Investment adviser convicted

A federal jury on Friday found a Chicago investment adviser guilty of defrauding an Oak Brook-based bank and two clients, according to a news release from the U.S. attorney's office.

Robert J. Lunn, 64, of Chicago was convicted on five counts of federal bank fraud. He faces up to 30 years in prison and a $1 million fine on each count, the news release said.

Oak Brook-based Leaders Bank lost more than $2.7 million in the scheme.

According to the news release, Lunn initially obtained a business line of credit from the bank for $480,000 in May 2001. He increased the credit line twice in early 2004 after he submitted financial statements that falsely stated he owned millions of dollars of stock in Morgan Stanley and Lehman Brothers.

In September 2002, Lunn arranged for an unsecured bank loan of $1.4 million, falsely claiming that former Bulls star Scottie Pippen intended to purchase an interest in an airplane, the news release said.

In June 2004, Lunn arranged a bank loan for $500,000 for the benefit of another former client, Robert Geras, a retired venture capitalist, without Geras' knowledge or authorization, the U.S. attorney's office said.

Lunn used nearly all of the fraudulently obtained funds for his own benefit, including mortgage payments and approximately $1.4 million in payments to other clients, according to the news release.

Lunn remains free on bond. His sentencing is set for Jan. 21.