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updated: 10/4/2012 7:56 AM

Scammer pleads guilty to defrauding investors

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Associated Press

A Lake Forest man has pleaded guilty to defrauding investors in a now-defunct sleep disorder business.

The Chicago Tribune reported Wednesday that Kenneth Dachman pleaded guilty to wire fraud. He admitted to soliciting money from investors for the business and instead using the funds for personal use. Federal prosecutors say Dachman spent much of the money on a Lake Forest mansion, a tattoo parlor and family vacations. Investors believed their money would be used to purchase sleep-related equipment, rent office space and pay physicians.

Dachman admitted taking about $700,000 in bonuses and fees above a reasonable salary. Prosecutors had accused him of misappropriating at least $2 million.

Dachman faces up to 20 years in prison, a maximum fine of $250,000 and restitution to victims.

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