DETROIT – A Michigan man pleaded guilty this week to federal charges of wire fraud and money laundering related to a $500,000 investment fraud scheme that targeted seniors.
Ali Rameh Bazzi, 26, of Dearborn, pleaded guilty to one count of wire fraud arising from the scheme to defraud investors. He also pleaded guilty to one count of money laundering, the result of financial transactions he engaged in with the funds, Acting U.S. Attorney Saima S. Mohsin announced.
Over the course of the two-year scheme, March 2018 to March 2020, Bazzi fleeced 30 victims and used their money to line his own pockets, according to plea documents. He spent investor funds on a sports car, other luxury vehicles and expensive jewelry.
“Bazzi told his victims that he was investing their money in foreign exchange and commodity markets. In fact, he used their money to line his own pockets, and lied to his victims over and over again in order to sustain his fraud,” Mohsin said. “Today’s guilty plea reflects my office’s commitment to hold accountable all those who fleece the public for personal gain.”
According to the plea agreement, Bazzi owned and operated a supposed investment company in Dearborn called Welther Oaks, LLC. Using the business, Bazzi solicited investment funds from people across the country, including in Michigan, Illinois and California.
Bazzi told his victims that their funds would be invested primarily in foreign currency exchange markets and in certain commodities, including gold. Bazzi told investors that his trading model ensured high rates of return, according to plea documents. He provided investors with written trading agreements and other materials.
Bazzi told investors he was a licensed professional when he was not, according to court documents. The victims primarily funded their investments via checks mailed to Welther Oaks, or via wire transfers to bank accounts owned and controlled by Bazzi.
While diverting their funds for his own personal uses, Bazzi concealed the scheme by providing investors with statements that listed fictitious trading activity and account balances, according to the plea agreement.
The plea agreement further states that Bazzi engaged in financial transactions with the fraudulently obtained funds, including wiring $28,429.20 to a business in Nevada for the lease of an exotic sports car.
Bazzi’s sentencing is set for 4 p.m. on Nov. 30 before U.S. District Judge David M. Lawson.
The case is being prosecuted by Assistant U.S. Attorney John K. Neal. The investigation was conducted by the FBI and IRS-Criminal Investigations with the assistance of the Chicago Office of the Commodity Futures Trading Commission.
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