Ponzi Scheme by Chicago-Based Promoter Halted; Perpetrator Enjoined and Convicted

Defendant Hernandez, previously convicted of wire fraud, sold $11 million worth of “guaranteed investment contracts” through his company that, unbeknownst to investors, was actually out of business. Defendant promised investors returns of 10 percent to 16 percent per month and made false and misleading statements about his background, the use of investor proceeds, and the safety of the investment. Among other things, funds were wrongfully used to start up a Chicago sports-talk Web site called “Chicago Sports Webio.” Defendant was sentenced to 200 months in prison in a parallel criminal action.