(Published Thursday, March 15, 2007 10:00:58 AM CST)
A d v e r t i s e m e n t
By Colin Fly Associated Press
MILWAUKEE - Kenosha millionaire businessman Dennis Troha pleaded not guilty on Wednesday to charges he lied to federal investigators and committed fraud in an effort to funnel more than $100,000 in illegal campaign donations to Gov. Jim Doyle.
Troha, 60, looked relaxed in a gray pinstriped suit that included gold cufflinks. He declined comment after a brief, 10-minute hearing.
If convicted, he faces up to 25 years in prison and a fine of up to $500,000.
His lawyer, Franklyn Gimbel, said he expects the case to go to trial.
"It's important that people not make false conclusions on this case because of an indictment," Gimbel said. "A grand jury would indict a ham sandwich if the U.S. Attorney asked for it."
Troha, who made his millions in the trucking industry, was Doyle's biggest supporter and along with family members donated $200,000 to the governor since 2002.
Until last month, Troha had been pushing for a new $808 million casino in Kenosha that would need Doyle's approval. Both Doyle and Troha have denied that the donations had anything to do with the casino proposal.
Troha announced he was pulling out of the casino deal six days before the indictment was announced. Gimbel said those two events were not related.
But U.S. Attorney Steve Biskupic's indictment said Troha concealed the true nature of more than $100,000 in transactions in his attempt to obtain an Indian gaming compact, and lied to the FBI about it.
Troha was released on a signature bond and U.S. Magistrate Patricia Gorence agreed with both sides' recommendation that due to the complexity of the case, it shouldn't be docketed for trial by June, as initially required by law. No future hearing was set.
Assistant U.S. Attorney Greg J. Haanstad said there were three banker boxes full of bank records, three boxes of applications regarding the casino project and a small number of FBI interview reports that would be part of evidence. Haanstad did not comment after the hearing.
"I want to know what is in those bank records," Gimbel said.
The indictment alleges that Troha gave "loans" to family members that were never repaid and that Troha's family members wrote checks for the governor's campaign with those funds, bypassing state election laws.
Troha was ordered to turn over his passport, but would be allowed to travel throughout the continental United States with minimal restrictions after both sides agreed that Troha had many financial and familial reasons that minimized his risk of fleeing.
When Troha removed himself from the casino project, he said he wanted to devote himself to other issues after years of involvement. His share of the casino project has been taken over by the Mohegan Tribe of Connecticut, which is working to build the casino with the Menominee Tribe in Wisconsin.
The project needs approval from the federal Bureau of Indian Affairs before Doyle considers giving it the final OK.
Between 2002 and 2006, Troha and 12 family members gave $200,000 directly to Doyle's campaign, money he used in his successful races for governor in 2002 and last year.
Troha and his relatives gave an additional $265,000 to the Democratic Governors Association, the federal account for the Wisconsin Democratic Party and Doyle's two inaugural balls.
State law limits any individual to $10,000 in donations for state and local races, which include the governor's race, or from giving money to others in order to make a donation.
Gimbel said the donations by Troha's family members are not related.
"They supported Governor Doyle as every American has a right to support candidates running for office that they agree with philosophically," Gimbel said. "He's been very generous with own children, and they've been successful in their own right."
