A federal district court in Madison Wednesday indicted a former high-ranking city official and Overture Center director on 39 counts, alleging violations of his public position to promote private businesses.
U.S. Attorney Erik Peterson alleged Bob D'Angelo used his city office to operate a consulting business alongside another small side business selling used goods on sites like Amazon.com.
According to grand jury charges, between 1999 and 2004 in his position as Director of the Overture Center for the Arts, the two side businesses earned him $238,000 in gross revenues.
"D'Angelo operated, without permission or knowledge of the mayor, a business in which D'Angelo bought and sold used books, music CDs and costume jewelry, among other things…" the indictment released Wednesday afternoon said.
George Twigg, communications officer for Mayor Dave Cieslewicz, said the mayor and other city officials will be unable to comment on the case, as they may be involved in gathering information.
When asked whether it is likely the mayor may be called to the stand, Twigg said, "That'll all be at the will of the U.S. attorney."
In total, D'Angelo was indicted on 15 counts of mail fraud, 15 counts of wire fraud, four counts of filing false income tax returns and four counts of money laundering, according to the court documents.
To cap off the allegations, D'Angelo was indicted for laundering $70,000 over four checks from 2002 to 2005 with checks from his personal bank account to Merrill Lynch using money from his other alleged crimes.
D'Angelo's tax returns for 2001-04 are being accused of falsely representing his income, understating the amounts he earned through the side businesses.
According to the indictment in 2002, D'Angelo filed an adjusted gross income of $156,979 that "the defendant then and there well knew, and believed, his adjusted gross income was greater than that reported."
D'Angelo stepped down from his post in 2005 after receptionist Monica Everson filed extensive sexual harassment complaints with the U.S. Equal Employment Opportunities Commission, which is still conducting its investigation.
Madison City Council President Mike Verveer, District 4, said he worked with D'Angelo for several years on boards including his current post on the Madison Cultural Arts District Board overseeing the Overture Center operations.
Verveer said he was shocked at the magnitude of the allegations proven to the satisfaction of the grand jury, but had heard of the issues for many years.
"I'm saddened by the indictment but frankly not surprised," Verveer said. "The allegations have been swirling for the past couple of years. The most troubling of the allegations are the ones of him utilizing the old Civic Center and Overture Center facilities for his personal gain."
Verveer said he was also surprised D'Angelo allegedly managed to escape the multiple potential whistle-blowers in his office.
"It troubles me that many of his co-workers figured this out and didn't say anything because they feared retribution," Verveer said. "Or if they did blow the whistle, it’s more troubling if it fell on deaf ears."
It was common knowledge that D'Angelo sold used books as a side job, but Verveer said he never would have expected him to use city resources.
If found guilty, D'Angelo could reportedly face up to 652 years in federal prison.
"I really think that the allegations are in a class by themselves," Verveer said. "I can't imagine a department head going to this extent and getting away with it for so long. These allegations are breathtaking and monumental in scope."