11/13/2008

News / MORENO VALLEY MAN ARRESTED FOR FRAUD IN CONNECTION WITH COMMODITIES FUTURES INVESTMENTS

A Moreno Valley man was arrested last Tuesday after being charged with wire fraud in connection with a scheme to defraud investors, announced Salvador Hernandez, Assistant Director in Charge of the FBI in Los Angeles. Robert Bame, 38, was afforded an initial appearance in U.S. District Court on Friday and was denied bond.

According to a criminal complaint filed in U.S. District Court in Riverside, Bame allegedly convinced victims to invest in contracts for index-based futures. Bame allegedly told investors the contracts were traded using a unique computer program that maximized profits. Most investors were told their money was being invested in the commodities futures market. Bame described these investments as profitable, when in reality, the vast majority of the investors' money was diverted for Bame's personal use after he transferred the funds to multiple personal bank accounts, according to the complaint.
An investigation by the Commodity Futures Trading Commission found that in or about February 2007, Bame opened a new commodities futures trading account in the name of Forward Investment at Transact Futures. In the account agreement with Transact Futures, Bame falsely indicated that no other person had a financial interest in the account. Bame deposited investor funds into the account totaling approximately $605,000 during the following months. Bame allegedly sent investors and potential investors at least two forged Forward Investment trading account statements on Transact Futures letterhead. One false statement dated December 14, 2007, purported to show that the Forward Investment account had a total net value of over $77 million, whereas the true value of the account was only $4,486. The other false statement purported to show ninety-seven Forward Investment sub-accounts for the various investors with their balances totaling over $61 million. A review of Bame's company, Forward Investment Group, LLC, revealed that Bame used the large majority of investors' funds to charter private jets and for the purchase of multiple vehicles and other personal items.

If convicted as charged, Bame faces a statutory maximum penalty of 20 in federal prison.

A complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until proven guilty.

This investigation was conducted by the FBI, the Internal Revenue Service, the Tulare County District Attorney's Office and the Commodity Futures Trading Commission. This case was filed in U.S. District Court in Riverside and will be prosected by the United States Attorney's Office.

Media Contact:

FBI, Los Angeles: Laura Eimiller: 310 996-3343

U. S. Attorney's Office: Thom Mrozek: 213 894-6947

http://losangeles.fbi.gov/pressrel/2008/la111008.htm

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