State Crime and Court Roundup: Former insurance president senteced to federal prison for fraud

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WAUSAU - A former president of Manson Insurance in Wausau has been sentenced to five years in a federal prison for a pair of fraud convictions.

62-year-old Timothy Mathwich must also spend three years under federal supervision once he gets out. He pleaded guilty in November to two fraud charges – and 22 others were dropped in a plea deal. Mathwich was indicted for defrauding Manson customers of $5.6 million, swindling a bank out of two-million, plus a mail fraud scheme. Another former Manson CEO and a company treasurer were also sent to prison for their roles in the fraud case – and they were ordered to pay over five-million dollars in restitution to customers who were victimized. The Mathwich plea deal also included restitution, which is still pending.

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A Racine man and his girlfriend are facing several charges, after a drug bust netted 11 pounds of marijuana and over 14 grams of cocaine. The Racine County Metro Drug Unit raided a house yesterday morning, and took a 23-year-old man and his 21-year-old girlfriend into custody. The marijuana was valued at 57-thousand-dollars – an approximate street value for the cocaine was not released. Deputies said they also seized an assault rifle, two handguns, several rounds of ammunition, and almost three-thousand dollars. Officers said they also took away an unspecified amount of new clothing and shoes, plus 75 bottles of cologne. Both suspects were taken to the Racine County Jail. They were booked on possible charges of possessing marijuana and cocaine with the intent to sell, maintaining a drug place while armed, and possessing drug paraphernalia. Sheriff’s officials say they continue to investigate.

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A sexual assault victim will get some kind of settlement, after she was harassed by the DA who prosecuted her abusive boyfriend. Former Calumet County District Attorney Ken Kratz avoided a federal court trial set for next week, by striking a deal with Stephanie Van Groll. The terms were not immediately disclosed. Kratz sent over 30 racy text messages to try and strike up an affair with Van Groll, while he was prosecuting her boyfriend. The DA, who was almost 50 at the time, called her a “hot nymph” and himself as “the prize.” He was never charged, after Van Groll called police. She later filed a federal lawsuit claiming that her civil rights were violated. Kratz tried but failed to get the case dropped. He said “flirtatious text messages” were not enough to violate somebody’s rights. The texts were sent in 2009, but it didn’t hit the news until the following summer. Once it did, other women came forward to say that Kratz sexually harassed them. Former Governor Jim Doyle had started proceedings to remove Kratz when he resigned. He later became a private lawyer in the Fox Valley – but he filed for bankruptcy 10 months ago, and at last word, he moved to Florida. Meanwhile, the Kratz saga is not over yet. The state Office of Lawyer Regulation recommended that he have his state law license suspended for six months. Kratz said a reprimand would be in order, saying he’s been punished enough. The case remains pending in the State Supreme Court.

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Some key testimony was expected today at a Milwaukee inquest into the death of Derek Williams. The man’s mother was scheduled to take the stand, along with the Milwaukee police officers who were with the 22-year-old Williams when he died in their custody in 2011. Williams had just been arrested for a street robbery when he gasped for air and collapsed. The squad car’s video was public last summer, and the inquest was sought after a medical examiner changed the cause of Williams’ death from natural causes to homicide. The inquest was scheduled to run into next week.

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