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September 2, 2015
For Immediate Release:
ST.
CLOUD, Minn. – Following an investigation by the Minnesota Commerce
Department’s Fraud Bureau, the Stearns County Attorney’s Office has charged Michaela
“Kim” Kruger, 57, and Richard A. Kruger, 57, both of rural Paynesville, with
orchestrating an investment fraud scheme over the past seven years.
Michaela
Kruger was charged with four counts of theft by swindle, and Richard A. Kruger
was charged with four counts of aiding and abetting theft by swindle. They are scheduled to make their first court
appearance on October 5.
According
to the criminal complaint:
The
Krugers are licensed insurance agents who operated the Kruger Insurance Agency
in Paynesville. From approximately 2008
through 2014, they convinced numerous insurance and tax clients to invest money
in a product offered through their business. The product, which offered a 3 to
6% rate of return, was purportedly tied to a “custodial account” administered
by the Krugers. In reality, there was no
such investment or account. The criminal
complaint alleges that the Krugers personally used the “invested” money they
received from their clients.
“The
defendants in this case not only stole money, they also stole the trust and
peace of mind of the people they victimized,” said Commerce Commissioner Mike
Rothman. “It’s a pattern we see too often, with victims who are vulnerable
seniors or who thought the defendants were their trusted advisers. The Commerce Fraud Bureau is working closely
with our law enforcement partners to go after the people who commit fraud and financial
crimes.”
The
Fraud Bureau’s investigation, with assistance from the Stearns County Sheriff’s
Office, determined that between 2008 and 2014, the Krugers stole over $250,000. Due to the statute of limitations, the
criminal complaint charges the Krugers with stealing more than $85,000.
If
you believe you may be a victim of Michaela or Richard Kruger, please contact
the Commerce Fraud Bureau at 651-539-1617.
This
investigation began with a complaint from a concerned individual. Commerce Commissioner Rothman encourages
everyone to ask questions before they invest and to carefully monitor their
financial accounts even when working with an insurance agent or investment
advisor.
If
you have questions or concerns about potential investment scams or fraud, contact
the Commerce Department’s Consumer Services Center by email at consumer.protection@state.mn.us or by
phone at 651-539-1600 or 800-657-3602 (outside the Twin Cities metro area).
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Media Contact:
Ross Corson
Director of Communications
Minnesota Department of Commerce
P: 651-539-1463 | C: 651-368-5050 | ross.corson@state.mn.us
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