New Jersey man sentenced to 3 years for defrauding Chicago investors

CHICAGO - An investment manager was sentenced to three years in federal prison after swindling Chicago-based investors out of up to $1.5 million.

Eugene Z. Nowak, 57, pretended to be the president of an investment firm with ties to multinational banks from 2013 to 2016 and hoodwinked Chicago investors by promising their funds would be used to provide "bridge funding," for his fake company to close a $33 million financial transaction involving a large international bank.

Nowak tricked investors by saying they would receive high-yield returns quickly and that they could cancel their investment at any time for a full refund with interest.

Nowak, of New Jersey, pocketed the money for personal expenses, including payments to a car dealership and a pawn shop.

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He pleaded guilty to one count of wire fraud last May.

U.S. District Judge Matthew F. Kennelly handed down a 36-month prison sentence to Nowak followed by 2 years of supervised release.

In addition to his sentence, Nowak must pay restitution to the investors he defrauded.