Dearborn Man Pleads Guilty In Federal Court For Investment Scheme

DETROIT, MI —Dearborn resident Ali Rameh Bazzi pleaded guilty in Federal court Tuesday to running an investment fraud scheme that, in some instances, targeted elders, acting U.S. Attorney Saima S. Mohsin announced. The scheme involved approximately 30 people, who invested approximately $500,000 with Bazzi, who then used the money to make purchases for himself, according to the U.S. Department of Justice.

According to a release, Bazzi pleaded guilty to one count of wire fraud and one count of money laundering, the latter the result of financial transactions Bazzi made with the fraudulently obtained funds.

"Bazzi told his victims that he was investing their money in foreign exchange and commodity markets," Mohsin said Tuesday. "In fact, he used their money to line his own pockets, and lied to his victims over and over again in order to sustain his fraud. Today's guilty plea reflects my office's commitment to hold accountable all those who fleece the public for personal gain."

Timothy Waters, an FBI special agent in charge of bureau's Detroit Field Office, also said that Bazzi targeted elders, though he did not give details about how many of Bazzi's victims fell into that category.

"Because seniors are a particularly vulnerable victim group and are often specifically targeted for financial fraud crimes, the FBI and our law enforcement partners have prioritized our efforts to address elder fraud," Waters said. "We encourage anyone who believes they are a victim of fraud or know a senior who may be, regardless of financial loss, to immediately report the incident to the FBI or another law enforcement agency."

According to the plea documents, Bazzi owned and operated a Dearborn-based investment firm called Welther Oaks, LLC., though he falsely represented that he was a licensed professional.

Between March 2018 and March 2020, Bazzi solicited funds for investments from customers from around the country, telling the customers their money would be invested in foreign currency exchange markets and commodities, like gold.

Customers paid for their investments with checks mailed to Welther Oaks or via wire transfers to bank accounts that were owned and controlled by Bazzi. Approximately 30 individuals invested a total of approximately $500,000, the plea agreement stated.

However, according to the plea agreement, Bazzi diverted most of the investors' funds into his own personal uses and expenses, like expensive jewelry and luxury vehicles, including wiring some $28,419.20 to a business in Nevada for the lease of an exotic sports car.

Meanwhile, Bazzi provided customers with regular investment account statements listing fake trading activity and account balances.

Bazzi's sentencing is set for November 30, before U.S. District Judge David M. Lawson.