Woodstock man charged in Ponzi scheme

A Woodstock man has been charged with running a Ponzi scheme that caused approximately 150 investors to lose more than $5 million, according to the FBI.

Scott Ross, 42, of Woodstock is accused of misusing the money raised in three investment funds by making “Ponzi-type” payments to certain customers who complained, while paying himself a $319,000 salary and purchasing a yearly skybox at the Indianapolis Colts' football stadium, according to investigators.

Ross was charged with three counts of mail fraud Tuesday, with each charge carrying a maximum penalty of 20 years in prison and a $250,000 fine, the FBI said.

Ross owned and operated Harbor Wealth Management and two subsidiaries out of an office in Schaumburg, according to the charges.

One of the investment funds, which raised approximately $1,920,000, claimed to invest in life settlement contracts. A second fund, which raised more than $3 million, was sold as an investment in the stock of the development of a dual-sided computer monitor, according to the FBI.

Ross falsely claimed to investors that he was board certified in estate planning, was a certified fund specialist, had earned a seal of approval from the National Ethics Bureau and “had passed a comprehensive seven-year background review with all regulatory bodies including the NASD, SEC, and all state insurance and securities boards,” according to investigators.

The charges state that Ross used the money from one fund to pay the expenses of a second fund as well as purchase the $75,000-per-year sky box in Indianapolis.

Ross will be arraigned at a later date in U.S. District Court.