An Illinois man has been sentenced to four years in prison after he defrauded more than 100 investors in Illinois and Wisconsin, according to an announcement from the U.S. Attorney’s Office.
Ronald Pallek, a native of McHenry, Illinois, carried out an investment fraud scheme that led to the loss of more than $1.6 million.
Over the course of several years, Pallek convinced friends, acquaintances and family members to give him money to invest.
Pallek promised investors that he could double their money using an “iron condor” strategy of investing.
Despite losing his victims’ funds in the market or spending them for his own benefit, Pallek continued to solicit additional victims. He also promised commissions to people he had already defrauded.
Pallek sent falsified earning statements to his victims and made Ponzi-style payments to prior victims with new funding he secured. Pallek used the money to pay for his own living expenses, including his mortgage and for his car, and for gambling activities.
In addition to his four-year jail sentence, Pallek was ordered to pay restitution in the amount of $1,679,250.00, and to serve a period of three years of supervised release.
