By Greg Burns | Federal prosecutors have leveled formal charges against a once-prominent commodity trader accused of cheating investors while falsely claiming to make them money. Jay C. Nolan of Wilmette was charged Wednesday with five counts of fraud through a criminal information, a legal document that often precedes a plea deal.

See also • Read the criminal information against Nolan.

The former Chicago Board of Trade director stands accused of raising $3.9 million from “about 10″ investors beginning in 2005, making “Ponzi-type payments” to some and misappropriating more than $600,000 for himself, according to the charges.

Nolan claimed his investment fund was consistently profitable, though he knew it had never posted a winning year, the document says. The fund lost 26 percent of its value in 2005, 5 percent in 2006, 61 percent in 2007, 99 percent in 2008 and 54 percent in 2009. As of Oct. 30, its assets had dwindled to roughly $200,000.

Nolan’s attorney, Tom Breen of Chicago, could not be reached for immediate comment. After his client’s arrest late last year, Breen said, “We’re continuing to learn more about the case and if need be, we’re not opposed to negotiating if that’s the best thing to do.”

A civil complaint filed last month by the Commodity Futures Trading Commission had alleged that Nolan and his firm, Lodge Capital Group LLC, withdrew $1.5 million, and lost another $2.3 million.