Fremont Contractor Sentenced to Five Years in Prison for Bank Fraud and Money Laundering
A former home construction contractor in Fremont, Wisconsin, has been sentenced to five years in federal prison for his role in a sophisticated bank fraud and money laundering scheme that left over a dozen victims with losses totaling $2.1 million.
Ross O. Schlomann, 45, was convicted of bank fraud and money laundering after an investigation revealed that he had defrauded aspiring homeowners by accepting their money, making false statements, and using the funds for other purposes.
Schlomann, who worked as a contractor for Refurbs Properties, LLC, promised his victims that he would design and build their dream homes. However, he failed to deliver on his promises, leaving his victims with substantial losses.
According to court records, Schlomann accepted over $2 million from his victims, who were seeking to build homes in northeastern Wisconsin and elsewhere. He then used the funds to cover shortages on previous projects and for other purposes, ultimately causing over $2 million in losses to his victims.
In sentencing Schlomann, Judge William C. Griesbach described his actions as a ‘sophisticated Ponzi scheme’ and an ‘egregious betrayal of trust.’ The judge emphasized that Schlomann had victimized young families who were seeking to design and build their dream homes.
Schlomann was also ordered to pay $2.1 million in restitution as part of his sentence. The case was investigated by the Internal Revenue Service (IRS) Criminal Investigation and the Outagamie County Sheriff’s Office, with Assistant United States Attorney Alex Duros prosecuting the case.
The sentence sends a strong message that those who engage in such egregious financial crimes will be held accountable for their actions.
Defendant: Ross O. Schlomann
Criminal Charges: Bank Fraud and Money Laundering
City and State: Fremont, Wisconsin
Exact Date: August 28, 2024
Sentence: Five years in federal prison and $2.1 million in restitution
Dollar Amount: $2.1 million
Key Facts
- State: Wisconsin
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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