Georgia man, former prosecutor charged in alleged $2M Ponzi schemes, feds say

Federal prosecutors indicted a local business owner and a Florida attorney on wire fraud and money laundering charges in connection with Ponzi schemes that allegedly defrauded investors out of $2 million, according to the U.S. Attorney’s Office.

Roosevelt Tobias Bailey, who is from Duluth, is accused of operating two different investment schemes from 2018 to 2022 through his company, Borg Global, according to a news release from U.S. Attorney Theodore Hertzberg’s office.

He had help from Alvin Jones, an attorney and former prosecutor in Tampa, Florida, who funneled money through his account to Bailey, prosecutors allege.

Prosecutors say the two worked together to get investors to believe their funds would go toward purchasing stones and metals from overseas and then selling them in the U.S., promising a doubling on their investment.

The second scheme offered investors “extraordinary returns of up to 16 times the principal investment within 30 to 90 days,” in a standby letter of credit program, according to the news release.

Investors sent their money to Jones, thinking their money would be held in trust, officials say. In reality, each man got a cut of the funds, some of which they also distributed to prior investors to keep up the Ponzi scheme, according to U.S. prosecutors.

“Bailey allegedly lured investors based on promises of massive returns and false assurances that their investments would be held in Jones’s trust accounts,” Hertzberg said. “But instead of safeguarding that money, Jones allegedly funneled it to Bailey, keeping a piece for himself, while investors lost their savings.”

The two were indicted in September. Bailey faces seven counts of wire fraud, one count of money laundering conspiracy and three counts of money laundering. Jones was charged with one count of money laundering conspiracy and three counts of money laundering, prosecutors said. Bailey was arrested last week, and Jones was taken into custody Tuesday, according to the news release.

The U.S. Securities and Exchange Commission filed civil complaints against both men in 2024, charging Bailey for violating the antifraud provisions and Jones for aiding and abetting in Ponzi schemes, according to an SEC news release.