It's warning for all investors. Beware of deals that guarantee you'll make money.
"The victims were enraged," says U.S. Postal Inspector Lisa Cummings. "They were upset because they trusted him and they thought he was actually making the trades and investing the money in what he promised them."
Cummings is talking about Robert Tram. He promised investors he would deposit their money into an account and the funds would be used as leverage to buy bonds at a discounted rate.
"The whole business was a fraud, the trades actually never took place," says Cummings. "In reality, their money was pulled into one central account and he used the money to purchase a home, diamond bar and luxury vehicle."
15 victims lost $8 million.
"The victims lost a lot of money. They trusted him and they were deceived by him," says Cummings.
Some advice from postal inspectors: thoroughly check out the person you're trusting with your hard-earned money, before you invest.
"Even if you had Googled his name, he was previously convicted in the UK for forgery and deception, so he had a criminal history prior to starting up this scheme in the us," says Cummings.
Tram was sentenced to 13 years for mail fraud, wire fraud and destruction/falsification of records. He was ordered to pay more than $2 million in restitution.