Winnetka Trader Admits Bringing Down Company With Fraud Scheme

WINNETKA, IL — A local futures trader pleaded guilty to wire fraud Tuesday in in federal court, admitting he misrepresented profits in a fraud scheme that racked up with more than $13 million in losses and the collapse of his trading firm.

Thomas Lindstrom, 49, of the 1500 block of Asbury Avenue in Winnetka, was indicted on eight counts of commodities fraud and wire fraud in September 2016.

Federal prosecutors said Lindstrom used options on 10-year Treasury Note futures to fake profits while working at Chicago-based Rock Capital Markets and lied about it.

His fraud scheme allowed him to gain an extra $285,000 in compensation during a six-month period in 2014-15, according to his indictment, a civil complaint and his felony guilty plea.

Lindstrom hid the scheme by telling Rock Capital’s owner that his options were profitable, when in reality his trading was causing substantial losses. In the agreement, he admits telling the owner a particular $475,000 loss was due to a "trading error."

By January 2015, Lindstrom had inflated the value of Rock Capital's books by over $13 million, which led to its collapse, according to his plea.

Rock Capital still has an active business license, and documents with the Illinois Secretary of State list David Venkus as its manager.

An attorney representing the firm declined to comment on to the Chicago Tribune on its behalf. Lindstrom's attorney described him as "grateful" to take a step towards resolving the case.

Lindstrom's sentencing hearing has been scheduled for June 19. He faces up to 20 years in prison and a fine of $250,000 and twice the the losses incurred by the firm.

» Read more from the Department of Justice, The Chicago Tribune and The Commodities Futures Trading Commission

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