Builder gets six months’ house arrest for wage fraud
New Berlin construction company owner Scott Watry was sentenced Thursday to two years’ probation — including six months of house arrest — for scheming to pay his construction workers less than the federally required prevailing wages. Watry, 43, the owner of Watry Homes LLC, will pay more than $659,000 restitution in addition to the $1 million he already paid to resolve a whistleblower suit that led to his conviction. The fraud, which involved ghost employees and false records, occurred while his company was working on a $4.7 million roofing project at the Westlawn housing project. Federal prosecutors had asked U.S. District Court Judge J.P. Stadtmueller to sentence Watry to one year and a day in prison. Watry’s attorney, Thomas Wilmouth, asked for three years of probation, including a year of house arrest. Federal sentencing guidelines call for a five-year prison sentence. Wilmouth argued that Watry, the married father of three, has no criminal record and that he cooperated with the FBI investigation. Initially, however, Watry lied to investigators and urged others to do the same, according to the plea agreement. “Along with personal humiliation and negative communications directed at his family, including his oldest son, Watry is now labeled a felon,” Wilmouth wrote in a memorandum to the court. “Probation is a sufficiently serious sentence.” But Nola Hitchcock Cross, attorney for Heather Ramos, the Watry roofing supervisor whose whistleblower suit sparked the criminal probe, said Watry should serve prison time to send a message and “to make sure that this does not happen in Wisconsin again.” According to his plea agreement Watry signed in June, he agreed to pay prevailing wages — that is, the federally calculated amount paid to skilled tradesmen in the area — as a condition of receiving the federally funded Westlawn contract in 2011. The prevailing wage at the time for roofers was $42.50 per hour, including benefits. Watry actually paid his workers $14 to $35 an hour, the plea agreement states. Wilmouth argued that Watry Homes lost $561,000 on the Westlawn project. The company will cease to exist by the end of this year, he wrote. Prosecutors brushed off the claimed loss. “That alleged loss is attributable to bad business judgment,” prosecutors Mel Johnson and Matthew Krueger wrote to the court. “Assuming (Watry’s) computation of his losses on Westlawn is accurate, his failure to pay legally required wages of approximately $660,000 only saved Watry Homes from a bigger loss.” Ramos, the whistleblower who now lives on the East Coast, has received $180,000 as her portion of the resolution of the lawsuit. Still being negotiated is the amount of money Ramos should be paid for lost wages and how much Cross should be paid in legal fees by Watry. Ramos contends she was the victim of a retaliatory firing, a claim the company disputes. “It’s very expensive when you defraud the United States government,” Cross said, adding the meter is still running. “Everyday she (Ramos) is losing more money and as long as negotiations drag on […]
Oct 1st, 2015 by Dave Reid
Artist & Display building sold to Bunzel’s Meat Market
A former long-time art supplies store on Milwaukee’s northwest side has been sold for $487,000, and will be converted into a meat market and catering operation. The former Artist and Display building, 9015 and 9035 W. Burleigh St. was sold to Chip and Mary Bunzel, who will move their Bunzel’s Old-Fashioned Meat Market there from 8415 W. Burleigh St., according to Ogden & Co. Michael Seramur, of Ogden, brokered the transaction. The building, totaling 17,600 square feet, was sold by two parties: R & E Real Estate Holdings LLC sold 9015 W. Burleigh St. for $412,000 and the Charney Family Trust sold 9035 W. Burleigh St. for $75,000, according to Ogden. Artist and Display closed this year with the retirement of owner Jack Klein.
Oct 1st, 2015 by Jeramey Jannene
Slideshow
Wendy Selig-Prieb, the daughter of former Major League Baseball commissioner Bud Selig and former president of the Milwaukee Brewers, is looking to sell her Scottsdale, Ariz., home for $2.8 million. Check out the attached slideshow to see photos of the home. Listed by The Joffe Group, the 5,396-square-foot, one-story home is in Scottsdale. It has four bedrooms and five and a half bathrooms and features an elegantly put together design throughout. Selig-Prieb, who is one of Bud Selig’s three daughters, served as CEO and president of the Milwaukee Brewers from 1998 to 2002 and also served as chairman of the ball club. The Brewers hold spring training at Maryvale Ballpark in west Phoenix. She also serves as a board member of Phoenix Country Day School as well as other boards in New York City. Her father, Bud Selig, retired from the MLB commissioner position earlier this year.
Oct 1st, 2015 by Dave Reid
Wild Haven Fiber Company brings more DIY to KK
Kate Mau will soon open Wild Haven Fiber Company, a lifestyle store for knitters, crocheters and fiber lovers. The business is located at 2658 S. Kinnickinnic Ave. in Bay View. “The shop will focus on fiber for the knitter and crocheter that is not found at big box craft stores,” says Mau. “I will focus on natural fibers and carefully selected accessories and notions for the beginner and advanced knitter or crocheter. I’m partnering with local artists to create special items for fiber lovers that will be unique to our store.” The shop will also offer classes that range from beginning to advanced knitting techniques, tabletop weaving and possibly macrame. “I want the store to appeal to those that feel on the fringes of a DIY lifestyle. Maybe they don’t knit or ‘do a craft’ but they still enjoy the warmth of something handmade,” says Mau. “I don’t want people to feel intimidated by taking a class, either. I love helping people learn something new.” Mau, who is the sole owner of the shop, plans to open in early October. This is her first business. A knitter for 15 years, Mau sold her work online and at local craft fairs like Art vs Craft and Hovercraft. Most recently, she self published a small book with five of her own knitting patterns. Mau has an art school background with a master’s degree in art history. She taught art history and humanities courses for nine years and currently teaches at Wisconsin Lutheran College and Lakeland College. She also helped run a small college art gallery and has extensive experience working in small, local business as well as in retail management. Right after college, she worked at Stone Creek Coffee and later at Milwaukee Community Acupuncture. “I’ll keep teaching art history to help pay the bills and because I really enjoy it. I would eventually like to make the store my main gig,” she says. Milwaukee has seen a couple of yarn stores come and go over the past decade, but Mau is confident that Wild Haven has what it takes to stay in business. “I think any kind of retail is still struggling right now but numbers among other yarn shops in the US are starting to show a slight increase,” says Mau. “Knitting saw a big resurgence in the early 2000s and right now there is a shift among knitters to move away from the ‘crafty’ knitting and really care about where their materials come from and finding beautiful, artistic designs to knit. It’s difficult to get away completely from things that are manufactured in China but we can have that discussion now finally.” More than a “yarn shop,” Mau says she envisions her business as a “lifestyle store for fiber lovers.” “The products might be geared towards knitters and crocheters but they are not exclusive to them. For example, a well-known local artist is making project bags specially for our shop that will be perfect for small knitting projects on […]
Sep 30th, 2015 by Dave Reid
Amtrak Hiawatha adds late night train for fall holiday season
Amtrak is increasing its weekend train service between Chicago and Milwaukee for the fall holiday season to allow riders more time for shopping, dining and entertainment. The Hiawatha route will add two late-night trains on Saturdays, one leaving Milwaukee at 10:40 p.m., and one leaving Chicago at 11:10 p.m., starting Oct. 3. The new schedule will run through Jan. 2, 2016. The Hiawatha train between Milwaukee and Chicago is already one of Amtrak’s most popular, with 800,000 riders in 2014. The late-night train will still make stops in Glenview, Ill., and in Wisconsin at Sturtevant and the Milwaukee airport.
Sep 30th, 2015 by Jeramey Jannene
Barbara Blutstein Obituary
Blutstein, Barbara (Nee Polacheck) September 28, 2015, age 77, of Bayside. Loving wife of Morton Blutstein. Cherished mother of Mark Blutstein, Janet (Mark) Murphy, and Daniel (Elizabeth) Blutstein. Caring sister of Jerry (Jill) Polacheck. Adoring grandmother of Andy and Kevin Blutstein; MacCrea and Harper Murphy; Charlie, Allie, and Jack Blutstein. Further survived by other relatives and friends. Barbie was an icon in the Milwaukee community and never turned her back on anyone. She worked for Senator Robert Kasten‘s campaign, represented Wisconsin in choosing military cadets for the armed services and fundraiser for President Reagan. Even with this, she never voted Republican. Other commitments were the Channel 10 Auction, United Way, President of the Jewish Museum Milwaukee, Children’s Outing Association, Board member of the Blood Center of Wisconsin, Milwaukee Jewish Federation, Wisconsin Junior Tennis Association, University School of Milwaukee, Wells College Alumni Association, the Breast Cancer Showhouse, and Tempo. She was involved in many other charities and corporation boards, she could not say no to. Barbie was a “one of a kind” woman, but always cared most for her family. Morton was her partner for 54 years and they recently celebrated their anniversary. She loved her children and grandchildren with all her heart and they loved her back even stronger. Barbie’s family is dedicated to Milwaukee and has owned Reliable Knitting Works for over 100 years. She was so proud of our company and the family who worked there. She will be missed by so many people and will be loved forever. Funeral services 11AM Thursday, October 1, 2015 at Congregation Sinai, 8223 N. Port Washington Rd., Fox Point, WI. Interment Spring Hill Cemetery 166 S. Hawley Ct., Milwaukee. Memorials to Jewish Museum Milwaukee, 1360 N Prospect Avenue Milwaukee, WI 53202 or Children’s Outing Association, 909 E. North Avenue Milwaukee, WI 53212.
Sep 30th, 2015 by Dave Reid
Klement Sausage Co. to move corporate offices to Pabst center downtown
Klement Sausage Co. will move its corporate offices from the company’s Bay View processing plants to a new downtown building — giving the company a higher profile. Klement’s headquarters will be at the Pabst Professional Center, a five-story building that opened last year at 1036 W. Juneau Ave. The center is part of The Brewery, the redeveloped former Pabst brewery that now includes a hotel, apartments and other new uses. The sausage maker’s move, from 2324 S. Burrell St., is expected to take place in early 2016, the company announced Wednesday. Klement will occupy the building’s fourth floor, which totals around 13,000 square feet. “This move supports Klement’s long-term commitment to the city of Milwaukee and our growth plans,” Ray Booth, chief executive officer, said in the statement. “The Pabst Professional Center represents our ‘Best of Class’ business goal, and supports that our best days as a company are ahead of us.” The new offices, overlooking I-43, will provide a much more visible location for Klement’s headquarters. “The offices will showcase our brand and create a work environment that inspires our employees’ passion and creativity for the business,” Booth said. The new location, near the new Milwaukee Bucks arena, “is in a vibrant and booming area of downtown Milwaukee that offers many amenities and an enhanced quality of work life for our employees,” said Rebecca Herrmann, director of marketing. The number of employees moving to the new office hasn’t been finalized, she said. The Pabst office building, operated by Blue Ribbon Management LLC, has around 39,000 square feet of leasable space. Its tenants include TCF Financial Corp., which leases just over 12,900 square feet. TCF’s Wisconsin commercial banking group, with around 30 employees, moved to the top floor this year from 500 W. Brown Deer Road, Bayside. With the Klement lease, the building has around 10,000 square feet remaining on the third floor and is now over 75% leased, said Michael Kelly, Blue Ribbon Management executive vice president. The new location will house most of Klement’s executive team, as well as sales, marketing, finance, information technology, planning and customer support staff. The company’s two production plants, totaling over 220,000 square feet, will remain at E. Lincoln and S. Chase avenues. Klement has nearly 500 employees. Klement’s was assisted by Siegel-Gallagher in the relocation search, and Madisen Maher Architects has been selected for the design of the headquarters. Klement’s, founded in 1956 by brothers George, John and Ron Klement, has a portfolio of smoked, fresh and summer sausage, snack sticks and deli meats. Klement’s was purchased in 2014 by San Francisco-based private equity firm Altamont Capital Partners and is operated by Tall Tree Foods Inc., one of Altamont’s holding companies.
Sep 30th, 2015 by Jeramey Jannene
BrightStar invests in four companies, including two more Gener8tor grads
BrightStar is joining forces with prominent Wisconsin investors to co-invest $660,000 in four companies, the Milwaukee-based nonprofit venture capital group said in a press release Tuesday. BrightStar Wisconsin Foundation Inc.’s latest investments bolster the funding rounds for SteelGlaze Inc., Wausau; EmOpti Inc., Brookfield; Quietyme Inc., Neshkoro; and Bright Cellars Inc., Milwaukee. Quietyme and Bright Cellars are also part of Milwaukee- and Madison-based digital startup accelerator Gener8tor’s portfolio.The lead investor for the companies were north central Wisconsin’s newly formed N29 Capital Partners, Brookfield’s Golden Angels Investors LLC, Madison-based American Family Venture and Milwaukee County Executive Chris Abele‘s CSA Partners, respectively.
Sep 29th, 2015 by Jeramey Jannene
Wisconsinites make Forbes’ richest list
Ten Wisconsin billionaires made the Forbes annual list of the 400 richest Americans that was released Tuesday. Forbes’ annual ranking of the wealthiest billionaires was complete with the usual big-hitters. With a net worth of $76 billion, Bill Gates is again the richest man in the country, while Warren Buffett is No. 2, again, with $62 billion. According to Forbes, the price of entry this year was $1.7 billion, the highest it’s been in the 33 years the magazine has tracked American wealth. Leading the list in Wisconsin again this year is retailing magnate John Menard Jr., who was 49th with an estimated net worth of $9.2 billion. Menard ranked 59th last year. The second-highest-ranked Wisconsin billionaire is Herbert Kohler Jr. of Kohler Co. at 65th with $7.4 billion. He ranked 90th in 2014. Diane Hendricks of Beloit-based ABC Supply Co., at $3.7 billion in net worth, is the highest-ranking woman from Wisconsin at 159th. Four members of the Racine-based S.C. Johnson family were listed as tied for 203rd with $3.2 billion each: matriarch Imogene Powers Johnson and three of her children: H. Fisk Johnson, S. Curtis Johnson and Helen Johnson-Leipold. James Cargill, 66, an heir to the Cargill food and agriculture company, was 235th nationally with net worth of $3 billion. Karen Johnson Boyd, the great-granddaughter of S.C. Johnson Sr., was 246th nationally with $2.7 billion. Judy Faulkner of Epic Systems in Verona ranked 256th at $2.6 billion. Milwaukee Bucks co-owner Jamie Dinan was ranked 279th with a net worth of $2.4 billion, while fellow co-owner Marc Lasry was ranked 358th on the list with a net worth of $1.9 billion. More about how Forbes came up with this list can be found here.
Sep 29th, 2015 by Dave Reid
Prominent Bay View building to become a ‘micro-hotel,’ restaurant
A prominent Bay View building that last housed a tavern will be converted by its new owner into a business similar to a bed and breakfast. The former home of the Down and Over Pub, 2535 S. Kinnickinnic Ave., was sold recently to Joca Properties LLC for $375,000, according to Colliers International. Steve Sewart, of Colliers, brokered the transaction. Joca plans to develop a “micro-hotel” within the 11,500-square-foot building, said Charles Bailey, the group’s registered agent. The new business “would be something like a bed and breakfast,” Bailey said Tuesday, with seven to eight guest rooms created within former banquet hall space on the second floor, and a restaurant on the first floor. “It will definitely not be a bar,” Bailey said. Joca is seeking a restaurant tenant, and Bailey has been in discussions with Bay View restaurant operators. “I want to keep it as local as I can,” he said. Joca hopes to open the business by spring 2016, said Bailey, a Shorewood resident who’s a principal in CertaPro Painters of Chicago. The building was sold by Brody’s Down and Over LLC, led by , according to state real estate records. The Down and Over Pub, which featured live music, has closed. The planned redevelopment marks the latest in a series of investments in Bay View, including new apartments that are under development on or near S. Kinnickinnic Ave.
Sep 29th, 2015 by Jeramey Jannene
Milwaukee’s Michael Best & Friedrich adds attorney to real estate practice group
Thomas Gartner has joined the Milwaukee office of law firm Michael Best & Friedrich’s real estate and transactional practice groups. Gartner is the former city attorney for the city of Milwaukee. He has played a key role in structuring some of the most notable developments in Milwaukee. He was named the city of Milwaukee’s Public Official of the Year in the Daily Reporter’s 2012 Newsmakers list.
Sep 29th, 2015 by Dave Reid
Bucks will develop master plan for arena development
The Milwaukee Bucks intend to develop a master plan in the next few months for the $400 million in development that is anticipated to be built around the new arena in downtown Milwaukee, a team co-owner said Monday. New York City hedge fund executive Wes Edens said Bucks executives are finalizing plans for a new practice facility and hope to begin construction in the near future on the corridor between West Juneau and West McKinley avenues at North Sixth Street. The pork-chop-shaped block has been vacant for more than a decade since the Park East freeway was demolished. The practice facility project will take 12 to 18 months to complete and measure between 50,000 and 60,000 square feet. “It will be state-of-the-art and borrow from what has worked with other NBA teams,” Edens said in an interview with the Milwaukee Business Journal at the team’s media day. Edens and co-owners Marc Lasry and Jamie Dinan attended the team’s media day on Monday and met with the media. The Milwaukee Common Council on Sept. 22 provided the final political approval needed for the $250 million in public arena funding. The city will contribute $47 million plus interest to the arena district through tax incremental financing. The team is also working on plans for the new arena and hopes to finalize them, along with a lease, with the Wisconsin Center District over the next several weeks. Eden said it is still the team’s goal to have the arena built and open by October 2017, but he admitted that is a “very aggressive goal” and it may end up being October 2018. “We are working hard to get this project underway as quickly as we can,” he said. “I know it is an aggressive goal and we are going to try and meet it.” As for the surrounding $400 million in development the team has talked about, Edens said he wants to “take a step back” and put together a master plan to ensure the project is done correctly. “I don’t want to do this piecemeal,” he said. “We need to make sure everything fits together and works. We want this to be a live-work-play development. We have a big blank canvas and we have the opportunity to get the right things in place.” He said the team has looked at similar development near the Staples Center in Los Angeles as one example. Edens said the team has had many local and national inquires about being involved in the development. He declined to reveal who might be interested, but reiterated that the three owners would be involved. Housing is likely be a major component of the project, along with retail, restaurants and major office users, he said.
Sep 28th, 2015 by Jeramey Jannene
