RANDA'S REMANDER: SCHOOL DISTRICTS' SUIT BACK TO STATE COURT

Move Seen as Victory for Taxpayers in Five Districts;
Setback for Stifel Nicolaus and Royal Bank of Canada

Special to the Readers of Milwaukeeworld.com

By Michael Horne

And The Milwaukee World Hound Dog Team

The lawsuit of five Wisconsin school districts against Stifel Nicolaus & Company and the Royal Bank of Canada alleging a $200 million fraud in a scheme to fund employees' Other Post-Employment Benefits [OPEB] has been remanded to State court by the order of Hon. Rudolph T. Randa, Chief Judge of the United States District Court for the Eastern District of Wisconsin.
The judge issued the Decision and Order [pdf below] today, Friday, April 10th, 2009. The move to federal court had been sought by Stifel Nicolaus on the grounds that it was not a Wisconsin corporation, that its CFO, James M. Zemlyak, also a defendant in the suit, is likewise a Missouri resident, and that the complaint presented issues that could only be adjudicated in federal court.
Plaintiffs argued there was no federal question involved, and said Zemlyak was indeed a Wisconsin resident. The decision goes into a remarkable amount of detail to explain why that is. However, a $1 million mortgage on a "primary residence," a Wisconsin drivers license issued to Zemlyak, and four automobiles registered in his name here tended to support plaintiffs' contention, even as the judge noted the difficulty of "pinning down a financially-advantaged individual's domicile."
"The court finds that Zemlyak is a citizen of Wisconsin for jurisdictional purposed," Randa ruled, adding, "the court also finds that plaintiffs' third party beneficiary claim does not arise under the exclusive jurisdiction of the Exchange Act and it does not present a substantial federal question. Therefore, plaintiffs' motion for remand is granted."
This is considered a victory for the plaintiffs, and a setback for Stifel Nicolaus in a case that has received national and international attention, most recently in a segment last Saturday on ABC World News Tonight.
For more information and an exhaustive datamine on the case visit www.schoollawsuitfacts.com.

090410.School Lawsuit Case Remand to State Court.pdf

WITH MANIAN'S TERM UP, TWO NAMES FORWARDED FOR GAB POST

A Curious Public Wonders

Will it be Barland?

or Vocke?

Special to the Readers of Milwaukeeworld.com

By Michael Horne

And The Milwaukee World Hound Dog Team

Former Milwaukee County Circuit Court Judge Victor Manian [Marquette U ‘60] will leave the Wisconsin Government Accountability Board next month when his term expires. A nominating committee composed of four Appeals Court judges forwarded two names to Governor James E. Doyle to replace him.

Doyle will choose either Thomas H. Barland [U Wisconsin ‘56] of Eau Claire County or Timothy Vocke [U Wisconsin ‘73] of Vilas County, it was announced today, Thursday, April 9^th 2009.

Both are retired elected judges, as are all six members of the board, as is required by law. The nominee selected by Doyle must receive the approval of two-thirds of the members of the Senate. Board members serve staggered, six-year terms. Manian is the first member to leave the board, created in 2007.

At its most recent meeting, held over two days from March 30-31^st, 2009, members voted on Rule 6.05 mandating a standardized system for electronic filing, generally required for all candidates with over $20,000 in campaign activity. Apparently folks were entering their data in incompatible formats. [See p. 146 of the 232 page agenda.]

Spokesperson Kyle Richmond says the board will allow paper backups of electronically filed campaign finance reports until the systems can be coordinated. Some candidates have complained of difficulties with the state’s electronic filing website.

Well, now that we know the state is serious about requiring electronic filing in a timely, accessible manner, as required by Federal government regulations since January 1^st, 2001, perhaps we shall examine how other governmental units in milwaukeeworld deal with this critical issue after the Hound Dog does a bit more digging.

WALKER'S PAEAN TO LINCOLN LACKS GREAT EMANCIPATOR'S TOUCH

Riddled with Misspellings,
Cliches McKinley Would Have Found Trite
Walker's Post calls Lincoln "a Current Hot Commodity."

Special to the Readers of Milwaukeeworld

By Michael Horne

And The Milwaukee World Hound Dog Team

The world will little note nor long remember what Scott Walker says in his "Reclaiming Lincoln" address published in "The Inside Scoop."
Although the Milwaukee County Executive and the 16th president share something in common -- (it turns out to be Republican Party membership) -- Walker's tribute shows some glaring differences between the Wonder from Wauwatosa and the Great Emancipator.

For example, Lincoln could think logically and write coherently. Walker cannot.

Following are excerpts from Walker's Tuesday, April 7th, 2009 posting explaining why "we should all take the opportunity to admire and reflect upon Lincoln...":

"It is because Lincoln was a great Man and Great President that makes him such a current hot commodity, suprisingly among Barrack (sic) Obama and his Democrat (sic) Party."

ALLEGES MEDIA COVER UP OF LINCOLN'S REPUBLICAN PARTY CONNECTION

"Both the Democrats and the mainstream media are attempting to cover up the most important Lincoln ... Lincoln the Republican. It is time for Republicans to reclaim Lincoln from the Democrats."

WALKER ON GETTYSBURG ADDRESS : "NOT JUST LIP SERVICE"

Walker the historian gives us a comment on Lincoln's most famous speech, and misspells a great man's name twice in the process:

"At (sic) his Gettysburg Address, Lincoln famously said, 'Four score and seven years ago our fathers brought forth on this continent, a new nation, conceived in Liberty, and dedicated to the proposition that all men are created equal' This was not just lip service, as evidenced from the words of contemporaries like Frederick Douglas (sic), former slave and early civil rights leader. Douglas (sic) said Lincoln was 'the first great man that I talked with in the United States freely who in no single instance reminded me of the difference between himself and myself, of the difference of color.'"

BUT WAIT, THERE'S MORE!

Walker's screed against the Democrats, disguised as a tribute to Lincoln, goes on to say, "This sediment (sic) that all men are is equal is evidenced in the Republican Party's current platform of equal taxes on all, and opportunity for all regardless of race, gender, or age ... Contrast that with the tenants (sic) of the (sic) Barack Obama and the Democrat (sic) party ... "

In conclusion, Walker goes on to tell us "America's Dairyland is blessed to have young republican leaders who share Lincoln's beliefs, like Congressman Paul Ryan, Attorney General JB Van Hollen, and the Fitzgerald brothers."

It is only out of undue modesty that Walker fails to include himself among these Men for the Ages.

TWO PLEA GUILTY HERE IN $250MM IOS COUPON FRAUD

Special to the Readers of Milwaukeeworld.com

By Michael Horne

And The Milwaukee World Hound Dog Team


Two plant managers indicted in the International Outsourcing Services (IOS) $250 million coupon fraud case pleaded guilty in the United States District Court for the Eastern District of Wisconsin yesterday, Tuesday, April 7th, 2009, according to Bud Miller of the Coupon Information Corporation (CIC), an industry trade group.
Ovidio H. Enriquez and David J. Howard were two of the defendants charged in a 27-count indictment in the scam. They will be sentenced later.

Although the case included nationwide and international corporations and acts, the initial investigation took place in Milwaukee by FBI Special Agent Steve Vitale, U.S. Postal Inspector Jim Murphy, and was prosecuted by Assistant U.S. Attorneys Stephen Ingraham and Rick Frohling.

Co-Defendants also charged in the fraud include:
Thomas “Chris” Balsiger-IOS Chief Operating Officer, President, and later, CEO
Bruce A. Furr-IOS Chairman of the Board and CEO
Steven A. Furr – IOS Exec VP, board member, President of IOS’s North American Operations
Lance A. Furr – IOS Vice President, board member, and CFO
William L. Babler – IOS CFO
James C. Currey – President of Currey, Adkins, IOS Advisory Board
Howard R. McKay - IOS Consultant, Sales Manager and IOS Advisory Board
Daxesh V. Patel – President of Riya Coupon Services, LLC
Bharatkumar K. Patel – Vice President of Riya Coupon Services, LLC

Their cases remain, including a request to move the trial from Milwaukee.

IOS was originally charged in the scheme, but the company was removed from the case and later sold.


Indictment in Case 2:07cr-0057

ios plantmanagers plead guilty in $250 million coupon fraud.zip

POLSKY APPOINTED CSMC RECEIVER; CASE VS JUNGEN DROPPED

By Michael Horne

Richard Polsky has been appointed the receiver of Central States Mortgage Company [CSMC] in an order by Judge John Di Motto issued in his courthouse today, Tuesday, April 7th, 2009. Also, CSMC attorneys withdrew their $13 million suit [Milwaukee County 09CV001723] against company founder Richard Jungen.

Here is the Notice of Dismissal

Here is Journal Sentinel coverage of the case.

ELECTION PARTIES TONIGHT

RAISE A CHEER FOR DEMOCRACY
IN A LICENSED, CLASS "B" ESTABLISHMENT TONIGHT

[To the Civic-Minded Reader: The wines of victory and the vinegars of defeat will be poured tonight. Where, and for whom, is still a matter for the future, and the good voters of Milwaukee, to decide. Polls close at 8 p.m.
In the spirit of potential celebration, or orderly, gracious defeat, the four local candidates for two open judgeships in Milwaukee County have announced the intended locations for their post-election parties, victory or not. We list them here for the convenience of the reader. Remember, there was a time not long ago when taverns were closed on Election Day.--Ed. + Hound Dog Team]

By Michael Horne

Ellen Brostrom says she'll be holding her shindig at Mimma's Cafe, 1307 E. Brady St., a fine place for a quality party. I voted for her without knowing where she would be holding her party (quite a departure form the norm), and now I am even more enthusiastic about Atty. Brostrom's candidacy. She'll probably draw a nice class of people, since her opponent brands her as a corporate lawyer! Or, she might draw a group of ne'er-do-wells, since her opponent also says she coddles criminals! We will just have to see.
Brostrom's opponent Christopher Lipscomb will be gigging at Mama Mia's, 2615 W. Silver Spring Dr., in his neighborhood. He is offering beer, soda and free pizza & garlic bread. Look for one of Milwaukee's few remaining cartop campaign signs and a license plate reading "Apostat8."
J.D. Watts, the only candidate to have his own restaurant, is nonetheless passing on the family Tea Shop for his party, and will hunker down with his supporters at Conejito's Place, 539 W. Virginia St.
Daniel Gabler plans to hold his event at Ricardo's Riverfront Pizzeria Bar and Grill, 509 E. Erie St. That's also a nice place.
I'll see you somewhere!

KOHL ON UNCLAIMED PROPERTY LIST

SENATOR JOINS ONE MILLION OTHERS IN STATE
TREASURER SASS HOLDS $352 MILLION
IS SOME OF IT YOURS?

Special to the Readers of Milwaukeeworld

By Michael Horne

And The Milwaukee World Hound Dog Team

Gosh! You get elected to the U.S. Senate, put hundreds of millions of dollars into a blind trust, and then what? Your name winds up on the Unclaimed Property List for the state of Wisconsin. For this we pay our trustees the big money?
Fortunately congress is on recess, so Sen. Herb Kohl can jump on the Badger Bus and claim his monies from treasurer Dawn Marie Sass at her Madison office.
Or, he and the thousands of others similarly situated can log onto the treasurer's Unclaimed Property Search to see if they, or their friends, have money coming. (Herb's is from Medco Health Solutions.) They are among the over 1 million people and businesses with over $352 million in unclaimed property.
The senior senator from Wisconsin joins Kohl's, his namesake corporation on the list of Milwaukee County claimants, published in a 20-page special section of the Sunday, April 5th, 2009 Milwaukee Journal Sentinel, a very welcome bonanza for the struggling paper.
Unclaimed accounts are listed for a range of companies that should have known better than to leave money laying around, including Bank One, BNY Clearing, Washington Mutual, Wachovia, Strong Funds and other financial powerhouses, including some that haven't gone out of business, like M&I and NML.
Even attorneys like Michael Hupy & Associates, who promise to get you every penny of the money you've got coming to you, have left a bit on the treasurer's table (Accts: 1703851, 1656512 and 2052499).
The Milwaukee Brewers have got money coming, as do the Milwaukee Water Works, the City of Milwaukee, the restaurant at the County Zoo, the Milwaukee School Board, and "Milw Treasurer Whittow" (probably one of Wayne's pension or social security checks).
Even such old-timey names as Vogel, Van Dyke and Uihlein are on the list. These are the people who have people to take care of these things! What has happened to this community's trust and estate professionals that they allow old money to be scattered about like so much tinsel?
Why not ask Account holder #1602703, Mr. Robert A. Uihlein? [Yes. We know he's dead; rhetorical question.--Ed.]
According to the records of the treasurer, you can find Mr. Uihlein at 777 E. Winslow Avenue, Suite 2395. Oh, please! Everybody knows there is no building that tall on Winslow Avenue. Must be a wrong address.

ST. FRANCIS BREWPUB OPENS

Special to the Readers of Milwaukeeworld

By Michael Horne

And The Milwaukee World Hound Dog Team

The St. Francis Brewery and Restaurant is open for business, according to Cudahy attorney Rich Michalski, an investor in the project. The brewpub, at 3825 S. Kinnickinnic Avenue, is in a new building constructed on the northwest corner of E. Howard Avenue. The head brewer is Al Bunde, late of Stout Brothers in Milwaukee. The restaurant serves luncheon and dinner, according to Michalski.
[Update: The Milwaukee Journal Sentinel has made note of the opening subsequent to the initial posting of this item.--Ed]