Key Takeaways
- • A 56-year-old Turnersville man, Robert Armstrong, was arrested and charged in connection with fraud schemes totaling approximately $12 million, according to U.S. Attorney Robert Frazier.
- • Armstrong allegedly impersonated an agent of a financial institution that had invested in a hedge fund, inducing the bank to issue a check for approximately $2,806,524.46, which he deposited into an account he controlled.
- • Armstrong allegedly attempted to steal an additional $9,251,641.71 in unclaimed hedge fund disbursement funds held by the State of Texas, using a fake company and the identity of a former president and CFO of the institution.
- • A separate mail fraud scheme used a fake school supply company and a mass mailing firm to send tens of thousands of false invoices to schools; at least 43 schools paid, losing at least $11,309.
Summary
A 56-year-old Turnersville man, Robert Armstrong, was arrested and charged with multiple fraud schemes totaling approximately $12 million, according to U.S. Attorney Robert Frazier. Frazier said Armstrong created fake companies, made misrepresentations, sent false documents, and used another individual's identity without permission to obtain funds from a bank, the State of Texas, and school districts across the country.
In the bank fraud scheme, Armstrong posed as an agent of a financial institution that had previously invested in a hedge fund. The hedge fund used a subsidiary of the bank as trustee to distribute payments to its investors. Armstrong sent false documents claiming he was empowered to collect funds on the institution's behalf, and the bank issued him a check payable to the institution for approximately $2,806,524.46, which he deposited into an account he controlled.
After that payment, the bank continued to collect disbursement funds owed by the hedge fund to the institution. Those funds went unclaimed and were transferred to the State of Texas, where the institution was located. Frazier said Armstrong submitted phony documents to the state in an attempt to take those funds, seeking an additional $9,251,641.71 for his own use. To advance the scheme, he created a fake company and used the identity of a person who had previously served as president and chief financial officer of the institution.
Separately, Frazier said Armstrong ran a mail fraud scheme targeting schools nationwide through a second fake company purporting to be a school supply firm. He employed a mass mailing company to send tens of thousands of false invoices for workbooks and other educational goods that were never delivered. At least 43 schools have paid these invoices so far, losing at least $11,309.
In the bank fraud scheme, Armstrong posed as an agent of a financial institution that had previously invested in a hedge fund. The hedge fund used a subsidiary of the bank as trustee to distribute payments to its investors. Armstrong sent false documents claiming he was empowered to collect funds on the institution's behalf, and the bank issued him a check payable to the institution for approximately $2,806,524.46, which he deposited into an account he controlled.
After that payment, the bank continued to collect disbursement funds owed by the hedge fund to the institution. Those funds went unclaimed and were transferred to the State of Texas, where the institution was located. Frazier said Armstrong submitted phony documents to the state in an attempt to take those funds, seeking an additional $9,251,641.71 for his own use. To advance the scheme, he created a fake company and used the identity of a person who had previously served as president and chief financial officer of the institution.
Separately, Frazier said Armstrong ran a mail fraud scheme targeting schools nationwide through a second fake company purporting to be a school supply firm. He employed a mass mailing company to send tens of thousands of false invoices for workbooks and other educational goods that were never delivered. At least 43 schools have paid these invoices so far, losing at least $11,309.
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