From The Chicago Sun-Times, 12/23/04:
http://www.suntimes.com/output/elect/cst-nws-fraud22.html
GOP committeeman charged in $2 million fraud
BY NATASHA KORECKI Staff Reporter
An Oswego GOP committeeman was charged with swindling more than 40
investors out of nearly $2 million, gaining their confidence in part
by dropping big names -- including that of House Speaker J. Dennis
Hastert (R-Ill.).
Frank Devine was charged with wire fraud in a criminal complaint
announced Tuesday.
It charges Devine "used many of his connections he has made through
his business and political dealings" to gain investors' trust.
He's accused of operating an investment operation like a Ponzi scheme,
where early investors are paid off with money put up by later
investors and are misled about the funds' actual earnings.
One of the investors who was allegedly defrauded told FBI
investigators Devine gave the person a tour of Hastert's Washington
office, the Capitol building and congressional chambers.
While inside, Devine discussed tax shelters and investment strategies.
After the tour, the investor put down an additional $85,000 to
$100,000 to invest in one of Devine's program.
Hastert is not accused in any wrongdoing, Assistant U.S. Attorney
Brandon Fox said.
Devine "held himself to be an investment broker with low-risk, high
return investments," Fox said.
"People bought into it."
Hastert spokesman John McGovern called tours of congressional offices
"routine," and said the office knew nothing of Devine's scheme.
"Like most political activists in our district, he is an acquaintance
of our office, but we are unaware of the specific allegations
contained in these [charges]," McGovern said.
Devine most recently worked as an investment broker at LaSalle Street
Securities, according to the complaint.
LaSalle Street Securities is suing Devine, alleging he used money from
the investments for personal use, including paying to improve his
home.
Fox said the fraud started in 2000.
Some of the alleged victims include Florida state wards, whose
accounts are operated by third parties because of their disabilities
or injuries.
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Another day another Republican scandal.
Harry
.
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