Dennis Troha, a major Gov. Jim Doyle campaign contributor, faces up to 25 years in prison and $500,000 in fines stemming from several felony counts that claim he illegally donated large sums of cash to campaigns.
On Thursday, U.S. Attorney Steve Biskupic charged Troha, a Kenosha, Wis. businessman worth $33.7 million, of funneling money to his family members from a company under his control, Johnson Houston Partners. The family members then wrote checks to political campaigns—the amounts identical to the loans from the company.
Troha was part of a business group vying to build an $808 million Menominee, Wis. casino on a defunct dog-racing track in Kenosha. Troha would have made about $88 million on the project.
Several Wisconsin politicians, including Gov. Jim Doyle and U.S. Rep. Paul Ryan, R-Janesville, were benefactors of Troha's alleged dirty money. The Troha family contributed around $200,000 between Doyle's 2002 and 2006 elections. Ryan's campaign for Congress received nearly $15,000 from Troha family members.
As governor, Doyle has veto power for any off-reservation casino construction. Ryan, whose district includes Kenosha, supported the casino plans. Members of Troha's business group say they will continue to push for construction of the casino, which would be operated by the Menominee tribe.
The second charge accuses Troha of lying to FBI investigators about ties between Johnson Houston partners and the more than $100,000 Troha family members contributed to political campaigns.
Troha's attorney, Franklyn Gimbel, maintains the monetary transactions and ensuing contributions were entirely lawful.
""All the political contributions cited in the indictment were made freely, voluntarily and without any personal or business expectation,"" Gimbel said in a statement.
Ryan said the money he received from Troha was clean.
""After reviewing the indictment, it is clear that none of the Troha family's contributions to the Ryan For Congress Campaign are in legal question at this time. If that fact should change, I'll comply with whatever remedial action is appropriate,"" Ryan said in a statement.
Doyle awaits further word from the Troha investigation before acting on the issue.
""The people who made the contributions argue strenuously that the contributions were legitimate. We will watch closely as this matter plays out in a court of law, and should the allegations be proven true, my campaign will immediately return the money,"" Doyle said in a statement.
The Potowatomi Tribe, who operates an off-reservation casino in Milwaukee, sees a Menominee Tribe-run casino in Kenosha as counterproductive to their business interests.
Because Doyle received money from both sides, Wisconsin Democracy Campaign Executive Director Mike McCabe said any decision he makes on the future of the casino will appear to be fueled by monetary incentives.
""Either way, it's going to appear that he is helping out major donors,"" McCabe said.
McCabe said he expects the investigation to be long-winded and telling of corruption in state politics.
""I wouldn't be at all surprised if we'll see more indictments down the road,"" he said.
Investigators are also looking into $20,000 Kathleen Falk received from Troha in her 2006 bid for Wisconsin attorney general.
