Downers Grove man indicted in Ponzi scheme

A Downers Grove man has been formally indicted in connection with a $12 million Ponzi scheme, the U.S. Attorney's Office said Friday.

Federal prosecutors say that David J. Hernandez, 48, fraudulently induced roughly 290 people to invest in his company, NextStep Financial Services Inc. Prosecutors say Hernandez made false claims about how the investors' money would be used and what the return on their investment would be.

He is charged with four counts of mail fraud, according to the indictment. The government also is seeking forfeiture of $3.5 million.

Hernandez is due to return to Chicago next week. He appeared in federal court in Peoria late last month, after recovering in a hospital in Normal from an apparent suicide attempt.

Hernandez was the key financial backer for ChicagoSportsWebio.com, sports commentator Mike North's Internet radio channel.

Authorities say he claimed he was running a profitable payday loan business, but was actually channeling investor cash among various business ventures.