Twice-convicted man accused of billing schools for books they never ordered

A New Jersey man with two prior federal mail fraud convictions has been charged with bank fraud and mail fraud, accused of trying to claim more than $12 million in unclaimed hedge fund payouts and of billing schools for books they never ordered, federal prosecutors said.

Robert Armstrong, 56, of Turnersville, allegedly obtained a $2.8 million check from a bank by falsely claiming to represent a financial institution, then tried to claim a further $9.25 million held by Texas, which rejected the claim. He remains in custody after appearing in Camden federal court on November 4.

$12 million targeted Through Alleged Fake Financial Documents

Federal prosecutors allege that Armstrong attempted to obtain millions of dollars in unclaimed investment proceeds by falsely presenting himself as an authorized representative of a financial institution.

The money was connected to a hedge fund investment dating back to 2003. According to court documents, the hedge fund owed distributions to a financial institution, but some payments remained unclaimed and were held in trust by a bank acting as trustee.

Investigators say Armstrong submitted fraudulent documents to convince the bank that he had legal authority to collect the outstanding funds.

The bank subsequently issued a check worth approximately $2,806,524.46, payable to the financial institution. Prosecutors allege that Armstrong deposited the check into an account he controlled.

The alleged operation did not end there.

Authorities say Armstrong later pursued another $9,251,641.71 held by the State of Texas after the unclaimed financial assets were transferred into state custody. He allegedly submitted additional fabricated documents, created a fictitious financial institution and used the identity of a former executive without authorization.

Texas officials rejected the claim.

Combined, the two amounts represented an alleged attempt to obtain more than $12 million belonging to another institution.

The DOJ’s November 10 announcement outlined the allegations and confirmed that the investigation involved federal authorities, including the Federal Deposit Insurance Corporation’s Office of Inspector General.

36,000 fake invoices allegedly sent to schools

Alongside the alleged financial institution scheme, investigators say Armstrong operated a separate operation targeting schools through fraudulent educational supply invoices.

According to allegations cited by postal inspectors, Armstrong established a fictitious school supply business and hired a bulk mailing company to distribute more than 36,000 invoices to educational institutions across the United States and Canada.

The mailings reportedly took place in five separate batches between February and August 2026.

The invoices demanded payment for educational materials, including workbooks and other school-related products that the institutions had never ordered or received.

Postal Inspector Michael Marro Jr. identified similarities between the latest invoices and documents recovered during an earlier investigation involving Armstrong in 2014.

In the criminal complaint, Marro described the invoices supplied by school officials as “nearly identical to the ones previously recovered during a prior investigation of Armstrong in 2014.”

That similarity could prove significant as investigators examine whether the latest operation followed the same approach as Armstrong’s earlier school-targeting scheme.

Authorities say at least 43 schools had paid the latest invoices before the investigation resulted in criminal charges. The payments reportedly consisted of 43 checks worth $263 each, bringing the identified losses to $11,309.

For investigators, the alleged use of bulk mailing services demonstrates how fraudulent billing operations can reach thousands of institutions without requiring direct contact with individual administrators.

The case also highlights the vulnerability of school purchasing departments to convincing-looking invoices, particularly when they involve familiar educational products and seemingly legitimate supplier information.

Previous prison sentences failed to end fraud allegations

The latest charges are particularly significant because Armstrong has previously served prison sentences for two separate mail fraud schemes.

His first major conviction involved a fraudulent educational supply operation conducted under the name Scholastic School Supply LLC.

According to the DOJ, Armstrong mailed more than 73,000 fraudulent invoices to schools between July and September 2014, requesting payments for workbooks that had never been ordered or delivered.

The invoices typically demanded $647.50 and included fabricated book identification numbers intended to make the transactions appear legitimate.

By March 2015, at least 938 schools had sent payments totaling $612,774.

Armstrong pleaded guilty to mail fraud and was sentenced on November 13, 2015, to 57 months in federal prison. The court also ordered forfeiture and supervised release.

However, the school invoice operation was not his final criminal case.

In 2019, Armstrong was charged over another alleged fraudulent billing operation targeting hospitals, clinics and medical practices. Operating under the name Pinnacle Medical Supplies, he allegedly sent more than 10,000 invoices demanding payment for medical products that healthcare providers had never purchased.

The products reportedly included diabetic test strips, EpiPens and sanitizing wipes.

In January 2020, Armstrong pleaded guilty to mail fraud after at least 943 medical providers had paid approximately $214,495 in response to the fraudulent invoices.

He received a 65-month prison sentence in May 2020, alongside three years of supervised release and an order to provide full restitution.

The repeated use of fabricated suppliers and unsolicited invoices provides important background to the current allegations against the Mail fraudster.

Federal authorities pursue new charges as case develops

Armstrong’s latest prosecution involves two federal charges: bank fraud and mail fraud.

According to the Justice Department, bank fraud carries a maximum potential sentence of 30 years in prison and a fine of up to $1 million. The mail fraud charge carries a maximum potential sentence of 20 years and a fine of up to $250,000 or twice the gross loss or gain associated with the offence.

These are statutory maximum penalties, not predictions of the sentence Armstrong would receive if convicted. Any eventual punishment would depend on the outcome of the proceedings and applicable sentencing rules.

U.S. Attorney Robert Frazer announced the charges, crediting investigators from the United States Postal Inspection Service and the Federal Deposit Insurance Corporation’s Office of Inspector General for their work on the case.

The investigation also received assistance from the Washington Township Police Department.

The involvement of postal inspectors is particularly relevant because the alleged school invoice operation relied on mass mailings to reach potential victims across international borders.

For schools and other institutions, the case offers another warning about the risks associated with unsolicited invoices, unfamiliar suppliers and payment requests that cannot be matched to documented purchases.

The alleged schemes also demonstrate how financial fraud can involve multiple layers of deception, from fabricated corporate identities to unauthorized use of another person’s professional identity.

For the Mail fraudster, the latest prosecution marks another confrontation with federal authorities after two previous convictions involving similar tactics.

Nevertheless, the distinction between previous convictions and current allegations remains important. Armstrong has not been convicted of the new charges, and the prosecution must establish its case in court.

The Justice Department has emphasized that the charges are accusations and that Armstrong is presumed innocent unless proven guilty.

As proceedings continue, investigators will seek to establish how the alleged financial claims were constructed, how the school invoices were distributed and whether additional institutions suffered losses.

The latest case puts the Mail fraudster back under federal scrutiny, with more than $12 million in alleged financial targets and a nationwide school invoicing operation at the centre of the prosecution.