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A former Chicago-based Citi vp and wealth advisor defrauded shoppers of just about $1.5 million whereas soliciting them to bankroll her fledgling profession as a film producer, based on the Division of Justice (DOJ).
Federal prosecutors charged Helen Grace Caldwell with convincing quite a few aged shoppers to spend money on her movie productions between 2014 and 2023, promising them returns on their funding.
However based on the fees filed in Illinois federal court docket, Caldwell knew shoppers wouldn’t be getting any a refund.
Caldwell joined the business in 1992, working her manner by way of quick stints at quite a lot of companies (together with Signator, Banc One and Chase Funding Providers) earlier than becoming a member of Citigroup in 2012, the place she stayed for about 9 years, based on her BrokerCheck profile.
However Caldwell additionally labored as a movie producer on the facet by way of her firm Canal Productions, concentrating on horror movies, based on her IMDB web page. Her credit embrace the vampire movie “Marked” and “Hunter,” which facilities on a martial artist avenging his household in opposition to zombies, based on the Chicago Solar-Instances.
Caldwell’s employer and her victims usually are not named within the DOJ doc, however the Solar-Instances reported allegations in opposition to her in August of final 12 months, detailing a lawsuit filed by Prepare dinner County’s public guardian’s workplace in opposition to Citigroup and Caldwell. Her victims reportedly included an older shopper who misplaced her financial savings and is at present dwelling in a nursing dwelling with dementia.
In response to the DOJ, Caldwell would misappropriate her shoppers’ funds by transferring it from the checking account for Canal Productions into her personal accounts or to 3rd events, the place she used the cash for private functions (she would additionally use debit playing cards linked to Canal’s financial institution accounts for her personal use).
In one other occasion, Caldwell allegedly lied to an unnamed movie producer, claiming an unnamed shopper was asking for a refund of their funding within the producer’s movie. Caldwell claimed she would transmit the refund from the producer to shopper and claimed she’d already despatched the shopper an advance on it. In actuality, the shopper hadn’t requested for a refund, and Caldwell meant to pocket the producer’s cash for herself, based on the DOJ.
The general public guardian’s workplace in Chicago introduced their go well with final summer season, arguing Citigroup fell quick on the job of policing certainly one of their very own, although the financial institution argued in probate court docket that they shouldn’t be held answerable for Caldwell’s conduct, based on the Solar-Instances. Reporters discovered that Citi continued to approve her exterior enterprise within the movie world through the time she was utilizing shoppers’ funds.
The financial institution finally reported Caldwell to Illinois’ Division on Growing old’s Grownup Protecting Providers (APS) division in March 2022, after a member of the family of certainly one of her shoppers made quite a few complaints to the financial institution. An APS probe finally led to the general public guardian’s go well with, based on the Solar-Instances.
In August 2022, Citigroup filed outcomes of an inner evaluate discovering that Caldwell didn’t “adequately disclose” her exterior enterprise exercise to the agency, the Solar-Instances reported. A spokesperson for Citi declined to remark for this story.
Caldwell briefly labored for Wells Fargo after leaving Citi in 2021, however was fired in 2022 after a evaluate questioned the accuracy of disclosures she made detailing her compliance with exterior enterprise insurance policies. (FINRA barred her from the business final 12 months after she declined to offer on-the-record testimony in regards to the Citigroup and Wells Fargo findings.)
The DOJ charged her with wire fraud, and he or she faces as a lot as 20 years in jail. Caldwell’s lawyer informed the Solar-Instances final week that she intends to plead responsible.
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