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Wounded fugitive found downstate


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David Hernandez
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By Catherine Donovan, cdonovan@mysuburbanlife.com
Downers Grove Reporter

Downers Grove, IL -

Downers Grove fugitive David Hernandez traveled about 110 miles south after fleeing from the FBI on a criminal charge following the $11 million Ponzi scheme he allegedly orchestrated.

While conducting a well-being check at a hotel, officers with the Normal Police Department in central Illinois found Hernandez just before 11 a.m. Monday. Their next stop was a local hospital where Hernandez received treatment for self-inflicted wounds, police said.

An FBI spokesperson could not confirm early reports that Hernandez attempted suicide and had no further information Tuesday afternoon.

“Mr. Hernandez was taken into custody on a federal mail fraud warrant. He was then transported to an area hospital where he is receiving treatment for what to appears to be self-inflicted injuries,” stated a news released issued Monday by Normal police.

On Tuesday, Normal police said they had no further updates other than the information provided in that news release.

The U.S. Securities and Exchange Commission filed a civil complaint June 15 against Hernandez alleging that beginning in February 2008, he solicited investors to buy “guaranteed investment contracts” through his defunct business, NextStep Financial Services. The SEC said Hernandez told investors that his company invested in payday advance stores. The SEC said Hernandez guaranteed the investors up to 16 percent returns per month.

According to the SEC, Hernandez solicited money from at least 100 investors in 12 states, siphoning those funds through NextStep Financial into his personal financial accounts for the purchase of cars, jewelry, a piano and to pay off the mortgage on his family’s home. The complaint states that Hernandez also misappropriated some of those funds into other business ventures, including the sports-talk Web site for Chicago Sports Webio.

Downers Grove police Sgt. David Bormann said Hernandez, 48, 1321 Hawkins Ave., was last seen by his wife, Gina Hernandez, around 1 p.m. June 15. Bormann said that about six hours later, Gina Hernandez reported Hernandez missing after he did not return home from work.

On June 17, the situation escalated from a civil case to a criminal charge of mail fraud filed by the U.S. Attorney’s Office for the Northern District of Illinois. That day a warrant also was issued for Hernandez’s arrest. According to the U.S. attorney’s office, the mail fraud charge carries a maximum penalty of 20 years in prison and $250,000 fine.

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