A Western Springs man who touted the returns of his Midwest Opportunity Fund now faces federal charges in connection with a $2.9 million scheme to defraud his clients.
Joseph Hennessy, 53, was indicted on seven counts of federal wire fraud on April 23, according to the U.S. Attorney's Office of the Northern District of Illinois.
Hennessy co-founded the Midwest Opportunity Fund in 2004. Between 2007 and 2012, "Hennessy made misrepresentations about the nature and prospects of the MOF investment and failed to inform investors about the existence of MOF promissory notes that Hennessy had personally guaranteed," according to the Securities and Exchange Commission, which last summer barred him from engaging in financial transactions in a regulatory decision.
Hennessy, who co-owned Resource Planning Group, Inc., used his clients' money to bail himself out of debt, according to authorities.
One of his victims was a widow in her 60s. Hennessy managed her life savings but twice forged documents to take $100,000 of her money to deposit into his Midwest Opportunity Fund, according to the SEC.
Hennessy faces a maximum penalty of 20 years in prison and a $250,000 fine for each count, as well as mandatory restitution.