Lisle man, DuPage Co. companies accused in pyramid scheme

A Lisle man and his Oakbrook Terrace-based insurance companies were accused of running a pyramid scheme that cheated more than 120 investors of at least $20 million.

The Illinois Department of Insurance said Tuesday that it has revoked the licenses and imposed a $100,000 civil penalty against Robert C. Pribilski and his companies, USA Financial Management Services Inc. and USA Retirement Management Services. The state alleges he coaxed retirees into purchasing promissory notes for so-called Turkish Eurobond investments, providing interest ranging from 8 percent to 11 percent, according to the state's document.

Pribilski and another unnamed individual also were accused of wiring money into bank accounts belonging to individuals living in Turkey, the document said.

He allegedly misused the funds to purchase luxury vehicles, homes and vacations, the document said.

In April, the Illinois Secretary of State Securities Department issued an order against Pribilski and USARMS to permanently stop offering or selling any securities in or from Illinois. The defendant and his companies are not registered with the U.S. Securities and Exchange Commission, the agencies said.

Pribilski was accused of running a Ponzi-like or pyramid scheme, which has newer investors providing money that pays off the initial investors in the so-called investment.

The Better Business Bureau of Chicago also has an F rating on the companies and had revoked their accreditation last May.

A hearing has been scheduled for Sept. 21. Pribilski could not be reached for comment and his attorney did not provide a response.