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Feds indict former real estate investment partner on fraud charge

Updated: May 2, 2014 6:49PM

A onetime Chicago-area real estate investment partner was indicted on federal charges that he fraudulently obtained and misused investment funds.
Matthew Stoen, 35, formerly of St. Charles and Chicago, was charged with four counts of mail fraud and two counts of wire fraud in an indictment returned by a federal grand jury Wednesday, a statement from the U.S. Attorney’s office said.
Stoen was founder and managing general partner of the real estate investment group Stone Rose. The indictment charges he lied about his personal background and financial condition to investors and lenders — claiming he was the beneficiary of a trust fund, which was false.
He allegedly set up a financing scheme by fraudulently raising millions of dollars through the sale of limited partnership interests and loans, the statement said.
Stoen allegedly misappropriated Stone Rose funds for his own benefit, and concealed the scheme by giving investors “false and misleading” financial reviews of his company.
He also told investors and lenders that funds invested in his company would be used for real estate investment projects, knowing he intended to use the funds for other purposes, including his own benefit, the statement said.
In all, Stoen obtained more than $10 million from 50 investors, the U.S. Attorney’s office said.
Each count of mail and wire fraud carries a maximum penalty of 20 years and a $250,000 fine, with restitution mandatory. The indictment seeks forfeiture of more than $10 million.
Stoen will be arraigned in U.S. District Court in Chicago at a later date.

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