‘King of Foreclosures’ Arrested, Charged with Bankruptcy Fraud

A Wisconsin man once known as the "king of foreclosures" and his adult son were arrested at their home Monday and charged with bank fraud and bankruptcy fraud.

Todd Brunner, 57, and his son, Shawn, 24, were arrested in their Pewaukee, Wisconsin, home Monday morning after the U.S. Marshals, the FBI, Waukesha County sheriff's deputies, and Pewaukee police broke down their door. Authorities said the two men did not resist arrest.

Authorities said the pair was indicted on October 7 and was scheduled to appear in court on Friday, October 17, but they failed to appear and a warrant for their arrest was issued.

The elder Brunner is accused of hiding about $7 million in assets from various lenders and creditors following a bankruptcy filing in 2011. The bankruptcy case was thrown out of court the following year when a federal judge said he believed Brunner had not disclosed all of his assets. The FBI and other agencies soon launched a two-year investigation that led to the indictment of Brunner and his son earlier this month. According to the indictment, Todd Brunner set up shell corporations in Shawn's name and transferred assets to these entities with the purpose of protecting the assets from being seized in bankruptcy. The indictment alleges that Shawn was a willing participant in a scheme to shield the assets.

The indictment stated that Todd Brunner was charged with 11 counts of bank fraud and four counts of bankruptcy fraud, while Shawn was indicted on three charges of bank fraud and one count of bankruptcy fraud.  Both men pleaded not guilty to the charges and were released from custody late Monday on bail. They are expected to go to trial sometime next year.

Todd Brunner built a large financial empire by buying hundreds of foreclosed homes in southeastern Wisconsin over a period of many years, earning him the nickname "the king of foreclosures." He was known for owning many boats and expensive cars as well as his extreme physical size – at one time, he weighed as much as 400 pounds.