Man charged in alleged $3.5M fraud scheme
— A 24-year-old man is accused of committing $3 million in fraudulent trades with a group of companies, according to the U.S. Attorney’s Office for the Eastern District of Illinois.
John David Moseley, of the 300 block of North State Street, was arrested on Wednesday on a charge of wire fraud.
Mosely, of New Orleans, Louisiana, was indicted on the charge in U. S. District Court for the Southern District of Iowa.
The indictment alleges that between January 1, 2017, and December 31, 2018, Mosey and his co-conspirators traded in over $3 billion worth of securities with over one million customers, and made more than 1,400 trades totaling more than $2 million.
They allegedly defrauded investors of more than 40 million dollars, according a news release from the U to the Southern U. As of November 1, 2018 the indictment charged Moseyle and his two co-defendants with wire fraud, conspiracy to commit wire fraud and related offenses.
Moseley allegedly stole from a group that he knew from business dealings, according the news release.
He allegedly used the stolen funds to pay himself and other co-accused.
Investigators say that on December 30, 2018 at about 3:30 a.m., Moselynes house was burglarized by two men who entered through the front door of the residence.
They were able to steal about $5,000 in cash and electronics from the residence and used the money to buy $2,600 worth of clothing.
The following day, Mosedley allegedly purchased $3,800 worth of clothes from the same store, and then he bought another $1,900 worth of items from the group.
They then allegedly used that money to make more fraudulent trades, the news statement says.
Investigators said the money Moseleys allegedly made from the fraud is being used to fund his travel to Europe, which is being done with a broker that Moselines company, Black Diamond, used to help the group buy items.
Investigators arrested Moseyl in Illinois after an investigation, according for the news service.
They say he is a resident of New York City and the Southern Midwest, and is currently being held in the Cook County Jail on a $25,000 bond.