Illinois Investment Advisor Indicted on Fraud Charges for Allegedly Swindling Clients in Ponzi Scheme

CHICAGO - An Illinois investment advisor has been indicted on federal fraud charges for allegedly swindling clients in a Ponzi scheme.

PAARIS KOPSAFTIS operated Illinois-based Blackwater Assets, Inc. From 2020 to 2025, Kopsaftis fraudulently solicited and obtained money from victims based on false representations about the intended use of the investments and the performance and value of the investments, according to an indictment returned in U.S. District Court in Chicago. Kopsaftis falsely told the victims that he would invest the money for their benefit, when, in reality, Kopsaftis knew he intended to use some of their funds for personal use, including paying his own bills, the indictment states.

Kopsaftis allegedly engaged in a Ponzi scheme by using some investor funds to repay prior investors. The indictment alleges that Kopsaftis concealed his fraud by creating and providing false documentation to his victims reflecting that their investments were worth more than they actually were.

Kopsaftis, 42, of Charlotte, N.C., and formerly of Illinois, is charged with four counts of wire fraud. He pleaded not guilty during his arraignment on Tuesday in federal court in Chicago. A status hearing has been set for July 15, 2026, at 2:00 p.m., before U.S. District Judge Jorge L. Alonso.

The indictment was announced by Andrew S. Boutros, United States Attorney for the Northern District of Illinois, and Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI. Valuable assistance was provided by the Securities Department of the Illinois Secretary of State's Office. The government is represented by Assistant U.S. Attorney Jared Hasten.

The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Each count of wire fraud is punishable by up to 20 years in federal prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines and must also order restitution to the victims.