Carol Stream man charged in $4 million investment scheme

A Carol Stream investment adviser is accused of defrauding about 10 clients out of more than $4 million and funneling some of the money into personal business ventures, including a movie production company, federal prosecutors said Thursday.

Steven W. Salutric, 53, was charged with one count of wire fraud in connection with the alleged scheme, which prosecutors said depleted the retirement savings of some of his elderly clients.

Salutric was a founding principal at Results One Financial, LLC, in Elmhurst, where he managed funds for roughly 100 individuals and small businesses, authorities said.

Between late 2002 and January 2010, he fraudulently transferred more than $3 million in client funds to bank accounts held by personal business associates and entities that included restaurants, car dealerships, a movie production company and real estate development projects, according to the charges.

Federal officials said Salutric concealed and prolonged the alleged fraud by using some of the swindled funds to make “Ponzi-style deposits” to other clients' accounts.

Salutric had discretionary authority to trade in client accounts for lower-risk mutual fund purchases and sales, prosecutors said, but instead diverted money into high-risk investments without clients' knowledge or permission. In one case, he took about $1 million from a single client, authorities said.

Salutric told one client his funds were invested in a union pension plan yielding a 15 percent return, and assured another his funds were invested in AT&T bonds and providing an 8 percent return, according to prosecutors. Altogether, about 10 victims lost at least $4.26 million, authorities said.

If convicted, Salutric could face up to 20 years in prison and a $250,000 fine. A judge also could impose fines totaling twice the loss to any victim or twice the gain to the defendant, prosecutors said.

The case was investigated by the Financial Fraud Enforcement Task Force comprised of local, state and federal authorities. Officials said the group is working to improve investigations and prosecutions of significant financial crimes. For more information on the task force, visit www.stopfraud.gov.