WisPolitics Feature: CHVALA CHARGED, TO RESIGN

Oct. 17, 2002

CHVALA CHARGED, TO RESIGN
Some Republicans Think They're Next

By WisPolitics staff

MADISON -- Senate Majority Leader Chuck Chvala, the most powerful Democrat at the Capitol, today was charged in a 20-count criminal complaint in Dane County court.

Chuck Chvala

Chvala, D-Madison, was charged with crimes that include extortion, misconduct in public office, unlawful political contributions, contributions exceeding legal limits and filing false reports with the state Elections Board. Chvala is the second Senate Democrat charged this year in connection with an ongoing investigation into illegal political activity at the state Capitol. Sen. Brian Burke, D-Milwaukee, a former attorney general candidate, dropped out of the AG race before being charged in an 18-count complaint earlier this year. Burke's case still is pending.

Chvala's initial appearance is scheduled for 10:30 a.m., Oct. 24 in Madison before Dane County Court Commissioner Todd Meurer. A judge will be assigned to Chvala's case at that hearing. Top aide Douglas Burnett was charged with two misdemeanors as part of a plea agreement, WISC-TV Ch. 3 in Madison.

Meanwhile, speculation grew throughout the day that Dane County District Attorney Brian Blanchard would charge a trio of Assembly Republicans as early as tomorrow. And Republicans braced for the worst. The most frequently mentioned by members of both parties were: Assembly Leader Scott Jensen, Town of Brookfield, and Assistant Assembly Majority Leader Steve Foti, Oconomowoc, and Rep. Bonnie Ladwig, of Racine. But court officials wouldn't reveal their plans.

The Charges

The charges against Chvala relate in part to bills being tied to campaign contributions. Two counts related to an alleged extortion of William Peterson, who wanted a bill to protect the Black Point Estate in Lake Geneva. Two more counts related to an alleged extortion of the Wisconsin Realtors, who wanted action on a bill to regulate home inspectors. And two more related to an alleged extortion of the Wisconsin Wholesale Beer Distributors Association, which was badgered by Chvala because the group donated to Chvala opponent Lisa Nelson in 2000, according to the 67-page criminal complaint.

According to a beer distributors association official in the complaint, an angry Chvala said: ``What the hell are you guys doing? ...You guys are contributing to my opponent. ... Don't you realize who I am?''

Chvala said in a statement: ``I will fight these allegations because they are not true. But I have decided that, in the interest of the Senate, I will resign as majority leader as soon as a new leader is selected.”

At least one Senate Democrat, Jon Erpenbach, said that wasn't good enough.``I've asked for an immediate caucus (to vote on a new leader),'' said Erpenbach, D-Middleton. ``I think Sen. Chvala should step down right away.''

One charge in the complaint alleges that Chvala delivered what he said was $1,500 in cash to Lance Walter, a former Senate Democratic Caucus employee, to give to the 2000 campaign of Dave Hansen in Green Bay, now a state senator. Walter said the envelope contained more than $1,500. Walter then took $1,000 of the money, deposited into his personal account, then to his joint account with his wife. Walter's wife wrote a $1,000 check to the Hansen campaign from that account, according to the complaint. "Mr. Walter stated that he did this because he was trying not to tie the Dave Hansen campaign to the defendant in any way."

Details of the work done by the now-defunct Senate Democratic Caucus are also detailed in the complaint via testimony from former caucus directors JoAnna Richard and Andrew Gussert. The testimony contains a laundry list of tasks done by caucus employees on state time. Richard, now with the state Justice Department, testified that "the defendant never cautioned her about doing campaign work in her state office, and she said that she felt that the defendant expected her to do the campaign work." Richard's involvement in the investigation became part of the Democratic primary campaign for governor when Tom Barrett tried to use it against Dem nominee Jim Doyle.

In the 2000 election cycle, the complaint alleges that caucus employees were used in several contested races, including the race where now-Sen. Dave Hansen, D-Green Bay, edged out incumbent Sen. Gary Drzewiecki, R-Green Bay. It also notes work done by caucus staff on the failed campaign of then-Sen. Alice Clausing, D-Menomonie.

In reference to those campaigns, "The only thing that the defendant told (Gussert) was to make sure that [caucus] employees took vacation or compensatory time if they were seen by outside people working on campaigns. The defendant was concerned about getting caught and did not appear to be concerned about the fact that it was wrong to have state employees working on campaigns while on state time."

Milwaukee County District Attorney E. Michael McCann, acting as a special prosecutor for Dane County, said the investigation would continue outside the secret John Doe. Prosecutors say it's likely that additional criminal complaints will be filed at a future date. The timetable for filing such complaints has not been determined. But McCann said no other charges against elected officials are anticipated as a result of his investigation.

Democratic Senate Shake-Up

Democratic senators and Democratic Senate candidates were distancing themselves from Chvala -- some even before the complaint was filed around 3 p.m.

The assistant Democratic leader in the state Senate, Rod Moen, told WisPolitics he wants a meeting of all Democratic senators ``as quickly as possible to elect a new majority leader.''

Moen said he's urging caucus chair Sen. Robert Wirch, D-Kenosha, to call a meeting now instead of waiting.

Said Moen: ``We can't have business as usual. We have to do it quickly.'' Moen said Senate Dems can't go into the final stretch of the campaign with a leader who is criminally charged. ``I don't think we can wait until after the election. ... I want a caucus. I want it as quickly as possible. And I want an election for a new majority leader.''

Moen's opinion carries weight because he is a senior senator elected by fellow Democrats to the No. 2 position in the caucus. Moen said it's ``a possibility'' he could be a candidate for majority leader even though he's running for re-election in a race targeted by Republicans. The early frontrunner to succeed Chvala, said Senate Democrats, appeared to be Russ Decker, a veteran on the Joint Finance Committee and a Chvala ally. Reports varied on whether Decker has the votes or not. One handicap he faces is that some think choosing Decker wouldn't be a clean break because Chvala's wife works for Decker. But Decker supporters say Decker is his own man and that he's well liked by his colleagues.

Erpenbach, D-Middleton, said he agreed with Moen with the need for a quick meeting of all Democratic senators. He says there could be a vote of confidence on Chvala if the Madison Democrat doesn't resign his leadership post. Or he says if Chvala resigns, a new leader should be elected. ``Either way, we've got to have a caucus right away,'' he said. Erpenbach, who has parted with Chvala months ago, said ``there's no way in the world he would have enough support in the caucus'' to stay as leader through Nov. 5.

Wirch said Democratic senators were discussing when there should be a meeting. Wirch said there would be an ``orderly transition of power.'' But he didn't commit to a pre-election meeting. ``There's a bunch of senators pulling in different directions, and there's no precedent for this,'' he said.

Meanwhile, state Sen. Kim Plache, D-Racine, 23rd District candidate Earl Larson, and 5th District candidate George Christenson today called upon Chvala to resign his leadership post immediately.

"Based on recent news reports that Senator Chvala will be charged today with criminal wrongdoing as part of the ongoing caucus investigation, I call on Senator Chvala to surrender his post immediately," said Plache.

"I am very upset by the latest allegations that our legislative leaders continue to ignore the law. This is government at its worst. As I have been saying throughout my campaign, we need new leaders who will bring good government back to Wisconsin,'' Christenson said.

Christenson's Republican opponent, Tom Reynolds, said the case against Chvala might affect how voters in the Milwaukee-area district view political ads now airing. Reynolds says he is the subject of negative ads that contain "completely unsubstantiated" material. The ads, Reynolds says, were likely funded with dollars raised by Chvala.

Some targeted incumbents, such as Moen and Plache, were mentioned in the complaint. Their campaigns allegedly received money extorted by Chvala.

State Sen. Mike Ellis, R-Neenah, said he served with five Democrats leaders and "there's a culpability factor that transcends the guy that did something wrong."

"They all benefited from Chuck's ability to raise money and now they want to throw him overboard," he said. "I find it hypocritical and disingenuous that all those who benefited from Chvala are standing in line to lynch him.

"There are 16 people who empowered these people and stood in line while they shoveled the money to them," Ellis continued. "In essence, I find it interesting that 16 Democrats benefited from Chuck's ability to raise campaign money and they didn't know it was going on under the table or how he was raising all that money."

Ellis said it's a logical progression to have Moen become the next Senate Democrat majority leader.

"How could you be the assistant leader and then get bumped?" he asked. "If he is passed over, why couldn't Rod get the job?"

Sen. James Baumgart, D-Sheboygan, in a tight race for re-election against Rep. Joe Leibham said he is calling for a paper ballot to select Moen as the interim majority leader.

"What's urgent about selecting someone when there's nothing going on for three weeks?" he asked. "We elect someone for three weeks and then (someone permanent) after the general election. ... Moen is automatically the leader," he said. "That's why we have this system."

Added Baumgart: "It's a normal progression, a tradition" of the leadership is changed.''

Bill Kraus, a veteran political observer and current board member of Common Cause in Wisconsin, said the massive corrupted political system is at the root of blockbuster felony complaint against Chvala. Kraus said, in an interview with WIBA-AM in Madison, the system is set up so the leaders have all the power to raise money. Corruption knows no political boundaries, he said, and the pursuit of money is at the root of the problem.

"You have to get out of the system and ... this desperate need for huge amounts of money, and that's the trap," Kraus said. "Television has become the main instrument for campaigns. And television is the most expensive campaign device - that and direct mail.

"It is being played like the beer wars or the cola wars. If the money was shut down or stopped, the need for money would be stopped. Then, we'd have a new system…the need for money is the root of all political evil, and there are ways to stop it."

On the Assembly side, Republicans quietly began contemplating scenarios if any of their leaders are charged.

Rep. DuWayne Johnsrud, R-Eastman, said members have to see if leaders are charged before a decision is made on a possible change. Johnsrud said there might have to be an interim leader until the elections.

"It's not one of these things we've planned for," he said. "Do we put a new guy in or someone more seasoned? We talk about it, but we never dreamed it would happen. [Sen. Brian] Burke was a wake-up call."

Johnsrud said everyone likely would be called back for a caucus to select a new leader. "I'm astonished in my 59 years, I thought I'd seen it all since Watergate."

"The Republican caucus needs some steadiness," Johnsrud added. "We don't want to lose the majority over this."