High court reinstates attorney convicted of securities fraud

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The Wisconsin Supreme Court has reinstated the license of a Grafton attorney who went to prison for insider trading.

The court had suspended Richard Kranitz’s license in 2014 while he was incarcerated over a federal felony conviction from 2013. The justices banned him from practicing law for two years.

The discipline stemmed from the felony conviction, which was for conspiracy to commit securities fraud. Kranitz, who had practiced corporate law in Milwaukee and Grafton, was accused of security fraud for actions he had taken as a director and attorney for China Wi-Max Communications Inc.

He was sentenced to 18 months at a federal prison camp in Duluth, Minn., but was released for good behavior after 14 months.

While his license was suspended and after his release from prison, Kranitz worked as a business consultant and business coach. He also manages a charitable foundation in Grafton.

Kranitz, who earned his degree from the University of Wisconsin Law School in 1969, filed a petition for reinstatement March 21. A public hearing on the matter was held in July.

At the hearing, Kranitz said he plans not do securities work and instead will train clients on financing transactions and do contract, estate planning, mergers and acquisitions. He will also do other work involving family-corporation transactions, such as estate planning and mergers and acquisitions.

Both the Office of Lawyer Regulation and a court-appointed referee recommended that the justices reinstate Kranitz’s license.

The referee also noted that the reinstatement should have conditions requiring Kranitz to obey two consent orders issued by the U.S. Securities and Exchange Commission.

The orders, issued in 2014, ban Kranitz from appearing or practicing before the commission, and bar him from participating in offerings of penny stock and acting as an officer or director of any public corporation registered with the SEC.

The justices on Tuesday agreed in a per curiam decision, granting Kranitz’s reinstatement as long as he complies with the two orders. Follow @erikastrebel