Sauk City man accused of using investment funds for personal use
MADISON, Wis. — A Sauk City man is facing 16 federal charges after an investigation into how he used money he allegedly obtained by defrauding investors.
James Kolf, 64, is charged with 16 counts of wire fraud, one count of mail fraud and one count of money laundering.
Prosecutors said that from April 2011 until August 2016 Kolf, encouraged his brokerage customers to invest in SFN Financial Network, which was not a legitimate investment. They said he gave investors false account statements with data and marketing material from an investment with a similar name.
The indictment said Kolf used $905,077 he got through the scheme to pay for his personal living expenses, including the cash purchase of his home in Sauk City, home improvements, credit card payments, an outstanding federal tax liability, property taxes and the cash purchase of a car. The indictment related to the money laundering count accuses Kolf of withdrawing $280,534 from a business checking account, which he had set up in the name of SFN Financial Network to purchase a cashier’s check used to fund the purchase of his home.
If convicted, Kolf faces up to 20 years in federal prison on each wire and mail fraud count, and 10 years on the money laundering count.