Press Releases

For Immediate Release
August 25, 2009 Contact: Charles Evenson

Rural Elkhorn Resident Paczocha Sentenced for Securities Fraud

(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.