CHICAGO (CBS) — A former Northwestern University fraternity is charged with stealing hundreds of thousands of dollars from Sigma Chi.
Peter Schellenbach, 77, is accused of stealing more than $460,000 from the Sigma Chi Home Association of Northwestern University.
As former president, he collected dues from alumni to be used for management of the fraternity house.
Illinois Attorney General Kwame Raoul said Schellenbach transferred approximately $460,000 from the association to his personal account, and used the money for personal expenses, including online trading, credit card payments and payments to the Chicago Yacht Club.
He also allegedly used more than $267,000 for an Iraqi dinar investment with Sterling Currency Group.
Last year, the owners of that company were convicted on federal fraud charges. All of the money Schellenbach invested had been lost.
When Sigma Chi board members confronted him about missing money, he allegedly claimed withdrawals as large as $70,000 were loans he planned to repay.
Schellenbach has pleaded not guilty. He’s due back in court on July 15.