An Illinois investment advisor, Paaris Kopsaftis, has been indicted on federal fraud charges for allegedly operating a Ponzi scheme that swindled clients. The indictment, returned in U.S. District Court in Chicago, accuses Kopsaftis of fraudulently soliciting money from victims through his Illinois-based company, Blackwater Assets, Inc., between 2020 and 2025.
Kopsaftis allegedly made false representations about the use, performance, and value of investments, telling victims he would invest their money for their benefit. However, he reportedly intended to use some funds for personal expenses, including paying his own bills. The scheme involved using new investor funds to repay prior investors, a hallmark of a Ponzi scheme.
To conceal the fraud, Kopsaftis is accused of creating and providing false documentation to victims, making their investments appear more valuable than they were. Kopsaftis, 42, of Charlotte, N.C., faces four counts of wire fraud. He pleaded not guilty during his arraignment in Chicago, with a status hearing scheduled for July 15, 2026, before U.S. District Judge Jorge L. Alonso.
The indictment was announced by Andrew S. Boutros, U.S. Attorney for the Northern District of Illinois, and Douglas S. DePodesta, Special Agent-in-Charge of the FBI's Chicago Field Office, with assistance from the Illinois Secretary of State’s Office. Each wire fraud count carries a potential sentence of up to 20 years in federal prison, along with mandatory restitution if convicted. The public is reminded that an indictment is not evidence of guilt, and the defendant is presumed innocent.