8/21/2007
Oregon Man Sentenced to Prison in Multi-Million Dollar Investment Fraud Scheme
Defendant operated and promoted GlobalTech Partnership, defrauding investors out of more than $4 Million
Portland, Ore. – James Ray Mast, 43, of Portland, was sentenced today by United States District Court Judge Garr M. King to 51 months imprisonment, to be followed by 36 months of supervised release, following Mast’s guilty pleas this past April to single counts of mail fraud and money laundering. The charges stemmed from Mast’s role in promoting a fraudulent investment scheme in the name of GlobalTech Partners, Limited Partnership, an entity he created for the purpose of stealing people’s money. Mast was also ordered to pay more than $4 million in restitution to the victims.
According to the indictment, beginning in 2001 and continuing through 2005, Mast solicited investments for Enhanced Financial Services, Inc., GlobalTech Trading Group, Inc., and GlobalTech Partners, Limited Partnership, for the purpose of day trading in financial markets. Mast either owned or controlled each of these three entities which operated out of Hillsboro, Oregon. The scheme involved Mast falsely representing to investors, many of whom he had met through youth basketball programs in Oregon, that he had been successfully day trading for a significant period of time. In fact, Mast’s trading activity consistently resulted in financial losses. He would tell investors he never had a losing quarter and that they would receive double-digit returns if they invested with his companies. Mast mailed quarterly statements to investors that falsely depicted his trading scheme was generating large profits.
In total, Mast collected in excess of $4 million from investors, a portion of which he laundered through a casino in Las Vegas. Bank and financial records subsequently showed that very little of the money was ever invested in day trading or any other legitimate investment activity. Instead, Mast diverted and misappropriated investor funds for his own personal and unauthorized use. Records revealed he used investors’ money for high-stakes gambling in Las Vegas, exotic dancers, as well as to purchase new automobiles, a boat, home furnishings and personal gifts. Some of the sources of the stolen money included retirement savings and college funds, with some victims now being forced to repay substantial loans.
“It can be devastating when the financial well-being of an individual falls into the wrong hands through trickery and deceit,” said Kenneth J. Hines, the IRS Special Agent in Charge for the Pacific Northwest. “Thanks to the fine efforts of law enforcement agencies such as the U. S. Postal Inspection Service and ours, the days are numbered for those who would peddle false hopes and dreams, and prey on investors for their own personal financial benefit.”
This investigation was conducted by the United States Postal Inspection Service and the Internal Revenue Service - Criminal Investigation. It was prosecuted by Assistant United States Attorneys Allan M. Garten and Craig Gabriel. Further inquiries can be directed to AUSA Craig Gabriel at (503) 727-1107.
