Jefferson Davis is a longtime resident of Menomonee Falls. He is the proud parent of two wonderful boys. He enjoys singing, volunteering, reading, gardening, politics, antiques, history, guitar, violin, piano, officiating, helping neighbors and yard work. He served as Village President of Menomonee Falls from 2003-05. He is a member of Northbrook Church and serves on the Advisory Council for the Salvation Army Rehabilitation Center. He is an independent registered representative practicing in the areas of insurance, investments and retirement.
According to Federal Court documents, former Menomonee Falls resident Jeff Stadelmann will be sentenced to nearly 8 years in a federal prison on Friday, September 10, 2010, 1:30 P.M. at the Federal Courthouse in downtown Milwaukee.
Update 8:55 P.M. on 9-10-10
Federal Judge Rudolph Randa sentences Stadelmann to 9 years in federal prison saying, "It's a dark place you have gone. You have put a lot of people through hell."
The US Attorney's Office and Stadelmann had agreed to an 88 month sentence.
Stadelmann's girlfriend, Donna Lonzo, received a sentence of 1 year and 1 day.
Restitution was set at $3.2 million for Stadelmann and $1.2 million for Lonzo.
Both were ordered 3 years of probation after their prison sentences.
Stadelmann Was an FOJSJ
Stadelmann, a former Falls YMCA/Optimist Club Fundraiser, North Hill Country Club Member, AIS Insurance Group Executive and an FOJSJ (Friend of Joe Greco, Sue and Jim Jeskewitz) was indicted on 3 federal felony charges by the US Attorney General's Office in November of 2009 for bank wire fraud, embezzlement and falsifying a loan application(s).
Stadelmann pled not guilty to the felony charges in December of 2009 and was set to go to trial in March of 2010 when he accepted a plea bargain with the US Attorney General's Office in late May of 2010 agreeing to the 3 felony charges and the nearly 8 year federal prison sentence.
This is a very unfortunate situation and there will of course be little or no coverage by the LSM (Lame Stream Media) because of the protected status that "certain" people enjoy and are afforded in Menomonee Falls due to their "being part of the establishment".
But coverage is necessary nonetheless because it is news and so many local people/businesses have been affected by the illegal transactions that have been committed for so many years by Jeff Stadelmann and his female accomplice who is also going to be sentenced on Friday, September 10, 2010 at the Federal Courthouse in downtown Milwaukee at 3:00 P.M.
It is very doubtful that any of the many "investors" who were mislead by Jeff Stadelmann and his female accomplice will ever see any of their money returned that totaled well over $3,000,000.
Troubles Began Surfacing in the late '90's
According to county court records, Stadelmann went through a very challenging divorce in the late '90's which apparently lead to many questionable dealings that ultimately lead to an unsustainable lifestyle that contributed to the felony charges of late 2009.
Available property tax records show that Stadelmann was late every year since 2000 with his property tax payments for his waterfront home and lot in Menomonee Falls on Menomonee Avenue near Walgreen's.
The home was later purchased out of foreclosure in 2008 by Stadelmann's father's pension plan who has served on the hospital's Board of Directors and has had train displays at the Menomonee Falls M&I Bank Branch at Christmas time for many years.
According to Village Assessment Records, Stadelmann's home at one time enjoyed an assessed value of nearly $200,000 less than his next door neighbor.
Numerous Circuit Court records throughout the state show that Stadelmann and his female accomplice are the respondents for many lawsuits involving missing personal funds, real estate dealings, co-signers for mortgages, delinquent personal loans, etc. with many local residents and businesses over the last some 10-15 years.
Prominent Member of the Falls Community
As a longtime resident of the Falls, Stadelmann was often involved with Menomonee Falls Optimist Club fundraisers in the '90's and perhaps into the early 2000's.
He also was very involved with the YMCA and their fund raising activities for many years.
As a member of the North Hills Country Club, he enjoyed the same privileges as fellow members Trustee Mike McDonald and Falls Fest supporter Larry Barbera.
As an executive with the Falls AIS Insurance Group for many years, he worked with Ron Bretl, Lew Tietz and Hospital Board of Director Member and Treasurer Dan Hart.
AIS Insurance Group was purchased by R & R Insurance in 2006.
Dan Hart is still with R & R Insurance.
Purchased Northern Wisconsin Resort and Estate
Stadelmann and his female accomplice purchased Big Bear Hideaway (http://www.bigbearhideaway.com/index.php) of Boulder Junction sometime in the early 2000's and was one of the sites for the 2008 filming of "Public Enemies" starring Johnny Depp depicting the life of gangster John Dillinger.
Taxpayers of Wisconsin forked out $4.6 million for the film and the efforts of the movie were lauded by Democrat Lt. Governor Barbara Lawton (http://www.ltgov.state.wi.us/news_print.asp?onid=4414) in 2009.
How ironic that taxpayers of Wisconsin paid this kind of money for a film documenting the life of a depression era gangster at a resort where the owner and his female accomplice would later go to prison for bank wire fraud, embezzlement and loan application fraud.
Stadelmann also purchased an estate in late 2005 near Boulder Junction through yet another accomplice through what later turned out to be a fraudulent loan of approximately $2 million with Countrywide Mortgage.
Grandiose Plans Begin to Unravel in Late 2006
Various members of The Vanguard were contacted on the condition of confidentiality by federal authorities in late 2006 early 2007 about questionable financial dealings of Jeff Stadelmann and his female accomplice when many complaints started to surface about the two.
An investigation was subsequently launched by federal authorities and Stadelmann was indicted on federal charges by the US Attorney's Office nearly 3 years later.
Federal authorities went back to 1997 as part of their investigation of Jeff Stadelmann.
The federal authorities are excellent law enforcement officials to work with and are very accommodating and professional.
Details of Investigation/Indictment/Plea Bargain Revealed
Stadelmann was investigated by the FBI dating back to 1997 and was subsequently indicted by the US Attorney's Office in November of 2009 on charges similar to what Bernie Madoff and Charles Ponzi were convicted of by federal authorities.
The US Attorney's Office has provided the following information involving the Stadelmann Case (09-00280) in their May 26, 2010 36 page Plea Agreement:
- Stadelmann indicted on 3 federal felony charges: wire fraud, conspiracy to commit wire fraud and money laundering.
- Defendant voluntarily agrees to plead guilty to all 3 charges.
- Count One: Wire Fraud - Between March 2002 and March of 2008 Jeff Stadelmann knowingly devised and carried out a scheme to defraud investors involving material misrepresentations and the concealment of material facts.
- In 1997 Stadelmann became a broker dealer for Workman Securities Corporation selling mutual funds, variable life and annuities and provided investment advice to investors.
- In March 1998, he formed Stadelmann Financial, Inc. to provide financial services to investors but was not registered to sell stocks.
- In February 2003, he formed Li'l Bear, LLC, which he registered in the name of his girlfriend, Donna Lonzo. This was done to conceal the fact from his securities corporation that he served as a broker dealer for that he was selling unregistered securities.
- The scheme to defraud by Stadelmann was to obtain money from investors and acquaintances for his own benefit based on materially false representations and the omission of material facts and to cause investors to purchase unregistered securities from third-party entities while failing to disclose the material fact, which he had a duty to disclose, that he had an undisclosed interest in those third-party transactions.
- As a part of his scheme to defraud, $570,000 was obtained from 20 investors between September 2002 and May 2004 that he would invest it in a "private program", when in fact he converted to his own use. He made false written and oral statements to these investors about the value of their investments. He also paid money to some investors on the false pretense that it represented returns on their investments, when in fact he had obtained that money from other investors or sources. Round one investors.
- Between February 2004 and June of 2005 he advised 25 investors to buy, and instructed them how to buy, approximately $742,000 worth of unregistered securities directly from DataFuzions, Inc., Tiger Fund, Inc., and CATS Communications, Inc. He failed to inform investors that he (Stadelmann) would receive at no cost, matching shares from these entities based on the number of shares investors bought directly from the entity. In total, Stadelmann received 2,872,850 shares of DataFuzion with Li'l Bear, LLC and Stadelmann Financial. DataFuzion was later purchased by Omni Medical Holdings. Round two investors.
- Between early 2004 and mid-2005, he transferred to sixteen investors, who had originally given him money to invest in his supposed "private program", matching shares he had obtained from these entities supposedly totaling $430,000. These shares were worthless because their money had already been converted to his own use. Round three investors.
- Between March of 2003 and March of 2005, approximately $575,000 was obtained from 26 investors for similar transactions. Round four investors.
- Most of these shares were transferred to Li'l Bear, LLC, whose registered principal was Donna Lonzo, to conceal them from his securities corporation that he acted as a broker dealer for.
- Another false transaction(s) of approximately $185,000 between April 2005 and July 2005 from 9 additional investors was completed and converted to private use by Stadelmann.
- Between March 2002 and June 2005, he obtained $595,800 from 17 investors to invest when he converted it to private use and to pay other investors. Round five investors.
- Between August 2005 and August 2007, he obtained approximately $395,730 from 2 investors for real estate when he converted the money to private use and for other investors while issuing promissory notes that he could not honor. Round six investors.
- Between June 2003 and March 2008, he obtained approximately $945,500 in personal loans from 11 individuals under the false pretense that he had the ability to repay those loans. Promissory notes were issued without the ability of Stadelmann to repay the loans. Round seven investors.
- In total, he fraudulently obtained over $3.2 million based on false pretenses and the omission of material facts.
- On or about June 10, 2004, he fraudulently caused an investor to wire $25,000 from a financial institution in Arkansas to a bank account in Menomonee Falls with Associated Bank for Stadelmann.
- Count Two: Conspiracy to Commit Wire Fraud - Beginning in November of 2005 and continuing until approximately July of 2009, Stadelmann, Lonzo and W.B., knowingly conspired among themselves to commit wire fraud to defraud Countrywide Home Loans through material misrepresentations, concealing material facts and use of interstate wires.
- The three of them conspired to initially obtain loans in the amount of $1.8 million from Countrywide Home Loans with W.B. as the front man while he wasn't going to be the occupant of any home. Instead, Stadelmann and Lonzo were going to be the occupants of the home.
- The three of them fraudulently misrepresented the identity of the true borrower, the borrower's income and assets, and other material facts. The three of them conspired again to obtain further mortgage loans from Countrywide by means of additional false and fraudulent applications and supporting documents.
- The three of them fraudulently applied for a loan(s) for the single-family lake residence located at 3549 Rocky Reef Lane in Boulder Junction for $2,000,000 for the benefit of Stadelmann and Lonzo.
- The 3 of them falsely represented that W.B. had $35,000 in monthly income along with falsely stating that W.B. had $1.3 million in assets with Stadelmann and Lonzo's Li'l Bear, LLC.
- Stadelmann and Lonzo would not have qualified for the mortgage.
- W.B.'s assets and income were grossly overstated on the home loan application.
- W.B. did not have the ability to repay the loans.
- Countrywide was fraudulently led by Stadelmann, Lonzo and W.B. to make a loan in the amount of $1.5 million for the first mortgage and $300,000 for a home equity line of credit in January 2006.
- Subsequently, Stadelmann and W.B. conspired together on a May 2006 loan application with false and fraudulent supporting documents for a $440,000 home equity line of credit with Countrywide replacing the January 2006 $300,000 home equity line of credit.
- Subsequently, Stadelmann and W.B. again conspired together on an October 2006 application with Countrywide to obtain a $707,500 home equity line of credit to replace the May 2006 $440,000 loan.
- Following the October 23, 2006 closing, W.B. transferred at least $222,000 to Stadelmann so he could pay debts and at least one investor.
- By February 2008, Stadelmann, Lonzo and W.B. stopped making payments on the $1.5 million first mortgage and the $707,500 second mortgage.
- Stadelmann causes W.B. to file for federal bankruptcy in May of 2009 to delay Countrywide's foreclosure.
- Stadelmann lies to creditors at a July 22, 2009 meeting as to what happened to the money he received from W.B. stating that it was used to improve the residence when in fact it was used to repay debts by Stadelmann.
- Countrywide's first mortgage balance is $1,469,113.85 and $707,500 for the second mortgage.
- Stadelmann obtained a loan for $278,000 from First National Bank in Manitowoc and had those proceeds deposited in a joint account with Lonzo at Guardian Credit Union in Menomonee Falls.
- Count Three: Money Laundering - Stadelmann caused W.B. to wire $200,000 in funds to Stadelmann's account at Guardian Credit Union derived from the $707,500 Countrywide loan in October of 2006.
All parties agree that if the matter would go to trial, the government would be able to prove beyond a reasonable doubt the facts outlined in the plea agreement. Stadelmann admits that these facts are true and correct and establish his guilt beyond a reasonable doubt.
Penalties, Fines and Maximum Terms of Imprisonment
Count One Wire Fraud - 20 years and $250,000
Count Two Conspiracy to Commit Wire Fraud - 5 years and $250,000
Count Three Money Laundering - 10 years and $250,000
Three years of supervised release after serving his prison sentence.
Parties agree that all sentencing guidelines have been discussed.
Stadelmann may not withdraw his guilty plea as a result of his criminal history.
Stadelmann must not have provided false, inaccurate or incomplete information.
Parties agree to a sentence of 88 months, which falls within the sentencing guideline range of 87-108 months according to federal calculations.
The federal judge may impose a shorter or longer sentence for Stadelmann.
Stadelmann must pay all financial obligations ordered by the court due immediately.
Stadelmann must provide financial statements to the FLU (Financial Litigation Unit) of the US Attorney's Office while under supervision at 6 month intervals.
Restitution is ordered at $3,206,406 to the some 93 individual investors, private-party lenders and businesses.
Some individual investors lost as much as $285,000 while others are no longer living.
He agrees to pay Countrywide at least $600,000.
He agrees to waive his right to prohibit any civil suit or administrative action against him.
Counts One and Two total $3,806,406 in forfeitures against him with all of his assets that can be attributed to him for restitution.
He waives his rights to a trial.
Stadelmann may face further action by the IRS.
The Vanguard will attend the sentencing on September 10, 2010.
As the old saying goes, "Things aren't always what they seem."
This is so true of Menomonee Falls when it comes to some of the following:
- Falls Fest shaking down Marcus Corporation for the old theater on Main Street that still sits empty.
- Falls Cable Access being cited by the IRS and AG Office for failing to file tax returns and open meeting/public record violations.
- Former Village Presidents Greco and Rechlicz using their political position to hustle businesses in exchange for votes and favors.
- The former Clerk's misapplication of State Election Law according to the GAB (Government Accountability Board) in 2003-2009.
- Multi-million dollar sick leave payouts for retirees since the early '90's.
- The Municipal Judge having to resign from office over financial dealings having been investigated by the disciplinary division of the Wisconsin Supreme Court.
- Trustee McDonald's brushes with the law for DUI, Obstruction of an Officer and being in a bar after hours.
- Multiple double-dipping contracts for retirees while the former Village Manager accumulates over $2,000,000 in salary, pension, benefits, etc. in retirement.
- The failure of MMSD when Menomonee Falls could and should have its own treatment plant.
- The fixing of a contract for the Village Health Care Plan debacle of 2006.
- The $200,000,000 in debt service being thrust upon the taxpayers.
- The Milwaukee Water untruths involving the "radium" issue.
- The total sell out to Milwaukee for Ambrosia Chocolate in the mid-'90's.
The list goes on and on and on and on and on.
It's too bad the LSM (Lame Stream Media) doesn't do it's job to report the news.
If Falls residents had a steady diet of these stories that affect their wallets and tax bills maybe there would be a change in the local leadership.
If only those in authority would stand up and hold accountable those that are engaged in similar activities which happen almost every day in Menomonee Falls.
Maybe if enough people would contact the authorities like those courageous people did involving Jeff Stadelmann, perhaps things would finally change for Menomonee Falls.
One can only hope that will change for the future.
Menomonee Falls deserves better.
Won't it be interesting to see what the progressive Democrats and RINO (republicans in name only) Republicans of Menomonee Falls say to defend this?