South Carolina Man Charged with 22 Counts of Mail Fraud

Stanley J. Kowalewski, of Pawleys Island, was indicted by a grand jury in Atlanta on counts of mail fraud, conspiracy, and obstructing an investigation of the Securities and Exchange Commission.  He was arrested by the Federal Bureau of Investigation on November 20th.  The criminal charges against Kowaleski followed a civil judgment in which he was fined nearly $17 million in 2012 for mishandling investments in a firm called SJK.

The federal grand jury charged Kowaleski for allegedly defrauding investors in his company by diverting money amoug accounts and then using the money for his own personal expenses.  Many people fell victim to his scheme including: pension funds, schools, hospitals, and other non-profit organizations.  According the the press release, victims of the scheme were defrauded out of over $8 million.

“Kowalewski is charged with stealing from the investors who trusted him and then repeatedly lying to them and the SEC about his self-dealing,” said United States Attorney Sally Quillian Yates.

Stanley J. Kowaleski was charged with 22 counts of wire fraud, each of which carries a maximum sentence of 20 years in prison.  He was also charged with one count each of conspiracy and obstructing the SEC proceeding, which could potentially add another 10 years in prison to his sentence.  Each charge carries a fine of up to $250,000 for a total of $5.9 million.

 

 

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