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$2 million Ponzi scheme unravels after firm dissolved
A federal grand jury indicted Duluth resident Roosevelt Tobias Bailey on wire fraud and money laundering charges for allegedly running a $2 million Ponzi scheme through his company, Borg Global Holdings LLC, according to federal prosecutors.
DULUTH, Ga. - A Duluth businessman accused in a nearly $2 million gold and diamond investment scam broke his silence Thursday, calling the sweeping federal charges against him "a complete shock."
What we know:
A federal grand jury indicted 70-year-old Roosevelt Tobias "Toby" Bailey of Duluth and 58-year-old Tampa attorney Alvin Jones on wire fraud and money laundering charges.
According to federal prosecutors, the pair operated a pair of fraudulent schemes from October 2018 through October 2024 using Bailey’s company, Borg Global Holdings. In one pitch, Bailey promised investors he would double their money through buying and selling diamonds and gold from Africa. In another, prosecutors said he promised returns of up to 16 times the original investment in as little as 30 to 90 days.
ORIGINAL STORY: Duluth broker, attorney charged in alleged Ponzi schemes
Federal investigators found that while some small purchases of precious metals were made in Africa, the vast majority of the promised investments never happened. Instead, prosecutors allege Bailey and Jones pocketed the money for themselves, poured funds into unrelated projects, and paid off earlier investors to keep the operation afloat.
Prosecutors added Jones played a central role by running victim deposits through his Tampa law firm’s Interest on Lawyers' Trust Accounts (IOLTA). Using a protected legal account allowed Jones to obscure where the stolen money came from before paying it out directly to Bailey and keeping a cut for himself.
What they're saying:
Bailey declined an on-camera interview when contacted by FOX 5 reporter Christopher King, stating over text message that he needed to consult with his legal team.
"This was all unexpected and a complete shock," Bailey said.
FOX 5 also called and texted Jones for comment regarding the indictment. The person on the other end responded with a one-word text: "Hello."
Federal prosecutors slammed the operation as a blatant con, reserving sharp criticism for the licensed attorney accused of helping orchestrate it.
"This is brazen conduct," said federal prosecutor Theodore Hertzberg. "These folks and others like them advertise an opportunity to invest in some sort of transaction between a big company and a big bank. People give money, think they can get massive returns, when in fact, they’re investing in absolutely nothing."
Hertzberg emphasized that the lawyer's alleged participation makes the case especially egregious: "It’s particularly reprehensible when a member of the bar, when a lawyer is involved as is alleged here in this particular case."
What we don't know:
Authorities have not confirmed how many individual victims lost money across the six-year span or whether any of the nearly $2 million in stolen funds has been recovered. It is also unclear if the Florida Bar has opened formal disciplinary proceedings against Jones following his arrest.
What's next:
Bailey faces seven counts of wire fraud, three counts of money laundering, and one count of conspiracy to commit money laundering. Jones faces three counts of money laundering and one conspiracy count. Both men will make their next appearances in federal court as the case proceeds toward trial.
The Source: Information in this article was gathered through original reporting by FOX 5 Atlanta reporter Christopher King, court records from the U.S. Attorney’s Office for the Northern District of Georgia, and statements from Assistant U.S. Attorney Theodore Hertzberg.