MILWAUKEE, Wis. (Civic Media) — A former home construction contractor from Fremont, Wisconsin, has been sentenced to five years in federal prison for bank fraud and money laundering, U.S. Attorney Gregory J. Haanstad announced Wednesday.
Ross O. Schlomann, 45, was also ordered to pay $2.1 million in restitution by Senior U.S. District Judge William C. Griesbach.
Schlomann, who worked for Refurbs Properties, LLC, defrauded more than a dozen aspiring homeowners by accepting large payments for home construction projects that were never completed. He made false statements to banks to have the money disbursed and used it for other purposes, including covering shortages on previous projects.
Judge Griesbach described the scheme as a “sophisticated Ponzi scheme” and an “egregious betrayal of trust,” noting that Schlomann victimized young families seeking to build their dream homes.
U.S. Attorney Haanstad commended the hard work of those involved in seeking justice for the victims.
The case was investigated by IRS Criminal Investigation and the Outagamie County Sheriff’s Office.
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