Investor defrauder admits guilt in $12.5 million COVID-19 PPE scam

A Los Angeles resident pleaded guilty to wire fraud in a $12.5 million fraudulent scheme affecting investors in the Southern District of Texas. U.S. Attorney Nicholas J. Ganjei announced that Robert Maxwell, aged 30, admitted to defrauding investors during the early years of the COVID-19 pandemic.

Maxwell falsely informed investors that he had secured a manufacturing contract with a Chinese company to produce personal protective equipment (PPE), including masks and gloves. He also claimed to have a domestic agreement to sell these products. To solicit investments, Maxwell used fabricated bank records, agreements, and documents. However, the PPE he promised never existed, and he misappropriated the funds obtained from investors.

Additionally, Maxwell engaged in a scheme involving an at-home aerosol product purporting to kill the coronavirus. He again collected millions from investors by claiming to collaborate with a Texas manufacturing plant and an out-of-state distributor. He falsely stated that major retailers were selling out the product and placing large orders to secure more investments. In reality, the product was never manufactured, and the supposed arrangements were fictitious, with Maxwell forging all supporting documents.

In admitting his crimes, Maxwell acknowledged stealing over $12.5 million in total. According to Ganjei, “The Southern District of Texas takes an aggressive approach against would-be fraudsters and swindlers. Those who take advantage of a national emergency to enrich themselves by false pretenses will find themselves where they belong - in prison.”

Maxwell's sentencing is scheduled for July 17, where he faces up to 20 years in prison and a potential fine of $250,000. He remains on bond until the hearing.

The investigation was led by the FBI with support from the Houston Police Department. The case was prosecuted by Assistant U.S. Attorneys Thomas Carter and Christian Latham.