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Lautenschlager recovering caucus scandal legal fees

On his second day in office, newly inaugurated Governor Jim Doyle authorized Attorney General Peggy Lautenschlager to halt payment of nearly $700,000 in legal fees racked up by state congressmen indicted in the caucus scandal.

Assembly Majority Leader Steve Foti, her aide Sherry Schultz, and State Rep. Scott Jensen, R-Brookfield, all face felony charges for illegally using state funds for campaign purposes. Ongoing hearings will determine the fate of former Senate Majority Leader Chuck Chvala, who faces the most serious charges stemming from the caucus scandal.

State law stipulates the state government will only reimburse legal fees for a congressperson if they are found to be innocent. Doyle said he had wanted to litigate to recover the fees for the state while he was attorney general last year but was prevented from doing so by then-Gov. Scott McCallum.

“I have given authority to the attorney general to not only stop payment but recover payments that have already been made,” Doyle said.

Doyle said he had told Lautenschlager what he wanted to see happen, and she was authorized to act on his request as she saw fit.

Last Tuesday, Lautenschlager acknowledged she is negotiating “to achieve a solution short of litigation” in the matter but added she was prepared to keep the matter in court if necessary.

“Payment of legal fees for those convicted of crimes violates the Wisconsin Constitution,” Lautenschlager said.

“I hope I can reach an agreement with members of the legislature to both establish policies and practices that are in compliance with the law and collect fees paid to those convicted of crimes, while saving the taxpayers the costs of further litigation.”

Lautenschlager said no public purpose was served by paying legal fees for the state officers involved in the scandal, because they had betrayed public trust while in office.

Chvala was charged last October with 20 felony counts in the caucus scandal, including extortion and money laundering. A conviction could bring Chvala a $200,000 fine and up to 85 years in prison.

Jensen faces three felony counts of misconduct in office, and Foti and Schultz both face one felony charge.

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