Former Falls Optimist/North Hills Country Club Member and AIS Insurance Group Exec Indicted by Grand Jury

The Vanguard was anonymously contacted recently about a very little known and well hidden matter involving a very prominent Menomonee Falls citizen having been indicted by a federal grand jury.

The Vanguard can confirm that indeed a very well known Menomonee Falls citizen was indicted on numerous charges by a federal grand jury on November 10, 2009.

More on that after some brief updates on the 2010 Village Budget, Village President leaving position at Medical Associates and Trustee McDonald's legal troubles.

2010 Village Board Budget Passes Unanimously

The Menomonee Falls Village Board unanimously passed the 2010 Village Budget that will lead to higher taxes, higher water bills, higher sewer bills, higher garbage tax fees, higher health care premiums and approximately $15,000,000 in new debt service to the taxpayers for a new public works garage on top of the Village's already existing $100,000,000+ debt service that costs taxpayers millions of dollars every year to finance.

Of course there was very little, if any, pre-coverage of the 2010 Budget by the local newspapers.

No pre-coverage of the Village Budget on Falls Cable Access.

No notice of the Village Budget Public Hearing in the water/sewer bills.

No Village Newsletter to inform citizens.

The Village President didn't allow for questions or answers for the taxpayers unless comments on the $30,000,000 budget were less than 180 seconds.

The Village Web site did not include any substantive information prior to the November 30th Public Hearing and wasn't even on the web site home page until it was brought to the Village's attention that it couldn't be found.

Only a handful of citizens showed up with maybe only one person bothering to say anything which is exactly what the Village Board wants.

The public hearing was held at 6:00 P.M. which prohibits most taxpayers from attending.

Unless citizens are repeatedly informed well in advance of the public hearing and are made aware of what impact the passage of the budget will have on their pocketbook, budgets like this one will always pass with taxpayers forking out more and more of their hard earned money to the government when it's too late to do anything about it.

Oh well, that's what elections are for.

Go Scott Walker and Jim Sensenbrenner!

These guys will always vote for cutting taxes and spending!

The same could have been done with the 2010 Village Budget for taxpayers if we only had elected officials who had the courage to do so (http://www.menomoneefallsnow.com/blogs/communityblogs/78102982.html).

Lots of ideas were presented to the Village Board to save taxpayers a lot of money.

Of course it fell on deaf ears.

The greatest fear of this Village Board is that taxpayer ideas would work and would cut taxes.

Something this Village Board is afraid to allow happen. 

Trustee McDonald's Legal Problems Continue with Trial Scheduling Set for January 2010

Trustee McDonald, who is no stranger to legal troubles and ethical lapses recently, has his obstructing an officer and being in a bar after hours citations with the Menomonee Falls Police being scheduled for trial in Waukesha Municipal Court in January of 2010 after the parties could not reach an agreement at a September 30, 2009 Hearing.

McDonald's citations were moved to Waukesha Municipal Court from Menomonee Falls Municipal Court on August 4, 2009 to avoid a conflict of interest with the Menomonee Falls Municipal Judge whose salary and budget are approved by Trustee McDonald.

McDonald was caught obstructing on officer on May 29, 2009 when he lied and was hiding from Menomonee Falls Police in a utility closet at Su Casa after hours around 2:45 A.M. 

One citation has a fine of $802.00 and the other fine will be determined by the judge.

Both citations can carry jail time especially for repeat offenders with alcohol issues.

Trustee McDonald was arrested and convicted of drunk driving charges in late 2003 while having to pay a $612.00 fine, incurred a 6 month drivers license revocation and was ordered to attend alcohol assessment school (http://www.menomoneefallsnow.com/blogs/communityblogs/49603077.html).

Trustee McDonald, on both occasions, threatened to call the police chief because he "knew the chief" and even threatened officer's jobs if they arrested him.

Other McDonald Sightings Revealed

Trustee McDonald has also been linked to "cash pay for play" offers with a former Menomonee Falls Municipal Judge in exchange for Village Board votes to approve the Main Street Hotel Project.

McDonald and the Judge met the business partners of the hotel at North Hills Country Club in attempt to cut their deals.

Money was paid to the Judge by one of the hotel partners, but it is unclear if Trustee McDonald ever received any privileges for his amazing voting reversal on the hotel project from nay to yea some time later.

The taxpayers have lost $1,600,000 on the hotel project on Main Street so far with little or nothing to show for it  except an empty and abandoned hotel while Ernie Von Schledorn received nearly $350,000 for lots on Main Street (http://www.menomoneefallsnow.com/blogs/communityblogs/70222492.html).

Trustee McDonald also voted to extort a landowner out of 50 acres of swampland in 2004 in exchange for his vote to approve the property owner's business proposal when he was initially adamantly opposed to buying the swamp land because of the taxpayer price tag of $150,000.

The swamp land could not be used for anything because it was swamp land.

The property owner's business proposal had languished for 3-4 years thanks to the punitive tactics of Trustee McDonald.

He was also knowledgeable of the deal for the empty old $1,000,000 Marcus Theater on Main Street to Falls Fest for $250,000 in exchange for Village Board votes to approve 4 new screens for Marcus at their new location next to Home Depot in 2003, which initially had been a very controversial project with neighbors in 1998 when it was approved by the Village Board including Trustees Steliga, Jeskewitz and Village President Greco.

The deal between Marcus and Falls Fest culminated on March 13, 2003 10 days after the Village Board approved 4 new screens for Marcus which specified in their documents to Falls Fest that Falls Fest would not get the old theater for $250,000 unless Marcus got the necessary Village Board votes for their 4 screens.

Trustees Jeskewitz, Steliga and Village President Greco were or are affiliated with Falls Fest.

Trustee McDonald has also voted to directly and indirectly give Falls Fest in excess of what appears to be $700,000 over the last 15 years for what is now known as the Chamber Building on Appleton Avenue when Falls Fest was supposed to return that money to the taxpayers in a Village Resolution, but to date have not returned any funds to the taxpayers.

The Village Board Seat that Trustee McDonald currently holds is up for re-election in April of 2010.

Former Optimist/North Hill Country Club Member and AIS Insurance Group Executive Indicted on 3 Charges by Federal Grand Jury

An IRS-CI (Criminal Investigation) effort to stop fraudulent financial and mortgage practices dating back to at least 2002 by Jeff Stadelmann, 47, formerly of Menomonee Falls, came to partial fruition on November 10, 2009 when a federal grand jury indicted the former prominent Menomonee Falls resident on 3 charges.

Stadelmann was indicted with Donna Lonzo, 44, also formerly of Menomonee Falls on November 10, 2009. 

Because of the lack of coverage by the local newspapers and other media outlets, The Vanguard and its contributors had to dig a little deeper over the last 2-3 weeks to get information on this developing story.

Stadelmann will be arraigned in U.S. Federal Court on Friday, December 11, 2009 in downtown Milwaukee.

He is free at the present time and not incarcerated.

Grand Jury Indictments Explained

According to the U.S. Attorney General's Office, the first charge involves wire fraud in connection with an investment scheme he is alleged to have conducted between March of 2002 and March of 2008.

Stadelmann is alleged to have fraudulently obtained over $2.4 million from over 50 investors and private-party lenders based on false pretenses.

He is alleged to, among other things, have obtained investors money under false pretenses to invest their money and then allegedly converted the funds for private use and to pay other investors.

This is similar to what Bernie Madoff was convicted of doing in New York recently.

The charge carries a maximum sentence of 20 years in prison and a maximum fine not to exceed $250,000.

The second charge alleges that Stadelmann and his associate, Lonzo, conspired to commit wire fraud when they conspired to defraud Countrywide Home Loans on a home mortgage loan to obtain a $2 million vacation home in Boulder Junction, WI.

Countrywide Home Loans was rife with fraud and abuse in 2006-08 when CEO Angelo Mozilo had to step down and the firm was taken over by Bank of America which received $45 billion in TARP Money from taxpayers because of fraudulent sub-prime mortgages.

Mozilo and Countrywide have been linked to Democrat US Senators Dodd from Connecticut and Conrad from North Dakota for "sweetheart loans" because of their positions in the US Senate.

Stadelmann and Lonzo are alleged to have conspired with another individual to apply for and obtain  $1.8 million in mortgage loans to purchase the vacation home between November 2005 and January 2006.

The indictment refers to the third individual as "W.B.".  This is usually a sign that this person is cooperating with the authorities.

The indictment also states that the three conspired to state that "W.B." was the applicant for the loan and that he overstated his assets to obtain the loan for which Stadelmann and Lonzo would have otherwise not qualify for.

Stadelmann and Lonzo would face up to 5 years in prison and a fine not to exceed $250,000 if convicted.

The third charge involves money laundering and alleges that Stadelmann obtained $200,000 from "W.B." in a bank wire transaction to Stadelmann's bank account from the over $258,000 in funds "W.B." obtained from Countrywide in October 2006 through a fraudulent second mortgage loan on the Boulder Junction property. 

Stadelmann faces up to 10 years in prison and a fine not to exceed $400,000 if convicted of this charge.

That's a total of possibly 35 years in prison and fines not to exceed $900,000.

The U.S. Attorney General's Office is asking anyone with information to contact them at 414-297-1700.

The investigation is ongoing and therefore the names of the over 50 victims can not be released. 

Lt. Governor Lawton bragged (http://www.ltgov.state.wi.us/news_print.asp?onid=4414) of the filming of this summer's "Public Enemies" production at Stadelmann's Big Bear Hideaway (http://www.bigbearhideaway.com/index.php) with $4.6 million of Wisconsin taxpayer's money. 

Stadelmann also has a financial firm listing in Boulder Junction (http://www.manta.com/coms2/dnbcompany_8sspnc).

Prominent Member of the Menomonee Falls Community

Stadelmann was a long time member of the Menomonee Falls Optimist Club and would often help out with various club activities and fundraisers.

He was also a member of North Hills Country Club where many of his A.I.S. Insurance Group Associates paid dues and attended.

He was a representative for the well known Menomonee Falls A.I.S. Insurance Group that included Dan Hart, Ron Bretl and Lew Tietz as representatives.

A.I.S. was acquired by R&R Insurance sometime around 2006 on Appleton Avenue next to the Menomonee Falls High School.

Stadelmann owned a very prestigious home on Menomonee Avenue (N84 W16061) just west of Walgreen's near a very visible pond on a private drive.

Troubles Began in 1997

Stadelmann started in divorce court in 1997 with his former wife.

Donna Lonzo, Stadelmann's alleged co-conspirator, also went through a divorce starting in 1995.

According to court documents, Stadelmann and his former wife have been back to court many times over the last 12 years almost on an annual basis over child support, visitation and other various domestic issues.

Late on Property Taxes Since 2000

The Menomonee Falls Stadelmann home and lot on Menomonee Avenue have had their property taxes paid late every year, except 2007, since 2000.

The home is assessed at $421,900 while the lot is assessed at $136,900.

The home is absolutely beautiful according to readers of The Vanguard who have been in the home and is assessed at nearly $200,000 less than similar homes in the area.

Total penalties and interest on the two properties since 2000 total about $10,000 with the 2002-2004 taxes being paid all at once in February of 2005.

The lot is still in Jeff Stadelmann's name while the home was titled to Deutsch Bank of Texas in 2008, usually a sign of a home being foreclosed, and is currently titled to the Stadelmann Engineering Profit Sharing Trust in 2009.

Stadelmann's father was a prominent engineer in Menomonee Falls, serves on the Community Memorial Hospital Board and loves model train displays at local firms.

Some Victims Identified

According to court documents, the following people/banks are a partial list of those who have been affected by this very unfortunate situation:

1. Leroy Wegener, DePere - $756,256.00
2. First National Bank , Manitowoc - foreclosure
3. Westridge Builders, Waukesha 
4. Michael Dean, Waukesha 
5. Daniel Moynihan, Milwaukee 
6. Jeffrey Smith, Waunakee 
7. Kim Gangon, Marenisco, MI 
8. Kerry Gangon, Marenisco, MI 
9. Extreme Homes, Arbor Vitae - $21,656.00
10. Jeffrey Smith, Waunakee - $42,481.00
11. Kim and Kerry Gangon, Marenisco, MI -$24,237.00
12. Friebert, Finerty and St. John, Milwaukee - $20,863.00
13. Falls Chiropractic (Hauser, Trigg and Lynn)
14. Deutsch Bank, Santa Ana, CA - foreclosure
15. Extreme Homes, Arbor Vitae - foreclosure
16. Wells Fargo, Simi Valley, CA - foreclosure
17. Westridge Realty, Waukesha
18. Westridge Investments, Waukesha
19. Don Hike, Menomonee Falls
20. Jane Hike, Menomonee Falls 
21. Department of Revenue WI - $2,539.00 (delinquent taxes)
22. Department of Revenue WI - $22,549.00 (delinquent taxes)
23. Department of Revenue WI - $31,254.00 (delinquent taxes)
24. Dr. John Riesch, Germantown - First National Bank, Manitowoc - foreclosure   

This is a very sad situation and unfortunate for everyone involved.

It is hoped that Jeff Stadelmann will recover from this after justice and restitution are done.

This is, however, news and it needs to be reported.

Unfortunately, the local newspapers have all but looked the other way. 

Let's hope this story will help others to come forward for help from the authorities.

Village President Leaving Position at Medical Associates

The Vanguard has learned that Village President Randy Newman will no longer be in his current position with Medical Associates effective January 2010.

Readers of The Vanguard have confirmed that Newman recently sent an email to employees informing them of his imminent departure.

The Village President would not respond to an email sent to him asking for confirmation of his no longer being with Medical Associates effective January 2010 or what his future employment possibilities would be or are for him.

The Vanguard  has also learned that a number of Medical Associates Employees have lost their jobs with the merger/acquisition of Medical Associates and Pro Health Care and apparently the Village President is part of that effort of the two firms.