Reno attorney is charged with securities fraud
Reno lawyer John Shadek, 63, has been charged with two counts of securities fraud and one charge of theft against a senior after an investigation by the Secretary of State’s Office.
If convicted, Shadek could be sentenced to up to 20 years prison on each count and face a $500,000 fine.
According to Secretary of State Ross Miller, Shadek collected a $127,500 check to Capitol Funding Investments from an Incline Village resident in 2011, promising the investor a promissory note guaranteed by Shadek and his business partner. He reportedly promised the investor that the investment would be repaid with interest in 45 days.
Instead, Shadek used $17,500 for personal expenses and transferred the rest to an entity controlled by his partner, Ron Stover, according to the release from Miller’s office.
The charges say Shadek offered the investor a second opportunity in 2012, but failed to tell the investor about the risks involved. The two companies linked to that investment both filed for bankruptcy before that solicitation was even made.
“Mr. Shadek took advantage of an elderly investor,” Miller said. “It is difficult to watch someone’s retirement savings go down the drain and to feel sympathetic for he perpetrator.”
He called for Shadek to get the “stiffest penalties” in the case.
Shadek’s bail has been set at $60,000.