2 suburban men indicted in estate-planning scheme

2 suburban men indicted in estate-planning scheme


Justice Department seeks $28M in restitution

By Becky Yerak


Editor’s note: Feds; The "Dead Man’s Trust Funds" and the OBRA accounts are the biggest scams used by the Probate Court of Cook County. Think of all the criminality that could be rounded up. Lucius Verenus, Schoolmaster, ProbateSharks.com




Tribune reporter



12:40 PM CDT, October 17, 2012


Two suburban Chicago men are scheduled to be arraigned Thursday on charges they fraudulently obtained $28 million from about 120 investors in a Ponzi-like scheme, the U.S. Justice Department said Tuesday.



Robert C. Pribilski, 54, of Lisle, and John T. Burns III, 53, of Naperville, will appear before U.S. District Judge Charles Kocoras in Chicago. The Justice Department said that, on behalf of USA Retirement Management Services, the two targeted wealthy retirees in Illinois and California to invest in Turkish bonds that would generate annual rates of returns of 4.75 to 11 percent.



A third defendant, Mahmut Erhan Durmaz, 42, formerly of Streamwood, has fled the country, the Justice Department said.



Investors, reached through mass mailings that promoted estate-planning seminars at local hotels and banquet halls, were promised "absolutely and unconditionally" that they'd receive their principal and interest at the note's maturity date. But investor funds were used to pay other investors. They were also used, by Pribilski and Durmaz in particular, to speculate in real estate and restaurants that ultimately failed, and to make more than $2.5 million in payments to themselves, friends and families on homes, cars, medical insurance, and compensation, the Justice Department said.



Joseph Lopez, the Chicago lawyer representing Burns, said his client shouldn't have been indicted. He said Burns was hired by Pribilski and Durmaz. Burns had an employment contract and his duties included giving presentations, making sales pitches and pursuing leads, Lopez said. He said his client had no control over the books and was assured that the business was operating legitimately.



Burns "didn't get any proceeds" other than his compensation, Lopez said.



Pribilski couldn't be reached for comment.



An indictment contains only charges and not evidence of guilt.



Pribilski and Durmaz are charged each with five counts of wire fraud and four counts of mail fraud. Burns is charged with three counts of each. The Justice Department is seeking to retrieve the $28 million.



The scheme occurred from 2005 to 2010, the Justice Department said. "Victim Investor A" was guaranteed an annual return of 8.35 percent but lost $435,000 from his investments in the scheme.



USA Retirement Management Services has had offices in Oakbrook Terrace and southern California.



byerak@tribune.com
Twitter: @beckyyerak


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