Former Milwaukee employees plead guilty to stealing city money, gambling at casino

Former Milwaukee employees plead guilty to stealing city money, gambling at casino

A pair of former city of Milwaukee Department of Public Works employees pleaded guilty to stealing from sales of city equipment, according to federal court records.

A pair of former city of Milwaukee Department of Public Works employees pleaded guilty to stealing from sales of city equipment, according to federal court records. The pair, a plea agreement shows, gambled excessively at Potawatomi Casino with embezzled money. Kyle Hepp and Kelly Whitmore-Behling pleaded guilty to conspiracy to commit theft from a federally funded program and theft from a federally funded program. The pair each face up to 15 years in prison and must pay $357,511 in restitution. Records show that from June 2022 to September 2022, the pair sold city equipment and vehicles to their friends and family members for “far less than fair market value.” Then, they collected cash for the sales and converted only part of that cash into money orders. Then, the pair deposited the money orders to the city and kept the excess cash, records show. Court records show they created fake bills of sale to deposit the transactions to the city. Records show that the pair embezzled well over $100,000 together.Milwaukee Department of Public Works says workers caught the scheme and alerted police. The pair no longer work for DPW, according to the mayor’s office. Both Mayor Cavalier Johnson’s office and Milwaukee DPW declined to comment on the pending litigation.”We cannot talk about a pending court case, but we did report this matter to law enforcement and we continue to work vigilantly to prevent theft and protect taxpayer dollars,” Milwaukee DPW spokesperson Tiffany Shepherd said via email Tuesday.In June 2022, Hepp would reach out to a person not employed by the city who was interested in buying and reselling equipment and vehicles. Starting around that time, the majority of DPW’s sales went to that person, a plea agreement states. City records, it states, show that person bought at least 74 items from DPW. On multiple weekend days, the pair removed multiple loads of equipment and that person drove them away, records show. After buying the equipment, that person would typically resell it, records show, for larger amounts. The third person in the scheme has not been named in court records. In total, the city received roughly $35,350 from the person and other buyers who worked with Hepp and Whitmore-Behling. Records show that those buyers paid roughly $136,000 to Hepp and Behling for the city equipment. The city estimates the fair market value for everything was roughly $392,861, records show.The pair are charged in federal court, records show, because the city received more than $10,000 in federal grants, contracts, subsidies and more. Phone calls to Hepp and Whitmore-Behling’s attorneys were not returned as of 4 p.m. Tuesday. 12 News also asked Milwaukee County District Attorney’s office if they will face state charges, the DA’s office has not responded.

A pair of former city of Milwaukee Department of Public Works employees pleaded guilty to stealing from sales of city equipment, according to federal court records. The pair, a plea agreement shows, gambled excessively at Potawatomi Casino with embezzled money.

Kyle Hepp and Kelly Whitmore-Behling pleaded guilty to conspiracy to commit theft from a federally funded program and theft from a federally funded program. The pair each face up to 15 years in prison and must pay $357,511 in restitution.

Records show that from June 2022 to September 2022, the pair sold city equipment and vehicles to their friends and family members for “far less than fair market value.” Then, they collected cash for the sales and converted only part of that cash into money orders. Then, the pair deposited the money orders to the city and kept the excess cash, records show. Court records show they created fake bills of sale to deposit the transactions to the city. Records show that the pair embezzled well over $100,000 together.

Milwaukee Department of Public Works says workers caught the scheme and alerted police. The pair no longer work for DPW, according to the mayor’s office. Both Mayor Cavalier Johnson’s office and Milwaukee DPW declined to comment on the pending litigation.

“We cannot talk about a pending court case, but we did report this matter to law enforcement and we continue to work vigilantly to prevent theft and protect taxpayer dollars,” Milwaukee DPW spokesperson Tiffany Shepherd said via email Tuesday.

In June 2022, Hepp would reach out to a person not employed by the city who was interested in buying and reselling equipment and vehicles. Starting around that time, the majority of DPW’s sales went to that person, a plea agreement states. City records, it states, show that person bought at least 74 items from DPW.

On multiple weekend days, the pair removed multiple loads of equipment and that person drove them away, records show. After buying the equipment, that person would typically resell it, records show, for larger amounts. The third person in the scheme has not been named in court records.

In total, the city received roughly $35,350 from the person and other buyers who worked with Hepp and Whitmore-Behling. Records show that those buyers paid roughly $136,000 to Hepp and Behling for the city equipment. The city estimates the fair market value for everything was roughly $392,861, records show.

The pair are charged in federal court, records show, because the city received more than $10,000 in federal grants, contracts, subsidies and more.

Phone calls to Hepp and Whitmore-Behling’s attorneys were not returned as of 4 p.m. Tuesday. 12 News also asked Milwaukee County District Attorney’s office if they will face state charges, the DA’s office has not responded.


Source link

Check Also

Trump targets criminal trials on the campaign trail ahead of NY case

SCHNECKSVILLE, Pa. – On a chilly and windswept weekend night in rural Pennsylvania, former President …

Leave a Reply

Your email address will not be published. Required fields are marked *