Federal Prison to be New Home of Former Lake Forest Man

A former Lake Forest man who's been in custody since Nov. 2008 is finally headed to federal prison for swindling at least 20 victims out of about $1.6 million in an investment fraud scheme, according to the U.S. Attorney's Office in Chicago.

William Block, 54, was sentenced May 23 to more than six years. He was also ordered to forfeit the $1.6 million and pay restitution of about $1.9 million, which includes the proceeds of a separate $300,000 bank account.

The feds said Block promised investors substantial profits, in some cases up to 300 percent returns over just six months, and instead used the money to finance a lavish lifestyle.

Block did not admit guilt but was found guilty earlier this month.

The government uncovered that between May 2002 and Nov. 2008, Block operated an investment fraud scheme in which he falsely told at least 20 individual investors that if they gave him money, he could pay fees and costs to recover certain monies to which he was entitled, and the investor would reap a financial reward.

Lavish Lifestyle

As a result, Block fraudulently obtained about $1.6 million from his victims. Block's representations were bogus, and he used the money for a variety of personal and living expenses, including cigars, limousine services, clothing, travel, wine, and a trip on a private plane to view a yacht he wanted to buy.

The government also established that Block engaged in a separate bank fraud scheme in 2007, by using a $300,000 check he knew had bounced and then using at least $190,000 of the proceeds to obtain an official check from AmCore Bank.

Block used the proceeds on cigars, a $2,600 watch, rounds of golf and payments to a girlfriend. 

This case falls under the umbrella of the Financial Fraud Enforcement Task Force. For more information on the task force, visit www.StopFraud.gov.