ILLINOIS SECRETARY OF STATE

FOR IMMEDIATE RELEASE

August 28, 2000 CONTACT: Dave Druker or CONTACT: Elizabeth Kaufman

Stockton Man Found Guilty on Federal Fraud Charges

SPRINGFIELD –– A 58-year-old main was found guilty of defrauding at least 15 of his clients out of at least $200,000.

     On August 28th, Illinois Secretary of State Jesse White's Securities office assisted the U.S. Attorney's office for the Northern District of Illinois along with the Federal Bureau of Investigation and the Illinois State police with the case.

     Richard D Ronne, of Stockton, Illinois, was found guilty on Friday, August 25, 2000, in federal court in Rockford, Illinois on charges that he defrauded at least 15 of his clients out of at least $200,000.

     Between 1994 and 1996, Ronne solicited clients to invest money with him while he operated two businesses in Wisconsin and Illinois known as Richard D. Ronne Realty & Investments and Creative Financial Network. Ronne was convicted of defrauding his clients out of at least $200,000 by falsely promising them that he would invest their money in short-term investments with promised high-yields when, in fact, he secretly spent the funds on his own personal expenses, used some funds to repay earlier clients whom he had defrauded, and invested the rest in high-risk ventures where it was lost. Ronne was convicted on 4 counts of transporting investment checks obtained by fraud across State lines, 3 counts of wire fraud, and 2 counts of mail fraud.

     Each mail and wire fraud count carries a potential penalty of up to five years of imprisonment and a fine of up to $250,000. Each count of interstate transportation of fraudulently obtained checks carries a potential penalty of up to ten years of imprisonment and a fine of up to $250,000. In addition, the court could also impose full restitution. The actual sentence will be determined by United States District Court Judge Philip G. Reinhard, guided by the United States Guidelines. Ronne will be sentenced on November 17, 2000, at 9:00 a.m.

     The case was investigated by the Rockford Office of the Federal Bureau of Investigation, the Illinois Secretary of State Securities Department, and the Illinois State Police District 1 Office in Sterling, Illinois. The case is being prosecuted in federal court by Assistant United States Attorneys Daniel L. Olson and Scott A. Verseman.