Milwaukee, WI
Milwaukee Housing Authority short on cash after misuse of $2.8 million in funds
Cavalier Johnson and Gwen Moore talk about the impact of frozen federal funds
Milwaukee Mayor Cavalier Johnson and U.S. Rep. Gwen Moore talk about the impact of frozen federal funds on Milwaukee and Wisconsin.
Milwaukee Housing Authority executives are scrambling to cut costs, after the agency’s new chief financial officer discovered that more than $2.8 million in rental assistance funds were misused by his predecessors.
Between 2019 and 2022, the Housing Authority’s former director of finance improperly pulled restricted federal funds out of the Section 8 rent assistance program to cover cash needs in other divisions of the agency, according to the CFO’s discovery.
Those transfers were used to cover a number of expenses — including administrative payroll and costs from construction projects that had gone over budget.
As a consequence, the Housing Authority says it is running an average of 45 days behind on paying its expenditures. The agency also has fallen behind on its pension fund contributions, and costs from its development projects currently exceed the amount covered by construction loans.
Now, executives are making major cuts to help “stop the bleeding.” On Thursday, 20 Housing Authority employees were laid off to bring down expenses.
New finance hire solved $3 million mystery
The dramatic discovery — disclosed publicly during a special meeting of the Housing Authority Board of Commissioners on Friday afternoon — solves a mystery that confounded agency leaders, the mayor’s office and federal regulators for nearly two years.
In April 2023, federal auditors reported finding more than $3 million in “unexplained variances” on the Housing Authority’s bank balance. After nearly two years, the agency’s finance team had failed to reconcile that cash balance.
Brad Leak — who joined the Housing Authority’s finance team in November and was promoted to be its chief financial officer on Jan. 19 — was able to trace that cash within a matter of months.
The revelation also comes after a dramatic leadership shakeup inside the agency.
All but one member of the Housing Authority Board of Commissioners are new appointees, and a slew of top executives have either retired or resigned in recent months — including Willie Hines, the agency’s controversial top executive and Fernando Aniban, the Housing Authority’s second-in-command and former chief financial officer.
Other recent departures include Finance Director Rick Koffarnus, Housing Choice Voucher Program Director Jackie Martinez and Warren Jones, vice president of construction for the Housing Authority’s development arm.
No evidence employees pocketed funds, more investigation promised
The use of restricted federal funds for unauthorized purposes is “improper and illegal under federal regulation,” Leak said in his address to the board Friday.
But Leak and Acting Secretary-Executive Director Ken Barbeau say they have not found evidence that the funds were pocketed for personal expenses — only that they were improperly transferred within the agency.
A recent forensic audit, which reviewed every financial record within the Section 8 rent assistance program, also did not find any evidence that employees had pocketed agency money.
That forensic audit, however, did not review financial records in other divisions of the Housing Authority — including within its real estate development arm Travaux, Inc.
Now, as these findings come to light, board is discussing the possibility of another forensic audit to examine other parts of the agency, Barbeau said.
Board chair vows ‘it’s a new day’ for the Housing Authority
Chairperson Charlotte Hayslett, who grew up in public housing and joined the board in November, became emotional as she apologized to residents on behalf of the organization.
“This is an embarrassment,” Hayslett said, adding: “It’s a new day here. I can’t impress upon you enough: It’s a new day here.”
As Hayslett thanked him for immediately coming forward with his findings, Leak wiped away tears.
Hayslett also spoke directly to local nonprofit Common Ground, which has spent the past two years organizing public housing residents and lobbying for reform of the Housing Authority.
“Thank you for that bullhorn,” she said. “Had it not been for you giving voice to the voiceless, people still would’ve been in place doing what they were doing.”
In a statement Friday, Common Ground leaders called for since-departed executives to be held accountable.
“We smelled smoke,” Common Ground tenants and organizers said. “Here’s the fire.”
Milwaukee, WI
Milwaukee Admirals fall to Wolves, losing streak now 5 games
(Courtesy: Milwaukee Admirals)
MILWAUKEE – Ryan Ufko and David Edstrom scored goals for the Admirals, but they dropped a 4-2 decision to the Chicago Wolves on Saturday night at historic Panther Arena.
Big picture view:
The loss extended the Ads losing streak to five games.
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By the numbers:
The Wolves grabbed an early lead when Bradley Nadeau potted his ninth goal of the season 8:21 into the game.
David Edstrom and the Admirals league-leading power-play knotted the score at one with just under seven minutes to play in the frame. With the penalty winding down, Cole Hara’s shot from between the wheels was deflected in by Edstrom for his fifth tally of the year.
However, the Wolves would score two more to close out the frame, including one by Domonic Fensore with just 0.7 seconds left in the first.
Milwaukee would get one back during the second period courtesy of a Ryan Ufko power-play marker. Stationed in the high slot, Ufko took a feed from Daniel Carr and ripped a one-timer over the shoulder of Chicago netminder Amir Miftakhov.
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The Ads pressed for the tying goal and had a 6-on-4 advantage late in the third period, but Chicago’s Justin Robidas scored an empty-netter to seal the deal for the Wolves.
What’s next:
The Admirals will hit the road for their final three games before the Christmas break, beginning Wednesday morning at 11 a.m. against the Wolves. The Ads’ next home contest will be on Saturday, Dec. 27 at 6 p.m. against the Grand Rapids Griffins.
The Source: The Milwaukee Admirals provided this report.
Milwaukee, WI
Downtown Milwaukee temporary steam outage, We Energies restoring service
MILWAUKEE – An issue at the Valley Power Plant caused a temporary steam outage for downtown Milwaukee buildings on Saturday, Dec. 13.
Steam service interrupted
What we know:
According to We Energies, the gas supply to the Valley Power Plant was interrupted on Saturday morning, causing it to go offline. The plant produces steam for downtown buildings for heating.
We Energies says it has restored service to the steam system and is bringing steam back to customers, but the restoration process requires steam pressure to build back up in the steam system. Once pressure reaches safe levels, steam service can be delivered to customers.
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Customers should begin to see service return over the next few hours, and some are already restored.
We Energies says it does not anticipate any more steam outages, and that this issue is not affecting electric or natural gas service.
Show canceled
What we know:
The Marcus Performing Arts Center says its building has been impacted by the steam outage and, as a result, had to cancel its 1 p.m. matinée performance of The Pigeon Gets A Big Time Holiday Extravaganza!
Ticket holders will be contacted directly to get further information about next steps.
All other shows at the Marcus Performing Arts Center will go on as scheduled.
The Source: We Energies and The Marcus Performing Arts Center sent FOX6 the information.
Milwaukee, WI
Admirals lose to IceHogs, comeback bid falls short in Rockford
ROCKFORD, Ill. – Goalie Laurent Brossoit stopped 33 shots – and scored a goal – to lead the Rockford IceHogs to a 5-3 win over the Milwaukee Admirals on Friday.
The loss extended the Admirals losing streak to four games.
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By the numbers:
With goalie Matt Murray pulled, the Admirals dumped the puck into the IceHogs zone from the red line. Brossoit tracked it down behind his goal and sailed a shot into the empty Milwaukee cage at 18:56 of the final frame.
The teams waited until the second period to start scoring goals. IceHogs forward Nick Lardis started the scoring with a shorthanded goal at 1:18 of the second frame. He sent a wrist shot from the slot into the net just as Milwaukee had two players leave the penalty box.
Just 0:33 later, Rockford’s Brett Seney exited the penalty box and grabbed a loose puck at the Admirals blue line. He moved to the right circle and sent a shot over the glove of Admirals goalie Matt Murray at 1:51.
Milwaukee got on the board with a power-play goal at 4:56 of the second frame. Oasiz Wiesblatt skated with the puck from the left point to the right circle and slid a pass to the crease. Daniel Carr redirected the puck past IceHogs goalie Brossoit for his team-leading tenth goal of the season, and seventh on the power play. Wiesblatt and Joakim Kemell assisted.
Rockford scored two more before the close of the second period. Martin Misiak scored his first pro goal at 15:39 and Jamie Engelbert added a 4-on-4 goal at 18:45 to give the IceHogs a 4-1 lead after two frames.
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The Admirals cut the deficit to 4-2 when Jake Lucchini scored his sixth goal of the season at 11:21 of the third period. Lucchini slammed a rebound of a Jordan Oesterle shot into the net. Cole O’Hara and Oesterle were awarded assists.
The Ads got within one just :36 later when O’Hara shot a blocked puck into the net from the right circle. Oesterle and Ryan Ufko assisted on the goal at 11:57 of the third period.
Milwaukee returns to UW-Milwaukee Panther Arena to host the Chicago Wolves on Saturday, Dec. 13.
The Source: The Milwaukee Admirals provided this report.
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