Chicago investment advisor indicted for allegedly swindling clients out of $683,000
DAVID SHELDON WELLS, 32, of Chicago, was charged with three counts of wire fraud in an indictment returned Wednesday in U.S. District Court in Chicago. Arraignment is set for today at 2:00 p.m. before U.S. Magistrate Judge Heather K. McShain.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Douglas Zloto, Special Agent-in-Charge of the U.S. Secret Service Chicago Field Office. Valuable assistance was provided by the U.S. Securities and Exchange Commission. The government is represented by Assistant U.S. Attorney Brian Havey.
According to the indictment, Wells worked as an investment advisor in the Chicago branch of a subsidiary of a Midwestern bank. In 2020 and 2021, Wells falsely represented to three clients, including two elderly men suffering from dementia, that he would invest their money in publicly traded companies. Based on the false representations, the clients sent him checks made payable to "Wayne and Stark," which Wells claimed was a publicly traded company. In reality, Wayne and Stark was a shell company set up and solely controlled by Wells, the indictment states.
Wells used the clients' funds for his personal use, including rent and unauthorized trading in high-risk options contracts, the indictment states. Wells lost or otherwise spent all of the clients' funds, the indictment states.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Each count of wire fraud is punishable by up to 20 years in federal prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
* * *
Original text here: https://www.justice.gov/usao-ndil/pr/chicago-investment-advisor-indicted-fraud-charges-allegedly-swindling-clients-out



Maryland man pleads guilty to $1.3M COVID-19 CARES Act fraud
Jury finds Lexington investment advisor, guilty of charges related to fraud
Advisor News
- Pay or Die: The scare tactics behind LA County’s Measure ER tax increase
- How to listen to what your client isn’t saying
- Strong underwriting: what it means for insurers and advisors
- Retirement is increasingly defined by a secure income stream
- Addressing the ‘menopause tax:’ A guide for advisors with female clients
More Advisor NewsAnnuity News
- MassMutual turns 175, Marking Generations of Delivering on its Commitments
- ALIRT Insurance Research: U.S. Life Insurance Industry In Transition
- My Annuity Store Launches a Free AI Annuity Research Assistant Trained on 146 Carrier Brochures and Live Annuity Rates
- Ameritas settles with Navy vet in lawsuit over disputed annuity sale
- NAIC annuity guidance updates divide insurance and advisory groups
More Annuity NewsHealth/Employee Benefits News
- GLP-1 Drug Costs Cited as Heights Schools Hike Taxes and Cut Staff
- Pay or Die: The scare tactics behind LA County’s Measure ER tax increase
- Column: N.C.’s Medicaid ‘compromise’ comes at a cruel cost
- Idaho farmers can band together to buy cheaper health insurance through Farm Bureau deal
- HHS NOTICE OF BENEFIT AND PAYMENT PARAMETERS FOR 2027 FINAL RULE
More Health/Employee Benefits NewsLife Insurance News
- 2025 Insurance Abstracts
- AM Best Affirms Credit Ratings of Berkshire Hathaway Life Insurance Company of Nebraska and First Berkshire Hathaway Life Insurance Company
- Generational expectations: A challenge for the industry
- Greg Lindberg asks NC judge for no jail time in bribery, fraud cases
- National Life Group Names Brenda Betts to Its Board of Directors
More Life Insurance News