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Geneva man accused of embezzling $3.9 million from clients

A 56-year-old Geneva man is facing federal fraud charges after being accused of embezzling $3.9 million of his clients' funds.

Prosecutors said Stephen C. Browere promised clients of his Geneva-based Stephens Capital Management firm "lucrative returns" if they invested in the Lisle-based Douglas Capital Corp. However, he failed to inform clients that he is related to the president of Douglas, had access to Douglas' line of credit and ran its day-to-day operations.

Instead of investing money in Douglas, Browere used the money to perform trades in his own portfolio and cover personal expenses, including purchase of a yacht and luxury vehicles, according to court papers.

Prosecutors said Browere's scheme began in 2007 and continued through 2014.

When clients asked for returns, Browere sent them letters saying the funds were locked up because of the economic downturn and blamed the "current banking system," according to court records.

Browere faces a maximum of 20 years in prison if convicted.

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