Missing Downers Grove financier apprehended downstate

The nationwide manhunt is over for David Hernandez, the Downers Grove man accused by the U.S. Securities and Exchange Commission of operating an alleged Ponzi scheme in which they say he bilked investors of $11 million.

Hernandez, who is being treated at a Normal, Ill., hospital following what is being called a failed suicide attempt, was taken into custody Monday by the Bloomington police department and is awaiting remand into federal custody, an FBI spokesman said.

The SEC complaint alleges that Hernandez, financial backer of sports commentator Mike North's Internet radio channel ChicagoSportsWebio.com, promised investors high returns while diverting funds for his personal use. Authorities claim Hernandez told investors he was operating a profitable payday loan business but actually shuttled funds between various ventures including NextStep Financial Services, NextStep Medical Staffing and Spectrum Entertainment, which controls ChicagoSportsWebio.com.

Gina Hernandez reported her husband missing a week ago. In a prepared statement released by her attorney Timothy Martin, Gina Hernandez said she was pleased that authorities had apprehended her husband safely. The statement also indicated that Gina Hernandez had no knowledge or involvement in her husband's alleged Ponzi scheme and that she intends to continue to cooperate with authorities to resolve the matter.

According to Martin, David Hernandez asked a nurse to contact his wife to let her know he was OK.

The SEC's criminal complaint indicates that the 48-year-old Hernandez pleaded guilty to bank fraud in Chicago in 1998 and was sentenced to 34 months in prison, five years of supervision and ordered to pay restitution of $724,000.