James Anthony Kroger, a former tax and accounting professor at Gustavus Adolphus College, pleaded guilty to one count of wire fraud in U.S. District Court before Judge Donovan W. Frank, according to an announcement by Acting U.S. Attorney Joseph H. Thompson.
“This defendant was a professor and an attorney—someone entrusted to teach and uphold the law. Instead, Kroger betrayed that trust, embezzled more than $670,000, and blew it on a lifestyle of self-indulgence,” said Acting U.S. Attorney Joseph H. Thompson. “In Minnesota, titles and credentials won’t shield you from federal prosecution. If you choose greed over integrity, you will face justice.”
From 2019 to 2021, Kroger embezzled over $670,000 from Lone Star Municipal Finance Company, LLC while serving as a partner in the real estate joint venture. He persuaded his business partner to invest approximately $840,000 into the company for the purpose of buying distressed properties in Texas. As manager of Lone Star’s daily operations, Kroger transferred most of these funds into his personal bank account under the pretense they were “loans” from the company.
The money taken by Kroger was used for personal expenses including large cash withdrawals; purchases of gold and silver bullion; checks made out to family members; paying off loans against insurance policies; as well as retail and travel expenditures with companies such as Amazon, eBay, Apple, Delta Air Lines, and other vendors.
Sentencing is scheduled for December 1, 2025 before Judge Frank.
The Federal Bureau of Investigation led the investigation in this case.
Assistant U.S. Attorneys Harry M. Jacobs and Rebecca E. Kline are prosecuting.
