The Hearthstone Historic House Museum in Appleton, August 9, 2024. PC: Fox 11 Online
APPLETON, WI (WTAQ-WLUK) — Hearthstone Historic House Museum board president Antoinette Powell is addressing calls for her resignation after a six-year embezzlement scandal by its treasurer was uncovered last year.
What is the Hearthstone Museum?
The museum was built in 1882 and became a private nonprofit museum in 1986. The museum was originally a residence and was the first hydroelectric-powered home in the world.
It’s located along Memorial Drive (Highway 47) on a bluff overlooking the Fox River.
Funds were embezzled over six-year period
Former treasurer Steve Jahnke embezzled about $70,000 in museum funds for his personal use from 2019 to 2025, according to a criminal complaint. Jahnke admitted he “embezzled funds to pay for his own expenses,” the complaint states.
At the time, Jahnke, 67, was the only person with access to certain museum accounts and credit cards.
He has since resigned and faces up to 10 years in prison and a $25,000 fine, classified as a Class G felony.
Group calls for resignation of board, executive director
A group of museum supporters who chose to remain anonymous called for the resignation of the entire board and executive director in a statement late last month.
“When donors contribute to the museum, they reasonably expect leadership to be responsible stewards of those funds and to use them responsibly for their intended purposes,” said the statement. “When volunteers donate their time as docents or to support special events, we expect the revenue generated by those efforts to be protected — not misappropriated. At this point, we question why any donor would continue to financially support the Museum under current management”
The statement accused the board of the following:
- Not holding consistent meetings
- Not producing consistent annual reports
- Not providing financial reports
- Not communicating with the Friends of Hearthstone group
Board president Antoinette Powell addressed these concerns and whether those accusations are true.
“I did [communicate] but there wasn’t any answer that I could give that was satisfying to these people, so I just stopped responding,” said Powell. “As for the other accusations, we have had annual meetings — the board meets. We do have financial statements that are put out, but probably not in the format that these people want or expect. But we are doing our due diligence as a nonprofit organization.”
Executive director George Schroeder declined to be interviewed.
Powell said she has no plans to step down, adding that four main consultants — an independent accountant, the police department, legal consults and liability insurance — all say they followed proper procedure after recognizing what was going on last year. All four board members plus the executive director also now have access to all financial records and accounts.
“The fact that we did identify what was going on, and we took steps to correct it and not let it happen again,” said Powell when asked why she feels the board should continue to lead the museum. “We’re all very dedicated to the success of the house.”
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