72°FFairFull Forecast
Pro Football Weekly Updated Draft Guide

Owners of Lisle-based investment firm accused of fraud by SEC

Published: Thursday, May 23, 2013 12:35 p.m. CDT

The owners of the Lisle-based investment firm of Capital Management Associated have been accused of defrauding clients for more than $2 million from 2008 to 2012 by the Securities and Exchange Commission, according to an SEC press release.

Charles J. Dushek of Naperville and son Charles S. Dushek of Wheaton allegedly placed millions of dollars in securities trades on behalf of their clients without first specifying whether they were trading personal funds or client funds. They then delayed allocating the trades into either account for as many as several days to identify profitable trades, keep them for themselves, and dump the rest onto their clients.

According to the release and formal SEC complaint, the Dusheks placed more than 13,500 trades involving over $350 million on behalf of the CMA. More than 75 percent of the trades that the Dusheks kept were profitable by the time they allocated them, while fewer than 25 percent of those given to clients were profitable.

The Dusheks profited almost $2 million, while their clients – including many senior citizens – saw a loss of the same amount. Dushek Sr.'s Roth IRA alone had a rate of return of almost 25,000 percent through 2011. Both used the profits to fund lavish lifestyles, including vacations and mortgage payments, according to the May 16 release.

Get breaking and town-specific news sent to your phone. Sign up for text alerts from the Suburban Life Media.