David P. Krolik was hired in January, 2001 as the Corporate Controller and then approached Michael Morrison, President of Focus Entertainment International regarding an investment vehicle by acquiring All American Topless Golf Team LLC of Arizona. Based on this recommendation, Focus Entertainment International acquired All American.
Shortly after the acquisition, David P. Krolik opened 2 unauthorized Focus Entertainment International with First Union Bank: a) Focus Entertainment International: dba All American Topless Golf, and, b) Focus Entertainment International: dba Can Am Capitol. Both accounts were opened without prior knowledge, authorization or consent of Focus Entertainment International with the First Union Bank headquarters located in North Carolina.
In August, 2001, David P. Krolik began a series of unauthorized wire transfers from the Focus Entertainment International operating account to the unauthorized Focus Entertainment International: dba All American Topless Golf account; whereupon Mr. Krolik appropriated funds from this account for his own financial gain and personal benefit. Additionally, Mr. Krolik transferred funds from the Focus Entertainment International to Focus Entertainment International: dba Can Am; both transfers of funds were unauthorized and were entirely for Mr. Krolik’s personal gain.
In March, 2002, Focus Entertainment International sold all of its interests and ownership in All American to David P. Krolik, due to the lack of performance.
In around September 16, 2002 these unauthorized wire transfers were discovered during a review of Focus Entertainment International’s corporate accounts. Mr. Krolik left work early on this day of discovery, never to return. Mr. Krolik had been officially terminated upon discovery.
An unauthorized American Express Travel account was established by Mr. Krolik in or around September, 2001 and until his termination in 2002, Mr. Krolik used this fraudulent account for travel and other expenses totaling $47,071.45.
A police report was filed with the City of Atlanta Fraud Division on October 3, 2002 and an arrest warrant was issued for David P. Krolik on October 15, 2002. Mr. Krolik has not been currently apprehended.
Through examination of Focus Entertainment International operating accounts, fraudulent activity totaling $798,849.46 was discovered. In order to avoid detection, Mr. Krolik would transfer back from the unauthorized accounts back into Focus Entertainment International’s operating account funds to cover any outstanding checks. These transfers back into the Focus Entertainment International account totaled $70,395.00. The difference between what was transferred fraudulently between accounts is $728,454.46.
Lies about his Resume:
On February 9, 2006, David P. Krolik contacts the Coweta County Courthouse asking for a copy of the judgement in case number 02-V-1164 between Focus Entertainment International., ET Al versus David P. Krolik, ET AL. and send copies to his address at 300 N. Rampart St. #23, Orange, CA, 92868 (949-857-6893). This was received and stamped by the Coweta County Court Clerk, Cindy G. Brown, on February 21, 2006 at 12:48 p.m.
It has been investigated briefly through David P. Krolik’s resume that in March, 2002 wherein Mr. Krolik states that he was VP of Finance and CFO at Hemacare Corp, that Mr. David E. Fractor held this position as of May 15, 2002. Further research has shown that Mr. David E. Fractor has, in fact, been the CFO since 1999.
Krolik Divorce Filing:
Margaret Krolik filed for divorce from David Krolik on November 5, 2002 citing irreconsible differences.
Summary Analysis of Court Filing:
The case against both David P. Krolik and Margaret Krolik is based on fraud, theft by conversion and breach of fiduciary duty. The defendants have already demonstrated that they will abscond with funds or hide them if the opportunity presents itself. Therefore, plaintiffs are seeking the issuance of a writ of execution without notice to the defendants so they cannot hide or dissipate his and her assets before plaintiffs can levy against them.
What was the Final Judgment?
Defendant Margaret S. Krolik ordered to pay plaintiff the total amount of $629,751.12
Defendant David P. Krolik ordered to pay plaintiff the total amount of $832,384.12
Based on a filing by Sally Quillian Yates, Acting United States Attorney, a motion filed August 15, 2004, for the Court to depart downward to move the total offense level of 19, with a criminal history category of 1, resulting in a custody guideline of 30-37 months, down to an offense level of 16, resulting in a custody guideline ranging from 21 to 27 months. This motion was filed pursuant to David P. Krolik pleading guilty to the cited information.
The previous dealings may stem from his apparent blackmail letter to “Michael” (n.d.) advising the desire he would have to get the “cash” back. David Krolik advises that he feels that the rest is history and that he “knows quite a bit about things that went on there” and although he states that the rest should be where “bygones be bygones”, he threatens to stir up trouble should the company does.
David Krolik was officially sentenced to 21 months with the date of imposition of sentence on August 5, 2004. Upon release from imprisonment, the defendant would be on supervised release for a term of three (3) years. The following conditions of release were put into place:
The amount of restitution outlined in the Krolik judgment is as follows:
- Total of $824,859.55 to be paid to the following victims in the amounts below:
- Travelers Casualty and Surety Company $64,645.00
- Focus Entertainment International Inc. $560,214.66
A miscellaneous note was sent by “a friend” to Mr. Morrison advising that his ex-employee’s ex-wife has not worked since David Krolik left their services. Of note is that she can pay enormous monthly bills, excessive entertainment bills and plastic surgery procedures. She had been approached by her “friend” about how she was able to afford such extravagancies, she stated from proceeds coming out of garage sales. This would appear from the grammar and language of the note that it has come from someone of English heritage based on such phrases as “house note”, etc.