Kostelecky Faces One-Year Fraud Sentence

GRIMY TIMES – BISMARCK, N.D. — In a stunning display of white-collar crime, Dean J. Kostelecky, 58, from Broomfield, Colorado, has been sentenced to one and a half years in federal prison for mail fraud and money laundering. The judgment was handed down by Chief U.S. District Judge Daniel L. Hovland on Feb. 23, 2017.

The defendant also faces three years of supervised release after his prison term. Kostelecky is ordered to pay $212,159.70 in restitution and a $200 special assessment to the Crime Victim’s Fund.

According to court documents, Kostelecky embezzled funds from a trust set up by his parents, which he had been appointed head of following their deaths. He altered IRS tax forms to conceal the true amount of mineral royalties and transferred the proceeds to multiple bank accounts under his control.

This sordid tale of financial chicanery began in 2008 and continued through about 2014, with Kostelecky skimming profits meant for family members. Assistant U.S. Attorney Cameron Hayden prosecuted the case, leading to Kostelecky’s plea of guilty on Nov. 9, 2016.

The investigation was a collaborative effort between the U.S. Postal Inspector and the Internal Revenue Service, shining a light on the defendant’s fraudulent activities.

As justice prevails, Kostelecky will now face the consequences for his deceitful actions, serving as a stark reminder of the impact of white-collar crime on individuals and families alike.