Downers Grove man accused of fraud out of hospital

Officials from the Federal Bureau of Investigations in Chicago announced that David Hernandez of Downers Grove has been released from the hospital and is scheduled to appear in court today.

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, is scheduled to appear in U.S. District Court in Peoria at 11:30 a.m.

Hernandez, was treated at a Normal, Ill., hospital following what was called a failed suicide attempt.

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.

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.