A former Elk Grove Village man has been sentenced to 13 years in prison after an alleged Ponzi scheme took millions from investors.
Kevin Carney, formerly of Elk Grove Village, has been sentenced to 13 years in prison for an alleged Ponzi scheme that took millions of dollars from over 300 victims. Carney will also pay out $10.2 million to investors harmed in the alleged scam.
According to prosecutors in the case, Carney lured in investors with promises of a new software program that would bring in returns of 20% or more for his investors. The software program supposedly enabled Carney to identify when a stock’s price was about to rise so he could buy and then sell the stock over about 15 minutes of time. He allegedly claimed that this allowed him to make a small profit on each of many trades a day, which would add up to big profits over the course of a month.
Carney also allegedly sent out false account statements to investors, and he is also alleged to have paid prior investors with money brought in from new investors.
Attorney General Lisa Madigan stated that “Mr. Carney’s scheme promised big returns but instead only resulted in financial devastation for his victims. His criminal acts have forever altered their lives.” The victims of this Ponzi scheme reportedly closed out IRAs, took out second mortgages, and – in one case – handed over a re-enlistment bonus to participate in the alleged investment scam.
Mr. Carney pleaded guilty to the Ponzi scheme charges on Friday, May 11th, in DuPage County Circuit Court. The charges against him included wire fraud, mail fraud, securities fraud, and theft by deception.
The experienced investment fraud attorneys with Meyer Wilson have represented more than 800 clients nationwide in mediation, arbitration, and litigation against stockbroker, investment advisors, and brokerage firms who have caused investment losses.