Thursday, September 28, 2023
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‘Homebuilder’ Accused of Ponzi Scam

CHICAGO (CN) - FBI agents arrested the president of Affordable American Homes on Thursday on charges that he ran a $12 million Ponzi scheme and "swindled more than $4.1 million" for himself and his family and for other purposes. Robert R. Anderson, 59, of Mount Prospect, is charged with criminal wire fraud, the U.S. Attorney's Office said. The SEC filed accompanying civil charges.

Anderson has been president of Affordable American Homes and secretary of Rosand Enterprises, prosecutors said. Most of the companies' revenue came from selling promissory notes to investors.

Anderson has defrauded investors since 2006, prosecutors said, "unconditionally" guaranteeing monthly returns of 10 to 20 percent for 6 months to a year.

"Anderson falsely represented that the funds would be used as collateral for a line of credit that he would use to build low-income housing and that the interest payments to investors were generated from the closings of the houses," the U.S. Attorney's Office said.

Prosecutors say Anderson used $7.9 million to make Ponzi payments, "while misappropriating the balance of approximately $4,177,000, including more than $1.9 million for unrelated investments, more than $445,000 for payments to others, including his associates and partners, and more than $818,000 for his and his family's personal use. ... There was no indication from account transactions that Anderson received any income from the sale of homes or made any payments to construction subcontractors."

If convicted, Anderson could face up to 20 years in prison, mandatory restitution and a fine of twice his ill-gotten gains.

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