Minnesota man's $20 million fraud fed lavish life: indictment

Reuters News
Posted: Apr 14, 2011 8:45 PM
Minnesota man's $20 million fraud fed lavish life: indictment

MINNEAPOLIS (Reuters) - A Minnesota man courted investors with visions of a NASCAR-type race track and golf resorts in a more than $20 million investment fraud to support his luxury lifestyle, federal prosecutors said on Thursday.

Michael Krzyzaniak, 62, of Minneapolis, faces numerous federal charges stemming from investment schemes that ran from 2003 to 2011, according to an indictment unsealed on Thursday.

Krzyzaniak failed to pay income taxes on more than $6.1 million he used for personal expenses from 2004 to 2007, paid $127,837 for a Porsche in 2006 and bought a $1.1 million house in a wealthy Minneapolis suburb, according to the indictment.

Krzyzaniak, who also is known as Michael Joseph Crosby, claimed to be developing projects ranging from Internet terminals at airports to Colorado alternative energy projects, a Minnesota racetrack and a California golf resort.

Instead of investing the money, "he spent large portions of the funds to pay for personal expenses, to fund his lavish lifestyle and to provide lulling payments," the indictment said.

Krzyzaniak faces 14 counts of mail fraud, six counts of wire fraud, three counts of money laundering and seven related tax charges. He faces up to 20 years in prison on each mail and wire fraud count and 10 years on each money laundering charge.

(Reporting by David Bailey and Peter Bohan)