United States of America v. Roosevelt Tobias "Toby" Bailey

Atlanta, Georgia criminal defense lawyer represented the Defendant charged with wire fraud, in violation of 18 U.S.C. 1343 and money laundering, in violation of 18 U.S.C. 1956.

Roosevelt Tobias “Toby” Bailey, a Duluth, Georgia, engaged in a Ponzi scheme from approximately October 2018 through October 2022, Bailey allegedly operated two fraudulent investment schemes through his company, Borg Global.

The first scheme—called the Micro-Cap program—promised investors that Borg Global would pool investor funds to purchase precious stones and metals from outside the United States and then resell them for a higher price within the United States, effectively doubling the initial investments.

The second scheme—called the Standby Letter of Credit (SBLC) program—promised extraordinary returns of up to 16 times the principal investment within 30 to 90 days. Bailey allegedly claimed that Borg Global could lease or monetize SBLCs from major banks or corporate entities using investor funds, explaining that the institutions would then use the SBLCs as collateral for their own credit lines, retain a portion of the proceeds, and return the remainder to Borg Global for distribution to investors.

Neither program used investor funds for its intended purpose. Instead, Bailey allegedly funneled the money to himself and used it on personal expenses. He hid his use of the funds by directing investors to send their funds to Jones’s interest on lawyer trust Account (IOLTA) accounts, which are intended to hold client funds in trust. Instead of sending the investor funds to the Micro-Cap or SBLC programs, Jones—at the direction of Bailey— allegedly sent the funds to Bailey’s personal and business accounts, as well as to prior investors to perpetuate the schemes. Jones also kept a portion of the funds for himself.

Between October 2018 and October 2022, Bailey received nearly $2 million in investor funds. In October 2022, Bailey stopped communicating with investors, resulting in substantial financial losses to investors.

An indictment is not proof of guilt.