Press Release
☷Dearborn Resident Sentenced in Investment Fraud Scheme
Federal Bureau of Investigation ( By Press Release office)
May 05,2022
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Dearborn Resident Sentenced in Investment Fraud Scheme DETROIT - Dearborn resident Ali Rameh Bazzi was sentenced to 33 months of imprisonment today on charges of wire fraud and money laundering arising out of an approximately $500 , 000 investment fraud scheme , announced United States Attorney Dawn N . Ison . Joining in the announcement were Special Agent in Charge James A . Tarasca of the Federal Bureau of Investigation and Sarah Kull , Special Agent in Charge of the Detroit Office of the Internal Revenue Service Office of Criminal Investigation . Bazzi , 27 , pleaded guilty in August 2021 to one count of wire fraud arising from a scheme to defraud approximately 30 individuals by using their investments to fund his personal lifestyle and expenses . Bazzi also pleaded guilty to one count of money laundering , the result of financial transactions he engaged in with the fraudulently obtained funds . United States Attorney Ison stated “This defendant lived lavishly on funds that he stole from those who entrusted him with their investments . His lies and deceit were costly to his victims and to the community as a whole . Today’s sentence was wholly warranted and I hope it will deter anyone seeking to enrich themselves by defrauding innocent investors . ” According to Court documents , Ali Rameh Bazzi held himself out to the public as an investment manager who used a unique trading model to generate high rates of return for investors . Between March of 2018 and March of 2020 , Bazzi , operating through a supposed investment management company that he formed , obtained approximately $540 , 000 from nearly thirty investors . Bazzi told these investors that he would be investing their funds in commodities and foreign exchange markets and would generate substantial profits for his clients . To corroborate those claims , he provided his investors with individualized account statements at regular intervals , which purported to show trading activity and the growth in the value of their investments . In fact , according to court documents , Bazzi diverted the great bulk of the money he obtained to his own personal uses and expenses . The account statements were fictitious , as were Bazzi’s many other representations to his investors about how and where their funds would be invested . Because of Bazzi’s misrepresentations , most of his victims were left with no return on their investments . Bazzi spent investor funds leasing exotic sports cars , acquiring jewelry , and funding the day - to - day living expenses of a comfortable lifestyle . Of the approximately $540 , 000 that Bazzi obtained over the course of the scheme , Bazzi returned approximately $99 , 000 to investors . The reminder of the funds – some $441 , 231 – Bazzi illegally converted to his own use . In addition to the 33 months of imprisonment , Bazzi was ordered to pay $441 , 231 in restitution to his victims . The case was prosecuted by Assistant United States Attorney John K . Neal . The investigation was conducted jointly by the FBI and the IRS - Criminal Investigations Division . The Commodity Futures Trading Commission provided valuable assistance .
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