Posted by chicagomedia.org on June 17, 2009 at 12:41:07:
Lawyer: Missing Webio exec called me
June 17, 2009 10:51 AM
David Hernandez, who disappeared Monday after federal regulators accused him of securities fraud, told one of his former attorneys Wednesday morning that he is staying at a Downers Grove hotel -- but police don't believe his story.
Avni Shah, a Chicago lawyer who said her firm has done some transactional work for Hernandez, said she received a call at about 9:30 a.m. Wednesday from Hernandez. He told her was he was in a hotel and that he was "OK," said Shah, who called the Tribune.
But Sgt. David Bormann of Downers Grove police said they have not heard from him. When informed of Hernandez's possible whereabouts by the Tribune, Bormann said "We think he's lying about that." He added that the police have been checking the hotels in the western suburb and surrounding area.
"He might just be throwing people off," Bormann said. "I doubt he's staying in town."
The Securities and Exchange Commission accused Hernandez in a civil complaint Monday of diverting $11 million he raised from investors for a purported pay-day loan business for personal expenses and to fund other ventures, including Chicago Sports Webio. With money from Hernandez, site co-founder Mike North hired Chet Coppock and other radio personalities as hosts, and the station made its debut in April.
Shah said she and her colleague Jeremy Bell are not representing Hernandez in the SEC matter. She said that they have been contacted by the SEC. Shah said they had no knowledge of Hernandez's alleged fraud.
Corporate records show that Bell registered several of Hernandez's companies, including NextStep Medical Staffing, NextStep Holdings Corp. and Spectrum Entertainment Group Inc., the parent of Chicago Sports Webio.
-- Ameet Sachdev, Chicago Tribune