3 days ago
'Truly evil': Door County man gets max sentence for defrauding clients of $1.1 million
STURGEON BAY - An 81-year-old town of Nasewaupee man received the maximum sentence allowable for his conviction on 15 felony charges of defrauding almost two dozen elderly Door County residents out of more than $1.1 million in his role as their financial planner and tax preparer.
Dale Forrest Pautsch was sentenced May 29 by Door County Judge Jennifer Moeller to a total of 15 consecutive years in a state prison, one year for each of the 15 counts, which includes a modifier for crimes against an elderly or disabled person. He also will serve another 15 years of extended supervision, again one year consecutively for each count, when and if he is released.
Pautsch also is prohibited from owning or operating a business, working as a financial adviser or tax preparer, and handling anyone else's money or checks. His assets, which include a home in Nasewaupee and a business he bought and ran with proceeds from his crimes, the Little Brown Jug tavern in the town of Gardner, were seized after he was convicted and are going on auction to help Pautsch make financial restitution to his victims.
It was revealed in court during the sentencing hearing that the pre-sentence investigation of Pautsch recommended he be sentenced to three to four years in prison, citing his age and that he seemed to show remorse and take responsibility for his actions.
But nine people who were victims of Pautsch gave impact statements in court, along with one letter read aloud by District Attorney Colleen Nordin, that said they were devastated by Pautsch's crimes against them, not just because of their financial losses – one woman lost more than $610,000, another person more than $100,000 and eight people between $10,000 and $100,000 – but also because of extreme emotional and mental distress. Several asked the court to sentence Pautsch to at least enough time that would essentially become a life sentence for the 81-year-old.
"Dale took our money, took our life, took my trust, my spirit," a victim named Joann said in court (last names of victims who gave statements were not given to protect their identities), adding that Pautsch took advantage of working with her husband when he was dealing with dementia. "I ask you to sentence Dale to enough years that he will never see the light of day again."
"My world has been turned upside-down because of Dale Pautsch's actions," said a victim named Carol, who noted Pautsch was making financial plans with her husband while the husband was in the hospital recovering from a stroke. "I absolutely feel he should be given the maximum sentence for each of his crimes."
"Anyone who commits a crime against the elderly is truly evil," said a man who identified himself as a son-in-law of one of the victims. "He needs to be locked up so he cannot find other people to steal from."
Several also said they gave money to Pautsch for him to file tax returns that never were filed, and they've been dealing with the IRS and state Department of Revenue as those agencies are seeking to collect, with interest and penalties for late fees.
A woman named Carolyn said she and her husband had to take out loans against her husband's life insurance policy and their retirement accounts to make payments to the IRS. She said they've suffered with sleeplessness, stress and related health issues since they learned they were defrauded by Pautsch.
"We would like to be retired but we can't afford it now," she said. "We feel betrayed. (Pautsch) has to suffer the way we do every day."
A victim named Jeremiah said he and his family are now receiving monthly notices from the IRS because of Pautsch's work for them.
"My family has had stress, worry, anxiety and crushed spirits because of Mr. Pautsch," he said. "What was done was not a mistake, it was willful deception. Mr. Pautsch has proven to be the most cunning, most deceptive person I've ever met. ... We paid our taxes, did as we were told, and we're the ones made to feel like criminals. If not for his greed, none of this would've happened."
A victim named Elizabeth said Pautsch was initially charged, and she started receiving notices – which she she is still getting – from the IRS, at about the same time her father died.
"I should have been grieving with my family," she said. "Instead, I was buried in paperwork and paying money to the IRS to prevent them from taking my home. I will never get that back."
In her request for the maximum sentence, Nordin said she "couldn't disagree more" with the pre-sentence investigation recommendation of a three- to four-year sentence.
Nordin not only leaned on the victim statements given in court but also written statements from other victims who said Pautsch went out of his way to befriend them, "cozy up" to them and ultimately learn their vulnerabilities, then take advantage of them. She cited how many victims said they were devastated and still dealing with anxiety while trying to repair their lives, financially and otherwise.
"He was a predator," Nordin said. "He sought out people, gained their trust, groomed them, found them when they were vulnerable."
Nordin also challenged the pre-sentence report's conclusion that Pautsch was remorseful and took responsibility for his actions, noting several disparaging remarks Pautsch made about some of his victims in the report, including two who are immigrants.
She also noted that while in county jail awaiting the resolution of his cases, Pautsch received whistleblower forms from the state Department of Revenue that he filled out to attempt to accuse his victims of financial fraud, not him. She surmised Pautsch did this not only to try to absolve himself but also to collect the state's whistleblower fees. The forms were intercepted at the jail before they could be mailed.
"Saying those people were scamming the system, not him, doesn't show responsibility or remorse," Nordin said.
Nordin said she wanted Pautsch to receive the maximum sentence for each count, not less time for counts involving less money, because those victims also have experienced suffering. She also said the sentence shouldn't be light because of Pautsch's age and current health issues.
"Being 81 years old does not take away what he did to them," Nordin said. "I realize he may not walk away from this, and I'm perfectly fine with that."
Defense attorney Brett Reetz acknowledged the victim statements were compelling and moving, but he maintained Pautsch was remorseful and said Pautsch wasn't in a position to exploit people any more given his age and health.
"He does understand what he did, why it was wrong and how wrong it was," Reetz said. "He initially had genuine belief he had power of attorney ... initially did not understand he was wrong. Now he does. I've been working with Dale to help him understand what he took was not their money, it was their life.
"I'm not asking to take this lightly, to give him a slap on the wrist. He's now a penniless, elderly man with serious health concerns. He has nothing left to give."
Pautsch apologized to his victims and told the court he wants them to get their money back.
"I hurt a lot of people very badly," he said. "Everything they worked for, I took. I'm embarrassed for my family, my friends. I'm truly ashamed for what I've become and what I've done."
Before passing sentence, Moeller noted the devastating impact victims said they experienced because of Pautsch's crimes and how he found victims who were especially vulnerable. She also said the pre-sentence report indicated Pautsch's remorse my have been more because he was caught than for his actions.
"It's the money, but it's so much more," Moeller said. "People used phrases like, he destroyed my family, he destroyed my life, crushed my spirit, devastated, demoralized, taking away my trust. It's inconceivable how you thought you were helping them."
Along with the sentence, a hearing was scheduled for 1 p.m. Nov. 3 to review the progress of restitution Pautsch is making to his victims.
Pautsch entered not guilty pleas during his Aug. 19 initial court appearance but changed his pleas to no contest during a Feb. 12 appearance. He initially was arrested and charged with four counts against two victims last June, but subsequent investigation by the Door County Sheriff's Office and Sturgeon Bay Police Department found others who were defrauded by him.
All told, Pautsch was charged with and pleaded no contest to 13 counts of theft in a business setting and two counts of money laundering. Two of the 13 theft counts were for amounts of more than $100,000 – one of the victims lost more than $610,000, according to the initial complaint – eight were for amounts between $10,000 and $100,000, two for amounts of $5,000 to $10,000 and one for an amount between $2,500 and $5,000. One of the money laundering counts was for an amount of more than $100,000 and the other for an amount between $10,000 and $100,000.
The money was used by Pautsch for personal expenses and buy the Little Brown Jug and cover tavern expenses.
Contact Christopher Clough at 920-562-8900 or cclough@
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This article originally appeared on Green Bay Press-Gazette: Door County man Pautsch gets 15-year sentence for defrauding clients
