With several of his victims looking on, failed Twin Cities businessman Michael Krzyzaniak received the heaviest prison sentence permissible under federal guidelines Friday for bilking investors out of $25.9 million.
U.S. District Chief Judge Michael Davis ordered Krzyzaniak, who once went by the name Michael Crosby, to prison for 151 months, or more than 12 years.
One victim, Stacey Rickert of Wayzata, said he lost $350,000 that he invested and loaned Krzyzaniak. "Please don't feel any pity for Michael Crosby. He's a thief, a thug and a destroyer of families," Rickert said.
Krzyzaniak sat in an orange jailhouse jumpsuit with his head bowed and his hands clasped as other victims spoke about the emotional and financial pain that they experienced because of him.
Rickert talked about Krzyzaniak's fancy Laguna Beach, Calif., house that he visited and the courtside seats at Timberwolves games that he enjoyed as Krzyzaniak's guest. "Michael Crosby was grooming me as his next victim," Rickert said.
Krzyzaniak's defense attorney, Robert Sicoli, told Davis that Krzyzaniak, 63, has a serious heart condition and likely would not survive a lengthy prison sentence. Sicoli requested a 78-month sentence.
Davis was unmoved.
"If you are not a sociopath, you are close to being one," Davis said to Krzyzaniak. "Your age is what it is. Your health is what it is. Your criminal activity is what it is."
Krzyzaniak, who has a previous criminal record, pleaded guilty last year to one count of wire fraud and tax evasion.
"I'm ashamed to be standing in this courtroom in an orange suit of shame," Krzyzaniak said.
Krzyzaniak was sentenced for his role in promoting development projects that never happened. They included a resort and housing development in Desert Hot Springs, Calif., that included a Phil Mickelson-designed course, and a NASCAR-style race track in the Elko New Market area south of the Twin Cities. He also lured investors with a solar project in Colorado and Internet-based communications kiosks for hotels and airports in Southern California.
Krzyzaniak instead used proceeds from investors to finance a lavish lifestyle, according to the charges against him.
David Phelps • 612-673-7269
