CHICAGO – Alvin Wilkinson, 58, of Sharon, Conn., is facing federal charges after allegedly running a multi-million dollar fraud scheme that bilked approximately 30 investors – including residents of the Chicago area – out of an estimated $13 million. The Connecticut investment manager, founder of Chicago Index Partners LP and Wilkinson Financial Opportunity Fund LP, was arrested Wednesday morning and faces a lengthy prison sentence if convicted.
According to a federal indictment unsealed Tuesday in Chicago, Wilkinson pitched his funds to friends, former colleagues, and acquaintances, boasting of his prior experience as a Director at the Chicago Board Options Exchange. He promised investors a foolproof trading strategy involving options and futures, claiming his portfolio would generate profits regardless of market conditions. The reality, prosecutors allege, was a classic Ponzi scheme: Wilkinson didn’t trade a dime of investor money. Instead, he used the funds to cover personal expenses and make payments to earlier investors, creating the illusion of success.
The indictment details a brazen and prolonged fraud, allegedly stretching from at least 1999 until May 2016. Wilkinson, as the sole officer of his funds, had complete control over their operations. He reportedly never even established trading accounts for the funds, effectively pocketing the $13 million entrusted to him. The government is now seeking forfeiture of the full $13 million, along with a property Wilkinson owns in Sharon, Conn.
Wilkinson is charged with three counts of mail fraud and one count of wire fraud, each carrying a potential sentence of up to 20 years in prison. The indictment explicitly states that the charges are merely allegations, and Wilkinson is presumed innocent until proven guilty beyond a reasonable doubt in a court of law. However, the scale of the alleged deception suggests a calculated and callous disregard for the financial well-being of his victims.
The case was brought by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation. The Commodity Futures Trading Commission, which previously filed a civil lawsuit against Wilkinson, provided crucial assistance in the investigation. Assistant U.S. Attorney Nicholas Eichenseer is handling the prosecution.
This isn’t just about numbers on a ledger; it’s about shattered trust and ruined financial futures. The Grimy Times will continue to follow this case as it unfolds, bringing you the unvarnished truth about white-collar crime and those who prey on the vulnerable. A court date in Chicago has not yet been scheduled.
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Key Facts
- State: Illinois
- Agency: DOJ USAO
- Category: White Collar Crime
- Source: Official Source ↗
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