Federal prosecutors announced the indictment of a Chicago investment advisor on charges of swindling three of his clients, reports InsuranceNewsNet.
32-year-old David Sheldon Wells was charged with three counts of wire fraud, according to the United States Attorney for the Northern District of Illinois and the U.S. Secret Service.
The case stems from Wells’ tenure as an advisor in the Chicago branch of a subsidiary of a Midwestern bank. The indictment states that in 2020 and 2021, Wells falsely represented to three clients that he would invest their money in publicly traded companies. The clients, including two elderly men with dementia, sent him checks made payable to “Wayne and Stark,” which Wells claimed was a publicly traded company. But Wayne and Stark was actually a shell company set up and solely controlled by Wells, according to the charges.
Wells allegedly swindled the clients out of about $683,000 and used the money for his own expenses, including rent and unauthorized trading in high-risk options contracts. The indictment said he lost or otherwise spent all of the clients’ funds.
If convicted, Wells could face up to 20 years in federal prison on each of the three counts of wire fraud.
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