CHICAGO (STMW) — A Chicago investment fund manager has been charged with running a Ponzi-type scheme that defrauded 41 investors out of more than $11 million.

Neal Goyal, 33, was charged Wednesday with one count of wire fraud, according to a statement from the U.S. Attorney’s office. He was the founder and manager of Blue Horizon Asset Management and Caldera Advisors, both of which were unregistered investment advisors.

Between June 2006 and May 2014, Goyal obtained more than $11.3 million from investors by offering and selling limited partnerships in three Blue Horizon funds and a Caldera Equity. He did so by lying about the intended use of the funds, the returns generated, and the source of the returns, according to prosecutors.

He allegedly covered the scheme by created and distributing false account statements.

Prosecutors claim Goyal stole investors’ money to fund his own lavish lifestyle, using the money to pay business expenses and support a variety of business ventures, including a bar and two children’s boutiques his wife operates in Chicago.

The SEC filed a civil fraud lawsuit Wednesday and obtained a court order freezing Goyal’s assets and funds, according to the statement.

Wire fraud carries a maximum penalty of 20 years in prison and a $250,000 fine, according to the statement. Restitution is also mandatory.

(Source: Sun-Times Media Wire © Chicago Sun-Times 2014. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)