Light Rain Fog/Mist
43°FLight Rain Fog/MistFull Forecast

Feds: Developers cheated investors in Ponzi scheme

Published: Saturday, Oct. 26, 2013 11:57 p.m. CDT

CHICAGO – A former securities broker and his partner in a northern Illinois real estate business are facing federal charges accusing them of running a Ponzi-like scheme and cheating investors out of millions.

A federal grand jury returned an indictment this week charging the two men with wire fraud.

One of the suspects, Marcin Malarz, is a fugitive and believed to be living in Poland. The 48-year-old had lived in Lake Forest and managed Malarz Equity Investments LLC, a business that converted apartments into condominiums.

Thirty-nine-year-old Arthur Lin of Palatine is accused of recruiting his securities firm’s clients to invest in the business.

Prosecutors accuse them of fraudulently raising $9 million and misappropriating much of it.

There is no public phone listing for Lin and he could not be reached for comment.

Get breaking and town-specific news sent to your phone. Sign up for text alerts from the Northwest Herald.

Copyright 2017 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Reader Poll

What TV game show would you like to be on?
"The Price is Right"
"Wheel of Fortune"
"Family Feud"
"The Newlywed Game"