Congressional candidate resolves $44 million lawsuit linked to Ponzi scheme

A Republican candidate seeking a congressional seat in northern Wisconsin has come under scrutiny for settling a federal lawsuit for $44 million while residing in California, prompting scrutiny over his campaign narrative as voters consider the primary race. The story of the settlement was detailed in the Jan. 30, 2026 edition of the Eau Claire Leader-Telegram, originating from the Ashland Daily Press.

Paul Wassgren, aged 49, officially launched his campaign on Oct. 30 for the 7th Congressional District seat in Wisconsin, where he invested $1 million of his money, highlighting himself as a fifth-generation resident of Ashland. However, court records and public documents reveal that he resided in California and was licensed to practice law there, culminating in a settlement of a class action lawsuit in 2023. The lawsuit alleged his involvement in a scheme defrauding over 1,100 investors of $170 million.

Wassgren’s past settlement and residency history have become significant points of interest as Republican primary voters evaluate the competing candidates in the primary race, consisting of Michael Alfonso, Jessi Ebben, and Kevin Hermening.

Records from federal courts demonstrate that Wassgren, alongside his law firms DLA Piper and Fox Rothschild, were named as defendants in a class action lawsuit filed in Florida’s Middle District on July 21, 2020. The lawsuit accused Wassgren of providing legal counsel to EquiAlt, a private real estate investment firm alleged to have run a Ponzi scheme targeting elderly and unsophisticated investors.

Following negotiations, Wassgren and his associated law firms agreed to a settlement of $44 million on May 15, 2023, with DLA Piper and Fox Rothschild each contributing $22 million. The settlement was approved by U.S. District Judge Mary S. Scriven, containing the standard clause asserting that the claims had not been proven in court, and the parties denied any wrongdoing.

Wassgren’s campaign spokesperson dismissed the lawsuit as frivolous, revealing that the case was ultimately dropped after the opposing side admitted they could not substantiate their claims. The settlement’s bar order, a provision preventing future related lawsuits, was highlighted by the spokesperson as rare, indicating the lack of merit in the case.

The 7th Congressional District spans much of northern Wisconsin, with the Republican primary acting as the precursor to the general election race. Wassgren’s campaign has underscored his business acumen and family’s ties to the region, with an emphasis on revamping communities, following in the footsteps of notable businessmen like Donald Trump and Ron Johnson.