Investment Advisor Indicted for Fraud

According to the Chicago Tribune, on May 2, 2012, Dimitry Vishnevetsky, a Chicago investment adviser, was indicted on nine counts of misappropriating 1.5 million dollars from investors. The lawsuit claims that Vishnevetsky was engaged in a scheme from 2006 to 2012 to defraud investors; he used the money given to him by the investors for personal expenses including mortgage payments, car payments, dining, and health club membership fees.

Vishnevetsky, who is 33 years old, received about 1.7 million dollars from investors through his companies Hodges Trading and Oxford Capital. The indictment alleges that Vishnevetsky misled his investors by claiming that the investments would have large profits, sometimes as high as 36%.

Although majority of the investment funds were used towards personal expenses, sometimes Vishnevetsky did engage in trading. However, the indictment states “[i]n fact, to the extent that Vishnevetsky engaged in trading, the trading consistently resulted in net losses, not profits.” Further, it is alleged that Vishnevetsky produced fake financial statements to his investors.Investment Advisor Indicted for Fraud

After Vishnevetsky was indicted, the Honorable Ruben Castillo, of the US District Court for the Northern District of Illinois, ordered that Vishnevetsky’s assets, as well as the assets of his companies, be frozen. Judge Castillo also ordered that all of Vishnevetsky’s and his companies’ books and documents be preserved.

In the past several years, it has become apparent that such investment schemes are more common than once thought. If you feel that your investments are not safe, or if you’ve been accused of mishandling money, you contact a Chicagoland business attorney to help you protect your assets. The business attorneys at the Gierach Law Firm have over 30 years of experience with business law, contact us today!