OSHKOSH, WI (WTAQ-WLUK) – The Legislature’s Joint Finance Committee Wednesday approved a settlement between the UW Board of Regents and former UW-Oshkosh officials, Richard Wells and Thomas Sonnleitner.
The civil lawsuit was one aspect of the cases against the former chancellor and vice chancellor regarding the financial relationship between UW-Oshkosh and the private non-profit UW-Oshkosh Foundation.
The settlement will not be final – and the documents released – until it is filed with the Dane County court handling the case, according to Dept. of Justice spokesperson. However, the settlement is a reflection of the penalties in criminal court and does not include any additional penalties or settlements.
Wells and Sonnleitner were convicted in criminal court of making financial guarantees they didn’t have the authority to make. Wells and Sonnleitner were each fined $5,000 and ordered to pay $70,455 in restitution over the next two years at their Jan. 15 sentencing.
“My client and I are hopeful that this means that a final resolution of remaining matters is one step closer,” said Raymond Dall’Osto, Wells’ attorney, in an email to Fox 11.
Between 2012 and 2016 the foundation set up five limited liability companies to fund five different projects. 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.
The five projects are: Best Western Premier Waterfront Hotel and Conference Center, Oshkosh Sports Complex, Witzel Dry Fermentation Anaerobic Biodigester, Rosendale Dairy Biodigester, and the Alumni Welcome and Conference Center.
