|For Immediate Release
|August 25, 2009
||Contact: Charles Evenson
Rural Elkhorn Resident Paczocha Sentenced for Securities
(Madison) Racine County Judge Bruce Schroeder has sentenced rural Elkhorn
resident and Racine businessperson David Paczocha to five years of probation
for one felony count of securities fraud. The sentencing took place July
28 after Paczocha pled guilty to the charge that he had made misrepresentations
and omissions of material facts in soliciting at least $284,000 from
five southeastern Wisconsin residents.
Paczocha, 53, solicited investments in the form of preferred stock of
his business, Custom Fabricating of Racine, Inc. The information that
Paczocha provided to investors included significant misrepresentations
about the company’s finances in order to get individuals to invest
with him and his business.
Judge Schroeder also ordered Paczocha to pay $284,000 restitution to
the investor victims. Three of them attended the sentencing hearing and
each spoke of how their loss had caused financial and emotional toll.
The Racine County District Attorney’s office prosecuted the case
following an investigation by the Division of Securities of the Wisconsin
Department of Financial Institutions.