On Tuesday the Wisconsin Department of Financial Institutions filed a felony charge of making false statements in a securities sale against Paul L. Clements, 44, in Sauk County Circuit Court. The criminal complaint lists Clements as a Reedsburg resident, but other documents from the DFI and the victim say he lives in Prairie du Chien.

According to the documents, Clements met with a Reedsburg man in January of 2008 and told him he could provide a greater return on $100,000 than the alleged victim was getting at the time. The investor signed a check for the money which Clements said would be placed in a type of investment called a bonded life contract.

However, instead of investing the money, Clements used it to pay off other people to whom he was indebted, the records state. In an

e-mail to the investigator, Clements wrote "Most of (the victim’s $100,000) went back to note holders after realizing I was not going to be able to purchase the life contracts," records state.

A check of the bank records for one of Clements’ businesses, Utopia Group, LLC, found the money provided by the expectant investor was not used to purchase any bonded life contracts or other investments for the alleged victim. Clements also operated through businesses named Alternative Investment Marketing Group, LLC and Midwest Investments Services, LLC, records state.

The DFI investigator states he is familiar with Ponzi schemes in which someone is promised money will be invested to provide an attractive return, but the money is instead used to benefit the person receiving the money or is used to pay off earlier investors. Clements’ comments and bank records for Utopia Group indicate the Reedsburg man "has been the victim of a Ponzi scheme being conducted by Clements," records state.

In March the DFI revoked Clements’ right to sell securities because of allegations his practices were dishonest or unethical and took advantage of a customer. Securities he sold to at least 27 Wisconsin residents were not registered in Wisconsin, according to DFI records.

Clements continues to owe money to at least nine of his clients, according to DFI.

The alleged victim, who asked that his name not be made public, said Wednesday evening he gave Clements more than $100,000 on two occasions and so far has gotten about $100 of his money back.

"That was all that was left in the account," he said.

He expressed frustration that Clements had not been punished yet by the legal system and it would be "good" if the criminal charges were effective.

"I’m kind of fed up with it. The way I look at it he’s getting a pat on the back and I’m getting a kick in the butt," the investor said.

The man said he believes other people in the Baraboo area have been scammed by Clements.

Contacted at his cell phone number, Clements said he was not aware that criminal charges had been filed against him. He would not comment on whether he had taken money from the alleged victim or confirm his place of residence.

"I’m not going to comment on anything like that until I know what’s going on," Clements said. "This is the first I’ve heard of it."

Clements is summoned to make his first court appearance on Jan. 7 and a state special prosecutor will be handling the case, according to court records.

If he is convicted, the charge carries a maximum term of six in years in prison and a $25,000 fine. Other than tickets for speeding and not wearing his seat belt, Wisconsin online court records show no previous violations on Clements’ record.