Milwaukee Financial Advisor Sentenced to 30 Months in Federal Prison for Fraud Scheme that Targeted Elderly Victims
The prison sentence will be followed by three years of supervised release.
MILWAUKEE, Wis. – U.S. Attorney Matthew D. Krueger of the Eastern District of Wisconsin announced that on Sept. 19, 2019, the Honorable Pamela Pepper, U.S. District Court Judge for the Eastern District of Wisconsin, sentenced Chris Kubiak, 60, of Milwaukee, to 30 months in prison following his conviction for a fraud scheme that targeted elderly victims. The prison sentence will be followed by three years of supervised release. Kubiak also will be required to make restitution in the amount of $379,977 to the six victims named in the indictment.
Kubiak had earlier pleaded guilty to one count of wire fraud in violation of Title 18, United States Code, Section 1343. As admitted in his plea agreement, Kubiak worked as a financial advisor through Freedom Investors Corp and Calton & Associates Inc. In that role, Kubiak arranged to have funds withdrawn from several elderly clients’ investment accounts and mailed to their homes or wired to their bank accounts. Kubiak falsely told the clients that the funds were bonuses or dividends that he would reinvest for them. He solicited personal checks from the clients, but rather than reinvesting the money as promised, Kubiak deposited the funds into his own checking account and used the money for gambling and other personal expenses. The scheme spanned a period of five years and was ultimately discovered by a victim’s relative, who reported Kubiak to authorities.
Speaking for one of the victims, a relative described the debilitating emotional and mental distress suffered by her loved one who had long known and trusted Kubiak to grow her small nest egg. In sentencing Kubiak, the Court emphasized the need for punishment and deterrence, both for Kubiak and for others who might be similarly tempted to prey upon the elderly.
“The victims in this case entrusted Kubiak with savings they had earned through honest, hard work over their lifetimes,” said U.S. Attorney Krueger. “Kubiak exploited that trust and now faces years in federal prison. Let this case be a warning to anyone who would prey on elderly members of our community.”
The charges against Kubiak were announced as part of the U.S. Department of Justice’s largest-ever nationwide elder fraud sweep on March 7, 2019. The case was investigated by detectives from the Waukesha County Sheriff Department and the Franklin Police Department and Special Agents from the U.S. Secret Service Financial Crimes Task Force. The case was prosecuted by Assistant U.S. Attorney Carol L. Kraft.