud Scheme Could Mean 25 Years In Jail by Amanda Miller
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