BEVERLY HILLS—In the results of Operation Broken Trust, the first nationwide operation conducted to directly target investment fraud schemes that prey upon public investors, a Beverly Hills woman has been identified as one of the over 500 individuals prosecuted.
The investigation was conducted by the Financial Fraud Enforcement Task Force, an inter-agency effort established by President Obama. Members of the FFETF include Attorney General Eric Holder, FBI Director Robert Mueller, and Housing and Urban Development Inspector General Kenneth M. Donohue.
Rosi Ray, 56, was arrested at her business on federal wire fraud charges on Tuesday, December 2. In her arraignment two days later, Ray pleaded not guilty to five counts in United States District Court.
The indictment against Ray alleges that she caused about 180 investors to invest around $10.9 million in a false monetary settlement business. Ray is alleged to have sought investments to buy court-ordered, monetary settlement annuities from accident victims at discounted rates, which she told her investors would lead to them receiving substantial monthly returns, with gains being from 10 to 200 percent over two to 12 months.
The indictment alleges that this money was instead used for Ray’s personal expenses, her purse consignment business, investor payouts and her son’s drag racing career. Ray was released on a $100,000 bond, and is scheduled to go on trial on January 25 in U.S. District Court.
The combined monetary losses stemming from those prosecuted in Operation Broken Trust amounts to more than $10 billion from both criminal and civil cases. For more information, please visit losangeles.fbi.gov.