Man sentenced for $14M wire fraud, money laundering scheme in southern Iowa

DES MOINES, Iowa — A Wisconsin man has been sentenced to prison for his part in a $14.25 million wire fraud and money laundering scheme in southern Iowa.

The Iowa Insurance Division announced Wednesday that 64-year-old Stanley Pophal, of Wausau, Wisconsin, was sentenced to 96 months, or eight years, in federal prison in U.S. District Court for his part in a money laundering and wire fraud scheme. Iowa officials say the scheme defrauded 190 investors out of $14.25 million.

Records state that between May 2019 and June 2025, Pophal solicited investors to purchase promissory notes with promised returns of at least 20%. He then used the money to fund personal expenses, including over 600 items such as motorcycles and snowmobiles, instead of investing the funds in real estate or cryptocurrency as was promised.

In February 2025, the Allamakee County Sheriff's Office opened an investigation. The Iowa Insurance Division's Fraud Bureau also launched an investigation into unauthorized investment meetings conducted across Allamakee, Clayton, Madison, Mitchell, Wapello, and Winneshiek counties.

As a result of the investigation, Iowa officials charged Pophal and four others with Class D felony counts for selling unregistered securities under Iowa law. According to records, the other individuals are David Halvorson, Casey Halvorson, Gary Halvorson and Debra Mink.

The case became federal shortly after when Wisconsin unsealed criminal complaints and charged Prophal with wire fraud and money laundering. In June 2026, Prophal pleaded guilty to the charges and agreed to forfeit all items purchased with investor funds. He was sentenced to prison on September 2.

Iowa officials say law enforcement has now seized the more than 600 items that Prophal purchased using the misallocated investors' funds, which were stored in a rented warehouse. "The forfeiture and ongoing public auction of these assets represent a crucial step toward helping victims recover what was stolen from them," part of the news release stated.

"The successful resolution of this case underscores the vital cooperation among state, local, and federal authorities," stated Iowa Insurance Commissioner Doug Ommen. "We extend our sincere gratitude to the Allamakee County Attorney's Office, the Allamakee County Sheriff's Office, and the Winneshiek County Sheriff's Office. Their early collaboration with our Fraud Bureau was instrumental in identifying and halting this fraudulent activity."

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