Milwaukee Journal Sentinel

Ex-Register of Deeds La Fave keeps pension

Ordinance to pull benefits from felons did not pass

- Daniel Bice Milwaukee Journal Sentinel USA TODAY NETWORK – WIS.

Former Milwaukee County Register of Deeds John La Fave has now pleaded guilty to one felony count for actions he took while in public office.

But the veteran Democratic politician need not worry about his Milwaukee County pension. Officials confirmed this week that he will continue to draw his monthly retirement check of $1,975.43 even if he lands behind bars. “La Fave was elected, swore an oath to uphold the law, then broke the law,” said former Milwaukee County Executive Chris Abele, who tried unsuccessf­ully to strip felons from receiving county pensions. “And the same public, who paid his salary and will continue to pay his pension, is out (substantia­l funds).

“I think the public deserves better than that.”

On Friday, La Fave pleaded guilty to a federal felony count of wire fraud for engineerin­g a $2.3 million false invoice scheme with a county contractor.

La Fave, 71, entered the guilty plea before U.S. Magistrate Judge Stephen C. Dries as part of a deal with federal prosecutor­s. Dries said he will recommend that U.S. District Judge J.P. Stadtmuell­er accept the guilty plea and sentence La Fave.

“I am pleading guilty because I’m guilty of what is described here in the plea agreement,” a somber La Fave said from his Iowa home during the 20-minute court hearing held by videoconfe­rence.

Under the 12-page plea agreement, which La Fave signed last month, prosecutor­s will recommend that he be sentenced from 10 to 16 months behind bars and pay restitutio­n of $89,000. A date for his sentencing has yet to be set.

The maximum penalty for his offense is 20 years in prison, a $250,000 fine and three years of supervised release.

“I understand,” La Fave — in a gray suit and Wisconsin Badgers tie — said

repeatedly as Dries laid out the implicatio­ns of his felony plea.

According to the federal filings, La Fave had a county contractor, Superior Support Resources Inc. of Brookfield (identified as Business A in the court records), submit false invoices for work it didn’t do but for which the county would pay.

Superior Support then set aside those county funds and used them at La Fave’s direction to pay third-party vendors for the work that Superior Support was supposed to have done. Those third-party vendors were not authorized to be paid by the county, and some were even employees of the Milwaukee County Register of Deeds Office.

In all, the company submitted false invoices for more than $2.3 million between 2011 and 2017, according to the charging documents.

The scheme allowed La Fave to create a personal slush fund so he could pay vendors of his choosing without having to abide by county rules. It does not appear that he pocketed any of these funds.

His conviction comes nearly 1 1⁄2 years after agents with the Federal Bureau of Investigat­ion and the Milwaukee County District Attorney’s Office raided La Fave’s office, seizing a number of computers and documents related to various county contractor­s.

The raid was a surprise to nearly everyone at the Milwaukee County Courthouse given La Fave’s low-key manner and his agency’s second-tier status in county government. The agency is responsibl­e for keeping real estate documents and certified copies of birth, death and marriage records.

La Fave, who is probably best known for his advocacy of transcende­ntal meditation, was the county’s register of deeds for 16 years, running unopposed in his last four elections. He previously served as a Democratic legislator for 10 years.

It is not known how much of a pension La Fave receives from the state, which does not make public the amounts paid individual retirees.

Mark Lamkins, spokesman for the state Department of Employee Trust Funds, said the retirees do not have to forfeit their state pensions if they are convicted of criminal charges. But he said a new state law allows his agency to withhold money from a retiree’s pension if ordered to do so by a court’s restitutio­n order.

County records show La Fave just recently began receiving an annual pension of $23,705.

Erika Bronikowsk­i, director of retirement plan services for the county, said La Fave’s felony conviction would not affect his retirement benefits, even if the charges had to do with his job with the county.

“By reaching retirement eligibilit­y in active service and completing a normal retirement, Mr. La Fave retired under Milwaukee County Ordinance Chapter 201.24 4.1, which does not provide for benefit forfeiture,” Bronikowsk­i wrote by email.

It wasn’t always so obvious.

In 2016, the Pension Board revoked the pension of a former Milwaukee County employee convicted of two felony counts of misconduct in public office. But a state Court of Appeals later reversed that decision, calling it “arbitrary and unreasonab­le.”

In the meantime, Abele, who retired earlier this year, proposed an ordinance that would terminate pension benefits to Milwaukee County employees convicted of a felony. But the County Board failed to pass his retirement reform plan.

Which means La Fave — and others like him — will keep their pensions no matter how much time they spend in prison.

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