201417203 Page 1

Members of the Racine County Board of Ethics

730 Wisconsin Avenue

Racine, WI. 53403

June 25, 2014

Dear Members of the Board of Ethics,

In recognition of the following Racine County Ordinance:

Sec. 2-421. Declaration of policy.

High moral and ethical standards among county public officials are essential to the conduct of

free government, the board of supervisors believes that a code of ethics for the guidance of

county public officials will help them avoid conflicts between their personal interests and their

public responsibilities, improve standards of public service and promote and strengthen the faith

and confidence of the people of this county in their county public officials. In recognition of these

goals, the county establishes this code of ethics and intends that it apply to county elected

officials, appointed employees, and appointed members of boards, commissions, committees and

panels, hereinafter collectively referred to as public officials. The purpose of this code is to

establish guidelines for ethical standards of conduct to assist public officials in avoiding those

acts or actions that are incompatible with the best interests of county government by directing

disclosure of private interests in matters affecting the county.

The county board recognizes that the public officials of the county are drawn from society and,

as such, cannot and should not be without all personal and economic interests in the decisions

and policies of public government. It further recognizes that citizens who serve as county public

officials retain their rights as citizens to interests of a personal and economic nature. The

standards of ethical conduct for county public officials need to distinguish between those minor

and inconsequential conflicts that are unavoidable in a free society and those conflicts that are

substantial and material. Public officials may engage in employment, professional, business or

investment activities, other than official duties, in order to support themselves or their families,

provided they do not conflict with the provisions of this code.

201417203 Page 2

It is intended that this code shall apply to all persons whose functions require the exercise of

discretion and judgment. Nothing contained herein is intended to deny to any individual, rights

granted by the United States Constitution, the Wisconsin Constitution, and the laws of Wisconsin

or by labor agreements negotiated with bargaining representatives. This code will in no way

contravene the authority vested in the elected constitutional officers of the county under their

respective state statutes. Amendments to this article enacted March 25, 2008, are to apply

prospectively.

This writing is to file a Verified Complaint against District 3 Racine County Supervisor Monte

Osterman, in accordance with Racine County Ordinance:

Sec. 2-429. Complaints.

(a) Procedure. The ethics board shall act upon the alleged violations of this article according to

the following procedures and any others that the board may adopt:

(2) Filing. The ethics board shall accept from any identified person a verified complaint in

writing that states the name of the public official alleged to have committed a violation of this

code of ethics and that shall set forth the specifics thereof.

(4) Board action. The board shall, within ten (10) days of the filing of a complaint under

subsection (a)(2) of this section, forward a copy of the complaint to the accused public official

and the corporation counsel.

a. If the board determines that the verified complaint does not allege facts sufficient to constitute

a violation of the code of ethics, it shall dismiss the complaint and notify the complainant and the

accused. If the board determines that the verified complaint was frivolous, the board shall so

state.

b. If the board determines that the verified complaint alleges facts that provide a reasonable

basis to constitute a violation of the code of ethics or that an investigation of a possible violation

is warranted, it may make an investigation with respect to any alleged violation after notifying

the accused public official in writing. Such notice shall state the nature and purpose of the

investigation and the actions or activities to be investigated and the public official's due process

rights.

Here comes the Complainant, Timothy S. Elmer, with a Verified Complaint; requesting that an

investigation in accordance with Racine County Ordinance 2-430, be conducted into the

allegations and evidence presented against District 3 Racine County Supervisor Monte

Osterman; to determine if they are sufficient to establish probable cause to charge District 3

Racine County Supervisor Monte Osterman with violations of the Racine County Code of Ethics,

and/or referral to the Racine County District Attorney’s Office for criminal charges.

201417203 Page 3

Sec. 2-430. Investigations

Pursuant to any investigation or hearing conducted under this article, the board has the

authority to:

(1) Require any person to submit in writing such reports and answers to questions relevant to the

proceedings conducted under this article as the board may prescribe, such submission to be

made within such period and under oath or otherwise as the board may determine.

(2) Administer oaths and to require by subpoena issued by it the attendance and testimony of

witnesses and the production of any documentary evidence relating to the investigation or

hearing being conducted. Issuance of a subpoena requires action by the board in accordance

with section 2-428(c).

(3) Order testimony to be taken by deposition before any individual who is designated by the

board and has the power to administer oaths, and, in such instances, to compel testimony and

the production of evidence in the same manner as authorized by subsection (2) above.

(4) Pay witnesses the same fees and mileage as are paid in like circumstances by the courts of

this state.

(5) Request and obtain from the department of revenue copies of state income tax returns and

access to other appropriate information under W.S.A., § 71.78(4), regarding all persons who are

the subject of such investigation.

(6) Retain outside counsel and other experts as needed after solicitation of recommendations

from the office of corporation counsel and upon such contract for services approved for content

and form by the corporation counsel.

Complaint

Count 1:

Monte Osterman did not disclose on his Economic Interest Statement (Exhibit 1) that he is the

Registered Agent for the non-stock corporation, Root River Council, INC. (Exhibit 2), in

violation of Racine County Ordinance 2-426 (a) (1):

Sec. 2-426. Economic interest statement.

(a) Form and content. Every statement of economic interest form required to be filed under this

Code may be obtained from the county clerk, shall be in the form prescribed at the end of this

article and shall contain the following information applicable as of the 15th day of the month

preceding the month in which the statement is filed:

201417203 Page 4

(1) Business ownership. The identity of every business organization with which the official or his

immediate family is associated and the nature of his association.

Count 2:

Because Monte Osterman failed to disclose on his Economic Interest Statement (Exhibit 1) that

he is the Registered Agent for the non-stock corporation, Root River Council INC., which

receives funding from the Wisconsin Coastal Management Program and the National Oceanic

and Atmospheric Administration, Office of Ocean and Coastal Resource Management under the

Coastal Zone Management Act, Grant # NA12NOS4190091 (Exhibit 3), solicits for donations

on the Root River Council INC. website (Exhibit 4), and solicited for donations as a non-profit in

a Aug 12, 2013 WISN article 10 Ways to Volunteer for Clean Water (Exhibit 5, item #10), the

Ethics Board will need to conduct an investigation in accordance with Racine County Ordinance

2-430 (5) and obtain from the department of revenue copies of state income tax returns and

access to other appropriate information under W.S.A., § 71.78(4), to determine whether Monte

Osterman receives any non-disclosed reportable income from Root River Council, INC., and

violated Racine County Ordinance 2-426 (a) (5):

Sec. 2-426. Economic interest statement.

(a) Form and content. Every statement of economic interest form required to be filed under this

Code may be obtained from the county clerk, shall be in the form prescribed at the end of this

article and shall contain the following information applicable as of the 15th day of the month

preceding the month in which the statement is filed:

(5) Income. The identity of each source from which the official or his immediate family received

one thousand dollars ($1,000.00) or more of his income for the preceding taxable year. If the

official who is required to file or a member of his or her immediate family received one thousand

dollars ($1,000.00) or more of his/her income for the preceding taxable year from any business

entity formed under W.S.A., ch. 180 that they have a ten (10) percent or greater interest or from

a sole proprietorship that was reported on that year's income tax return, the official need only

identify the general nature of said business. In addition, no identification need be made of payers

from which dividends or interest is received.

Counts 3, 4 and 5:

Monte Osterman, as a public official, failed in his duty to publicly disclose that he was a tenant

of 1251 Mound Avenue, who is thus eligible for a maximum of $25,000 in relocation costs

(Exhibit 4); while lobbying for the purchase of the property as a Registered Agent (Exhibit 2)

and Board Member of Root River Council, INC., (Exhibit 7); and in his March 4, 2014 speech in

favor of Root Works (Exhibit 8) before the Racine Common Council, he failed to disclose his

economic interests as Registered Agent of Root River Council INC. and his status as tenant of

1251 Mound Avenue;

201417203 Page 5

Monte Osterman worked for the John Dickert Mayoral election campaign while his wife, Mary

Jerger, was the Treasurer, and is also a member of the Racine Cable Commission (Exhibit 9);

Monte Osterman and Marty Defatte are both longtime Root River Council INC., Board Members

(Exhibit 7) and had detailed foreknowledge of the RootWorks plans going back to 2006 (Exhibit

8). Plans for the Mound Avenue Bluff Purchase were presented by the Root River Council to the

Racine Common Council for a public hearing and adoption on June 19, 2012 (Exhibit 10 and

11). Racine Mayor John Dickert applied for the Knowles-Nelson Stewardship Grant on May 1,

2013 (Exhibit 12), while City of Racine Assistant Director of City Development Matt Sadowski

received a letter from the DNR on September 18, 2013 advising him that he had been awarded

the Knowles-Nelson Stewardship Grant (Exhibit 13).

On April 3, 2014, The Journal Times ran an article, City council members’ question RootWorks

grant, project (Exhibit 14); in which City of Racine Alderman Eddie Diehl is quoted as saying:

“He also has raised concerns about connections two members of the Root River Council —

Monte Osterman and Marty Defatte — have to one of the buildings the city plans to purchase

through the grant: an industrial warehouse at 1251 Mound Ave.

Osterman’s business, Osterman Granite & Marble, leases space in the building. Defatte, a real

estate agent for Shorewest, is listed as a real estate agent on the property.

Diehl has said he is troubled that both men might unfairly benefit from the city’s acquisition of

the property. He said Osterman, the only tenant at 1251 Mound Ave., might unfairly benefit from

the estimated $25,000 the city could end up paying the property owner or tenant to relocate.

As for Defatte, Diehl pointed out that the real estate agent could have known ahead of time that

the property was going to be purchased by the city and stands to receive a commission when the

property is sold.”

In addition, during the April 2, 2014 Racine Common Council Meeting, many Aldermen voiced

their concerns with the lack of transparency surrounding the process of applying for and

receiving the Knowles-Nelson Stewardship grant; the violation of City of Racine Ordinances

2-332 (4) (Exhibit 19) and 46-268 (Exhibit 20) by the Redevelopment Authority of Racine, the

failure by previous Committees to accurately figure costs along with the large set of unknowns;

and the concern of financially struggling Residents who are having their streetlights shut off and

services reduced while the City continues to increase taxes, fees , and yet, proposes building

more bike trails (Exhibit 15).

Alderman Sandy Weidner: “On the motion to refer to Committee. There are a couple of reasons

why I think it is appropriate to send it back to Committee for a discussion by the full body. There

are two issues that I think are important enough to be discussed at length. One is the logistics of

this grant and the process in which, um, the City used to apply for it. Um. This never came to

201417203 Page 6

Council. There was money spent out of the Intergovernmental fund to pay for the appraisals.

That money was never approved by the Council. And if we have one function, it’s, we control the

purse strings. If we sit back and allow staff to spend money out of the IG fund, or apply for

grants without our approval we’re heading on a slippery slope. The other thing, the full Council

needs to be aware exactly what it is we are doing with that grant. I think the Knowles-Nelson

grant would be a very important thing for the property that is already owned by The City of

Racine. Part of what that grant is going to do once it tears down privately owned property is

going to put in new lights, new benches, new garbage cans, along with what amounts to half a

block strip along Mound Avenue. I get calls to this day from people in my neighborhoods that

have lost their streetlights. Yet we can afford to take this grant money and money out of the IG

fund to put into the equivalent of a half a block of bike trail. If you look at the plan itself it says

you’re going to get the rural and the urban feel. They’re going to tear down five properties. We

have no idea what the demolition costs are going to be. That’s never been discussed. Ever. We

have no idea what the total cost of this project was going to be. Um. I understand that we’ll be

losing $12,000 a year worth of property tax. To some people it’s not a big thing. To the people

that I represent that are struggling to pay their property taxes right now it is a big thing. So it’s

things that we need to be cognizant of when we move forward with this. The Staff has done a very

poor job defining what the problem is along that River. Very good at proposing what the solution

is. But I never, as much as I ride that bike trail. I ride it on a weekly basis. I have…”

Mayor John Dickert: (talking in background, interrupts) “Let’s wrap it up and try to keep it on

point. Alderman Weidner.”

Alderman Sandy Weidner: “I don’t think that my discussion is any different than the speakers

before me. But if you’d like me to save my comments to speaking to the motion, we can vote up or

down sending it to the Committee of the Whole. Once that’s done I’ll speak all over again and

finish my comments when we vote on the item. One way or the other.”

All of the narrative and exhibits presented above is prima facie evidence that Monte Osterman

willfully and wantonly concealed his economic interests in the Mound Avenue West Bluff

purchase, conspired with other Root River Council INC. members for economic gain, and used

his position to lobby for the Mound Avenue West Bluff project without fully disclosing his

interests while deliberately misleading others to believe that The Root River Council INC. was a

Non-Profit Organization, in violation of Racine County Ordinances 2-423 (b), 2-423 (f) and

2-423 (g).

Sec. 2-423. Standards of conduct and specific conflicts of interest

(b) Economic and personal gain. No public official shall engage in any business or transaction

or shall act in regard to economic or personal interest, direct or indirect, in a manner that is

incompatible with the proper discharge of his or her official duties or that would tend to impair

his or her independence of judgment or action in the performance of his or her official duties.

201417203 Page 7

This section is not intended to interfere with public officials having duties or employment in

addition to those related to the county, provided those duties or employment do not cause

violations of this code of ethics and are disclosed in the annual statement of economic interest.

(f) Use and disclosure of confidential information. No public official shall knowingly use

confidential information for actual or anticipated personal gain or for the actual or anticipated

gain of any other person. Nor shall a public official, without proper legal authorization, disclose

confidential information gathered in the course of public employment to an unauthorized person.

(g) Unfair persuasion. No public official may use or attempt to use his or her public position to

influence or gain unlawful benefits, advantages, or privileges for himself or herself or others.

Count 6:

The Root River Council INC. is NOT a 501-C-3 Tax Exempt organization, nor does it file an

IRS Form 990, which is required for Non-Profit Organizations; NOR it is listed amongst the 243

organizations recognized by the IRS as Racine Non-Profits (Exhibit 16); Yet it has repeatedly

claimed the legal determination of Non-Profit status and even solicited donations while claiming

to be a Non-Profit Organization. See Exhibit 17: Root River Council Facebook Page; Exhibit 5:

In a August 12, 2013 WISN 12 article, 10 Ways to Volunteer for Clean Water, donations to the

“non-profit water protection organization”, (the) Root River Council is suggested as a way to

protect our precious waters; Exhibit 18: Ben Lehner, Executive Director, Root River Council,

while participating in the SOI Region 2025 Industry Opportunities, on March 7, 2014, claimed

“The Root River Council (is) a non-profit focused on redeveloping Racine's Root River.” ;

Exhibit 21: Shows that in a Google search for the Root River Council, deception by association

is used to instill the thought that the Root River Council is a Non-Profit Organization by

presenting the false claim that the Root River Council, Racine, WI. is a Non-Profit Organization

on their Facebook page, which on an internet search comes up only a few entries below the Root

River Council website page. The IRS, as indicated by Exhibit 16, does not support the claim of

the Root River Council, or the Root River Council INC., of being a Non-Profit Organization, or

being able to claim Non-Profit status, in violation of:

Wisconsin Statute 943.39 Fraudulent writings. Whoever, with intent to injure or defraud, does

any of the following is guilty of a Class H felony:

(1) Being a director, officer, manager, agent or employee of any corporation or limited liability

company falsifies any record, account or other document belonging to that corporation or

limited liability company by alteration, false entry or omission, or makes, circulates or publishes

any written statement regarding the corporation or limited liability company which he or she

knows is false;

201417203 Page 8

If the investigation confirms that the evidence presented by Complainant Timothy S. Elmer

alleging Fraudulent Writings being made by Monte Osterman as the Registered Agent of the

Root River Council, INC., in claiming Non-Profit Status, soliciting donations while claiming

Non-Profit Status, and in using deceptive and false advertising/claims on website searches and

pages, is sufficient to warrant criminal charges; then this evidence, findings of fact, and the

conclusions of law be forwarded to the Racine County District Attorney’s Office in accordance

with Racine County Ordinance Sec. 2-432 (b) (8): (as quoted below)

Sec. 2-432. Findings of fact and conclusions of law; orders and recommendations; penalties.

(b) If after investigation and hearing, the ethics board determines that a violation of this chapter

has occurred, its findings of fact and conclusion may contain one (1) or more of the following

orders or recommendations:

(8) Miscellaneous. Any other recommendations or orders as may be necessary and appropriate

to carry out the intent and purpose of this article.

And the Complainant requests that the Racine County District Attorney’s Office issues criminal

charges and prosecutes all who are found to be in violation of Wisconsin Statute 943.39 (1)

Fraudulent writings.

Count 7:

Monte Osterman, as a Racine County Supervisor, failed in his known duty under Racine County

Ordinance Sec. 2-434. Standards of conduct statement, to abide by the Racine County Code

of Ethics and be fully transparent in his dealings with the Public, Members of the Root River

Council INC, and other Government Officials. Instead he chose to willfully and wantonly violate

multiple Ordinances; conceal his economic interests in the Mound Avenue West Bluff property;

and misrepresent the true status of, and his position as the Registered Agent of the Root River

Council INC., while receiving grant money, soliciting donations and lobbying for Root Works.

If the investigation confirms that the evidence presented by Complainant Timothy S. Elmer

alleging multiple willful and wanton violations of the Racine County Ethics Ordinances is

sufficient, then the Complainant requests that the Board of Ethics forward the evidence, findings

of fact, and the conclusion of law, to the Racine County District Attorney’s Office, in accordance

with Racine County Ordinance Sec. 2-432 (b) (8): (as quoted below)

Sec. 2-432. Findings of fact and conclusions of law; orders and recommendations; penalties.

(b) If after investigation and hearing, the ethics board determines that a violation of this chapter

has occurred, its findings of fact and conclusion may contain one (1) or more of the following

orders or recommendations:

201417203 Page 9

(8) Miscellaneous. Any other recommendations or orders as may be necessary and appropriate

to carry out the intent and purpose of this article.

And the Complainant requests that the Racine County District Attorney’s Office issues criminal

charges and prosecutes Monte Osterman for Misconduct in Public Office, Wisconsin Statute

946.12; and any other charges that are warranted and considered appropriate.

Wisconsin Statute 946.12 Misconduct in public office. Any public officer or public employee

who does any of the following is guilty of a Class I felony:

(1) Intentionally fails or refuses to perform a known mandatory, nondiscretionary, ministerial

duty of the officer's or employee's office or employment within the time or in the manner required

by law;

Complainant:

Timothy S. Elmer

3001 Douglas Avenue

Racine, WI 53402

racineequalityprojeect@yahoo.com

I, the complainant, declare under oath that the information is true to the best of my knowledge.

Dated this ___day of ____________, 2014

Complainant:

________________________

Signature

State of Wisconsin Racine County

Subscribed and sworn to before me by ______________________on this ____day of _______,

2014.

_________________________

Notary Public

Commission Expires: ___________________

201417203 Page 10

List of Exhibits

Exhibit 1: Monte Osterman Statement of Economic Interests

Exhibit 2: Root River Council INC. Corporate Records

Exhibit 3: Root River Council INC. Website Funding Statement

Exhibit 4: Root River Council INC. Website Donations Button

Exhibit 5: WISN 12 article, August 12, 2013

Exhibit 6: Knowles-Nelson Stewardship Grant Statistics

Exhibit 7: Root River Council INC. Website Board Members list

Exhibit 8: DVD Monte Osterman speaks before the Racine Common Council 03/04/14

Exhibit 9: Mary Jerger – John Dickert for Mayor Campaign Treasurer, Cable Commissioner

Exhibit 10: The Journal Times, article, June 01, 2012

Exhibit 11: City of Racine Common Council Meeting Minutes, June 19, 2012

Exhibit 12: Mayor John Dickert letter, May 1, 2013

Exhibit 13: DNR letter to Matt Sadowski, September 18, 2013

Exhibit 14: The Journal Times, article, April 3, 2014

Exhibit 15: DVD April 2, 2014 Racine Common Council Meeting Root Works discussion

Exhibit 16: IRS list of Racine Non-Profit Organizations

Exhibit 17: Root River Council, Facebook page

Exhibit 18: Statement of Ben Lehner, SOI Region 2025 Industry Opportunities Conference

Exhibit 19: City of Racine Ordinance 2-332

Exhibit 20: City of Racine Ordinance 46-268

Exhibit 21: Results of a Root River Council Google search