Minong boat dealer heads to U.S. prison after extradition from BrazilA former Minong boat dealer was sentenced to five years prison in connection with three fraud schemes, according to the U.S. Attorney’s Office.
A former Minong boat dealer was sentenced to five years prison in connection with three fraud schemes, according to the U.S. Attorney’s Office.
Leonard Kolschowsky, 68 was sentenced Tuesday by Chief U.S. District Judge William C. Conley for making false statements on a loan application.
Kolschowsky pleaded guilty March 21, acknowledging he was responsible for nearly $1 million dollars in loss relating to the false loan application and other fraudulent conduct.
Beginning in 2000, Kolschowsky, then an owner of the Boat Depot in Minong executed three schemes to defraud financial backers of the Boat Depot; defraud through a series of false loan applications for boats allegedly sold; and a bankruptcy scheme to conceal property rightfully belonging to the business’ creditors.
In 2003, Kolschowsky began the process of negotiating a guilty plea, but fled the country to avoid prosecution. He was eventually found in Brazil and was arrested on Jan. 11, 2008. He remained in custody and was extradited to the United States on Nov. 25.
Judge Conley at sentencing that Kolschowsky’s flight to avoid prosecution not only delayed justice, but left his business partners “holding the bag” for losses related to Kolschowsky’s schemes.
The Washburn County Sheriff’s Department, Federal Bureau of Investigations and U.S. Marshals Service investigated the case.
Kolschowsky spent more than two years in a Brazilian prison spending extradition.
It simply doesn’t pay to run, said Assistant U.S. Attorney Timothy M. O’Shea who prosecuted the case.