Twin Cities Man Indicted in $20 Million Securities Fraud Case
Michael Joseph Krzyzaniak, of the Minneapolis - St. Paul area, has been indicted on multiple fraud charges related to an alleged $20 million investment scam ("Minnesota man charged in $20M investment scams," The Associated Press, April 15, 2011).
According to the indictment, 62-year-old Krzyzaniak defrauded investors out of approximately $20 million through the solicitation of investments in ventures that were left continually unfinished. Ventures listed in the indictment included investments in airport Internet terminals, golf courses, a golf club resort, and a racetrack. The indictment also accuses Krzyzaniak of misappropriating $6.1 million of investor funds for his own purposes.
Krzyzaniak was convicted of fraud in 1993. According to theStar Tribune, Krzyzaniak (also known as Michael Joseph Crosby) did not inform investors of his previous conviction.
As reported in the Star Tribune article, he faces a total of 31 charges: 20 counts of mail fraud and wire fraud, three counts of money laundering, and eight tax-related counts. A bond hearing has been scheduled for next week.