A man from Houston residing in Los Angeles has pleaded guilty to wire fraud in a $12.5 million scam that victimized investors in the Southern District of Texas.
During the early years of the COVID-19 pandemic, Robert Maxwell, 30, falsely represented to investors that he had secured a manufacturing contract with a Chinese company for personal protective equipment, including masks and gloves. He also claimed to have a domestic agreement to sell the items.
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According to U.S. Attorney Nicholas J. Ganjei, Maxwell used fabricated bank records, agreements, and other documents to solicit millions in investments for this purported venture. He pocketed the investment funds while the protective items never existed.
Maxwell also agreed to help produce an at-home aerosol product intended to “kill the coronavirus.” While again taking in millions from investors, he claimed he was working with a manufacturing plant in Texas and an out-of-state distributor to produce and deliver the product to major retailers.
Maxwell told victims that retailers were selling out of the product and ordering millions of additional units to entice further investment. However, the entire arrangement was a fraud. No one had manufactured the product, retailers had never heard of it or Maxwell, and he fabricated all the documents he presented to investors to bolster the scheme.
Maxwell admitted to stealing more than $12.5 million from victims during his fraudulent operation.
“The Southern District of Texas takes an aggressive approach against would-be fraudsters and swindlers,” Ganjei said. “Those who take advantage of a national emergency to enrich themselves by false pretenses will find themselves where they belong – in prison.”
At that time, Maxwell faces up to 20 years in prison and a possible $250,000 maximum fine. He is set to be sentenced on July 17.
