CHICAGO – A west suburban investment advisor has been indicted on federal charges alleging that he fraudulently obtained approximately $2.9 million from at least 10 investors and misused the funds in a Ponzi-type scheme.
Joseph Hennessy, 53, of Western Springs, was charged with seven counts of wire fraud in an indictment returned by a federal grand jury on Wednesday and announced today.
Hennessey, co-owned and co-operated the now-defunct Resource Planning Group, Inc., formerly a registered investment advisor with the U.S. Securities and Exchange Commission.
The indictment also seeks forfeiture of at least $2.9 million in alleged fraud proceeds.
According to the indictment, Hennessy and Resource Planning Group formed and operated the Midwest Opportunity Fund, a private equity fund that purported to invest in small to medium-sized companies based in the Midwest.
Between 2007 and 2012, Hennessy allegedly made false statements to investors and used their investments to return principal and pay interest to earlier investors, all of which he concealed and intentionally failed to disclose to both new and existing investors.
Each count of wire fraud carries a maximum penalty of 20 years in prison and a $250,000 fine, and restitution is mandatory.
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Key Facts
- State: Illinois
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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