Trading screen as used by Charles Dushek for securities fraud.

Advisor Charles Dushek Accused of Securities Fraud

Chicago-based investment adviser Charles Dushek was charged by federal prosecutors with fraud after allocating winning and losing trades among his family and client investors, netting himself over $1 million along the way. Capital Management Associates Inc.’s Charles Dushek held $25 million for clients, according to the indictment filed against Dushek. He and an unnamed co-conspirator allegedly put the profits from good trades into CMA’s own accounts but would put losses from bad trades on the ledgers of its customer accounts.

According to the indictment, Dushek falsely represented that their policy was to allocate investment opportunities on a fair and equitable basis, all the while knowing that he and a “co-
schemer” intended to defraud clients by unfairly allocating profitable trades away from clients and into their own accounts. Dushek was accused of keeping a “winners” and “losers” spreadsheet, waiting days after trades were made to apportion funds among accounts.

Charles Dushek faced similar charges from the Securities & Exchange Commission (SEC) in 2012. In that matter, Dushek was accused of selling 500 shares of Pepsi stock, putting the proceeds of the sale into his own personal account. He did the same with shares of Johnson & Johnson and other major companies. The SEC barred Charles Dushek from serving as a broker or being associated with any broker.

Call a Los Angeles Securities Fraud Attorney Today

If you invested with Charles Dushek or Capital Management Associates, or suffered a loss and suspect your broker of securities fraud, you may have certain legal rights that require your immediate attention.

Contact an experienced Los Angeles securities fraud attorney today for a consultation to discuss your rights and options.