Chicago’s David Sheldon Wells is facing federal wire fraud charges after allegedly swindling three clients, including two vulnerable elderly men, out of a staggering $683,000.
The 32-year-old investment advisor, who worked for a Midwestern bank subsidiary in Chicago, was charged with defrauding his clients between 2020 and 2021 by falsely promising investments in publicly traded companies. Instead, he allegedly used their funds for personal expenses and unauthorized trading.
According to the indictment, Wells directed his clients to send checks to ‘Wayne and Stark,’ a company he claimed was publicly traded but which was actually a shell entity under his sole control. The U.S. Attorney for the Northern District of Illinois, John R. Lausch, Jr., and Special Agent-in-Charge Douglas Zloto of the U.S. Secret Service Chicago Field Office announced the charges on Wednesday.
Wells’ arraignment is scheduled for today at 2:00 p.m. before U.S. Magistrate Judge Heather K. McShain. Assistant U.S. Attorney Brian Havey will represent the government in the case.
The indictment asserts that Wells used the clients’ funds for his own gain, including paying rent and engaging in high-risk options contracts. All of the clients’ funds were lost or otherwise spent, according to the charges.
As with any criminal charge, an indictment is not evidence of guilt. The defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, Wells faces up to 20 years in federal prison for each count of wire fraud.
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Key Facts
- State: Illinois
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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