Fremont contractor sentenced to 5 years in prison for fraud, money laundering [Video]

GREEN BAY, Wis. (WBAY) – A construction contractor convicted on federal charges of bank fraud and money laundering will spend five years in prison and have to pay a total $2.1 million in restitution.

Ross Schlomann, 45, of Fremont, was a home construction contractor for Refurbs Properties based in Fremont.

An IRS criminal investigation found he worked with homeowners to design homes and hire subcontractors, but more than a dozen victims saw little or no work after paying “substantial sums of money.”

Schlomann made false statements to get money from their bank and then put the money to other purposes, including covering shortages on other projects.

U.S. Judge William Griesbach called Schlomann’s crimes a “sophisticated Ponzi scheme.”

IRS Acting Special Agent in Charge Ramsey E. Covington said, “Ross Schlomann not only betrayed the trust of his clients, but he also undermined the very foundation of the construction industry.”

The case …