Illinois Investment Adviser Charged with 5-Year Ponzi Scheme

Federal prosecutors have charged Illinois investment adviser Paaris Kopsaftis with four counts of wire fraud for allegedly operating a Ponzi scheme from June 2020 to May 2025. According to a federal grand jury indictment in Chicago, Kopsaftis operated Blackwater Assets Inc. and misappropriated client funds by issuing fabricated account statements, diverting investor money to cover personal expenses, and using funds from new investors to repay earlier victims. Prosecutors allege he falsely represented that client assets would be held in custodial accounts with withdrawal protections that did not exist.
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