Deerfield man among three indicted in $3.9M investment fraud scheme

CHICAGO - Three individuals, including a suburban Chicago man, were indicted on federal fraud charges for allegedly defrauding investors out of $3.9 million.

According to the indictment, Edward L. Wooten, Lee S. Rose, and John L. Krcil had claimed to represent a Wyoming investment company named Black Lion Investment Partners Inc. The trio is accused of falsely suggesting to investors that they could earn substantial returns through "private placement" trading programs involving "investment grade fixed income securities" of "top-rated" banks or financial institutions.

The indictment alleges that the defendants misrepresented the trading programs, promising multi-million-dollar returns within short periods and offering to return investor funds if the programs failed within 60 days. However, they failed to use all investor funds for trades, didn't pay trading profits to investors, and didn't return funds as promised.

Instead, they allegedly diverted investor funds for personal use. The scheme resulted in $3,905,000 in losses for six investors, including an Oklahoma children’s charity.

Wooten, 51, of Macon, Georgia., Rose, 82, of Deerfield, Illinois, and Krcil, 55, of Hanover, Minnesota, face charges including wire fraud and interstate transfer of money taken by fraud. Wooten and Rose also face charges of money laundering and making false statements. Additionally, Wooten is charged with making false statements to the FBI, while Rose faces charges of making false statements to a federal judge, the FBI, and the U.S. Securities and Exchange Commission.