http://www.chicagotribune.com/news/sns-rt-usreport-us-wisconstre73a42l-20110411,0,1912070.story
C&NW, CA&E, MILW, CGW and IC fan
Tad ironic isnt it?
Mechanical Department "No no that's fine shove that 20 pound set all around the yard... those shoes aren't hell and a half to change..."
The Missabe Road: Safety First
Railroad executive charged with campaign law violations e-mail print By Daniel Bice of the Journal Sentinel Updated: April 11, 2011 12:42 p.m. |(326) COMMENTS A major donor to Gov. Scott Walker was charged Monday with funneling more than $60,000 in illegal campaign contributions through his railroad employees during the last election. William Gardner, president and chief executive officer of Wisconsin & Southern Railroad Co., has agreed to plead guilty to two felony counts - one for exceeding the campaign contribution limits and a second for giving company and personal funds to others so they could make political donations. Individuals can give no more than $10,000 to gubernatorial candidates. Under the deal, prosecutors are asking that Gardner be sentenced to two years' probation. "Because he was cooperative and accepted responsibility at the outset - providing much of the evidence against himself - we are not recommending jail time," said Milwaukee County Assistant District Attorney Landgraf, who investigates election and campaign matters. Although Milwaukee prosecutors handled the case, the charges were filed in Washington County, where Gardner lives. Each of the two felony counts carries a maximum penalty of 3 ½ years of combined prison and extended supervision and a $10,000 fine. Gardner issued a statement Monday acknowledging his mistakes. In that written statement, the 63-year-old railroad executive said he didn't initially realize that what he and others were doing was improper. The criminal complaint says Gardner took several steps to conceal the scheme and the illegal contributions came to light only when a former friend of Gardner's alerted state officials. "I made and asked others to make these contributions, and I am responsible for having the company reimburse some individuals," Gardner stated. "My actions were against the law and wrong, and I take full responsibility." A spokesman for Walker said he had no comment on the matter. His campaign received the vast majority of the illegal campaign contributions. Last year, Walker returned more than $43,000 in donations to Gardner and a handful of his company workers after the railroad official informed state regulators that he had been using company funds to reimburse his workers for their campaign contributions. The Assembly Democratic Campaign Committee also has forfeited $3,500 in donations from Gardner. It is illegal in Wisconsin to give corporate money to political candidates. The state Government Accountability Board is expected to announce that more than a half-dozen of Gardner's employees will pay civil forfeitures of $250 each and that Gardner's corporation will pay about $166,000. A press conference is scheduled on the matter for 2 p.m. One election lawyer said he is not surprised that Gardner is getting off with such a light penalty. "Although these are serious criminal allegations, the mitigating factor that might preclude jail time is the fact the Gardner notified the GAB of his crimes before he was caught," said Michael Maistelman. Milwaukee County prosecutors have been conducting a John Doe probe into the allegations against Gardner. The Journal Sentinel first reported the illegal donations last summer and the John Doe probelate last year. According to the 12-page criminal complaint, Gardner told several employees in 2009 and 2010 to donate money to Walker and file expense reports with the railroad to cover the donations. He told them not to send their checks until they received the money from the railroad. Gardner continued to solicit employees for such donations even after a former friend informed him she had reported the situation to the Government Accountability Board. The former friend - who is not identified by name in the complaint - on April 19, 2010 informed Gardner and an attorney mediating a dispute between them that she had gone to election authorities. "Knock yourself out," Gardner responded in an email. "I did nothing wrong and have broken no law." The former friend did not identify the name of the company when she reported the situation to the board, but an attorney there was able to figure out the railroad was involved. Prior to her report to election authorities, a friend of hers, Greogry Edminster, contacted Walker's campaign. Edminster told investigators that someone from Walker's campaign staff assured him they had methods to detect illegal contributions and were confident they had not received any. Gardner had tired to keep the scheme quiet. He sent an email to Dale Thomas, the chief mechanical officer for railroad cars, telling him to donate $4,900 to Walker once he received the same amount from the railroad. Thomas agreed, and Gardner wrote him back: "And let's not blab this around." Responded Thomas: "I kinda figure that, my lips are sealed." Gardner's attorneys told investigators Gardner didn't want it out because he didn't want employees thinking lavish payments were being made at a time when wages were being cut. Gardner also made a $5,000 donation to Walker in July 2005, when Walker made an earlier run for governor. That contribution was illegal because lobbyists can't make contributions to state candidates during the legislative session, and Gardner was a lobbyist for the railroad. On Nov. 15, 2005, Gardner was fined $1,000 by the Government Accountability Board because he'd made the donation as a lobbyist. On Nov. 17, 2005, Walker's campaign returned the $5,000 contribution to Gardner, but the same day Gardner had his daughter, Stephanie Schladweiler, give the campaign the same amount. Schladweiler used Gardner's money to make the contribution, which is illegal. The complaint shows $34,800 going to Walker from the railroad in late 2009 and early 2010. Gardner in 2005 and 2006 gave another $12,000 to others using his personal funds so they could make donations to Walker. Gardner was charged under an unusual provision of the law that requires campaign finance cases to be filed in the county where defendants live. Most crimes are charged in the county where they occur. Gardner is one of the first people to be charged in the way the 2007 law was envisioned, though former Assembly Speaker Scott Jensen invoked the law to successfully move his case to his home county. The case shares similarities to the one against Kenosha trucking magnate Dennis Troha, who in 2008 was sentenced to six months of probation for exceeding federal campaign donation limits by funneling political donations through family members. Troha, who unsuccessfully sought a Kenosha casino, was a large donor to Democratic Gov. Jim Doyle, as well as Republicans. Patrick Marley of the Journal Sentinel staff contributed to this report from Madison.
Updated: April 11, 2011 12:42 p.m. |(326) COMMENTS
A major donor to Gov. Scott Walker was charged Monday with funneling more than $60,000 in illegal campaign contributions through his railroad employees during the last election.
William Gardner, president and chief executive officer of Wisconsin & Southern Railroad Co., has agreed to plead guilty to two felony counts - one for exceeding the campaign contribution limits and a second for giving company and personal funds to others so they could make political donations. Individuals can give no more than $10,000 to gubernatorial candidates.
Under the deal, prosecutors are asking that Gardner be sentenced to two years' probation.
"Because he was cooperative and accepted responsibility at the outset - providing much of the evidence against himself - we are not recommending jail time," said Milwaukee County Assistant District Attorney Landgraf, who investigates election and campaign matters.
Although Milwaukee prosecutors handled the case, the charges were filed in Washington County, where Gardner lives. Each of the two felony counts carries a maximum penalty of 3 ½ years of combined prison and extended supervision and a $10,000 fine.
Gardner issued a statement Monday acknowledging his mistakes.
In that written statement, the 63-year-old railroad executive said he didn't initially realize that what he and others were doing was improper. The criminal complaint says Gardner took several steps to conceal the scheme and the illegal contributions came to light only when a former friend of Gardner's alerted state officials.
"I made and asked others to make these contributions, and I am responsible for having the company reimburse some individuals," Gardner stated. "My actions were against the law and wrong, and I take full responsibility."
A spokesman for Walker said he had no comment on the matter. His campaign received the vast majority of the illegal campaign contributions.
Last year, Walker returned more than $43,000 in donations to Gardner and a handful of his company workers after the railroad official informed state regulators that he had been using company funds to reimburse his workers for their campaign contributions. The Assembly Democratic Campaign Committee also has forfeited $3,500 in donations from Gardner.
It is illegal in Wisconsin to give corporate money to political candidates.
The state Government Accountability Board is expected to announce that more than a half-dozen of Gardner's employees will pay civil forfeitures of $250 each and that Gardner's corporation will pay about $166,000. A press conference is scheduled on the matter for 2 p.m.
One election lawyer said he is not surprised that Gardner is getting off with such a light penalty.
"Although these are serious criminal allegations, the mitigating factor that might preclude jail time is the fact the Gardner notified the GAB of his crimes before he was caught," said Michael Maistelman.
Milwaukee County prosecutors have been conducting a John Doe probe into the allegations against Gardner. The Journal Sentinel first reported the illegal donations last summer and the John Doe probelate last year.
According to the 12-page criminal complaint, Gardner told several employees in 2009 and 2010 to donate money to Walker and file expense reports with the railroad to cover the donations. He told them not to send their checks until they received the money from the railroad.
Gardner continued to solicit employees for such donations even after a former friend informed him she had reported the situation to the Government Accountability Board. The former friend - who is not identified by name in the complaint - on April 19, 2010 informed Gardner and an attorney mediating a dispute between them that she had gone to election authorities.
"Knock yourself out," Gardner responded in an email. "I did nothing wrong and have broken no law."
The former friend did not identify the name of the company when she reported the situation to the board, but an attorney there was able to figure out the railroad was involved.
Prior to her report to election authorities, a friend of hers, Greogry Edminster, contacted Walker's campaign. Edminster told investigators that someone from Walker's campaign staff assured him they had methods to detect illegal contributions and were confident they had not received any.
Gardner had tired to keep the scheme quiet. He sent an email to Dale Thomas, the chief mechanical officer for railroad cars, telling him to donate $4,900 to Walker once he received the same amount from the railroad.
Thomas agreed, and Gardner wrote him back: "And let's not blab this around." Responded Thomas: "I kinda figure that, my lips are sealed."
Gardner's attorneys told investigators Gardner didn't want it out because he didn't want employees thinking lavish payments were being made at a time when wages were being cut.
Gardner also made a $5,000 donation to Walker in July 2005, when Walker made an earlier run for governor. That contribution was illegal because lobbyists can't make contributions to state candidates during the legislative session, and Gardner was a lobbyist for the railroad.
On Nov. 15, 2005, Gardner was fined $1,000 by the Government Accountability Board because he'd made the donation as a lobbyist. On Nov. 17, 2005, Walker's campaign returned the $5,000 contribution to Gardner, but the same day Gardner had his daughter, Stephanie Schladweiler, give the campaign the same amount.
Schladweiler used Gardner's money to make the contribution, which is illegal.
The complaint shows $34,800 going to Walker from the railroad in late 2009 and early 2010. Gardner in 2005 and 2006 gave another $12,000 to others using his personal funds so they could make donations to Walker.
Gardner was charged under an unusual provision of the law that requires campaign finance cases to be filed in the county where defendants live. Most crimes are charged in the county where they occur.
Gardner is one of the first people to be charged in the way the 2007 law was envisioned, though former Assembly Speaker Scott Jensen invoked the law to successfully move his case to his home county.
The case shares similarities to the one against Kenosha trucking magnate Dennis Troha, who in 2008 was sentenced to six months of probation for exceeding federal campaign donation limits by funneling political donations through family members. Troha, who unsuccessfully sought a Kenosha casino, was a large donor to Democratic Gov. Jim Doyle, as well as Republicans.
And I had such high regard for Gardner and all that he has accomplished....
A more thorough report can be found here:http://www.jsonline.com/news/statepolitics/119595644.html
Are the prison guards union members?
Ed
Is Gardner 'tone-deaf' ? Do he, Warren Buffett, and Buffett's underling David Sokol (buying Lubrizol shares pre-acquisition) all have dysfunctional noses ? i.e., they don't realize that these transactions won't pass the 'smell test' ? That might get them past any requirement of intent/ scienter ("evil purpose"), but geez - it sure causes me to doubt their good judgment and mental and management capabilities: "What on earth were they thinking ?" That they could get away with it ??? All of these shenanigans are fairly common and the stuff of pulp fiction and bad movies - don't they read/ watch them either ? What did they think would happen when it became public ? Did they really think it never would ? Sheesh.
Only good thing is that Gardner appears to have stepped up to the plate and "accepted responsibility" without a fight, and I commend him for that. now - what about his employees who were "just following orders" ?
- Paul North.
Yet to be determined/reported is what Gardner was hoping to get from Walker for himself and/or the railroad in return for the donations.
My guess is that Mr. Gardne'rs main problem was most likely, he wasfound to be contributing to a Republican in a 'Democratic' Wisconsin, and worse than that- The Republican WON!
One has to wonder? Had Mr. Gardner, been a Democrat contributing to a Democrat; would this have even broken water?
Carrying on in and illegal operation is neither Republican nor Democrat...in this instance it happens to be a Republican party concern. But illegal is illegal no matter what.
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MP173 Are the prison guards union members? Ed
samfp1943 My guess is that Mr. Gardne'rs main problem was most likely, he wasfound to be contributing to a Republican in a 'Democratic' Wisconsin, and worse than that- The Republican WON! One has to wonder? Had Mr. Gardner, been a Democrat contributing to a Democrat; would this have even broken water?
It's ridiculous to always claim everything is partisan. Perhaps you didn't read either article? Gardner pleaded guilty, so his party allegiance has nothing to do with it. And this wasn't the first time for Gardner.
The route selected for the now-rejected fed money for HrSR from Madison to Milwaukee used some of WSOR's RoW. Perhaps Gardner didn't want passenger trains on his track?
zardoz And I has such high regard for all Gardner had accomplished. A more thorough report can be found here:http://www.jsonline.com/news/statepolitics/119595644.html Maybe he and Walker could share a cell together; I understand that Waupun State Prision is a pleasant place for old white guys.....
And I has such high regard for all Gardner had accomplished.
Maybe he and Walker could share a cell together; I understand that Waupun State Prision is a pleasant place for old white guys.....
Campaign finance law is definitely not one of my areas of expertise. Still, I have to wonder whether Mr. Gardner threw himself upon the altar of the law a little too soon. Recall that, a year or so ago, the US Supreme Court struck down a Federal law limiting corporate and union campaign contributions on the grounds that it violated the First Amendment of the US Constitution. This means that similar state laws would also be unconstitutional, since states can't take away rights guaranteed by the US Constitution. The piece I don't know is how similar the Wisconsin law is to the Federal law that bit the dust.
Unless things have changed drastically since the Wisconsin & Southern was featured in one of the PBS "Trackside" episodes, the State of Wisconsin owns all of the track and right-of-way, and major decisions on how the line will be operated must be approved by state regulators. Perhaps Gardner was just insuring that the skids were kept greased when he had to seek approval to change something.
As for the question, "what was he thinking," probably that it's not a crime if you don't get caught.
If you read the Milwaukee Journal's story linked by Zardoz you would have seen the mention that in the previous Governor's election he donated illegally to both candidates, Republican and Democrat.
beaulieu If you read the Milwaukee Journal's story linked by Zardoz you would have seen the mention that in the previous Governor's election he donated illegally to both candidates, Republican and Democrat.
Thats correct and if you knew anything about the Wisconsin and Sourthern Railway (read it's website for example). it relies heavily on State grants to expand operations / fix track. Not surprising he would contribute back to whom he percieved as the winner of the election......the State is his Sugar Daddy.
I'll go to that trial to argue this.
If William Gardner is sentenced to prison, who will take over as president of the WSOR. Would it be up for sale? and if it did go up for sale, would you like to see CN buy the railroad???
Mr. Railman I'll go to that trial to argue this. If William Gardner is sentenced to prison, who will take over as president of the WSOR. Would it be up for sale? and if it did go up for sale, would you like to see CN buy the railroad???
Dan
If I were the Wisconsin Southern,I wouldnt be showing up at train shows selling WSOR memorabilia right now. With this state in a fume over union rights and such,it seems to me the WSOR President let everyone down.What I dont understand why Gardner gave idiot governor money,when WSOR KNEW he was going to eliminate the HSR.The HSR WAS to be operated on WSOR trackage from Watertown to Madison.
the EJ&E wasn't for sale, nor was the Illinois Central. The IC was bouncing back for ten years leading up to CNs hefty purchase.
cnwfan2 If I were the Wisconsin Southern,I wouldnt be showing up at train shows selling WSOR memorabilia right now. With this state in a fume over union rights and such,it seems to me the WSOR President let everyone down.What I dont understand why Gardner gave idiot governor money,when WSOR KNEW he was going to eliminate the HSR.The HSR WAS to be operated on WSOR trackage from Watertown to Madison.
This whole episode has zero to do with HSR. Gardner would have contributed the same to a Democratic candidate if they were in the lead in the late fall early December.
Wisconsin and Southern has received probably over $100 million in state grants to upgrade or fix it's trackage and it intends to apply for more state money in the future. Whomever occupies the State Capitol is irrelevant to the objective at hand here. I think I remember and I could be wrong on this but Mr Gardner was a former highway contractor or ran a highway contracting business before he entered the railroading business. Would be interesting for someone to research that angle because this is typically how the highway lobby gets it's way in Wisconsin. Been going on for decades and I would be willing to bet the same was true of Illinois.
I believe what Mr. Gardner stated in his plea that he made a mistake here, he pleaded guilty when he could have dragged this out for years.
Mr. Railman the EJ&E wasn't for sale, nor was the Illinois Central. The IC was bouncing back for ten years leading up to CNs hefty purchase.
The discussion of WSOR/CN is separate from the Gardner issue anyway so I'm done with this commentary after this post.
From the article here: [emphasis added - PDN]
http://www.wiscnews.com/news/local/article_222b97ca-64af-11e0-8ec2-001cc4c002e0.html
"According to court documents, state election officials and Milwaukee prosecutors launched a secret investigation into Gardner's campaign donations in May 2010 after Gardner's ex-girlfriend angry that he hadn't returned all her things, alerted election officials to his activity.
In April 2010, Stacie Long warned the attorney mediating the property dispute between them that she had been speaking with state election officials about the contributions. She said she had been withholding Gardner's name but threatened to reveal it if she didn't get all of her things back.
Gardner responded directly to her, saying "Knock yourself out. I did nothing wrong and have broken no law ..." "
Many of us can cite the moral (?) of this aspect of the story - fortunately, some without having actually experienced it first-hand: "Hell hath no fury like a woman scorned".
I wonder what law enforcement would do without that significant crime-fighting motivation . . .
The railroads' economic clout has helped them wield considerable political power in the state. At the end of the 19th century, Luebke said, Nebraska's two U.S. senators were sometimes referred to as its Union Pacific senator and its Burlington senator.
http://www.ble-t.org/pr/news/headline.asp?id=28227
“I ain’t like Huey. He could go a-chomping around and get away with it. I’ve gotta go slower—I might get my head knocked off. Maybe I ain’t as much of a genius. But I got more horse sense.” And again, “Huey used to buy the legislature like a sack of potatoes. Hell, I never bought one in my life. I just rent ’em. It’s cheaper that way.”
Earl Long, Governor of Louisiana
http://www.americanheritage.com/articles/magazine/ah/1966/5/1966_5_40.shtml
It was a more direct and efficient process than forming a Political Action Committee, or a "non-profit, 501(c)4 organization for the promotion of social welfare."
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