A Yorkville woman is facing federal charges in an alleged $23 million Ponzi scheme.
Michelle Labra, 47, who owned and operated Aurora-based Labra Group Realtors LLC, promised at least 25 people outsized returns on their investments between 2009 and 2015, the U.S. Attorney’s Office for the Northern District of Illinois announced Friday.
Labra allegedly told investors they would receive at least 14 percent interest on short-term loans that would be secured by the borrowers’ residences.
But instead of investing the monty she was given, Labra used $19.6 million in funds to pay earlier investors back and used more than $3.3 million to pay for vacations and jewelry, prosecutors said.
“In reality, Labra never entered into any agreements with borrowers,” prosecutors said in a statement.
Labra faces three counts of wire fraud and one count of making a false statement to the U.S. Treasury Inspector General for Tax Administration, according to prosecutors.
An arraignment hearing on the charges has not been scheduled.
