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UNITED STATES ATTORNEY ALEXANDRIA NEWPORT NEWS NORFOLK RICHMOND CHUCK ROSENBERG UNITED STATES ATTORNEY |
FOR IMMEDIATE RELEASE:
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June 7, 2007 |
Richmond Resident Indicted in Real Estate Investment Fraud Scheme
( Richmond, VA) – Robert Heath Fox, age 48, of Richmond, Virginia, was named in a superseding indictment on Wednesday, in which a federal grand jury charged him with 34 counts of wire fraud, two counts of mail fraud, and two counts of money laundering. Chuck Rosenberg, United States Attorney for the Eastern District of Virginia; Guy Cottrell, Postal Inspector-In-Charge, Washington Division; and Charles J. Cunningham, Special Agent-In-Charge, Federal Bureau of Investigation, Richmond Division, announced the charges.
As alleged in the superseding indictment, Fox created and headed a purported business organization known as the Fox Development Group (a.k.a. “FDG”). The defendant created an additional purported business organization related to FDG named Privateoffer.com, which had a website located at www.privateoffer.com. From September 20, 2003, through August 24, 2005, the primary place of business for Privateoffer.com was located in Richmond. During this time period, the defendant used the www.privateoffer.com website, as well as the Internet auction service eBay, to offer for sale various promissory notes guaranteeing an investor a large rate of return, typically 50%, in a fixed period of 60 to 90 days. The promissory notes were supposed to fund the purchase of distressed real estate properties, which would then be renovated and sold for a profit.
During the above time period, Fox created marketing materials, including investor brochures and welcome packets, which were provided to both prospective and new investors that falsely depicted pictures of real estate purportedly purchased by the Fox Development Group for investment purposes. Fox also obtained a Dun & Bradstreet report, provided on demand to prospective customers, which falsely claimed that Fox Development Group had been founded in 1997, had 75 employees, and had projected annual sales of $999,999. The superseding indictment further alleges that Fox used the aliases “Sabian Roberts” and “Robert Heath” when communicating via telephone or e-mail with some customers to falsely create the impression that Fox Development Group and Privateoffer.com had more employees than was truly the case.
The superseding indictment alleges a total of $432,000 in payments from various victims to Fox. The wire fraud charges list 20 different victims, from 13 states and two countries, who paid Fox a total of $369,000. The mail fraud counts list two additional victims who mailed the defendant payments totaling $63,000. The superseding indictment further alleges that Fox engaged in promotional money laundering by wiring modest “lulling” payments from his Virginia Credit Union account to two victims who had invested in his scheme. None of the alleged victims received their full investments back from Fox, much less the interest payment guaranteed by the promissory notes.
Investigators from multiple agencies have participated in the case, including personnel with the U.S. Postal Inspection Service, Richmond Field Office, the National White Collar Crime Center in Glen Allen, Virginia, the Virginia State Corporation Commission, and the Federal Bureau of Investigation, Richmond Division. Assistant United States Attorney Brian R. Hood is prosecuting the case for the United States.
Defendants are presumed to be innocent until and unless proven guilty.