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Attorney General J.B. Van Hollen Announces Probable Cause Finding For William Tarrolly In Securities Fraud And Theft Prosecution
 

MADISON - Attorney General J.B. Van Hollen announced today that William Tarrolly, 64, was bound over for trial following a Preliminary Hearing on March 26, 2008, before the Honorable James Muehlbauer presiding in Ozaukee County Circuit Court. Tarrolly is charged with four counts of Securities Fraud and four counts of Theft by Fraud in connection with his offering securities to several investors between January 2002 and January 2004.

 

The criminal complaint alleges that in 2002 and 2003, Tarrolly solicited investments totaling $100,000 in his Mequon insurance business. Tarrolly told investors that he needed the money to finance Foundation Benefit Planning, LLC-II, a business through which he purported to sell life insurance products to hospital employees. A former business partner of Tarrolly's told investigators that Tarrolly had sold the product to only a few hospitals, despite his alleged claims about the success of the product.

 

In soliciting money for his business, the complaint alleges that Tarrolly failed to mention his record of outstanding debts, his failure to repay debts, or the outstanding court judgments against him for unpaid debts. Tarrolly also failed to disclose his censure in 2000 by the Wisconsin Office of the Commissioner of Insurance.

 

Under Wisconsin law, upon conviction, Mr. Tarrolly faces penalties ranging from six to seven years and six months in prison, and fines ranging from $5,000 to $10,000 on the allegations of Securities Fraud. Mr. Tarrolly also faces penalties ranging from six to 15 years in prison, and fines of up to $10,000 on the allegations of Theft by Fraud.

 

The charges filed against Mr. Tarrolly are merely accusations. Mr. Tarrolly is presumed innocent until and unless proven guilty.

The case is scheduled for a motion hearing on July 9, 2008 before Judge Muehlbauer.

 

The case was investigated by the Department of Justice, Division of Criminal Investigation and the Department of Financial Institutions. Assistant Attorney General Dennis Krueger is prosecuting the case for the state.