Wheaton Man Indicted in Home Construction Scheme

A 58-year-old Wheaton man was ordered to pay $35,000 after he was indicted for his part in a new home construction scheme, officials said.

Ronald Moore, of the 900 block of East Elm Street, pled guilty on Thursday to one count of attempted securities fraud, a Class A Misdemeanor. He received a two-year conditional discharge and must provide $35,000 in restitution to six investors, according to a press release from the DuPage County State's Attorney's Office.

Moore's role was to locate investors in an illegal plot developed by Richard Osty, 72, of the first block of North Sheridan, Waukegan. Osty was sentenced to six years in the Illinois Department of Corrections after pleading guilty to one count of theft by deception, a Class 1 Felony. He was also ordered to pay $760,371.45 in restitution to a total of 55 different people. Judge Kathryn Creswell handed down the sentence.

Osty's plot asked investors for an initial $1,500, followed by placement on a waiting list that would allow them to invest more money in "green home" construction, the press release said.

Osty told investors they would make a 10.25 percent profit. Then he would withdraw the investors' money under several different business names and use the funds for personal expenses, including dental work, groceries, karate classes and medical costs, prosecutors said.

“Financial crimes, such as the investment scheme Mr. Osty pled guilty to today, can be very complicated,” DuPage County State's Attorney Bob Berlin said in a prepared statement. “The perpetrators of these scams leverage the trust of their victims to their advantage and at times the victims do not fully understand the nature of their investment until it is too late and they are out thousands of dollars."

Once an investor's name reached the top of the waiting list, he or she was told to open a construction escrow account for a modular green home in their own name. Once the loan came through, Osty claimed he would provide a plot of land for the new green home construction for $1 under a program run by the city of Chicago. He also claimed that he would be able to find a buyer for the home through one of two organizations he was working with that counsel and assist prospective home buyers.

Instead Osty didn't take any steps to get the $1 plots, and he didn't have any agreements with organizations to find buyers, according to an investigation conducted by the Illinois Secretary of State Securities Division and the Wheaton Police Department. He also did not have any contracts in place regarding the modular green homes.

"I would like to thank the Wheaton Police Department, particularly Detective Ted Fanning for his exceptional police work in unraveling Mr. Osty’s scheme," Berlin said. "I would also like to thank Assistant State’s Attorney Diane Michalak for her outstanding work on this very complex case.”