Fox Point Financer Indicted for $5.5M Investment Fraud

David O. Braeger, a 54-year-old resident of Fox Point, Wisconsin, has been hit with a federal indictment for orchestrating a massive investment fraud scheme that defrauded victims out of over $5.5 million. According to Acting United States Attorney Richard G. Frohling of the Eastern District of Wisconsin, Braeger is accused of three counts of Wire Fraud, three counts of Bank Fraud, one count of Mail Fraud, and two counts of Engaging in Unlawful Monetary Transactions.

The indictment details Braeger’s alleged activities from September 2016 to August 2017, where he deceitfully convinced investors to pour their money into entities based on fraudulent promises. Instead of using the funds as he promised, Braeger is said to have pocketed a significant portion for his own gain, including Ponzi-like payments to earlier investors and personal expenses.

FINRA had already barred Braeger from any association with its members in 2020, following their findings that he deceived customers about investments and misused funds. The Wisconsin Department of Financial Institutions and the Federal Deposit Insurance Corporation-Office of the Inspector General have been involved in this investigation.

Assistant United States Attorney Julie F. Stewart will be handling the prosecution of this case against Braeger. An indictment is a charge, not proof of guilt; the defendant is presumed innocent until proven guilty beyond a reasonable doubt.

Braeger faces severe penalties if convicted, including up to thirty years in prison for Bank Fraud counts, twenty years for Wire and Mail Fraud counts, and ten years for Unlawful Monetary Transaction counts. Each offense also carries substantial fines ranging from $250,000 to $1,000,000.

For more information on this case, please contact Public Information Officer Kenneth Gales at 414-297-1700. Follow us on Twitter for updates on this and other gritty crime news.