Detroit-area sailor sentenced to federal prison

A former Grosse Pointe Park (MI) attorney was sentenced to more than five years in federal prison for bank fraud and money laundering, according to U.S. Attorney Barbara L. McQuade.

Kenneth Flaska was ordered Wednesday (Sept. 3) to spend 64 months in prison by U.S. District Judge Paul Borman for bilking $2.75 million from clients and his law firm, Bloomfield Hills-based Dawda, Mann, Mulcahy & Sadler from 2004 to 2013.

Flaska used false and fraudulent pretenses and representations to obtain funds payable to his clients, which Flaska then diverted for his own personal use, according to the feds. An avid boater, Flaska used some of the money to buy the Shaw 30 “Karma Police” that he sailed in the 2013 Bayview Mackinac Race.

“Over several years, and under the false pretenses of offering professional legal services, Mr. Flaska defrauded his clients and employer of over $2.75 million, living an extravagant lifestyle at their expense,” stated Paul M. Abbate, Special Agent in Charge of the FBI Detroit Field Office. “Today’s sentencing demonstrates the FBI’s resolve in bringing to justice those who steal from others to further their own selfish purposes.”

Flaska last April pleaded guilty to one count of bank fraud and one count of money laundering and gave up his law license earlier this year. The feds seized his home, two vessels and money in a bank account, with a total combined value of nearly $1 million.

Source: Macomb Daily