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Lake Forest man accused in sleep disorder scam

A suburban Chicago man has been accused of defrauding investors of a now-defunct sleep disorder business of $4 million.

Federal prosecutors say 52-year-old Kenneth Dachman spent much of the money on a Lake Forest mansion, a tattoo parlor and family vacations to Italy, Nevada, Florida and Alaska.

Dachman allegedly enticed more than 50 people between June 2008 and September 2010 to invest in Central Sleep Diagnostics and Advanced Sleep Devices.

Investors believed their money would be used to purchase sleep-related equipment, rent office space and pay physicians

Authorities say Dachman at times guaranteed he would repay investors’ principal, as well as monthly payments equal to between 5 and 24 percent annually.

The indictment alleges Dachman misappropriated at least $2 million. He was charged Wednesday with 11 counts of wire fraud.