U.S. Securities and Exchange Commission

Litigation Release No. 21366 / January 8, 2010

Securities and Exchange Commission v. Steve W. Salutric, Civil Action No. 1:10-CV-00115 (N.D. Ill.)

The Securities and Exchange Commission today announced fraud charges and an asset freeze against Steve W. Salutric ("Salutric"), a resident of Carol Stream, Illinois, for operating a fraudulent scheme in which, through forgery and other fraudulent means, he misappropriated several million dollars from his clients at Results One Financial, LLC, an investment advisory firm in Elmhurst, Illinois.

The SEC's complaint, filed in the U.S. District Court for the Northern District of Illinois, alleges that Salutric, from at least 2007 through the present, misappropriated over $2 million from at least 17 of his clients to support businesses and entities linked to him and, to make Ponzi-like payments to other clients. According to the SEC complaint, in a particularly egregious example of Salutric's fraudulent conduct, Salutric misappropriated over $400,000 from a 96-year-old client who resides in a nursing home and suffers from dementia.

At the SEC's request for emergency relief, the Hon. William J. Hibbler, United States District Court, Northern District of Illinois, issued a temporary restraining order against Salutric and an order freezing all assets under the control of Salutric, in addition to granting other emergency relief.

According to the allegations in the SEC complaint, Salutric misappropriated client funds by making unauthorized withdrawals from his clients' accounts at another financial institution that served as the custodian of client assets for Results One. To perpetrate his scheme, in a number of instances, Salutric forged client signatures on written withdrawal request forms and submitted the signed written requests to the account custodian. According to the SEC complaint, once client funds were withdrawn from Schwab, Salutric directed the funds to a number of entities related to Salutric including: approximately $259,000 to two local restaurants (one of which is partially owned by Salutric); approximately $610,000 to a film distribution company (Salutric previously co-produced a film called "Madison" with links to this company); and approximately $321,000 to Salutric's church (Salutric is the treasurer for his church and has signatory authority over the church's bank account). Most, if not all, of the other misappropriated funds were used in a Ponzi-like fashion to pay other clients.

According to the SEC complaint, Salutric violated Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Sections 206(1) and 206(2) of the Investment Advisers Act of 1940.

See Also: SEC Complaint

 
http://www.sec.gov/litigation/litreleases/2010/lr21366.htm

Last modified: 1/08/2010