Justices impose 2-year suspension on incarcerated attorney

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The Wisconsin Supreme Court suspended for two years Tuesday a longtime Grafton securities lawyer who is currently in prison for insider trading.

Richard Kranitz pleaded guilty in April 2013 to conspiracy to commit securities fraud, based on his actions as director and attorney for China Wi-Max Communications Inc.

When working for the company, according to the court’s per curiam decision he conspired “to pay secret kickbacks to a purported investment fund representative in exchange for having the fund pay inflated prices for shares of stock” in his company. Kranitz drafted agreements and invoices for the stock purchase and tried to hide the kickback, but the representative actually was an FBI agent.

Kranitz is serving an 18-month prison sentence at the Duluth Federal Prison Camp in Minnesota. On Aug. 9, the court temporarily suspended his law license based on the conviction. The court imposed the two-year suspension on Tuesday, though retroactively had it begin on the day his temporary suspension was imposed.

The court declined to impose any restitution costs, since Kranitz stipulated to the misconduct.

Kranitz graduated from the University of Wisconsin Law School in 1969. His attorney, Michael Fitzgerald, did not return a phone call Tuesday.

In order to practice again in Wisconsin, Kranitz would have to petition the court to have his license reinstated.

A sentencing memorandum for Kranitz stated he “has been active in numerous community and charitable organizations” throughout his life.

“Grafton is a small town,” according to the memorandum, “and Mr. Kranitz’s reputation is now indelibly stained there, and in the Wisconsin legal community.”

Kranitz’s co-defendant and China Wi-Max’s CEO, Steven Berman, had his law license suspended in January. He also is serving an 18-month prison sentence.

Kranitz is scheduled to be released Dec. 16.