Black Lion Investment Partners: Lee Rose Pleads Guilty, John Krcil Sentenced in $3.9 Million 'Private Placement' Trading Scheme

Case from 2024–2026 (U.S. Attorney's Office release: March 1, 2024; later developments are from court records and other sources cited below). Published on Scammers.com Oct. 16, 2026; case status is current as of that date.

Three men who said they worked for Black Lion Investment Partners Inc., a Wyoming company, were indicted in Chicago in 2024. They are charged with taking about $3.9 million from six investors, including an Oklahoma children's charity, through supposed "private placement" trading programs, according to the U.S. Attorney's Office for the Northern District of Illinois [1]. Court records show that John L. Krcil pleaded guilty and was sentenced in June 2025 to a year and a day in prison. Lee S. Rose of Deerfield, Illinois, pleaded guilty in August 2025. Edward L. Wooten has not been convicted and is presumed innocent [2] [3].

What prosecutors allege

According to the indictment, as described by the U.S. Attorney's Office [1]:

1. The pitch. Starting in 2019, the three men told investors they could earn big returns through "private placement" trading programs. They said the programs involved "investment grade fixed income securities" of "top-rated" banks or financial institutions.
2. Promised safety. They allegedly claimed the programs produced multi-million-dollar returns in short periods and that investors would get their money back if a program didn't perform within 60 days.
3. What allegedly happened. The indictment alleges they did not use all the money for trades, paid no trading profits and did not return all the funds as promised. Instead, they allegedly used investor money for themselves.

In a separate civil case filed July 30, 2021, in federal court in Macon, Georgia, the U.S. Securities and Exchange Commission called this a "prime bank scheme" [4]. The SEC alleges investors were told their money would stay in an escrow account and earn returns with no risk of loss. According to the SEC, the money was instead moved to accounts controlled by Black Lion and the three men and used for personal expenses or to repay earlier investors. Those are civil allegations.

The defendants

Lee S. Rose, 82, Deerfield, Ill. He was charged with wire fraud, interstate transfer of money taken by fraud, money laundering and false statements, including false statements to a federal judge, the FBI and the SEC [1]. Court records show he pleaded guilty Aug. 13, 2025, to Counts One and Eleven of the indictment. His sentencing was reset from Dec. 17, 2025, to June 16, 2026 [2] [3]. Status pending; no later outcome found in public sources as of Oct. 16, 2026.

John L. Krcil, 55, Hanover, Minn. He was charged with wire fraud and interstate transfer of money taken by fraud [1]. The June 13, 2025, judgment shows he pleaded guilty to Counts One and Ten. U.S. District Judge Lindsay C. Jenkins sentenced him to 12 months and one day in prison on each count, to run concurrently, plus two years of supervised release. The remaining counts were dismissed on the government's motion [2].

Edward L. Wooten, 51, Macon, Ga. He is charged with wire fraud, interstate transfer of money taken by fraud, money laundering, making false statements and making false statements to the FBI [1]. His jury trial was reset to May 4, 2026 [3]. Charged; presumed innocent. Status pending; no later outcome found in public sources as of Oct. 16, 2026.

The FBI investigated, with help from the SEC [1].

Red flags

• "Private placement," "bank guarantee" or "top-rated bank instrument" trading programs. Regulators have long warned that "prime bank" programs are frauds.
• Promises of huge returns within weeks, or a "money back in 60 days" guarantee.
• Claims that your money stays safe in escrow while it's supposedly being traded.

What to do if you're targeted

1. Check registration of anyone selling investments at adviserinfo.sec.gov and BrokerCheck.
2. Read the SEC's investor alert on prime bank schemes at investor.gov.
3. Report suspected fraud to the SEC at sec.gov/tcr and to the FBI at ic3.gov.

Case status (as of Oct. 16, 2026)

Defendant	Court	Status as of Oct. 16, 2026	Source
Lee S. Rose, 82, Deerfield, Ill.	N.D. Ill. (1:24-cr-00103)	Pleaded guilty Aug. 13, 2025; sentencing reset to June 16, 2026; no later outcome found in public sources as of Oct. 16, 2026	[2], [3]
John L. Krcil, 55, Hanover, Minn.	N.D. Ill. (1:24-cr-00103)	Pleaded guilty; sentenced June 13, 2025, to 12 months and 1 day, plus 2 years of supervised release	[2]
Edward L. Wooten, 51, Macon, Ga.	N.D. Ill. (1:24-cr-00103)	Charged; trial reset to May 4, 2026; presumed innocent; no later outcome found in public sources as of Oct. 16, 2026	[1], [3]
Black Lion, Wooten, Rose, Krcil (SEC civil case)	M.D. Ga. (5:21-cv-00270)	SEC alleges securities fraud (filed July 30, 2021)	[4]

Sources

1. U.S. Attorney's Office, Northern District of Illinois, "Suburban Chicago Man Among Three People Charged With Swindling Investors out of More Than $3.9 Million," March 1, 2024. https://www.justice.gov/usao-ndil/pr/suburban-chicago-man-among-three-people-charged-swindling-investors-out-more-39
2. CourtListener, United States v. Wooten, No. 1:24-cr-00103 (N.D. Ill.), docket entries including the June 13, 2025, Krcil judgment and the Aug. 13, 2025, Rose change-of-plea minute entry. https://www.courtlistener.com/docket/68301371/united-states-v-wooten/
3. Dr. Docket, "United States v. Wooten," No. 1:24-cr-00103 (N.D. Ill.), docket entries through Oct. 27, 2025. https://www.drdocket.com/case/united-states-v-wooten-ilnd-2024
4. U.S. Securities and Exchange Commission, Litigation Release No. 25153, "SEC v. Edward Wooten, et al.," July 30, 2021. https://www.sec.gov/enforcement-litigation/litigation-releases/lr-25153

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