Elk Grove Village Man Pleads Guilty to Theft by Deception and Fraud

 Posted on May 25, 2012 in White collar crime

The Chicago Tribune recently reported that a former money manager who is already serving an eight-year sentence for securities fraud pled guilty in a DuPage County court to theft by deception over $500,000, mail fraud, wire fraud, and securities fraud. Kevin Carney operated a Ponzi scheme from January, 2007 to October, 2008, in which he obtained over $17 million from investors by promising them a 20% monthly return on their investments. The victims collectively lost over $10 million in the scheme, as Carney paid off earlier investors with money invested by later victims.

As a result of his guilty plea, Carney received a 13-year sentence in the Illinois Department of Corrections and was ordered to pay $10.2 million in restitution to over 300 victims of his fraudulent money management scheme.

Carney is currently serving an eight year sentence for a previous conviction, which involved a similar scam. The separate case in Cook County resulted in his conviction on charges of securities fraud and financial exploitation of an elderly person. This took place after October of 2008.

Unfortunately, in today’s faltering economy, the temptation for investors seeking a quick return and money managers seeking to make an instant profit can be overwhelming. Due to these factors, more and more cases of investment fraud and other fraudulent financial schemes have arisen, many of which involve millions of dollars in losses for victims.

Particularly at this high of a level of financial fraud, the penalties can be quite severe. If you find yourself charged with or suspected of such a crime, it is essential that you contact a qualified Cook County criminal defense attorney to assist you. With the help of a criminal defense lawyer, you can begin building the defense necessary to avoid the serious consequences that a criminal conviction can bring.