Courtesy Chicago Sun Times

(December 2, 2009) The man who funded Mike North's Webio sports venture, only to immediately sink it after an alleged multimillion dollar Ponzi scheme was exposed, plans to admit wrongdoing and plead guilty in his federal case this January.

David Hernandez, who went on the lam and attempted suicide when his purported schemes were made public, has been living in his Downers Grove home under house arrest since September.

Hernandez faces "substantial" time in prison, and under his plea, he's required to make restitution to victims, some of whom are suing him civilly, Hernandez's lawyer told the Chicago Sun-Times on Monday.

Hernandez was indicted on charges that he ran a Ponzi scheme through his Chicago-based Next Step Financial Services, duping nearly 300 people out of about $12 million.

However: "To what extent investors will receive restitution is something we can't predict with any certainty," said Hernandez's lawyer, John A. Meyer.

Hernandez has been under house arrest, wearing an electronic bracelet, since he was charged this summer.

Just after Hernandez and North launched ChicagoSportsWebio.com the FBI delivered a letter to Hernandez's home, notifying him he was under investigation, according to court records.

Hernandez went on the lam, checking in and out of hotels in central Illinois.

He was eventually caught in a hotel in Downstate Normal. He was immediately hospitalized because he had attempted to take his own life.

U.S. District Judge Robert Gettleman released Hernandez months later as he sought medical attention: He suffered ill effects from his suicide attempt, which included ingesting rat poison and other drugs, his lawyer said.

"It was a potent combination," Meyer said. "The long-term effects from that necessitated some comprehensive medical treatment."

A civil case in federal court remains against Hernandez, where investors are trying to achieve class-action status, said the attorney for the investors, Mark Belongia.

"He should negotiate a deal," Belongia said. "He's guilty as hell. The evidence gathered shows that clearly people were defrauded of lots of money and given false contracts to sign to get them to invest."

Negotiations continue between Meyer and the government over the dollar amount that Hernandez will admit to swindling, Meyer said. The range of prison time Hernandez will face at sentencing will depend on that amount, Meyer said. He already faces a stiffer sentence because of a previous fraud conviction in 1998.

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