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06/18/2009

News / U.S. Charges NextStep Financial Services Operator David J. Hernandez with Investment Fraud; Arrest Warrant Issued


Department of Justice Press Release
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For Immediate Release
June 17, 2009 United States Attorney's Office
Northern District of Illinois
Contact: (312) 353-5300

U.S. Charges NextStep Financial Services Operator David J. Hernandez with Investment Fraud; Arrest Warrant Issued

A federal criminal complaint was filed this morning against David J. Hernandez, 48, of Downers Grove, charging him with mail fraud for allegedly engaging in a Ponzi-scheme in which he cheated investors through entities he operated known as NextStep Financial Services, NextStep Medical Staffing Il, and other related names, announced Patrick J. Fitzgerald, United States Attorney for the Northern District of Illinois, and Robert D. Grant, Special Agent-in-Charge of the Chicago Office of the FBI. An arrest warrant was issued for Hernandez, they said.

The complaint alleges that Hernandez used NextStep Financial Services to solicit and obtain investments through the Internet by making false promises and representations about himself and the safety and returns of his investment products. The charges contain information from several victims who have been unable to obtain the interest payments or refunds they were promised. Hernandez allegedly used funds from investors to purchase personal items, such as musical instruments and vehicles, according to the charges. FBI agents last Friday executed a federal search warrant at NextStep Financial Services offices on the 22nd floor at 225 West Washington St., Chicago.

Upon conviction, mail fraud carries a maximum penalty of 20 years in prison and a $250,000 fine, or an alternative maximum fine totaling twice the gross gain to the defendant or twice the loss to any victim, whichever is greater.

A complaint contains only charges and is not evidence or guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.

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