Dist. 158 accountant, businessman accused of $8 mil scam
An accountant for Huntley School District 158 and a Gilberts man are named as defendants in a federal class-action suit claiming their company swindled investors out of more than $8 million in a real-estate scam.
The suit, filed late last month in U.S. District Court, claims Woodstock-based InvestForClosures Financial accepted millions from as many as 100 investors while promising to buy foreclosed and distressed properties.
The company, the suit claims, offered investors returns as high as 28 percent.
But instead of buying homes, the suit alleges, the company took the money and bought 27 acres of undeveloped property in Mexico.
"To date, investors have not received the principal or interest in their investments and most have lost contact with IFC," Robert Thurston, an attorney representing six plaintiffs, said in the lawsuit.
The suit seeks $58 million in damages, plus ownership of the land in Mexico. Plaintiffs named in the suit include a Downers Grove man, residents of California, Iowa and Washington, and a Chicago-based company.
Among the defendants named is Thomas Rodriguez, an accountant for District 158. Rodriguez, who the suit says worked as a staff accountant for IFC, did not return a call for comment left at his school district office. The suit does not state what role, if any, he had in the alleged scheme beyond being an IFC employee.
Lauren Smith, chief human resources officer for District 158, said Rodriguez began working for the district in July 2008.
Other defendants include James D. Bourassa of Gilberts, listed as the firm's president, and Francis X. Sanchez, of Woodstock, named in the suit as IFC's chief executive officer.
Neither could be reached for comment Wednesday. A listed phone number of for IFC was not taking calls and the company's Web site was down.
State authorities dissolved the company last year, about 10 months after filing a securities fraud complaint against it in November 2007. The complaint named only Bourassa and Sanchez as defendants.