James Anthony Kroger, a former tax and accounting professor at Gustavus Adolphus College and an attorney, pleaded guilty in U.S. District Court to one count of wire fraud. The plea was entered before Judge Donovan W. Frank, according to Acting U.S. Attorney Joseph H. Thompson.
Kroger admitted to embezzling more than $670,000 from Lone Star Municipal Finance Company, LLC between 2019 and 2021. At the time of his indictment, Kroger was managing the day-to-day operations of Lone Star, a real estate joint venture where he was also a partner. He convinced his business partner to invest about $840,000 into the company for purchasing distressed properties in Texas but instead diverted most of these funds into his own bank account by describing them as “loans” from the company.
The money was used for personal expenses including large cash withdrawals; buying gold and silver bullion; issuing checks to family members; paying off loans against insurance policies; and making retail and travel purchases from companies such as Amazon, eBay, Apple, and Delta.
“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.”
Sentencing is scheduled for December 1, 2025 before Judge Frank.
The FBI led the investigation with assistance from the Department of Justice’s United States Trustee Program (USTP). Assistant U.S. Attorneys Harry M. Jacobs and Rebecca E. Kline are prosecuting the case.
