Federal prosecutors say a 41-year-old Illinois investment adviser spent years quietly draining client accounts, and now a Chicago grand jury has weighed in.
John Myers, 41, an Illinois investment adviser, was indicted by a federal grand jury in Chicago after prosecutors say he ran a Ponzi-style investment scheme that bilked clients out of their savings. Prosecutors allege Myers operated Sterling Capital Investments LLC and falsified account paperwork to hide trading losses. The indictment accuses him of using money from new investors to cover withdrawals and other obligations to earlier clients.
The indictment was returned Thursday in U.S. District Court in Chicago, according to CBS Chicago. Prosecutors say Myers fraudulently obtained money from three victims between 2022 and 2025, including a husband and wife from Michigan, and provided false documentation that inflated the value of investments. The charges include counts of wire fraud that were set for an arraignment in federal court.
How prosecutors say the scheme worked
Prosecutors describe the operation as Ponzi-style, where returns paid to earlier investors came from the contributions of newer ones while statements showed fabricated gains. That kind of setup keeps itself going only as long as fresh money comes in, and it typically collapses when withdrawals accelerate or recruiting slows down.
The Securities and Exchange Commission and Investor.gov warn that using incoming funds to pay existing investors is a common hallmark of such frauds. For more on these and other red flags, see Investor.gov.
Federal charges and penalties
The indictment accuses Myers of wire fraud, a federal crime that carries serious penalties if he is convicted. Under the federal wire fraud statute, a conviction can result in up to 20 years in prison per count, and up to 30 years when the scheme affects a financial institution or a declared disaster, according to the U.S. Code. An indictment is only an allegation, and Myers is presumed innocent until proven guilty in court.
What victims can do
Anyone who thinks they may have been victimized should preserve account statements and other records, and consider contacting federal authorities or a lawyer experienced in financial fraud cases. The SEC and Investor.gov maintain resources and complaint forms for investors, and the Department of Justice keeps guidance on where to report suspected fraud to investigative agencies.
For practical reporting options and basic guidance, see Investor.gov and the Department of Justice Fraud Section's Report Fraud page.
