The Sconi

Richard G. Frohling, Acting United States Attorney for the Eastern District of Wisconsin, announced that Ronald Pallek, a 55-year-old from McHenry, Illinois, has been sentenced to 48 months in prison. The sentence was handed down on July 22, 2025, following Pallek's involvement in an investment fraud scheme that defrauded over 100 investors in Illinois and Wisconsin out of more than $1.6 million.

Court records reveal that Pallek convinced friends, acquaintances, and family members to invest money with him under the promise of doubling their investments through an "iron condor" strategy. Despite knowing he could not achieve such returns, Pallek continued soliciting funds even after losing previous investments or using them for personal expenses. He issued falsified earning statements and made Ponzi-style payments to maintain his scheme.

United States District Judge Brett Ludwig remarked on the severity of Pallek's crimes during sentencing, highlighting his deceitful tactics and exploitation of trust.

Pallek's sentence includes restitution of $1,679,250 and three years of supervised release. Acting U.S. Attorney Frohling emphasized the emotional and financial harm inflicted by Pallek and praised those involved in bringing him to justice.

FBI Milwaukee Special Agent in Charge Michael Hensle reiterated the FBI's commitment to investigating financial frauds like this one. Jason Bushey from IRS Criminal Investigation also condemned the betrayal inherent in such schemes.

The case was investigated by the FBI and IRS-Criminal Investigation and prosecuted by Assistant United States Attorney Julie F. Stewart.