SEC Charges Chicago Sports Webio Owner With Fraud
June 16, 2009 at 1:36 PM (PT)
The SECURITIES AND EXCHANGE COMMISSION has filed civil fraud charges against DAVID J. HERNANDEZ, the head of NEXTSTEP FINANCIAL and owner of SPECTRUM ENTERTAINMENT GROUP, INC., parent of sports talk streaming station CHICAGO SPORTS WEBIO, which is closing down after today's webcasts.
The charges, which allege that HERNANDEZ ran a Ponzi scheme through NEXTSTEP FINANCIAL and diverted investors' money to his other businesses, including SPECTRUM, and to his personal use, follow FRIDAY's firing of CHICAGO SPORTS WEBIO SVP and morning co-host MIKE NORTH.
HERNANDEZ is also alleged to have lied about his educational background and concealed his criminal background, which includes pleading guilty to wire fraud in 1998, from investors.