Illinois Accuses Insurance Agent, Agency of Scamming Investors

The Illinois Department of Insurance has revoked the license of an Illinois insurance agent for allegedly luring Illinois and California retirees into a pyramid scheme in which the agent misrepresented that the funds would be used for the purchase of Turkish Eurobonds. The department also imposed a civil penalty of $100,000, which is the maximum allowed under Illinois law.

The department’s investigation revealed that Robert C. Pribilski of Lisle and his Oakbrook Terrace-based companies, USA Financial Management Services Inc. and USA Retirement Management Services (USARMS), invited retirees to estate planning seminars only to later coax the retirees into the purchase of promissory notes for purported Turkish investments with alleged interest returns between 8 percent and 11 percent.

The department says Pribilski, his company, and another individual raised at least $20 million from more than 120 investors and, rather than investing the money as promised, misused the funds to purchase luxury automobiles, homes, and vacations. Pribilski and his associates also allegedly wired investor money into bank accounts belonging to individuals living in Turkey.

In April 2010, the Illinois Secretary of State, Securities Department, issued an Order of Prohibition against Pribilski and USARMS permanently prohibiting them from offering or selling any securities in or from the State of Illinois. Pribilski and USARMS’ securities are not registered with the U.S. Securities and Exchange Commission, according to the insurance department’s announcement.

Source: Illinois Department of Insurance