Waunakee man gets prison time for Madison real estate scam

Source: MGN
Source: MGN(WTOK)
Published: Jul. 31, 2019 at 2:44 PM CDT
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A judge has sentenced a Waunakee man to 84 months in federal prison for wire fraud and money laundering Wednesday.

According to a U.S. Department of Justice press release, 64-year-old Patrick O’Connor was working as a real estate developer and licensed real estate agent.

O’Connor pleaded guilty to the charges in April of 2019.

An investigation revealed that between 2011 and 2018, O’Connor solicited funds from several individuals for investment in “Madison Financial Services.”

According to the press release, O’Connor mislead investors regarding Madison Financial Services, for example sending investors’ funds into a TradeStation online brokerage account.

According to the press release, O’Connor used a portion of the investors’ funds for his own personal expenses, including his real estate development business and to repay other investors.

In October 2017, a IRS investigator visited O’Connor at his home in Waunakee.

When asked to explain the transactions, O’Connor lied, saying the money used for his own personal expenses came from a fee charged to the client for his services.

However, records showed O’Connor used $200,000 to pay off a real estate loan and for various personal expenses.