Former Financial Advisor Sentenced to Two Years in Prison for Defrauding Client in Private Investment Scheme
URBANA, Ill. – A Champaign, Ill., man who worked as a financial advisor at a Kankakee, Ill., bank has been ordered to serve two years in prison for falsely representing a private investment scheme to a customer that resulted in the client losing money. On February 23, 2018, Paul Schuerger, 45, of the 2700 block of Hunters Pond Run, was ordered to serve 24 months in prison and to pay $100,000 in restitution. Schuerger was allowed to remain on bond pending notice from the federal Bureau of Prisons of the date and location to report to begin serving his sentence.
On Oct. 24, 2017, Schuerger entered pleas of guilty to wire fraud and money laundering. Schuerger admitted that in early 2012, when Schuerger was working at a Kankakee bank as a financial advisor, he falsely represented to a bank customer that he had a private investment opportunity that would provide a 10 percent rate of return. The customer gave Schuerger $100,000 to invest as Schuerger proposed. Instead of investing the money, Schuerger deposited the money into a personal bank account and used it for his personal benefit, including to pay off personal debts.
The FDIC Office of Inspector General conducted the investigation. Assistant U.S. Attorney Eugene L. Miller prosecuted the case.