By Nick Gale, WLS-AM 890
(CHICAGO) A suburban investment adviser has been indicted on federal fraud charges for allegedly allocating profitable trades to his personal accounts while assigning unprofitable trades to his clients.
Federal prosecutors say Charles Dushek, the president of Lisle-based Capital Management Associates Inc., placed more than $400 million in securities trades without designating in advance whether he was trading personal funds or client funds. They say he then waited up to five days to allocate the trades so that he could select the profitable ones for his personal accounts and assign the losing trades to the accounts of unsuspecting clients.
The indictment says that from July 2008 to August 2012, Dushek withdrew from his personal accounts more than $1 million in gains realized from the scheme.
The 72-year-old Dushek of Warrenville, is charged with nine counts of securities fraud and one count of employing a scheme to defraud a client. Arraignment has been scheduled for December 20.
Each count of securities fraud is punishable by up to 25 years in prison. Employing a scheme to defraud a client carries a maximum sentence of five years.
@ 2016 WLS-AM News
