(WHEATON) The owner of a Wheaton financial firm was charged Thursday for misusing more than $1.2 million in client money to fund his company’s payroll and business expenses.

Robert Pearson, the owner and chief executive of Illinois Stock Transfer Company, was charged with 10 counts of wire fraud, according to a statement from the Illinois Northern District U.S. Attorney’s Office.

The company, which did business under the name IST Shareholder Services, functioned as a transfer agent to repurchase shares of securities from merging or acquired companies, according to the statement.

From 2012 to 2014, Pearson, 58, took money out of a client fund account the company maintained at BMO Harris Bank to pay his employees and company taxes. He attempted to cover up his actions by telling customers, the U.S. Securities and Exchange Commission and an outside accountant that the funds were secure, according to the statement.

Pearson, of Winfield, told his clients that IST complied with the rules and guidelines of the SEC, which mandated that transfer agents safeguard their customer’s funds. But, the company did not comply with these guidelines and he was misappropriating certain client funds, according to the statement.

Each count of wire fraud carries a maximum penalty of 20 years in prison and restitution, plus a maximum fine of $250,000 or twice the gross gain or gross loss resulting from the offense, whichever is greater, according to the statement.

Pearson’s next court date is Thursday.