Between November 2005 and April 2010, Marcin Malarz and Arthur Lin fraudulently offered and sold investments in promissory notes and obtained loans personally secured by Malarz Equity Investments LLC (MEI), while making false representations about the risks involved in investing and lending money to MEI. Today, Zachary T. Fardon, United States Attorney for the Northern District of Illinois, announced that a indictment was returned yesterday against Malarz, 48, formerly of Lake Forest, and Lin, 39, of Palatine, that charged both with three counts of wire fraud. Lin will be arraigned on date to be determined in U.S. District Court, while Malarz is a fugitive and is believed to be living in Poland.
According to the charges, Arthur Lin was a branch office manager of a securities broker-dealer in Itasca, as well as an officer of Malarz Equity Investments LLC (MEI), which was managed by Malarz and sold condominiums after purchasing apartment buildings and converting the units. He recruited investors from his securities firm’s client pool for Malarz and MEI. Lin used some of the funds to pay personal expenses, including credit card and home equity loan payments. Marcin Malarz allegedly misappropriated approximately $2 million for his personal use, including funds to pay outside business expenses, travel and living expenses, such as credit card and home mortgage bills, furniture, clothing, and a Mercedes automobile. Both men allegedly paid Lin's wife with the ill gotten investor funds.
The indictment seeks forfeiture of alleged fraud proceeds totaling at least $5.5 million as well as Lin’s residence in Palatine and additional homes in Palatine and Barrington.