LOUISVILLE—A Michigan con man was sentenced in U.S. District Court to 57 months in federal prison and ordered to pay $317,732.47 in restitution by Judge Jennifer B. Coffman yesterday, following his conviction on two counts of wire fraud announced David J. Hale, United States Attorney for the Western District of Kentucky. On July 10, 2012, a federal jury in Louisville, deliberated 20 minutes before convicting David J. Broecker, age 54, of Orion Township, Michigan, of embezzling more than $300,000 from two Louisville-area investors. Since Broecker’s conviction, a third investor from Louisville has been identified. That investor was defrauded of $264,594.

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The charges presented at trial, stem from Broecker’s solicitation of approximately $94,000 from a Louisville investor between March 2003 and April 2010, and $229,155 from another Louisville investor from September 2005 through February 2010. During the two-day trial before U.S. District Judge Coffman, the United States proved that Broecker falsely represented that the victims’ money would be invested in business ventures when, in fact, Broecker used the money for his personal benefit and gain. Broecker convinced the two investors that he was manufacturing automobile parts and pharmaceutical equipment in Michigan and that with a modest down payment the investors would make “a lot of money.” Broecker mislead the two victims for nearly seven years by falsely telling them that there were problems with the manufacturing process. Broecker even told one of the victims that his parents were investing in his manufacturing business. Broecker’s father testified that this was not true and that he had never invested with his son. In addition, evidence was presented that Broecker lost over $200,000 gambling at casinos in the Michigan area during the period that he was defrauding the investors. During the course of the scheme, Broecker used interstate wire communications to obtain money deposited in a National City Bank account in Louisville, Kentucky. In addition, evidence was presented at sentencing that Broecker solicited $264,000 from another Michigan investor. This fraud was not charged federally because it did not involve any interstate wires.

Broecker remains in the custody of the Michigan Department of Corrections after pleading no contest to larceny in Michigan State Court on March 23, 2010. He was sentenced to a maximum 10 years in prison and ordered to pay restitution in the amount of $356,000. According to the Michigan Department of Corrections, Broecker was sentenced to five years in prison in June 2002 for embezzlement and false pretenses over $20,000; to six years in prison in March 1999 for embezzlement; to eight years in prison in March 1999 for embezzlement; and to three years in prison in March 1999 for embezzlement.

This case was prosecuted by Assistant United States Attorneys Bryan Calhoun and Jason Snyder and was investigated by the Federal Bureau of Investigation.

The Sutton Police Chief is under investigation after an anonymous tip to the State Auditor leading to an investigation into the use of public funds.

Possible misuse of funds was identified an 18 page report released last week by State Auditor Mike Foley.

The item was scheduled to be discussed at Wednesday night’s city council meeting. But, it was suddenly removed from the agenda by Council Member Fred Figee.

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No one knows why, not even the Mayor. It is just adding to the list of unanswered questions

The Auditor of Public Accounts lists personal gun purchases, food, gas and credit card purchases. Uniforms were bought and even cell phones were identified.

“I was kind of surprised I guess I haven’t seen anymore since then – just what I read in the paper,” said resident Eervin Griess.

The APA examined certain expenditures during the period of October 1, 2009 through August 31, 2012.

The APA identified other suspicious City purchases. The City paid a gun dealer for ammunition, batteries, gun cleaning, and a tactical handgun not listed in the Police Department’s inventory.

These invoices are proof of the purchases made.

“Who took money out of his check to pay for this? Somebody should be accounted for,” resident Dean Kissler.

Smaller account charges were made at the Brown’s Thrift Store, like pop, candy, meat, cheese and other items.

The fraud investigation has left other community members in shock.

“If he is guilty, it’s wrong, but I think the world of him and you’re just stunned when you read something like this, you know,” said resident Celesta Griess.

The City’s purchases of firearms and other items for personal use of the Chief abuse both constitutional and statutory concerns.

The Nebraska State Constitution prohibits extending the credit of the State to a private individual or enterprise.

“I figured whoever let him do that is wrong,” Kissler said.

LEXINGTON, KY—The former Breathitt County Schools superintendent who previously admitted distributing money to others to buy votes was sentenced today to 24 months in federal prison.

U.S. District Judge Karen Caldwell sentenced 66-year-old Arch Turner for conspiring to buy votes. She also fined him $250,000 and ordered him to pay a special assessment of $1,000, both of which are due immediately. Turner was taken into custody following the hearing.

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Turner admitted that during the spring of 2010 he provided money to individuals to buy votes for candidates in the May 2010 primary election in Breathitt County. Turner acknowledged he distributed the money at a meeting he arranged with a group of people.

According to his plea agreement, Turner also received money from an individual to be used for vote buying.

Turner served as the schools superintendent from 2005 until July 2012.

A total of 11 people have pleaded guilty or been convicted in federal court of vote buying related charges stemming from Breathitt County’s May 2010 primary election.

Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky; Perrye Turner, Special Agent in Charge, FBI; and Jack Conway, Kentucky Attorney General jointly announced the sentence.

The investigation was conducted by the Kentucky Attorney General’s Office and the FBI.