$1 Million Investment Fraud Scheme Could Mean 25 Years In Jail

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.

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