Two University of Wisconsin-Oshkosh officials have been accused of illegally transferring university money to a private foundation to support real estate projects in and around the Oshkosh area.
Former UW-Oshkosh Chancellor Richard Wells, who served from 2000 to 2014, and former Vice Chancellor Thomas Sonnleitner, who served from 2000 to 2016, were served with a lawsuit from the UW System Wednesday.
The lawsuit, which was jointly filed by the UW System and the state Department of Justice, alleged the two men approved the transfer of money from UW-Oshkosh to the UW-Oshkosh Foundation.
According to the foundation’s website, the private nonprofit aims to “promote, receive, invest and disburse gifts to meet the goals and needs of UW-Oshkosh.”
Money from the foundation is supposed to sent to the university — not the other way around.
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According to a UW-Oshkosh statement, the university’s current chancellor, Andrew Leavitt, fired Art Rathjen Tuesday, who served as the foundation’s president. Another undisclosed campus employee involved in the matter was placed on paid leave.
“I want to apologize for what has transpired. It is unacceptable to violate the public trust and to act without regard for ethics and the law. We must be ethical, accountable and transparent in our service to students and the citizens of Wisconsin,” Leavitt said in a statement. “To that end, I will take immediate action to ensure this type of activity does not happen again on our campus.”
Since the discovery, state Republicans have voiced their outrage at the mishandling of university money.
In a joint statement Assembly Speaker Robin Vos, R-Rochester, Majority Leader Rep. Jim Steineke, R-Kaukauna, and Rep. John Nygren, R-Marinette, called the situation “alarming” as it threatened to undermine the integrity of UW-Oshkosh and the UW System as a whole.
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“The misuse of funds, whether it pertains to taxpayer dollars, student fees or foundation money, should never be tolerated,” the joint statement said.
Others are demanding accountability not only on the part of the accused, but on the UW System for their lack in financial oversight.
While Sen. Stephen Nass, R-Whitewater said in a statement the UW System deserves credit for taking action against the two men, he also pointed to how “woefully inadequate” the financial oversight has been within the institution.
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In light of the discovery at Oshkosh, Vos, Steineke and Nygren said the system will be reviewing financial transactions at other universities.
“It is the legislature’s role to ensure proper oversight in matters affecting the state. We look forward to learning more about the UW System’s report on the matter and if criminal prosecution will be pursued,” their joint statement said. “We will then determine whether legislative action is warranted, which may include an audit of the relationship between universities and their foundations.”
