Newport Beach man faces charges of swindling Chicago resident out of $2 million

A Newport Beach man is facing federal fraud charges in Chicago for allegedly bilking $2 million from an Illinois resident through a bogus investment scheme.

Raymond Echavez Villamor, 60, was charged with five counts of wire fraud and pleaded not guilty to the charges last week, according to the U.S. Attorney’s Office in Chicago.

According to prosecutors, Villamor operated a company called Rainbowork LLC, and during a six-month period last year, he convinced a Glenview, Ill., resident to make a $2-million investment.

“Villamor made false representations about the performance and value of the investment, and falsely promised to repay all of it — with an added return — within a specified period of time, even though he knew he did not have the capability to do so,” prosecutors said.

Villamor instead used the money to pay for personal expenses, including vehicle purchases, according to prosecutors.

Each of the fraud charges carries a potential prison term of 20 years.