Feds Criminally Charge Chicago Commodities Trader for Operating $8 Million Ponzi Scheme

 Posted on June 08, 2012 in White collar crime

According to the Chicago Tribune, a complaint filed in the U.S. District Court for the Northern District of Illinois charges 36-year-old Bradley Scott Schiller of Chicago with solicitation fraud, misappropriation of investment funds, and issuance of false investment statements.

The Commodity Future Trading Commission (CFTC) alleges that between 2008 and 2012, Schiller used false account statements showing his success as a trader to solicit more than $7.8 million from six investors for trading commodity futures in managed accounts. Schiller then used funds from newly solicited investors to pay off funds owed to old investors, thus creating a complex Ponzi scheme. He was able to gain new investors by lying about his successes and providing them with false account statements he had created.

Meanwhile, Schiller allegedly deposited only $3.7 million of the funds to be invested in actual trading accounts, later losing $1.6 million in trading and then withdrawing $2.1 million from the accounts. This left the accounts with balances near zero. It is alleged that Schiller used the money to fund his expensive automobiles, a high-rise condominium, and pay other personal expenses.

Federal criminal charges involving complex financial accounts and transactions can result in very complicated criminal proceedings supported by extensive documentary evidence. Examining all of this evidence takes a great deal of time and specialized skills in order to adequately prepare your case. Furthermore, the penalties for convictions of these federal crimes can be very severe. As a result, you need the assistance of a skilled, experienced criminal defense attorney in Arlington Heights, Illinois, to help you through your extensive, time-consuming, and often stressful proceedings.