Posted by Dead Wax Records on July 20, 2009 at 13:10:11:
Key figure in Webio case stays in jail
David Herndandez waives bail hearing
July 20, 2009
By NATASHA KORECKI Federal Courts Reporter
Alleged Ponzi schemer David J. Hernandez will remain in jail for now.
Hernandez, who co-founded the now-defunct ChicagoSportsWebio.com, which featured popular sportscaster Mike North, waived a bail hearing this morning in federal court.
Hernandez — indicted earlier this month on charges that he scammed nearly 300 people out of $12 million — doesn’t have cash for a private attorney.
His court-appointed lawyer said the bail question could be brought up again in the future. Hernandez is accused of carrying out a crooked scheme to defraud investors through his business, NextStep Financial Services, Inc., and several related companies.
Hernandez faces four counts of mail fraud. Prosecutors say he misled investors, promising them 10 to 16 percent returns on investments he never made.
Hernandez also told investors their principal was protected through insurance, even though it wasn’t, according to the charges he faces. Hernandez 48, was reported missing June 15, just before the federal charges were announced. Hernandez went on the lam and was found in downstate Normal.
He’s also accused in a civil lawsuit filed by the U.S. Securities and Exchange Commission of bilking more than 100 investors out of nearly $12 million.