North suburban man accused of bilking sleep-disorder investors

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North suburban man accused of bilking sleep-disorder investors


By Cynthia Dizikes
Tribune reporter
11:39 AM CDT, July 27, 2011


A north suburban man has been charged with defrauding about $4 million from investors for a now-defunct sleep disorder business, spending much of the money on a Lake Forest mansion, a tattoo parlor and family vacations to Italy, Nevada, Florida and Alaska.
Kenneth Dachman, 52, allegedly wooed investors from about June 2008 to September 2010 to help fund Central Sleep Diagnostics and Advanced Sleep Devices, which purported to treat sleep apnea and sleep-related illnesses and sell related equipment.
The more than 50 investors who jumped onboard believed their money would be used to purchase sleep-related equipment, rent office space and retain and pay physicians to review diagnostic studies, according to the indictment.
In some cases, Dachman personally guaranteed he would repay investors’ principal, as well as monthly payments equal to between 5 and 24 percent annually, authorities said.
Instead, the indictment alleges that Dachman misappropriated at least $2 million of the co-mingled funds. Dachman was charged with 11 counts of wire fraud.
In addition to the house and multiple vacations, authorities said Dachman also purchased a new sport utility vehicle, rare books and antiques and funded gambling in Los Vegas and spent more than $200,000 on personal stock trading.
While pulling together money for his businesses, Dachman allegedly did not tell investors that he had almost no assets and that he had declared personal bankruptcy on seven prior occasions. He also falsely told investors that he had a PhD from Northwestern University, according to the indictment.
The indictment seeks at least $4 million as well as a 2008 Land Rover.
Each count of wire fraud carries a maximum penalty of 20 years in prison and a $250,000 fine.

Please read complete article at link below:

http://www.chicagotribune.com/news/local/breaking/chi-north-suburban-man-charged-in-4-million-fraud-20110727,0,2552886.story

Editor's note:  FEDS give me a break...a 2008 Land Rover? One of the hot shot GAL's in the Probate Court Of Cook County bought himself a posh summer home on the ocean in California with the funds stolen from helpless disabled wards.  Lucius Verenus, Schoolmaster, ProbateSharks.com