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New Holstein Resident Convicted of Theft and Securities Fraud


NEW HOLSTEIN - Attorney General J.B. Van Hollen announced that Denver Kalkofen (age 54) of New Holstein, Wisconsin  has been sentenced to prison for securities fraud and the theft of investors' money.  On July 28, 2009, Kalkofen appeared before the Hon. Donald A. Poppy, Calumet County Circuit Court Judge, for sentencing.  She had previously entered no contest pleas  and was convicted of four counts of theft in a business setting and two counts of securities fraud, occurring between 1998-2009.


"Ms. Kalkofen's acts were egregious and unconscionable creating victims from responsible citizens that included even her own step-daughter," said Attorney General J.B. Van Hollen. "This sentence sends a clear message to those who would seek to use their positions of trust to illegally enrich themselves - their conduct will not be tolerated and they will be held to account."


Judge Poppy sentenced Kalkofen to a term of seven years confinement and 11 years of supervision. As conditions of her extended supervision, the court also ordered Kalkofen to make restitution to the victims and any third parties or insurers that compensated the victims for their losses in the amount of $2,251,449.


According to the criminal complaint, Ms. Kalkofen was a licensed securities agent in Wisconsin.  As early as 1998, Kalkofen advised several of her clients that she had other investment opportunities through a company known as "Denuer," a business that does not appear to exist.  These clients would typically make the checks out to "Denuer" or "cash" and provide them to Kalkofen.  An examination of Kalkofen's bank accounts reflects that Kalkofen deposited these checks into her personal bank accounts.  The total amount of funds obtained between 1998 and 2009 exceeded $2.4 million.  In addition, further examination of these accounts document that more than $1 million of these funds were spent on casino-related expenses.  Kalkofen presented statements to some of her customers which purported to show investment values and rates of return.  However, Kalkofen did not invest any of the money that the customers gave to her on their behalf.  The complaint alleges that there were more than 25 victims residing in Calumet, Sheboygan, Brown, Dane, Manitowoc, Oconto, Ozaukee, Vilas, and Washington Counties.


The charges are the result of an investigation by the Securities Division of the Wisconsin Department of Financial Institutions with assistance from the Calumet County Sheriff's Department.  Assistant Attorney General Donald V. Latorraca represents the state.


A copy of the criminal complaint is available at:

2009 file: