Federal authorities have charged a former St. Charles man with fraud claiming the onetime real estate investment partner fraudulently obtained more than $10 million from 50 Chicago area investors and misused funds.
Matthew Stoen, 35, founder and managing partner of Stone Rose LP, was indicted Wednesday by a federal grand jury on four counts of mail fraud and two counts of wire fraud, authorities announced Friday. Each count carries a maximum penalty of 20 years in prison and a $250,000 fine as well as mandatory restitution.
Prosecutors say Stoen, of Wayzata, Minn., falsely represented himself to investors and lenders, claiming he was the beneficiary of a trust fund. Between February 2006 and September 2010, Stoen raised millions through loans and through the sale of limited partnerships, according to the complaint. Prosecutors say he told investors their money would be used for real estate investments in Kansas City. Instead, he used the money for "his own use and benefit," concealing the scheme by creating false financial reports, according to the complaint.
Stoen will be arraigned at a later date, authorities said. The government seeks forfeiture of more than $10 million in fraudulent proceeds.