Jun 19, 2009 7:35 am US/Central
Ex-Fire Chief Did Business With Ponzi Suspect
Cortez Trotter's Consluting Firm Had Contracts With Companies Owned By David Hernandez
CHICAGO (Sun-Times Media Wire) ―
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Cortez Trotter (File Photo)
Former Chicago emergency management chief Cortez Trotter's consulting firm had contracts with companies owned by David Hernandez, a convicted felon
currently on the run from federal charges he ran a Ponzi scheme that bilked investors out of $11 million.
Trotter, who was Chicago's first African-American fire commissioner before being promoted to chief emergency officer, said he met Hernandez at a Christmas party and was later contacted by him about establishing a business relationship.
Trotter said Hernandez hired his company Trotter Consulting Group, LLC to provide emergency planning and preparedness and management consulting services to NextStep Medical Staffing -- the main sponsor for Chicago Sports Webio, the now defunct Internet-based sports talk radio station.
Trotter said his work as a management consultant for NextStep started in April and he soon became suspicious of Hernandez.
"I became suspect and arranged an off-site meeting with an employee where I learned that this business is not legitimate," Trotter said. "Even after I confronted [Hernandez] about my concern he lied through his teeth in an e-mail saying he would not do anything to jeopardize my reputation." Shortly after that exchange, FBI agents executed a search warrant on NextStep offices. Earlier this week, the U.S. Security and Exchange Commission filed a civil lawsuit against Hernandez accusing him of running a Ponzi scheme and to freeze all his assets. On Wednesday, the federal government filed criminal charges against Hernandez Wednesday.
Trotter said he was told by federal investigators that he is not a "suspect or target" of their probe. Trotter said he recently was interviewed by FBI agents, who asked him if he knew Hernandez's whereabouts. Trotter said he doesn't know Hernandez's location and declined to say what other information he provided investigators.
"It should be made clear that I had no involvement in any of Mr. Hernandez's financial dealings with any of his companies or any of his investors," Trotter said. "Like many others, the most recent checks written to me bounced. In retrospect, it would have been wise to protect myself and my company's name by avoiding Mr. Hernandez all together."
(Source: Sun-Times Media Wire © Chicago Sun-Times 2009. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)
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