TEXARKANA, Texas - A Frisco, Texas, lawyer pleaded guilty to mail fraud in a Texarkana federal court Monday involving residents of Wake Village, Texas, and Miller County, Arkansas.
The State Bar of Texas website currently shows David Allan Krueger is ineligible to practice law. He appeared Monday before U.S. Magistrate Judge Caroline Craven for a change of plea hearing in a case involving three former clients and hundreds of thousands of dollars.
Krueger's indictment alleges that he devised a scheme to defraud three current and/or former clients by convincing them to invest in his misting fan business in 2014 and 2015. The indictment alleges Krueger, who is not licensed to sell securities, told clients in Wake Village that he was setting up a trust for their benefit and that he was investing $400,000 in settlement proceeds on their behalf in the misting fan business.
Krueger allegedly used settlement monies belonging to his clients to prop up his misting fan business and for personal expenses, according to a factual basis document filed in the case Tuesday.
The alleged victims were allegedly given documents, sent emails and text messages and cajoled into believing they would see big returns on their investments and that their money was safe, the indictment alleges. The government is seeking a judgment of $501,200.
Krueger was represented at the hearing by Dallas lawyer James Mongaras. Assistant U.S. Attorney represented the government.
Craven released Krueger on an existing appearance bond. Krueger will return to court in several months for formal sentencing before U.S. District Judge Robert Schroeder III.
Krueger faces up to 20 years in federal prison and a fine up to $250,000.