A west suburban investment adviser defrauded clients out of more than $1 million, according to a 10-count indictment returned Wednesday in federal court.
Charles J. Dushek, 72, of Warrenville, is charged with nine counts of securities fraud and one count of employing a scheme to defraud a client, according to the U.S. Attorney’s office.
Dushek, president of Lisle-based Capital Management Associates Inc., is accused of placing more than $400 million in securities trades without first declaring whether he was trading client funds or personal funds, prosecutors said. He then waited up to five days to designate the trades, keeping profitable ones for his personal accounts and allocating losing ones to clients.
Dushek withdrew more than $1 million in gains from the scheme from personal accounts between July 2008 and August 2012, according to prosecutors.
Each count of securities fraud is punishable by up to 25 years in prison, while employing a scheme to defraud a client carries a maximum of five years, prosecutors said. Dushek is scheduled to be arraigned Dec. 20 before U.S. District Judge Virginia Kendall.