theftlossdeduction.com

Bogus investment guru Kevin Carney in Illinois dupes 300 investors out of millions of dollars purporting to use cutting-edge software designed for buying and selling securities which received market information three minutes before other traders.

10/15/09 - At his home office in Elk Grove Village, Kevin Carney would sit in front of six computers buzzing with stock information, according to his clients.

The investment guru never looked for investors; they came to him, learning of his unique software through word of mouth. And investors say he kept them happy by producing monthly statements documenting their steady 20 percent returns.

But Carney allegedly was not investing their money. Authorities said he was running a Ponzi scheme that duped more than 300 investors out of millions of dollars.

On Wednesday, a DuPage County judge ordered Carney, 48, of the 1000 block of Cypress Lane, held in lieu of $2 million bail. A grand jury indictment has charged Carney with theft, mail fraud, securities fraud, wire fraud and selling securities without registering.

"We look forward to addressing the allegations in the indictment," said Carney's attorney, Michael Rosenblat.

Authorities said that between Jan. 1, 2007, and Oct. 9, 2008, Carney duped investors by creating the false impression that he had cutting-edge software designed for buying and selling securities. According to one investor, Carney claimed the program received market information three minutes before other traders.

But instead of selling securities, Carney used his investors' money to pay returns to other investors until the money ran out, authorities said. Authorities did not specify the exact amount of money Carney allegedly cost the investors.

Carney persuaded one investor, who asked not to be identified, to invest her entire retirement savings -- a total of $785,000 -- with him.

"Had I known about Bernie Madoff, I would never have talked to Kevin in the first place," she said, referring to the infamous Wall Street manager who is serving a 150-year sentence for running a decades-long Ponzi scheme that has cost investors billions.

Another Carney investor, Wayne Martin, 63, of West Chicago, said he expected to be retired and playing golf now. But after learning that he lost $50,000 to Carney's alleged Ponzi scheme, Martin has gone back to selling radio frequency shielding.

What hurts the most, Martin said, is that Carney is a relative through marriage. Other family members also invested with Carney and are working two jobs to make up for the money they lost, Martin said.

"He was family, so you overlooked some of the things you might not have overlooked if he was a stranger," he said. "These are people you break bread with. You don't expect them to steal from you."

http://www.chicagotribune.com/news/chi- ... 6500.story

Arested for 7 Felonies January, 15, 2010 Dupage County, Illinois
Case Details
Case Number 2010CF000225 Must Appear *
You have to appear in court on the next court date. Next Court Date 06-30-2010
File Date 01-28-2010 Next Court Location COURTROOM 4010
Case Title PEOPLE OF THE STATE OF ILLINOIS -VS- CRAIG GUTOWSKY Next Court Time 09:00 AM
Agency Office of the Attorney Ge Assigned Location
Legal Status ACTIVE Balance Due Amount
Counts Count Number Count Description Count Status Complaint Number
0001 THEFT-UNAUTHORIZED CONTROL KNOWING TO DEPRIVE - $100,000 < $500,000 ACTIVE 10225
0002 THEFT BY DECEPTION WITH INTENT TO DEPRIVE - $100,000 <= $500,000 ACTIVE 10225
0003 SECURITIES VIOLATION - INVESTMENT ADVISOR FRAUD ACTIVE 10225
0004 SECURITIES VIOLATION - INVESTMENT ADVISOR FRAUD ACTIVE 10225
0005 SECURITIES VIOLATION - INVESTMENT ADVISOR FRAUD ACTIVE 10225
0006 SECURITIES VIOLATION - INVESTMENT ADVISOR FRAUD ACTIVE 10225
0007 SECURITIES VIOLATION - INVESTMENT ADVISOR FRAUD ACTIVE 10225