Daniel Spitzer, Investment Fraud, Illinois 2023

CHICAGO — A northwest suburban man was sentenced to 25 years in federal prison for engaging in a lengthy investment fraud scheme that cheated 455 investors of $105 million.

Daniel Spitzer, 55, of North Barrington and formerly of the U.S. Virgin Islands, pleaded guilty to 10 counts of mail fraud last July on the day his trial was scheduled to begin in Federal Court.

Spitzer misused the money he raised from investors for his own benefit and to make Ponzi-type payments to investors, resulting in a loss of $33.98 million to at least 279 victims, many of them elderly.

Spitzer caused 'very substantial damage,' U.S. District Judge James Zagel said in imposing the sentence today, a day after he ordered Spitzer into federal custody. The judge also ordered restitution of $33.98 million.

Spitzer engaged in an 'extended act of greed,' between late 2004 and early 2010, Assistant U.S. Attorney Madeleine Murphy argued at today's hearing.

According to court records, Spitzer was the principal officer and sole shareholder of Kenzie Financial Management; the sole manager and member of Kenzie Services, LLC; the president of Draseena Funds Group, Corp.; the manager of DN Management Company, LLC; and the manager of Nerium Management Company.

Co-defendant Alfred Gerebizza, 59, formerly of Crystal Lake and Palm Beach Gardens, Fla., was the secretary and a director of Draseena and a sales agent for the Kenzie Funds, who also held himself out as a trader. Gerebizza was convicted at trial last July of 10 counts of mail fraud and six counts of federal income tax fraud. He is in federal custody awaiting sentencing.

Source: https://www.justice.gov/usao-ndil/pr/suburban-man-sentenced-25-years-federal-prison-cheating-455-investors-105-million-and