3.5 Years in Prison, $3M Fine for Former Evanston Man Accused of Bilking Clients

A former Evanston man was sentenced last week to 3.5 years in prison and a $3,090,000 fine for a Ponzi-type scheme he used to take about $4 million from more than 30 victims between 1996 and 2007, the U.S. Attorney’s Office said.

Oscar Donald Overbey, Jr., now of Country Club Hills, was a financial adviser at two north suburban locations of Ameriprise financial, the office said in a press release. He is accused of using his victims’ money to pay his own personal expenses and his gambling habit.

The press release says:

According to court documents, among Overbey’s victims were two university workers and their two daughters. He convinced them to invest $150,000 in a purported short-term, government-backed investment paying 10 percent interest. The victims obtained funds from refinancing their home and from a home equity line of credit to make the investment. Instead of investing the funds, Overbey misappropriated the entire amount to pay personal expenses and to make more than 10 Ponzi-type payments to other victims.

“The victims placed their trust in [Overbey], but never had a chance. [Overbey] abused that trust and misused his education and skills as an investment advisor to benefit himself and to keep his scheme going,” Assistant U.S. Attorney Edward Kohler argued at sentencing.