It never pays to commit fraud, at least, not for long.  Jeffrey Wallace Edwards, AKA J.W., is accused of scamming investors out of over $7 million.  He was charged in federal court with wire fraud, mail fraud and money laundering.

Edwards allegedly convinced investors across the country that he had innovative investment methods and access to secret government insiders, which would result in multiplying their money into millions.

IRS special agent in charge stated that if it sounds too good to be true, stay away from it, it probably is.  He advised that, before investing, you should check out companies that claim high rates of return.  You should never follow advice given by one person.  Always confer with a professional for a second opinion.

Edwards told investors he owned a bank and had access to lucrative and confidential investments.  He also claimed to be a “special agent” of the Federal Reserve and was authorized by the U.S. Government to make cash investments to stimulate the economy.

From February 2006 through February 2007, over $7.4 million was mailed or wired to Edwards who spent the money on real estate, cars, fur coats, jewelry and trips.  Allegedly, Edwards never invested any of his own money.  He did, however, make nominal payments to pacify several investors who were intent on seeing their returns.

Edwards’ indictment includes returning the homes, cars and cash he allegedly purchased or acquired from the proceeds of the scam.  The feds already filed liens on the real estate properties.

If convicted of all charges, Edwards could be sentenced for as much as a combined 30 years and $500,000 in fines.

The Federal Bureau of Investigation (FBI) and special agents for the Internal Revenue Service – Criminal Investigation are investigating the case.  William G. Traynor, Assistant U.S. Attorney, is assigned as the prosecutor.