A Chicago area man has been accused of operating an investment scheme involving more than $5 million from approximately 150 investors. Scott M. Ross, 42, of Woodstock, has been charged with three counts of mail fraud for supposedly running a Ponzi scheme.
According to the complaint, Mr. Ross allegedly swindled nearly $5 million from approximately 150 unsuspecting investors between 2006 and 2009. He has been accused of misusing the money for his own benefit, which included a salary and a stadium skybox. Mr. Ross also allegedly made payments to older clients.
The alleged investment scheme was operated under Mr. Ross’ company, Harbor Wealth Management, LLP, in which he owns and operates. He also supposedly used two other subsidiaries to engage in the insurance investment business.
Mr. Ross has been accused of offering and selling investments in three separate investment funds, including Elucido, LP, Maize Fund, LP, and Moondoggie Fund, LP. Reports indicate that he raised about $1,920,000 from 25 investors in the Elucido Fund and approximately $3,080,000 from 134 investors in the Moondoggie Fund.
Mr. Ross has also been accused of making fraudulent statements to customers about his business and investment history, risks associated with the funds, the ROI and how the investor’s money was to be used.
If convicted, he faces a maximum of 20 years in prison and a $250,000 fine for each count of mail fraud.