COVID scammer admits to defrauding investors with fake products and false documents

Summary

A press release of the U.S. Attorney's Office for the Southern District of Texas dated Thursday, April 10, 2025, announcing that Robert Maxwell, a 30-year-old Los Angeles, California, resident, pleaded guilty to wire fraud involving $12.5 million from investors. According to the release, in the first years of the COVID-19 pandemic he falsely represented to investors that he had a manufacturing contract with a Chinese company for personal protective equipment and used fabricated bank records, agreements and other documents to solicit investments. It states that he also took in millions from investors for an at-home aerosol product intended to kill coronavirus, claiming retailers were ordering millions of units, although no one had manufactured the product. It was announced by U.S. Attorney Nicholas J. Ganjei.

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Full text

Press Release

COVID scammer admits to defrauding investors with fake products and false documents

Thursday, April 10, 2025

For Immediate Release

U.S. Attorney's Office, Southern District of Texas

HOUSTON – A 30-year-old Los Angeles, California, resident has pleaded guilty to wire fraud in a $12.5 million scam that victimized investors in the Southern District of Texas, announced U.S. Attorney Nicholas J. Ganjei.

In the first years of the COVID-19 pandemic, Robert Maxwell falsely represented to investors that he had procured a manufacturing contract with a Chinese company for personal protective equipment (PPE) such as masks and gloves. He also purported to have a domestic agreement to sell the PPE.

He used fabricated bank records, agreements and other documents to solicit millions in investments to aid in this purported venture. He then pocketed the investment funds, while the PPE never existed.

At the same time, Maxwell agreed to help produce an at-home aerosol product intended to kill coronavirus. While again taking in millions from investors, Maxwell claimed he was working with a manufacturing plant in Texas and an out-of-state distributor to produce and deliver the product to major retailers.

Maxwell told victims that retailers were selling out of the product and ordering millions of additional units in a bid to obtain additional investor funds. However, the entire arrangement was a fraud. No one had even manufactured the product, retailers had never heard of it nor of Maxwell, and he had fabricated all the documents he showed to investors to bolster the scheme.

Maxwell admitted to stealing more than $12.5 million from victims in the course of his fraudulent scheme.

“The Southern District of Texas takes an aggressive approach against would-be fraudsters and swindlers,” said Ganjei. “Those who take advantage of a national emergency to enrich themselves by false pretenses will find themselves where they belong - in prison.”

U.S. District Judge Alfred H. Bennett will impose sentencing July 17. At that time, Maxwell faces up to 20 years in prison and a possible $250,000 maximum fine.

He was permitted to remain on bond pending that hearing.

The FBI conducted the investigation with the assistance of Houston Police Department. Assistant U.S. Attorneys Thomas Carter and Christian Latham prosecuted the case.

Updated April 10, 2025

Topics

Operation Take Back America

Drug Trafficking

National Security

Component

USAO - Texas, Southern

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