Source: http://defensewisconsin.com/2013/11/wisconsin-prosecutors-on-the-watch-for-misappropriated-grant-funding/
Timestamp: 2019-04-19 14:42:52+00:00

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Wisconsin and federal law enforcement are on the watch for misappropriation of government and non-profit funds. What could appear to be nefarious conduct – misusing funds trusted to an executive or professional could also be others’ misunderstanding about the purpose of a transfer of funds or the awarding of a contract.
A common federal statute used to pursue government and non-profit individuals is the “theft or bribery concerning programs receiving Federal funds,” law codified as 18 USC § 666. The statute provides a broad tool for federal law enforcement to pursue individuals accused of misappropriating funds or wrongly diverting a valuable government or federally-funded non-profit contract. The statute is used for two general misappropriation situations – more or less straight-forward theft – an executive or professional in the government or non-profit organization directs money to themselves, or a co-conspirator (friend or relative).
The second method involves the government or non-profit executive asking a potential recipient of a grant or valuable contract for a reward or kickback in exchange for the grant or contract.
Federal prosecutors in Wisconsin have used 18 USC § 666 effectively. In 2007, prosecutors in Wisconsin’s Eastern District indicted a local real estate broker whose brokerage had been hired by the State of Wisconsin to sell a state-owned office building. The broker asked another broker for a potential buyer for a kickback to have that buyer’s bid given better consideration. This violated 18 USC § 666, even though the broker was not employed by the government, because the broker was acting as the agent for the state government which received federal funds. U.S. v. Lupton, 620 F.3d 790 (2010).
There are limits to the statute. Not everyone who benefits from or solicits a government grant or contract is an “agent” of the government or benefiting non-profit. In 2007 in the Eastern District of Wisconsin, an indictment was dismissed based on federal prosecutor’s overreach on this issue – where a federal block grant was misdirected. While there was clear fraud at issue – the indicted individual was found to not have agency with the City of Milwaukee which administered the grant, therefore relieving the individual of liability under the statute. U.S. v. Abu-Shawish, 507 F.3d 550 (2007).
In addition to a federal indictment, a State of Wisconsin government employee or official also has liability to in Wisconsin state courts for misappropriating funds entrusted to him or her under Wis. Stat. § 946.12.
If you have been accused of misappropriating funds in a government or non-profit setting, you need to call an experienced criminal defense attorney immediately. Attorneys Gil Urfer and Dan Adams have the necessary experience and knowledge to aid those Wisconsin executives and professions who may have potential criminal liability for federal and Wisconsin misconduct offenses and other white collar offenses.

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