Investment adviser accused of bilking $3M from Oak Brook bank, clients
Updated: July 15, 2012 6:05AM
A Chicago investment adviser defrauded an Oak Brook-based bank and two of his clients of more than $3.2 million, according to federal charges filed Thursday.
Robert J. Lunn, 62, was charged with five counts of bank fraud, according to the U.S. Attorney’s office. The charges allege he received a $1.32 million line of credit from Leaders Bank for his investment advisory business, Lunn Partners LLC, and separate loans of $1.4 million and $500,000 for two clients, without their knowledge or consent.
Lunn first obtained a $480,000 business line of credit in May 2001, the indictment alleges. In early 2004, he increased the credit line twice, first to $1.2 million and later to $1.32 million, by falsely claiming that he owned millions of dollars of Morgan Stanley and Lehman Brothers stock.
He later arranged a $1.4 million unsecured bank loan by saying a client wanted to purchase an interest in an airplane in September 2002, and in arranged a $500,000 bank loan in 2004 for a second client he claimed wanted money for a business investment, the indictment alleges.
Instead, Lunn used the money for his own business and personal uses, including making mortgage payments and about $1.4 million in payments to other clients, a release from the U.S. Attorney’s office said. The scheme caused the bank to lose $2.7 million
The indictment seeks forfeiture of more than $2.7 million. Lunn faces up to 30 years for each of the five counts of bank fraud, a $1 million fine and mandatory restitution.