A jury trial is scheduled to start in January for a financial advisor accused of lying to clients about their investments and forging documents to cover his tracks.
Robert E. Lee Jr., 50, of Oxford, was indicted on five counts of wire fraud by a federal grand jury Oct. 7. Each count carries a maximum penalty of 20 years in prison.
According to a criminal complaint authored by a FBI agent who specializes in white collar crime, Lee scammed three clients in a “Ponzi” scheme — that is, he robbed Peter to pay Paul, as the saying goes.
According to court documents, Lee would take money from clients, lie to the clients about investing the money, and simply deposit the money into his personal bank account.
If a client wanted a payout on an investment, Lee would use another client’s “investment” money to pay the first client.
If a client asked for paperwork, Lee would present fake documents, according to the criminal complaint.
This went on from at least 2011 to 2014, according to court documents.
The FBI lists three unidentified people as Lee’s victims. They are referred to in court documents as “Victim‑1,” “Victim‑2” and “Victim‑3.”
Lee worked at at least three investment firms from 2005 until 2013.
“Victim‑1” started investing with Lee in 2001, when he gave him $10,000. He estimated he invested up to $140,000 with Lee over the years.
In 2010 “Victim‑1” needed to take money out of his accounts to buy a car and to finance some home improvement projects.
Lee took an unusually long time to transfer the money, but it eventually appeared in his account. The FBI alleges the money wasn’t from “Victim’s 1” investment revenue, but simply money some other victim had given Lee.
In 2013 “Victim‑1” got nervous and eventually chatted with “Victim‑2.” They presumably bonded over the fact Lee had stopped sending them disbursements from their respective investment accounts.
“Victim‑1” called the investment firm where he knew Lee had worked — the firm said “Victim‑1” didn’t have an account with them.
On July 31, 2013 the two victims met with Lee to ask what was going on, according to court documents.
Also, “Victim‑1” needed to take out $30,000 to pay for his kid’s college tuition, which was due in about 30 days.
“Lee admitted that all of Victim‑1’s and Victim‑2’s money was gone,” the FBI agent alleged in a court document.
Lee made the statement even though he had sent “Victim‑1” a statement in May 2013 that showed he had hundreds of thousands of dollars safely invested.
Authorities believe the statement was fake.
“Victim‑2” had invested an estimated $3 million with Lee over the years, beginning in the 1990s.
The two became friends, talking on the phone up to four times a day about business. “Victim‑2” even visited Lee at his Oxford home to talk investments.
But, in July 2013, Lee was terminated from his job at Rockwell Global Capital, LLC after the Financial Industry Regulatory Authority began investigating complaints about Lee lying to clients, among other transgressions.
In August 2013, the authority put a lifetime ban on Lee.
When “Victim‑2” heard about Lee’s troubles, he wanted to talk to Lee’s supervisors.
Lee convinced him not to make the call, according to court documents.
Lee had previously told “Victim‑2” that he was a “sophisticated” investing client, able to make investments other clients could not.
“Victim‑2” was under the impression his investment portfolio was worth $286 million, according to court documents.
In July or August 2013, “Victim‑2” asked Lee to set up a trust fund for his kids. This scared Lee, according to court documents, and he admitted it was a “lie portfolio.”
The FBI eventually found a “witness” to help solidify a case against Lee. The government secretly recorded phone conversations between Lee and the “witness,” according to court documents.
When asked “why he did what he did,” Lee allegedly said he had financial problems. His house was in foreclosure, and he owed back taxes.
“I never kept a dime,” Lee allegedly said, adding later in the conversation that at some point, “it just got out of hand.”
The FBI alleges that Lee illegally disbursed more than $1 million among his clients between November 2011 and April 2011 alone.
He allegedly made more than $500,000 in personal purchases, too, using his clients’ money. Lee allegedly shopped at Victoria’s Secret, Target, local restaurants and bought some e‑cigarettes, too.
Lee is being represented by Michael Stanton Hillis and Richard J. Korolyshun. The Valley Indy sent emails to both lawyers Friday seeking comment.
Lee is free on a $250,000 bond.
A telephone scheduling conference on the case is slated for 12:30 p.m. Oct. 28.
Jury selection is scheduled for Jan. 14, 2015 at 450 Main St. in Hartford.
