Wheaton investment firm owner faces fraud charges

A 58-year-old Winfield man was indicted on charges of misappropriating nearly $1.2 million in client funds to help cover payroll and tax commitments at his Wheaton investment firm.

Robert Pearson, owner of Illinois Stock Transfer Co., is facing federal fraud charges stemming from the withdrawals he is accused of making from his company's client fund.

Prosecutors said Pearson withdrew the funds multiple times between February 2012 and February 2014, assuring clients that his company was complying with all federal safeguards.

He concealed his scheme to misappropriate client funds by "fraudulently representing to customers, the U.S. Securities and Exchange Commission and an outside account" that the funds were safe, according to court papers.

Pearson is slated for a Nov. 19 arraignment. If convicted, he faces a maximum of 20 years in prison.