Lawyer convicted of fraud in Aurora land deal

An Indiana lawyer has been convicted on federal fraud charges for scheming to provide falsified documents to prevent foreclosure on a nearly $2 million parcel in Aurora.

In the process, federal prosecutors say, the lawyer bilked an elderly couple out of $300,000.

Robert Jon Schlyer, 47, of Portage, was convicted of two counts of wire fraud and one count of bank fraud.

A jury found that Schlyer's scheme took place while representing two clients, co-schemers Kevin LeBeau and Brian Bodie, in connection with a foreclosure lawsuit. Evidence at trial revealed that Schlyer provided fraudulent documents to an elderly couple and Amcore Bank in order to postpone foreclosure on the Aurora property.

The jury returned the guilty verdicts Friday after a four-day trial. U.S. District Judge Amy J. St. Eve set sentencing for Jan. 31. Each count carries a maximum prison sentence of 30 years.

According to evidence at trial, Amcore Bank in 2004 received a mortgage on the 10.4-acre property in Aurora after issuing a $1.9 million loan for the refinancing and redevelopment.

LeBeau and Bodie executed a full personal guarantee for the loan, but by fall 2005 they had failed to make the required payments, the loan was in default, and the bank filed a foreclosure lawsuit to seize the property.

Schlyer, who acted as the attorney for LeBeau and Bodie in the foreclosure suit, obtained $300,000 from a retired couple by providing them with fake documents that made it seem they were making a safe investment in the redevelopment and that it would be secured by a trust.

Schlyer also claimed to be the trustee of the purported trust. But there was no trust and Schlyer was not a trustee.

Schlyer and his co-schemers also concealed from the elderly couple the foreclosure suit and LeBeau and Bodie's inability to pay the bank debt.

A portion of funds obtained from the couple was used to pay down the bank loan.

The three men then gave bogus documents to the bank, including forged documents, that made it appear investors had committed roughly $1.5 million to redevelopment of the property.

Eventually the foreclosure occurred and the property was sold in 2010 at a significant loss to the bank.

LeBeau, of Aurora, and Bodie, of Chicago, were convicted in the case and are awaiting sentencing before U.S. District Judge Robert W. Gettleman.