Fox Point Swindler Braeger Indicted in $5.5M Fraud

FOX POINT, WI – David O. Braeger, 54, of Fox Point, Wisconsin, is facing a mountain of federal charges after a grand jury indicted him for allegedly fleecing investors out of over $5.5 million. The indictment, handed down November 16, 2021, paints a picture of calculated deception and brazen misuse of victim funds.

Acting United States Attorney Richard G. Frohling of the Eastern District of Wisconsin announced the charges: three counts of Wire Fraud, three counts of Bank Fraud, one count of Mail Fraud, and two counts of Engaging in Unlawful Monetary Transactions – all violations of federal law (18 U.S.C. §§ 1341, 1343, 1344, and 1957). If convicted on all counts, Braeger could spend the rest of his life behind bars.

The indictment details two separate investment schemes, launched between September 2016 and August 2017, where Braeger allegedly lured victims with false promises and representations. Instead of investing the money as claimed, prosecutors allege Braeger used a substantial portion to play a twisted version of Robin Hood – making Ponzi-like payments to earlier investors while simultaneously funding a lavish lifestyle. Over $5.5 million was fraudulently obtained from his victims between 2016 and 2018.

This isn’t a sudden fall from grace. The Financial Industry Regulatory Authority (FINRA) already barred Braeger from the financial industry in 2020. FINRA found he’d been making misrepresentations and omissions to customers, and actively converting and misusing their funds. The writing was on the wall, but Braeger allegedly continued his scheme.

The investigation was a collaborative effort between the Wisconsin Department of Financial Institutions and the Federal Deposit Insurance Corporation-Office of the Inspector General. Assistant United States Attorney Julie F. Stewart will lead the prosecution, tasked with proving Braeger’s guilt beyond a reasonable doubt. The potential penalties are steep: up to 30 years for each Bank Fraud count, 20 years for each Wire Fraud and Mail Fraud count, and 10 years for each Engaging in Unlawful Monetary Transaction count. Fines could reach $1,000,000 per Bank Fraud count and $250,000 for all other counts, along with significant supervised release periods.

It’s crucial to remember: an indictment is not a conviction. Braeger is presumed innocent until proven guilty in a court of law. But the evidence, as presented by the government, suggests a cold-blooded betrayal of trust and a calculated scheme to enrich himself at the expense of others. Grimy Times will continue to follow this case and report on any developments.