With Milwaukee Alderman Jeff Pawlinksi’s resignation and plea agreement wrapped up Tuesday, U.S. Attorney Steven Biskupic said it was likely there would be no more charges in the federal corruption probe of Milwaukee City Hall.

There have been constant rumors in recent months that other aldermen would be charged, but Biskupic said he did not expect to issue any additional federal indictments.

“We still have some loose ends to tie up,” said Biskupic, who has indicted three Milwaukee aldermen as part of the probe. “We are looking at a number of things, but the people we have been talking to really don’t have to worry anymore.”

Pawlinski, who faces eight years in prison and up to a $30,000 fine, is the second alderman to resign in recent months. Former Alderman Rosa Cameron resigned as part of a plea agreement with federal prosecutors in which she plead guilty to misappropriating $28,900 in federal funds. She is now serving eight months in prison.

Biskupic said he is focusing efforts on preparing for the trial of Alderman Paul Henningsen, who was indicted on one count of extortion and four counts of mail fraud in January. Federal prosecutors allege he shook down developers of a housing project, embezzled money from his campaign and falsified campaign finance reports.

“That will be next test for the federal government,” he said. “I’m satisfied with the results so far as our charges in two cases have survived the challenges of good defense attorneys.” In the case of Pawlinski, the 36-year-old alderman who had been on the council for seven years, plead not guilty to the charges in March. However, as Milwaukeeworld.com reported Monday, he decided in the past few weeks that he could not survive the financial hardship that continuing to fight the charges would cause.

He agreed to plead guilty to one charge of federal mail fraud and to admit that he misused his “campaign account for personal and living expenses.” Several political sources said Pawlinski apparently used the money to fund a lucrative lifestyle.

“He liked to live life fast and loose, and it caught up with him,” said a City Hall source.

Pawlinski fought back tears as he read his resignation statement on the floor of the Common Council during its regular meeting Tuesday.

“During the last several weeks I have spent considerable time consulting with my attorney, my family and close friends – exploring the legal, political and personal predicament I created for myself,” he said. “And the undeniable fact is that my recent conduct has significant consequences. Simply stated, my conduct was illegal.”

U.S. District Judge Charles N. Clevert is not bound by the plea agreement and can choose to sentence Pawlinski to more or less prison time. Clevert also will likely issue a fine of between $3,000 and $30,000. In addition, Pawlinski will be required to pay back the money he took from his campaign account, according to the plea agreement.

In exchange for the guilty plea, prosecutors plan to dismiss two additional mail fraud charges against Pawlinski. According to the plea agreement, Pawlinski admits defrauding his supporters out of $40,000 by sponsoring campaign fund-raisers, then keeping the money for himself over the past three years.

Pawlinski deposited some campaign checks into his personal account and withdrew cash from the campaign account for personal expenses, meaning he knew he filed false campaign finance reports, according to the plea agreement. The reports did not reflect the money he used for noncampaign purposes. The reports also listed erroneous balances. For example, as of July 2002, Pawlinski represented that he had $35,063 in his campaign account, when the actual balance was negative 24 cents.

Pawlinski also admits to taking contributions from prohibited sources, such as corporate entities, and to taking contributions of more than the legal limit of $375 from any one source, according to the plea agreement.

In his statement, Pawlinski asked his fellow aldermen and constituents to forgive him.

“I hope at some point you’ll see fit to forgive me for disappointing you,” he said. “I’ll just ask you to remember the Catholic teaching I learned long ago: ‘Love the sinner, Hate the sin.’ I hope you believe that my troubles are not indicative of my true character, either as person or a professional.”

Aldermen were surprised and disappointed by Pawlinski’s plea agreement and decision to resign.

“It is a dark day at City Hall,” said Alderman Michael Murphy. Biskupic said he hoped the federal investigation, along with the state probe into misconduct in the State Legislature in Madison, would send a message to elected officials throughout the state.

“The message is clear when you look at all the investigations together – we are going to look at things and try to uncover activity that in the past was not examined closely,” he said.

Milwaukee Alderman Jeff Pawlinski, facing a federal indictment for allegedly defrauding his supporters of $40,000, will likely resign from the Milwaukee Common Council as part of a plea agreement with federal prosecutors.

Pawlinski, 36, who is in his second term as an alderman, could resign as early as Tuesday as part of the plea agreement with the U.S. Attorney’s office in Milwaukee. He would be the second alderman to resign in recent months as part of the federal corruption probe at Milwaukee City Hall.

A City Hall source said Pawlinski had informed Common Council President Marvin Pratt of his plans to resign and that Pratt had already begun discussing details of a special election for the 13th District seat, which covers a portion of Milwaukee’s south side.

Pawlinski did not return a telephone call seeking comment. U.S. Attorney Steven M. Biskupic could not be reached for comment.

Pawlinski was charged March 11 with three charges of federal mail fraud for allegedly diverting more than $40,000 in campaign funds for his personal use. After being charged, Pawlinski resigned as chairman of the Utilities and Licenses Committee, but vowed to stay on as an alderman and fight the charges.

The source said Pawlinski began negotiations on a plea agreement to avoid a hefty legal bill and because from the day he was charged, his attorney had disputed few of the facts in the federal case against him. However, Pawlinksi’s attorney argued federal law gives candidates broad leeway in the use of campaign funds.

“He decided to cut his losses before it really drained his pocket book,” the source said. “It was a tough decision, but one he felt he had to make.”

If convicted of all the charges, Pawlinski would have faced a maximum penalty of five years in prison and a fine of $250,000. It was not known Monday what his sentence would be.

The federal indictment charged that Pawlinski defrauded contributors by depositing contributions directly into his personal account; failed to report contributions he received; took contributions from prohibited sources and in excess of proscribed limited and routinely took cash from his campaign account using ATM withdrawals.

According to the indictment, Pawlinski, on a July 2002 campaign finance report, disclosed 44 campaign contributions, when he had actually received 92 contributions. He also allegedly reported he had a cash balance of $35,000 in his campaign account, when the actual balance was negative 24 cents.

Pawlinski would be the second alderman to resign in recent months. In 2002, Alderman Rose Cameron resigned as part of a plea agreement with federal prosecutors in which she pleaded guilty to misappropriating $28,900 in federal funds. She is now serving eight months in prison.

Alderman Paul Henningsen, who has served on the council for nearly 20 years, has also been indicted on one count of extortion and four counts of mail fraud in January. Federal prosecutors allege he shook down developers of a housing project, embezzled money from his campaign fund and falsified campaign finance reports.

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