Eighteen years after Michael Joseph Krzyzaniak pled guilty to operating an investment scheme for which he served 72 months in federal prison, he was back in court entering yet another plea. Last Tuesday, Krzyzaniak (also known as Michael Crosby) pled guilty to orchestrating four separate investment schemes that bilked individual investors out of $20 to $50 million.
According to a news release issued by the United States Attorney's Office, Krzyzaniak solicited investments in a series of business projects, which included a golf club resort in California, an alternative energy project in Colorado, and a NASCAR-type racing track in Minnesota, that were continually left unfinished.
Krzyzaniak admitted to making false statements about the projects, such as the progress made on each project, the status of regulatory approval, and the types of various financing sources available to him. He further admitted to misappropriating investor funds and using the money for personal purposes.
A sentencing date has not yet been scheduled, but Krzyzaniak faces a potential 20 years in prison for the investment scheme. He also faces an additional 5 years in prison for tax evasion.