A 57-year-old Fox Point man will serve two years in federal prison for conducting an investment fraud operation that resulted in over $2.5 million in losses for investors.
David Braeger was sentenced on Monday by U.S. District Judge Lynn Adelman after being convicted of defrauding 27 investors through a fraudulent company named Blue Star Automotive Fund.
According to court papers, Braeger, who had previously been forbidden by the Financial Industry Regulatory Authority (FINRA) from interacting with broker-dealer firms, misappropriated more than $2.5 million of the $5.4 million raised.
Although some funds were used as promised to assist an automobile business, Braeger used the remainder for personal expenses such as luxury vehicles, bitcoin, legal bills, and the purchase of the Silver Spring House Restaurant in Glendale.
Man, 26, Arrested After Woman Provides 90+ Photos and Videos Alleging Abuse
In addition, Braeger stole $100,000 from an investor in a separate enterprise, stating it would be used to fund litigation against a Ugandan energy company. Instead, he spent the monies for personal reasons.
Judge Adelman emphasized the emotional and financial harm caused to victims, citing Braeger’s avarice and self-interest as motivating forces behind the crime. In addition to his prison sentence, Braeger had to pay $2,535,103.19 in restitution.
“Mr. Braeger used his background and connections to steal millions of dollars from over two dozen victims,” U.S. Attorney Gregory Haanstad charged. “
He exacerbated their financial losses by attempting to intimidate some victims even as his scam collapsed. I applaud those who sought to bring accountability and justice to his victims.”
Fentanyl, Meth, and Marijuana Seized in Cherokee County Drug Bust; Three Individuals Now in Custody
The FDIC Office of Inspector General also praised the investigation, with Special Agent in Charge Vincent Zehme saying, “Braeger’s scheme not only caused significant financial harm to consumers, but it also undermined trust in the financial system.” We remain determined to hold such perpetrators accountable.”
Reference: Wisconsin man sentenced to two years in prison for $2.5M investment fraud scheme
Leave a Reply