OSHKOSH, WI (WTAQ-WLUK) – A pair of former University of Wisconsin-Oshkosh leaders have been fined for misconduct in office, but will not spend any time behind bars.
As part of a plea deal, former chancellor Richard Wells and former vice-chancellor Thomas Sonnleitner each pleaded guilty to one count. Four other counts were dismissed against each man.
The state filed criminal charges after its investigation into the financial relationship between UW-Oshkosh and the private non-profit UW-Oshkosh Foundation. Wells and Sonnleitner were convicted of making financial guarantees they didn’t have the authority to make.
Between 2012 and 2016 the foundation set up five limited liability companies to fund, among other things, the development of the Oshkosh Sports Complex that includes Titan Stadium and the Alumni Welcome and Conference Center.
But according to court documents, Wells and Sonnleitner in their roles with the university “knowingly and without lawful authority signed loan guarantees on behalf of the UW-Oshkosh Foundation.”
When the foundation couldn’t make loan payments, that ultimately created millions of dollars in debt for state taxpayers. A federal bankruptcy judge ruled UWO must pay $15 million to cover the debts.
Neither Wells nor Sonnleitner was accused of personally profiting in any way.
Wells and Sonnleitner were each fined $5,000 and ordered to pay $70,455 in restorations over the next two years.
Current chancellor Andrew Leavitt released this statement after the convictions:
“Today marks the end of a long, difficult chapter for the University of Wisconsin Oshkosh. Everyone is moving forward.
I want to thank the many leaders, volunteers and supporters in this region, throughout the UW System and beyond who have embodied our mission and helped UWO’s resilient students, faculty, staff members and alumni set the stage for a stronger future.
The foundations of this three-campus university join us in engaging donors and partners with renewed purpose and hope. We will grow life-changing student scholarships, develop innovative academic programs, enhance students’ experiences and advance with confidence into the institution’s next 150 years.”
UW System Board of Regents president Andrew Petersen released this statement:
“Today’s guilty pleas are the result of a three-year process to bring about public accountability, while affording UW Oshkosh the ability to renew its focus on its students and mission. We are gratified that DOJ and UW System’s efforts resulted in restitution and acknowledgment of misconduct in office by former UW Oshkosh officials.”
