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Saturday, May 28, 2022
As UW System tries to shake UW-Oshkosh lawsuit, federal judge won’t let them off

As the lawsuit between UW-Oshkosh's foundation and the UW System continues, taxpayers might still have to pay for the illegal real estate deals.

As UW System tries to shake UW-Oshkosh lawsuit, federal judge won’t let them off

Wisconsin taxpayers might still have to shell out millions of dollars to cover illegal real estate deals between UW-Oshkosh and its foundation after a ruling from a federal bankruptcy court last week.

In order to cover its debt with state dollars, the foundation is suing the UW System. The UW System is also involved in another lawsuit, suing a bank that financed one of the building projects.

Federal Bankruptcy Judge Susan Kelley denied the UW System’s request to dismiss or postpone the foundation’s claim Wednesday, leaving the door open for the possibility that taxpayers could foot the bill for the illicit deals.

This comes after the Wisconsin Department of Justice and UW System filed a civil lawsuit last January against three top officials at UW-Oshkosh for mishandling millions of dollars and making illegal financial transfers to the foundation.

In June, Audit Committee Chair Michael Greve announced that no state dollars would be spent on paying off the real estate debts of UW-Oshkosh’s Foundation. He said the use of state funds to aid the foundation in paying off its debts “would be inappropriate.” The foundation filed for Chapter 11 bankruptcy in August.

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