Former Gustavus Adolphus College Professor Who Embezzled $670,000 Pleads Guilty to Wire Fraud

MINNEAPOLIS – James Anthony Kroger, 46, pled guilty today in U.S. District Court before Judge Donovan W. Frank to one count of wire fraud, announced 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.”

Between 2019 and 2021, James Kroger, an attorney and, at the time of his indictment, a tax and accounting professor at Gustavus Adolphus College, embezzled over $670,000 from Lone Star Municipal Finance Company, LLC, a real estate joint venture in which he was a partner.  To carry out the scheme, Kroger convinced his partner to invest approximately $840,000 into Lone Star to purchase distressed properties in Texas.  Kroger managed the day-to-day operations of Lone Star.  Kroeger used his position of trust to embezzle most of the invested funds, through transfers into his own personal bank account under the guise of “loans” from the company.

Kroger spent the money he embezzled on extravagant personal purchases. These purchases included large cash withdrawals, purchases of gold and silver bullion, checks to family members, paying off loans against insurance policies, and retail and travel purchases from Amazon, eBay, Apple, Delta, and other vendors.

Sentencing is set for December 1, 2025, before Judge Frank.

This case is the result of an investigation conducted by the FBI.  The U.S. Attorney’s Office also thanks the Department of Justice’s United States Trustee Program (USTP) for their important assistance and partnership in this case.

Assistant U.S. Attorneys Harry M. Jacobs and Rebecca E. Kline are prosecuting the case.