A Chicago investment advisor will spend six years in federal prison for swindling clients out of more than $1.6 million and using much of the money for his own personal expenses.
Dimitri Vishnevetsky pleaded guilty in August 2012 to wire and bank fraud, according to court records. He admitted using money from investors to make his mortgage and car payments, and pay for vacations, restaurants and athletic club dues. He also used clients’ money to make trades for himself and Ponzi-type payments to other clients.
U.S. District Judge Ruben Castillo ordered Dimitri Vishnevetsky, 34, of Chicago, to pay $1,684,763 in restitution to clients, along with the prison term, according to court records.
Vishnevetsky offered and sold investments — including S&P futures, commodities and promissory notes — through Hodges Trading LLC and Oxford Capita LLC, which he controlled, according to court records.
Three Oxford funds and promissory notes Vishnevetsky described as London Interbank Offered Rate adjusted notes, existed in name only, according to court records.
Vishnevetsky falsely represented his profitability, the risks and use of invested funds, and returns on investments from September 2006 until March 2012, according to court records.
He told clients profits were reaching 36 percent per year when in reality his trades consistently resulted in losses, according to court records.
He also made false statements about his income and assets to Merrill Lynch Bank & Trust to receive two loans totaling $519,500 to purchase a condominium in Chicago.
Castillo said Vishnevetsky’s actions were like a financial storm that devastated the lives of his victims.
He ordered Vishnevetsky to begin his prison sentence on May 28.
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