On Tuesday, it was announced that a Chicago investment manager had been indicted for allegedly swindling more than $10 million from lenders and clients. Shawn Baldwin owned and controlled several investment-related firms in Chicago. It is alleged that Baldwin exaggerated his financial success and professional connections to fraudulently acquire more than $10 million from at least seventeen investors and lenders. The defendant is accused of falsely claiming that the investors’ funds would be used to invest in stocks and other products.
In reality, it is alleged that Baldwin used the money for his own personal benefit. The fraud scheme supposedly began in 2006 and continued until May of 2017. An indictment was returned on December 7, 2017 and ordered unsealed on Monday. The indictment charged 51-year-old Shawn Baldwin of Olympia Fields with eight counts of wire fraud. The defendant has pleaded not guilty to the charges.
The indictment explains that Baldwin acquired funds from individual investors and corporate lenders. These individuals lent him money for use in business and personal dealings. Baldwin supposedly claimed that there were compliance officers and professional advisors affiliated with his firms. The indictment suggests that no relationships existed. The indictment also claims that Baldwin misrepresented and minimized the serious disciplinary actions taken against him by regulators.
Baldwin is accused of trying to conceal the scheme by providing victims with fraudulent account statements that misrepresented the value of their funds. At this point in time, the defendant remains innocent until proven guilty beyond a reasonable doubt in a court of law. Additional details can be found here.