Chicago-Area Father and Son Charged with $2M Cherry-Picking Investment Scam
A Chicago-area father and son have been charged with orchestrating a $2
million stock-trading fraud in a lawsuit filed last week by the Securities
and Exchange Commission. The men’s Lisle-based investment advisory
firm, Capital Management Associated, Inc. (CMA), also was named in the lawsuit.
According to the SEC, Charles J. Dushek, of Warrenville, Illinois, and
his son Charles S. Dushek, of Wheaton, Illinois, obtained $2 million in
illicit gains through a cherry-picking scheme that funneled their clients’
profits into their personal accounts.
The men allegedly executed numerous personal and professional trades on
a regular basis, but then waited at least one trading day before allocating
the trades to client accounts. By the time the waiting period was over,
they knew which trades were profitable and kept those trades for themselves.
The losing trades were then assigned to client accounts.
SEC officials say the scheme ran from 2008 to 2012 and involved 13,500
security purchases totaling more than $350 million. For additional information, read the
SEC’s full complaint against Charles J. Dushek, Charles S. Dushek,
and their company Capital Management Associated, Inc. here.