|For Immediate Release
|March 1, 2010
||Contact: Charles Evenson
Milwaukee Resident James Kops Sentenced for Securities
(Madison) Milwaukee County Judge David Hansher on February 22 sentenced
Milwaukee resident James G. Kops to a 36-month sentence for securities
fraud. The sentence is to be stayed pending a five-year probation that
includes one year in the Milwaukee County House of Corrections and repayment
to the investor/victim of $25,000 restitution. It also prohibits Kops
from involvement in any securities transactions.
The sentencing took place after Kops pled guilty to one count of securities
fraud based upon misrepresentations and omissions of material facts Kops
made to investors. They included his failure to disclose the fact that
he had previously been charged and convicted of securities fraud in 1980,
and that the Division of Securities of the Wisconsin Department of Financial
Institutions had previously issued an Administrative Order against him
that forbid him from making any offers or sales of securities.
Kops sold interests in what he described as a motorized paddleboat business,
and told the victim that his investment money would be used exclusively
to pay start-up costs for the motorized paddleboat business. The investigation
revealed that instead of using the money as he had told the investor,
Kops used most, if not all, of the money for other purposes.
The Milwaukee County District Attorney’s Office prosecuted the
case following an investigation by the Division of Securities of the
Wisconsin Department of Financial Institutions.