A California man has pleaded guilty to wire fraud, admitting he defrauded investors out of $12.5 million through a series of COVID-era scams, the U.S. Attorney’s Office for the Southern District of Texas announced Thursday.
Robert Maxwell, 30, of Los Angeles, falsely claimed to investors that he had secured a contract with a Chinese manufacturer to supply personal protective equipment (PPE) like masks and gloves. Maxwell further claimed he had an agreement with a domestic distributor to sell the PPE. To support his scheme, he used fabricated bank records, contracts, and other fraudulent documents to solicit millions of dollars in investments.
In reality, the PPE never existed, and Maxwell kept the investors’ money for himself.
Simultaneously, Maxwell launched another fraudulent venture, promising to manufacture and distribute an aerosol product designed to kill the coronavirus. He told investors that he was working with a Texas-based manufacturing plant and an out-of-state distributor to supply the product to major retailers. Maxwell claimed that retailers were selling out of the product and placing additional orders, pressuring victims to invest even further.
The office confirmed that no such product was ever manufactured, and the retailers had no knowledge of Maxwell or his claims.
Maxwell is scheduled for sentencing on July 17. He faces up to 20 years in federal prison and a $250,000 fine.
“The Southern District of Texas takes an aggressive approach against would-be fraudsters and swindlers,” said U.S. Attorney Nicholas J. Ganjei. “Those who take advantage of a national emergency to enrich themselves by false pretenses will find themselves where they belong – in prison.”
Maxwell remains free on bond pending sentencing, the U.S. Attorney’s Office confirmed.
