Patrick
Two young men from Overland Park have been formally charged in federal court for their alleged roles in a $4 million investment fraud scheme. Authorities say the pair misled investors with false business promises and then used the money for personal luxury purchases and trips.
Defendants’ Initial Court Appearance
According to the U.S. Attorney’s Office for the District of Kansas, Baha Ibrahim, 21, and Jawad Albadawi, 21, appeared before a federal judge on Monday, November 24. This marks their first official court appearance since the allegations surfaced.
Allegations of Misleading Investors
False Claims About Business Operations
Court filings indicate that the two men allegedly convinced investors to provide funds by promising that their company would buy wholesale merchandise and resell it online at retail prices. They reportedly claimed these activities would generate high financial returns.
Failure to Execute Promised Activities
Investigators say that between March 2024 and August 2024, Ibrahim and Albadawi did not purchase bulk goods or sell them as promised. Instead, the operation failed to match the representations made to investors.
Misuse of Investor Funds
Authorities further allege that the pair misappropriated investor money for personal use. The funds were reportedly spent on:
- Luxury cars
- Cryptocurrency investments
- Extravagant international travel, including trips to Dubai, Greece, and Las Vegas
Federal Charges Filed
A federal grand jury returned an indictment listing multiple serious charges against both men, including:
- One count of wire fraud conspiracy
- Nine counts of wire fraud
- One count of money laundering conspiracy
- Six counts of money laundering
- Seven counts of engaging in transactions involving criminal proceeds
The case is currently before U.S. Magistrate Judge Teresa J. James in the District of Kansas.
Ongoing Federal Investigation
The FBI is leading the investigation, while Assistant U.S. Attorney Ryan J. Huschka is overseeing the prosecution. Officials say the case remains active as more evidence is reviewed.
The indictment of these two Overland Park men highlights the federal government’s continued efforts to pursue individuals involved in investment fraud and financial deception.
As the case progresses, authorities will work to determine the full extent of the alleged scheme and ensure accountability for the misuse of investor funds.