Naperville, Lisle Men Charged in $28 Million Investment Scheme

A Naperville man and a Lisle man are being charged with fraudulently gaining more than $28 million from about 120 investors in a "Ponzi-type" scheme.

John T. Burns, III, 53, of Naperville, Robert C. Pribilski, 54, of Lisle and Mahmut Erhan Durmaz, also known as “Francois E. Durmaz,” 42, formerly of Streamwood and Los Angeles, are scheduled to be arraigned Thursday before U.S. District Judge Charles Kocoras in Federal Court in Chicago, according to an FBI press release.

Burns was a salesman for USA Retirement and Pribilski was a principal of USA Retirement Management Services, which had offices in Oakbrook Terrace and southern California.

Durmaz was also a principal of USA Retirement who fled the U.S. in March 2010 and is a fugitive believed to be living in Turkey, authorities said in the press release.

The three men are being charged with operating a Ponzi-type scheme by using investor funds to pay other investors to speculate in failed real estate and restaurant projects. The men allegedly conducted estate planning seminars, aimed primarily at retirees in Illinois and California, and sold promissory notes for investments in Turkish bonds to “individuals with substantial savings,” the press release said.

According to the indictment, between 2005 and March 2010, the defendants offered and sold promissory notes that USA Retirement “absolutely and unconditionally” promised to pay investors between 4.75 and 11 percent annually.

“Pribilski and Durmaz falsely claimed that the interest would be generated from investments in Turkish bonds. Instead, Pribilski and Durmaz operated a Ponzi-type scheme, using funds from the sale of promissory notes to make payments to other investors without disclosing that there were no Turkish bond investments,” the press release said.

Officials said Pribilski and Durmaz allegedly used about $2.5 million of investor funds for their own benefit to pay for their homes, cars as well as other expenses.

Pribilski and Durmaz were charged with five counts of wire fraud and four counts of mail fraud and Burns was charged with three counts of wire fraud and three counts of mail fraud. The indictment also seeks forfeiture of $28 million from all three defendants.

Each count of wire and mail fraud carries a maximum penalty of 20 years in prison and a $250,000 fine.