(Published Monday, March 19, 2007 10:14:45 AM CST)
A d v e r t i s e m e n t
Associated Press
MILWAUKEE - Federal investigators have opened another investigation into Dennis Troha, the Kenosha businessman who already faces federal charges in connection with campaign donations to Wisconsin Gov. Jim Doyle.
The latest investigation involves a deal in which Troha will be paid by his former trucking company, JHT Holdings, through 2010, because Congress passed legislation helping the company, U.S. Attorney Steven Biskupic said Sunday. Sponsors of the amendment were several congressman who had received donations from Troha, his family and business associates, the Milwaukee Journal Sentinel reported.
The transaction "has been the subject of an ongoing investigation based, in part, on information received since the Troha indictment," Biskupic said in a statement. He declined to give details.
Troha's lawyer told the Journal Sentinel his client is the victim of a "media feeding frenzy."
"There is not anything in the story that suggested any criminal wrongdoing," Franklyn Gimbel said.
Troha was indicted March 1 on charges of illegally funneling more than $100,000 in campaign donations to Doyle and the federal account of the state Democratic Party.
The indictment alleges Troha concealed the nature of the transactions in his attempt to obtain approval for a casino in Kenosha and lied to the FBI about it.
Troha, the former owner of a major trucking firm now at the center of a multistate tax dispute, has pleaded not guilty.
The FBI is investigating help Troha received from the state Department of Transportation while his trucking firms were attempting to resolve more than $1 million in disputed fuel tax payments owed to other states.
The latest investigation into Troha involves a deal he signed in 2005 with JHT Holdings, the conglomerate he used to own. Under the deal, his consulting firm was to receive money each year until June 2010 if federal lawmakers passed a measure easing truck hauling regulations.
The provision allowing for larger trucks on highways was put into the highway spending bill that became law in August 2005.
Bank records obtained by the Journal Sentinel show that Troha's consulting firm, T Group Consulting, received two wire transfers of more than $107,000 from JHT one month later. Other bank records were not available.
Officials for Rep. Don Young, R-Alaska, and Rep. James Oberstar, D-Minn., confirmed the lawmakers offered the amendment. Rep. Paul Ryan, R-Wis., signed a letter to Young and Oberstar and one to the Federal Highway Administration supporting the amendment.
But Ryan and aides to the two other congressmen said they did not know about Troha's consulting agreement with JHT. The legislation, they said, was not payback for donations they received from Troha, his family members and business associates.
According to campaign records, Young received $25,000 from the Troha family and associates, with much of it coming on May 23, 2005. Oberstar received $29,000, with the bulk coming at a fundraiser in Milwaukee in August.
Troha and his family and friends have given $58,802 to Ryan since he first ran for Congress in 1998, records showed. Shortly after Troha's indictment, Ryan said he would donate the money to the Kenosha Boys & Girls Club.
Gimbel said none of the dealings should be questioned and the deal simply meant Troha would be able to share in any profits the company saw if the legislation passed. He sold his majority share in JHT in early 2005 and has since sold all ownership.
