The president of a Chicago-area investment advising firm has been indicted on nine counts of securities and commodities fraud in connection with an alleged securities scheme that spanned more than four years, according to court documents.
Charles J. Dushek also was indicted on one count of making a prohibited transaction as an investment adviser.
Dushek was president of Lisle, Ill.-based Capital Management Associates, which managed more than $25 million in assets, according to an indictment filed in U.S. District Court for the Northern District of Illinois, Eastern Division. The vice president of administration at the company also allegedly was involved in the scheme, but that person was identified in the indictment only as "Co-schemer A."
Dushek and the unidentified person allegedly would make trades and wait to allocate them until they knew if the trades were profitable. They allocated profitable trades to personal or family members' accounts and unprofitable trades to clients' accounts, according to the indictment.
Dushek sold shares of publicly traded companies including Caterpillar, BP, AstraZeneca, Johnson & Johnson, American Electric Power, PepsiCo, Avon Products and Walgreens, according to the court documents.
The scheme went on from roughly July 2008 through August 2012, according to the indictment. Dushek allegedly withdrew $1 million from his personal accounts that he gained through the scheme.
Dushek could not be reached for comment.
