CEO of Wheaton Financial Firm Indicted on Federal Wire Fraud Charges

The owner of a Wheaton financial firm faces federal wire fraud charges for allegations he misused more than $1.2 million in client money to fund his company’s payroll and business obligations.

Robert Pearson, the owner and CEO of Illinois Stock Transfer Co., was indicted last week on ten counts of wire fraud.

Pearson, 58, of Winfield, is accused of taking money out of a client fund account that his company maintained at BMO Harris Bank and using the money to meet his company’s payroll obligations and tax commitments from February 2012 to February 2014, according to an FBI press release.

According to the indictment, Pearson tried to conceal the scheme by fraudulently representing to customers, the U.S. Securities and Exchange Commission and an outside accountant that the funds were secure.

Pearson’s Wheaton-based company, which did business under the name IST Shareholder Services, functioned as a transfer agent to repurchase shares of securities as a result of companies merging or being acquired, according to the news release. IST also reinvested dividends for shareholders of certain IST customers, recorded changes of ownership in securities, and maintained records of issuers.

Pearson is next expected in federal court for an arraignment hearing on Nov. 19. Each count of wire fraud carries a maximum penalty of 20 years in prison.