PdC real estate agent faces extortion charges

0 Comments | La Crosse Tribune, Oct 02, 1998

PRAIRIE DU CHIEN, Wis.--A Prairie du Chien real estate agent is facing 17 charges after being accused of threatening and stealing money from clients.

Ronald K. Key, 61, is also accused of failing to file income tax returns for his clients, failing to make repairs on properties for which he had already received payment and illegally keeping money from property sales.

He is charged with a total of 12 felony counts of theft, extortion, unlawful loan solicitation and unlawful receipt of payments, and five other misdemeanor charges.

He is free on a $10,000 signature bond after an appearance Monday in Crawford County Circuit Court.

According to the criminal complaint, Key is charged with eight counts of theft by a trustee and single counts of theft by a contractor, extortion, unlawful loan solicitation activity and unlawful receipt of payments to obtain a loan for another. The complaint says the misdemeanor charges are for failure to file individual state income tax returns for 1995, 1996 and 1997 and corporate state income tax returns for 1995 and 1996.

The complaint said Key acted as property manager and general contractor for repairs on a home he sold to a Prairie du Chien couple. The repairs totaled $63,652 from August 1994 to October 1997, and Key is accused of not completing the repairs and misappropriating more than $2,500.

Key also acted as a rental collection agent for the couple in 1997 and 1998 and didn't pay them $2,700 in rent he collected, the complaint said.

He was paid $52,589 by another couple between Dec. 3, 1997, and March 1998 and is accused of misappropriating more than $2,500. The extortion charge stems from Key claiming he would obtain more than $100,000 for the couple from the government in overpaid taxes if he could submit amended tax returns for the years 1994-97.

When the couple realized the repairs to their property hadn't been made, they questioned Key who "then threatened (them) physically, saying he knew persons who would 'kill people,'" the complaint said, "and Key further threatened to turn (them) into the IRS if they pressed the matter any further."

The complaint also says a third couple paid Key $49,837 between June 13, 1994, and Feb. 2, 1996, and that more than $2,500 was misappropriated.

Key also acted as a "loan solicitor" for a fourth couple, the complaint said, and between March and November 1993, they paid Key more than $41,000 as advance fees for Key to obtain loans for them. Key did not place the money in an escrow account and wasn't registered as a loan solicitor, the complaint said. Key also rented out a home owned by the couple for six months, but the couple didn't receive the rent payments, the compliant said. As part of the transaction, the couple then paid Key and his designees almost $37,000 between March 30, 1992, and Aug. 26, 1993.

The rental house eventually was sold, and the buyers paid Key $25,000, according to the complaint. Key caused the owners to sign a $5,000 note payable to the buyer. Although the owners had paid for the property, they weren't given the equity, the complaint said.

Key is also accused of keeping the proceeds on the sale of a $50,000 house owned by the fourth couple at 162 Mondell Court. The complaint accuses Key of not applying a $3,000 payment to another real estate agent.

Key also is accused in court documents of taking $2,515 from the fourth party for three appraisals in 1993 that were never done.

Crawford County District Attorney Tim Baxter excused himself from the case, saying he has a conflict of interest because he is a family friend. Judge Michael Kirchman then named Jeff Brinckman as special prosecutor.