William J. Edwards, United States Attorney for the Northern District of Ohio, announced today that a federal grand jury in Cleveland, Ohio, returned an indictment against Philip D. Rossi charging him with one count of mail fraud. Rossi, age 60, resides in Willowick, Ohio.

The indictment alleges that the defendant was a registered investment broker with the State of Ohio and the Financial Industry Regulatory Authority, formerly known as the National Association of Securities Dealers. The indictment further alleges that the defendant owned and operated Rossi & Associates, an accounting firm, and Patterson-Ross Financial Resources, Inc., a money management company.

The indictment alleges that the defendant fraudulently induced approximately 40 individuals to invest approximately $2.5 million with him in 2000 and continuing through September 2008. These individuals included a retiree who invested in excess of $1 million and an elderly woman who invested approximately $530,000. The indictment further alleges that the defendant falsely represented that he would purchase stocks, bonds or notes in the names of the individual investors, but he did not. The indictment alleges that, with respect to certain investors, the defendant converted their investment money for his own purposes and personal use without purchasing securities. For other investors, the defendant purchased securities, notes or bonds in the name of his company, Patterson-Ross Financial Resources, Inc., and then converted the investment money for his own purposes and personal use by liquidating the investment accounts or collecting disbursements after notes and bonds matured.

The indictment alleges that the defendant lulled investors into a false sense of security by sending them fictitious account statements or correspondence detailing their ownership of various stocks, bonds or notes. The indictment further alleges that when investors requested the return of their investment money, the defendant falsely stated that the investment money was tied up and could not be withdrawn, tax penalties precluded “early” withdrawals, or that post-9/11 regulations required the Department of Homeland Security to complete a background investigation about the investor prior to the disbursement of investment money exceeding $10,000.

If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorneys Bridget M. Brennan and John D. Sammon following an investigation by the Cleveland Office of the Federal Bureau of Investigation and the Cleveland Office of the United States Postal Service.

An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.

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