A Georgia investment broker and a Florida attorney have been charged with running Ponzi schemes that allegedly took nearly $2 million from investors.
The schemes promised returns as high as 16 times an investment in as little as 30 to 90 days, says the U.S. Attorney’s Office for the Northern District of Georgia.
Prosecutors say Roosevelt Tobias “Toby” Bailey, 70, of Duluth, ran two schemes through his company, Borg Global, from about October 2018 through October 2022.
The first, called the Micro-Cap program, promised to double investors’ money by pooling funds to buy precious stones and metals outside the US and resell them at a higher price inside the country.
The second, called the Standby Letter of Credit program, promised returns of up to 16 times the investment within 30 to 90 days.
Prosecutors allege the money was never used for either program.
Instead, the money allegedly went to Bailey’s personal and business accounts and to earlier investors to keep the schemes going.
Alvin Jones of Tampa, a former prosecutor and practicing attorney, allegedly routed investor money through his law firm’s trust accounts to Bailey and kept a portion for himself.
On September 22nd, a federal grand jury indicted Bailey on seven counts of wire fraud, one count of money laundering conspiracy and three counts of money laundering.
Jones faces one count of money laundering conspiracy and three counts of money laundering.
Bailey was arrested and arraigned on October 16th, and Jones was arrested and arraigned on October 20th.
Says U.S. Attorney Theodore S. Hertzberg,
“Bailey allegedly lured investors based on promises of massive returns and false assurances that their investments would be held in Jones’s trust accounts. But instead of safeguarding that money, Jones allegedly funneled it to Bailey, keeping a piece for himself, while investors lost their savings.”
The FBI investigated the case with help from the Securities and Exchange Commission.
The charges are only allegations, and both men are presumed innocent unless proven guilty in court.
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