CHARLOTTE, N.C. – The grim details of a multi-million-dollar con were laid bare today as Robert M. Boston, 53, and Robert S. LaBarge, 50, both from Hickory, faced federal charges for fraud totaling at least $25 million. The duo is accused of conspiracy, wire fraud, securities fraud, bank fraud, and money laundering.
According to the allegations, Boston and LaBarge, founders of Zloop, a defunct electronic waste recycling firm, conned franchisees, investors, and lenders out of their hard-earned cash. The indictment asserts that they siphoned millions into lavish personal expenditures, including a private plane, high-end real estate, and a racing career for Boston’s son.
Starting in 2012, Zloop franchises were marketed under the guise of an honest business venture. However, federal law requires potential franchisors to disclose pertinent legal and financial issues. The franchise disclosure documents for Zloop omitted required details, including Boston’s bankruptcy history and prior false financial claims.
The defendants are further accused of sending a fraudulent private placement memo to investors, duping them out of approximately $2.5 million. When the truth caught up with them in 2013, they turned to Victim 1 for a $3 million loan to repay other investors. LaBarge then fraudulently filed a financing statement, enabling Zloop to draw nearly $4 million from Patriot Bank.
With this money, Boston and LaBarge splurged on an opulent lifestyle, spending hundreds of thousands on a private plane, luxury cars, racing expenses, and even a suite at a professional football stadium.
The pair now face multiple charges in the United States District Court in Charlotte. Their criminal endeavor has left a trail of devastation for their victims.
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Key Facts
- State: North Carolina
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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