Wisconsin man’s fraud scheme funded lavish lifestyle and over 300 snowmobiles, federal charges say
How did your country report this? Share your view in the comments.
Diverging Reports Breakdown
Wisconsin man’s fraud scheme funded lavish lifestyle and over 300 snowmobiles, federal charges say
Stanley Pophal, 63, is charged with two counts of wire fraud and money laundering. Prosecutors say he received payments from 128 investors and used the “vast majority’ of that money to fund an extravagant lifestyle. He told targets he’d been blessed by God with good fortune, and he was paying it forward by helping investors, an affidavit says. He also claimed to be a millionaire or billionaire, the affidavit says, and hasn’t had a job since 2010.
Prosecutors say Stanley Pophal, 63, received payments from 128 investors and used the “vast majority” of that money to fund an extravagant lifestyle — including a “vast snowmobile collection.” In a press release, U.S. Attorney Timothy M. O’Shea said Pophal purchased more than 300 snowmobiles.
Pophal was charged with two counts of wire fraud and money laundering, and he appeared in federal court in Madison this week.
Stay connected to Wisconsin news — your way Get trustworthy reporting and unique local stories from WPR delivered directly to your inbox. Email Name This field is for validation purposes and should be left unchanged.
According to the affidavit, Pophal used a variety of techniques to lure investors, all designed to convey his wealth and business success. He said he created and sold car wash dryers. He claimed to be related to the founders of the Fromm Brothers Fur and Ginseng Farm, a wealthy Marathon County dynasty founded in the early 20th century. And he told targets he’d been blessed by God with good fortune, and he was paying it forward by helping investors.
In addition to his collection of snowmobiles, prosecutors say Pophal purchased motocross bikes and race cars.
He also claimed to be a millionaire or billionaire. Citing Department of Workforce Development records, the affidavit said Pophal hasn’t had a job since 2010.
Prosecutors interviewed 21 of Pophal’s targets. One of them said Pophal approached him with stories about his wealth, showing him photos of his boat and snowmobile collection.
He offered the victim a 30 percent to 40 percent interest rate on a $50,000 investment, promising to invest it in flipping commercial properties to apartments.
On Feb. 25, according to prosecutors, the victim wired Pophal the money.
The affidavit claims Pophal then used it for “personal expenses,” including “a $35,000 payment to a contractor for an expense related to his business.”
That transaction is the basis for the two federal counts Pophal is now charged with.
Pophal’s attorney declined to comment Wednesday afternoon.
Wausau Man Charged With Federal Wire Fraud, Money Laundering
Stanley Pophal was charged with wire fraud and money laundering. Investigators say he took the “investors’ for more than $15 million. The 63-year-old allegedly used the money to live an extravagant lifestyle.
Stanley Pophal was charged with wire fraud and money laundering in a federal courtroom on Monday. Investigators say he took the “investors” for more than $15 million, giving the appearance that he was a wealthy businessman who could provide a guaranteed rate of return on the funds.
Instead, the 63-year-old allegedly used the money to live an extravagant lifestyle. That included purchasing more than 300 snowmobiles.
Investigators also accuse Pophal of taking on new clients to make “lulling payments” to previous investors, meaning he used the new money to make small payments to others to make it seem as if he was getting a return on their funds.
Pophal remains in custody. Further court action against him is pending.
Source: https://www.wpr.org/news/wisconsin-man-fraud-scheme-fund-extravagant-lifestyle-federal-charges