Wheaton woman sentenced to 60 months for fraud
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A 50-year-old Wheaton woman found guilty of defrauding investors who believed they were funding a gluten-free bakery was sentenced to the maximum prison term — 60 months — on Tuesday.
Patricia A. Stewart defrauded investors of more than $2 million, including an elderly woman from Dallas who lost nearly $500,000 in the scheme, according to prosecutors.
Investors bought stock in Whole Bakers LLC. from Stewart, who represented herself as a licensed securities dealer, and believed their funds would be used to further develop gluten-free and wheat-free bakery items and be used in the company’s marketing and acquisition strategy, according to prosecutors.
Instead, Stewart failed to advise investors that their money would be commingled with other funds and that investments would be used for purposes unrelated to Whole Bakers. Stewart also used the investments for her own personal benefit, according to prosecutors.
Stewart must also pay $2,027,769 in restitution to the victims.
According to court documents, Stewart offered and sold the investments from December 2005 through May 2010. The company was founded in 2007, according to its website.
Stewart must report to prison on March 28.
