Edward Van Der Molen Sentenced on Theft by Contractor Charge and Securities Related Read-ins

Oct 15 2014
Edward Van Der Molen Sentenced on Theft by Contractor Charge and Securities Related Read-ins
 

MADISON — Attorney General J.B. Van Hollen announced that at a sentencing hearing on October 13, 2014, at the Monroe County Circuit Court, Judge Todd Ziegler sentenced Edward Van Der Molen to five years of supervision with the conditions that he must pay restitution to the victims, that he must not engage in direct or indirect sales of securities, that he must pay the costs of the action, and that sixty days of incarceration will be used to enforce the conditions of his supervision, apart from the risk of revocation.  Van Der Molen was sentenced on his conviction of theft by contractor, a class G felony.  One count of racketeering activity and one count of securities fraud were read-ins for the purpose of sentencing and restitution.

 

According to the criminal complaint, Edward Van Der Molen offered and sold investment contracts, calling them either “net lease agreements” or “lease-back agreements” in connection with the sale of investment properties at the “Three Bears Resort” in Warrens, Wisconsin.  The terms of the agreements and other statements made to potential investors were made to induce the investors to buy into the investment properties.  During the course of the offers to sell and the eventual sales, Van Der Molen did not disclose information about his personal failure or his company’s failure to pay various financial obligations associated with the investment.  In addition, Van Der Molen withheld the fact that his company was losing millions of dollars in the years leading up to the sales at issue in the complaint.  By not disclosing the financial information, he misled his investors with his promises of a return on their investment.  These facts and circumstances formed the basis for the racketeering and securities charges.

 

Additionally, Van Der Molen entered into a contract whereby he accepted more than $80,000 that was to be used for building a customer’s villa; however, Van Der Molen spent that money on something other than building the customer’s villa.  These facts and circumstances formed the basis for the theft by contractor charge. 

 

The charges are the result of an investigation by the Wisconsin Department of Financial Institutions (DFI). Assistant Attorney General Eric D. Défort represents the State of Wisconsin as special prosecutor for the County of Monroe.

 

A copy of the criminal complaint is available here.