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Chicago businessman charged on federal fraud charges of defrauding customers and investors of $ 350,000 | USAO-NDIL

CHICAGO – A Chicago businessman who claimed he made significant profits buying and selling heavy industrial equipment was charged with federal fraud for allegedly defrauding customers and investors of at least $ 350,000.

BRIAN BLALOCK, 37, of Chicago, faces charges on nine wire transfer fraud charges filed in Chicago District Court Thursday. The indictment is not yet planned.

The indictment was promulgated by John R. Lausch, Jr., US Attorney for the Northern District of Illinois; and William Hedrick, chief inspector for the US Postal Inspection Service in Chicago. The Illinois Securities Department provided valuable assistance. The government is represented by US assistant attorneys Jacqueline Stern, Brian Havey and Matthew Getter.

According to the indictment, Blalock operated three Chicago-based companies – PWC Holdings LLC, Brian Blalock LLC, and Parkwood Companies LLC – through which he sought to buy and sell trucks, trailers, road construction machinery, oilfield equipment, and generators. Blalock claimed and received money from individual victims by falsely claiming that he could either sell equipment directly to them or use their funds to buy and sell equipment to others and then share in the substantial profits, the prosecution said.

In reality, Blalock did not intend to deliver equipment to the sacrificed buyers, nor did he intend to use their investment funds to buy and sell equipment, the indictment states. Instead, Blalock uses a significant portion of the victims’ funds for his own personal gain, including his rent payments, utility bills, restaurant meals and retail purchases, the indictment said.

As a result of the plan, Blalock caused victims at least $ 350,000 in losses from 2018 to 2021, the indictment said.

The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and has the right to a fair trial, in which the government must prove guilt unequivocally. Any wire fraud is punished with up to 20 years in federal prison. If convicted, the court must impose an appropriate sentence in accordance with federal law and US advisory sentencing guidelines.

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