Paul Srubas, and Adam Rodewald

Green Bay Press Gazette

GREEN BAY - Mayor Jim Schmitt’s political opponents are calling for him to resign in response to his agreement to plead guilty to misdemeanor violations of state campaign finance laws.

Prosecutors filed the charges in Brown County Circuit Court Wednesday after a 20-month investigation that found Schmitt took thousands of dollars in illegal donations and then filed amended campaign finance reports misrepresenting the source of some of those funds.

Aldermen who brought Schmitt's fundraising irregularities to the attention of prosecutors said they believe Schmitt's actions amounted to corruption.

“These are serious charges," Alderman Andy Nicholson said. "He’s been taking illegal contributions for over a decade. He’s been cheating the system. It’s not fair to opponents that he has basically outspent two-to-one. I think he should resign with dignity."

Milwaukee County Assistant District Attorney Bruce Landgraf began reviewing Schmitt's campaign finances in January 2015, after Nicholson and Aldermen Guy Zima and Chris Wery accused Schmitt of accepting more than $10,000 in illegal donations. They included donations from individuals who exceeded the legal limit of $1,040 and those made by corporations, which are prohibited from giving to political campaigns.

PDF: Read the criminal complaint against Mayor Jim Schmitt

PDF: Mayor Schmitt's statement on campaign finance violations

RELATED: Schmitt's campaign report 45 days late

RELATED: Campaign probe expands to aldermen

Schmitt was charged Wednesday with making false statements on his finance reports, attempting to accept funds from someone other than the reported contributor, and attempting to accept funds in excess of the allowable individual contribution limit.

Each misdemeanor charge carries a maximum penalty of nine months in jail and a $10,000 fine.

Schmitt said the contributions were mistakes stemming from his failure to accurately record and verify donations as well as his failure to know and comply with contribution limits.

“I should have done much better and for that I offer my heartfelt apologies to you and to everyone in the City,” Schmitt wrote in a statement to the community.

In a statement, Landgraf said a plea agreement was reached before the charges were filed. He said court proceedings will be scheduled after the case is assigned to a Brown County Circuit Court judge.

Conditions of the plea negotiations are spelled out in a letter from the prosecutor to Schmitt’s lawyer. In it, Landgraf makes it clear the charges themselves were negotiated.

“Each (charge) is pleaded as an attempt to commit a felony election law offense, making the offenses Class A misdemeanors,” Landgraf wrote. “Upon Mr. Schmitt’s plea of guilty to the charges contained in the complaint, I will recommend a disposition that does not include jail or probation. I will be otherwise free to argue for dispositions as I see fit.”

Landgraf acknowledged many findings and allegations were not formally charged, and that the three filed charges “are representative of the types of violations discovered during the investigation.” Uncharged allegations will serve as “read-ins” — items the presiding judge can consider at sentencing.

Also as part of the agreement, Schmitt must dissolve his campaign committee and forfeit all campaign funds. The campaign account balance as of June 30, 2015, was $26,545.75.

Schmitt also agreed to terminate Friends of Jim Schmitt, his campaign committee, and must, by law, organize a new one, according to Landgraf.

According to the criminal complaint:

» Schmitt reported a $5,000 contribution from Robert E. Toonen of Green Bay in August 2003 as five separate contributions, from Toonen, his wife, two daughters and a son-in law.

» Schmitt changed his record for an October 2011 contribution from Toonen for $1,000 to say it came from David Toonen. Robert Toonen told investigators he was not aware of the change, and David Toonen said he was not contacted by Schmitt's campaign about it.

» Schmitt initially reported two $25 contributions to attend a fundraising event from Cantilever Studio LLC in December 2013, a corporate contribution that is prohibited by law. After questions were raised about his finance reports, the entries were changed to indicate the contributions, initially recorded as CS, were from his brother, Carl Schmitt, who said he did not make any contributions to the campaign.

» Schmitt received a $1,250 check in June 2014 from Philip Hendrickson of Green Bay, which would have put Hendrickson over the $1,040 limit for the reporting period. The donation was recorded as $250.

» When William Lewis of Green Bay wrote a check for $1,000 in June 2014 that exceeded the contribution limits. Schmitt's campaign recorded the check as a donation of Lewis' daughter, who told investigators she only knew about the contribution because an employee of her father's company had called to ask permission to use her name.

» Schmitt altered records by adding "Jr." to two contributors, David Charles and William Kress, to prevent them from exceeding the contribution limit.

The investigation focused on Schmitt and his campaign finance records filed in 2015, when Schmitt was re-elected to a fourth term in office. Prosecutors gave particular attention to several amended campaign finance reports that Schmitt filed in 2015.

None of the contributors has been charged with a crime.

Schmitt and his lawyer, Patrick J. Knight, released statements but declined further comment.

A sentencing date has not been set.

While pleased that charges were brought, the complaining aldermen expressed anger at the negotiated settlement.

“These are felonies that have been reduced to misdemeanors,” Zima said. “I think the mayor ought to resign, myself, and that we have a special election and have the city continue on under new administration.”

He objected in particular to a line in Landgraf’s letter identifying the settlement as an act that forecloses prosecution of any other matters that could have been brought.

“I think the public has a right to know all the allegations that could have potentially been brought,” Zima said. “This has been boiled down to three. It cleans up a whole cesspool, and people should at least know what the cesspool is.”

psrubas@pressgazettemedia.com and follow him on Twitter @PGpaulsrubas

arodewal@pressgazettemedia.com and follow himon Twitter @AdamGRodewald