Call Now For a Free Consultation:
(614) 532-4576
Nationwide Representation

Illinois Man Sentenced to More Than 5 Years in Prison for $9 Million Dollar Ponzi Scheme

Algrid M. Norkus, of Aurora, Illinois, has been sentenced to 63 months in prison and ordered to pay $4.5 million in restitution for mail fraud charges related to the operation of a $9 million Ponzi scheme, according to a Jan. 23 Daily Herald article. Norkus pled guilty to the scheme on March 10, 2011.

According to a U.S. Department of Justice press release, Norkus admitted that he fraudulently offered and sold approximately $9 million of investments in his company, Financial Update, Inc., to a number of investors. He also admitted to misrepresenting the investment’s expected rate of return, risks, and status.

Norkus further admitted that he lied to investors and potential investors when he said their funds would be used to purchase lists of prospective customers for Financial Update. Despite his claims, Norkus said he had no intentions of purchasing any such lists after the beginning of 1998. Instead, he admitted, he planned to misappropriate the money, commingle it with his accounts, and use it for his personal purposes and to make Ponzi payments to earlier investors.

As part of the plea agreement, Norkus also admitted that he provided investors with falsified annual IRS Forms 1099-INT and bad checks to inspire trust and keep them unaware of the Ponzi scheme.“He [Norkus] provided checks to certain investors drawn on bank accounts that contained insufficient funds to lull them into the belief that their investments had been used as represented, were causing Financial Update to earn money, and that the money earned on the investments was used to pay interest on the investments,” the Assistant U.S. Attorney’s office wrote in the DOJ release.

Norkus, who could have been sentenced to 20 years in prison for the investment scheme, will be required to serve three years of supervised release after his term in prison.

The information contained in The Firm’s posts on its blog, fraud alerts, investigations or elsewhere on the site is based upon information obtained from other sources including, but not limited to, news outlets and federal, state, and regulatory agency filings. All suspects and subjects of postings herein are presumed innocent until proven guilty in a court of law or administrative action and any and all crimes are alleged until a court or regulatory agency finds otherwise .

Share This Story
If you found the information provided by this article useful, consider sharing to your social media channels to help others in their search for reliable resources.
Consult with Our Legal Team
There is never a cost associated with a consultation
Atlanta Office

945 East Paces Ferry Road, Suite 2275
Atlanta, GA 30326
Columbus Office

614-224-6000
305 W. Nationwide Blvd
Columbus, OH 43215
Meyer Wilson
New Orleans Office

900 Camp Street 
Suite 337
New Orleans, LA 70130
Los Angeles Office

310-905-8688
2029 Century Park East,
Suite 400N
Los Angeles, CA 90067
Cleveland Office

216-600-1355
4781 Richmond Rd.
Suite 400
Warrensville Heights, OH 44128
Bloomfield Hills Office

248-817-8214
41000 Woodward Ave.,
Suite 350
Bloomfield Hills, MI 48304
Quick Links
The information contained in this Website is provided for informational purposes only, and should not be construed as legal advice on any subject matter. No recipients of content from this site, clients or otherwise, should act or refrain from acting on the basis of any content included in the site without seeking the appropriate legal or other professional advice on the particular facts and circumstances at issue from an attorney licensed in the recipient's state. Read More
The information contained in this Website is provided for informational purposes only, and should not be construed as legal advice on any subject matter.
Read More
chevron-down linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram