Former Beloit City Official Sentenced to 36 Months in Federal Prison for Theft and Conversion of $882,000 in Government Funds

MADISON, WI—John W. Vaudreuil, United States Attorney for the Western District of Wisconsin, announced that Timothy L. Kosier, 45, town of Beloit, Wisconsin, was sentenced today to 36 months in federal prison by U.S. District Judge William M. Conley for stealing and converting to his own use funds belonging to the city of Beloit. Kosier pleaded guilty to a one-count indictment on February 16, 2012. He was also ordered to pay restitution to the city of Beloit.

From September 15, 1997 to June 8, 2011, Kosier acted as the water resources maintenance supervisor for the Water Resources Department in Beloit. Kosier supervised maintenance performed on Water Resources Center Buildings and related facilities in Beloit. Given his position, Kosier had authority to purchase items necessary to maintain and repair the building and related facilities that were under his control and the authority to hire outside contractors when necessary. Kosier had the ability to purchase items from vendors on behalf of the city of Beloit. He also had access to two store credit cards in the name of the city of Beloit for purchasing necessary items at those stores.

On June 7, 2011, the Human Resources Department of the city of Beloit received a letter from an anonymous city employee who reported that Kosier was purchasing home improvement products for his own personal use with city funds. The employee noted that, most recently, Kosier had used one of the city’s store credit cards to purchase a residential lawn tractor for $2,900 that could not be located by city staff. That lawnmower was subsequently located on the property of one of Kosier’s relatives, and Kosier was suspended pending a full investigation. He left Wisconsin shortly after his suspension.

The investigation revealed that Kosier had purchased numerous items using city funds, such as furnaces and water heaters, for his own personal use and for his use in a residential heating and cooling business that he was operating as a side-business during his employment with the City. Kosier also approved for payment numerous invoices from an outside contractor despite knowing that the invoices contained fraudulent representations about the amount of work performed. The total loss to the city of Beloit was $882,926.

On August 24, 2011, Kosier was arrested in Hawaii on these federal charges. He was detained and ordered removed back to Wisconsin, where he has remained in custody.

United States Attorney John W. Vaudreuil commended the anonymous city employee who reported the theft and said, “Kosier’s criminal acts undercut the tradition of honest government in Wisconsin. He was privileged to work for the citizens of Beloit, and he had a duty to act honestly. He violated that duty and his prison sentence holds him accountable.”

The charges against Kosier were the result of an investigation conducted by the Federal Bureau of Investigation and Beloit Police Department, with the cooperation of the city of Beloit. The prosecution of the case has been handled by Assistant U.S. Attorney Meredith P. Duchemin.

Former Beloit City Official Pleads Guilty in Federal Court to Theft and Conversion of Government Funds

MADISON, WI—John W. Vaudreuil, United States Attorney for the Western District of Wisconsin, announced that Timothy L. Kosier, 45, Town of Beloit, Wis., pleaded guilty yesterday in U.S. District Court in Madison to stealing and converting to his own use funds belonging to the City of Beloit.

U.S. District Judge William M. Conley scheduled sentencing for May 9, 2012 at 1:00 p.m. Kosier faces a maximum penalty of 10 years in prison, a $250,000 fine, and restitution to the City of Beloit, in an amount that will be determined prior to sentencing.

The investigation revealed that from September 15, 1997 to June 8, 2011, Kosier acted as the water resources maintenance supervisor for the Water Resources Department in the City of Beloit. Kosier supervised maintenance performed on Water Resources Center buildings and related facilities in the City of Beloit. Given his position, Kosier had authority to purchase items necessary to maintain and repair the building and related facilities that were under his control. Kosier had the ability to purchase items from vendors on behalf of the City of Beloit. He also had access to two store credit cards in the name of the City of Beloit for purchasing necessary items at those stores.

At the plea hearing, the government established that between January 23, 2009 and June 8, 2011, Kosier purchased numerous items using city funds for his own personal use and for his use in a residential heating and cooling business that he was operating as a side-business during his employment with the City. The parties agreed that the loss amount in the case was between $400,000 and $1,000,000.

The Water Resources Department is a part of the City’s Public Works Department. During the calendar year ending December 31, 2010, the City of Beloit received approximately $7,000,000 in federal funding. The Public Works Department received approximately $950,000 of that funding.

United States Attorney John W. Vaudreuil said, “This case is another example of the ongoing commitment by the U.S. Department of Justice to bring to justice those public servants who abuse their power to steal increasingly scarce public resources for their own benefit.

The charges against Kosier were the result of an investigation conducted by the Federal Bureau of Investigation and Beloit Police Department, with the cooperation of the City of Beloit. The prosecution of the case has been handled by Assistant U.S. Attorney Meredith P. Duchemin.