According to a new bipartisan bill making the rounds at the state Capitol, stiffer penalties for defrauding the state’s top economic development agency could soon be on the table. If signed into law, the bill would make fraud against the Wisconsin Economic Development Corp. a felony punishable by up to 10 years in prison, a $50,000 fine, or both.
The legislation comes in the wake of extensive reports that the WEDC gave loans to at least two companies that falsified their applications.
State Rep. Samantha Kerkman, R-Salem, and Sen. Dave Hansen, D-Green Bay, are the authors of the new bill, which would prohibit making false statements on applications for WEDC grants, loans, tax breaks, or other benefits, as well as falsely stating “a material fact used to determine eligibility” for a WEDC benefit, the Wisconsin State Journal reports. It would make people who commit such fraud ineligible for WEDC benefits for seven years.
The bill includes maximum penalties of a prison term of up to 10 years, plus extended supervision for up to five years. It would also prevent a person from using a “benefit” from WEDC “that is intended for” another use.
Current law does not directly address fraud against WEDC. The new bill’s proposed criminal penalties are similar to existing penalties for defrauding public assistance, food stamp, and medical assistance programs.
