The search for a millionaire mate online turned into a financial nightmare for women who were allegedly duped by a former Souderton man who convinced them to invest in his phony music business.
Paul S. Krueger, 50, who previously lived in the first block of Penn Avenue in Souderton, faces charges of theft by unlawful taking or disposition, theft by deception, deceptive or fraudulent business practices and Pennsylvania Securities Act violations in connection with the alleged scheme in which he swindled 13 people out of a total of $100,000 by convincing them he was a successful record producer and investor.
"The evidence shows that he took that money, did not invest it, and used it to fuel his gambling habit," Montgomery County District Attorney Risa Vetri Ferman alleged. "He lived the high life on funds from other people. All the money that was stolen is gone."
Some of the women, according to authorities, met Krueger through the Internet dating service MillionaireMatch.com
"Some of the individuals who met the defendant on this particular Web site were on the Web site I suppose because they were looking for companionship. That is something that a lot of people in this day and age make use of the Internet to do," Ferman said. "They were active, vital women who have lives and careers and were looking for companionship. He was manipulating them. He was lying to them and he stole their money," Ferman alleged.
None of the women was from Montgomery County.
However, Krueger used a local check cashing business and a Souderton address where he received mail to carry out the scheme, authorities alleged.
One Texas woman who nearly fell victim to Krueger was a jewelry designer who regularly appeared on the QVC television network based in Chester County, court documents indicate.
Krueger was arrested at Harrah's Casino in Atlantic City on Wednesday as he finished lunch there and lingered over a soda.
Krueger, who will be prosecuted by Assistant District Attorney Robert Sander, is currently being held in an Atlantic County, N.J., prison without bail while awaiting extradition to Montgomery County.
Krueger, who allegedly claimed to his victims that he was a "high roller" who studied music technology at the University of Miami, lured several of his victims to Atlantic City casinos, according to authorities. Krueger, who claimed to have been nominated for several Grammy Awards, allegedly even told one of the victims in March that he was in Scotland producing a CD for Michael Jackson.
"From everything that we can tell, this is a complete fabrication. It is a complete scam. He never produced a record and he had never been involved in the record producing business or music industry," Ferman alleged.
At the time of his arrest, Krueger claimed to be homeless, according to authorities.
"He had a laptop computer and on that laptop computer he was able to communicate with many people. Homeless with a laptop gives you tremendous access to the outside world," Ferman said. "It speaks to the level of manipulation that he is able to achieve without a home, without a job, without any assets of his own."
An investigation of Krueger began last October when Souderton police received a tip from a federal Internet crime complaint center that a woman paid $10,000 to Krueger, who she met on MillionaireMatch.com, but received nothing in return for her investment.
Krueger allegedly told the woman he worked in the music industry for 20 years, was nominated for several Grammy Awards and was starting a company that manufactured DVDs, CDs and videos for which he needed investors, according to the arrest affidavit. The woman sent her investment to a Penn Avenue address in Souderton, where Krueger allegedly once lived and collected his mail.
The woman introduced Krueger to at least five of her friends, men and women, who also invested in Krueger's fake company with amounts ranging from $2,000 to $20,000, according to the criminal complaint.
Authorities also learned that a Texas woman who designs jewelry and appears on the cable television network QVC met Krueger through the Internet dating service and went to Atlantic City with him in July 2007. Krueger wanted the woman to invest money with him and so she hired a private investigator to run a background check on Krueger, according to court documents.
