ST. PAUL — This is an official press release from the U.S. Department of Justice (USAO - Minnesota), published as received.

ST. PAUL – United States Attorney Daniel N. Rosen announced that Paul Joseph Kroes, 42, of Shorewood, Minnesota, pleaded guilty to one count of wire fraud. 

His initial appearance and change of plea hearing were before U.S. District Judge Paul A. Magnuson on August 27, 2026. Sentencing will be scheduled at a later date.

From approximately November 2019 to March 2025, Kroes engaged in a scheme to embezzle approximately $4 million from his employer, Victim Company, a retailer of transport temperature control systems for refrigerated trucks and containers. Since 2007, Kroes held several different roles and a variety of responsibilities at the Victim Company, and his last role was as a Product Manager. 

Kroes abused his positions and sold Victim Company products to third-party buyers and misappropriated the proceeds for his own personal benefit. Kroes would pull the products himself, or directed another employee to do so, and disguised the missing items from Victim Company’s inventory. Kroes had no authority to sell the products and concealed the payments he received through selling the embezzled products. 

“The defendant exploited his access and authority to cause significant financial harm to his employer. Today’s guilty plea is one step closer to holding Kroes accountable for his actions,” said United States Attorney Daniel N. Rosen.

“Paul Kroes abused his position over multiple years to systematically siphon millions of dollars from his employer. White collar criminals may think they can hide behind clever accounting and their knowledge of internal systems, but financial fraud always leaves a trail,” said FBI Minneapolis Field Office Special Agent in Charge Christopher D. Dotson. “The FBI will continue to work shoulder to shoulder with the U.S. Attorney’s Office and law enforcement partners to detect and disrupt fraud.”

This case was the result of an investigation by the FBI.

Assistant United States Attorney Austin L. Bowyer and Rebecca E. Kline are prosecuting the case.