2 MN Fraudsters Flee Prison Camp Near Duluth
Two men who defrauded investors of millions of dollars reportedly fled a minimum-security federal prison camp near Duluth.
U.S. Marshals Service spokesman Thomas Volk told the Star Tribune that Michael Krzyzaniak, 64, and Gerald Greenfield, 67, were discovered missing from the prison at about 10 p.m. Sunday during a routine evening headcount. The two were last seen at a 5 p.m. headcount that same day.
Krzyzaniak, of Minneapolis, has nine years to serve of a more than 12-year term for bilking investors out of nearly $26 million, according to the Star Tribune. In June 2011, he pleaded guilty to one count of wire fraud and one count of income tax evasion—and his sentence was handed down in February 2012.
Meanwhile, Greenfield, of Bloomington, reportedly has a projected release date of November 2, 2015, and is serving a sentence of more than four years for conspiracy to commit money laundering. He helped a developer of the Sexton Lofts condo building in downtown Minneapolis run a $2.5 million mortgage fraud scheme and hid the profits by wiring money to an attorney in Australia. His sentence was also handed down in February 2012, and in addition to receiving prison time, Greenfield was fined $10,000 and ordered to turn over “hundreds of thousands of dollars” involved in the money laundering conspiracy.
Volk told the Star Tribune that inmates at the all-male camp from which Krzyzaniak and Greenfield escaped are “pretty much there on the honor system” and are not in a high-security setting with locked cells. There aren’t even walls surrounding the prison.
The Star Tribune said that authorities didn’t know or wouldn’t say if the two escapees had become friends or had resources or friends with money outside of the prison.
Volk told the newspaper that the federal Bureau of Prisons is “extremely good at figuring out who should go where,” adding, “Generally, they don’t put someone at a prison camp who fits the profile of walking away.”
According to the Star Tribune, the Duluth prison camp offers a gym, food service that includes a salad bar, and a movie theater. Sleeping quarters are reportedly akin to a college dorm.
To read more about Krzyzniak’s and Greenfield’s surprise departures in the Star Tribune, along with reactions of Krzyzniak’s attorney and father, click here.