Houston Manager Admits $72M Investment Scam

SALT LAKE CITY – Robert Andres, 62, a Houston-based investment manager, admitted Wednesday to orchestrating a brazen $72 million investment fraud, pleading guilty in federal court here. The scheme spanned nearly six years, leaving a trail of ruined finances and broken trust.

The guilty plea, entered by Andres, comes after a joint investigation by the FBI’s Salt Lake City Field Office and the IRS-Criminal Investigation (IRS-CI) Las Vegas Field Office. Acting Assistant Attorney General Mythili Raman of the Justice Department’s Criminal Division, U.S. Attorney David B. Barlow for the District of Utah, Special Agent in Charge Mary Rook, and Special Agent in Charge Paul A. Camacho announced the development. Andres faces a maximum sentence of 20 years in prison and a $250,000 fine when sentenced on January 7, 2014.

Court documents reveal Andres operated Winsome Investment Trust, acting as its sole manager, attorney, and trustee. From October 2005 through at least January 2011, he aggressively recruited investors, peddling a carefully constructed illusion of financial success. He falsely represented Winsome’s assets, the allocation of those assets, and the nature of the investments themselves. The lies were the foundation of his empire.

Between October 2005 and April 2007, Andres raked in over $39 million from eager investors, armed with fabricated balance sheets. He promised to invest their funds in a purportedly automated trading program – a promise he never intended to keep. Then, from April 2007 to January 2011, he continued the charade, adding another $32 million to the pot. Crucially, he concealed the fact that money from new investors was simply being used to pay off earlier ones – a classic Ponzi scheme tactic.

The indictment details a pattern of deception. Andres used funds from new investors to create the *appearance* of profitability, paying “profits” to earlier investors to keep the scam afloat. But the illusion couldn’t last. He ultimately siphoned off approximately $2.2 million for personal expenses, including lavish hotel bills and everyday living costs. The money wasn’t growing; it was vanishing into Andres’ pockets.

The prosecution, led by Trial Attorney Thomas B.W. Hall of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys Jason R. Burt and Mark Y. Hirata for the District of Utah, secured the guilty plea. The Department of Justice also acknowledged the assistance of the Commodity Futures Trading Commission and the Securities and Exchange Commission in unraveling the complex web of deceit. This case serves as a stark warning: financial manipulation will be met with federal scrutiny and, ultimately, justice.