This bill directs expenditure of $228,792.62 from moneys appropriated to the
Department of Administration (DOA) for provision of procurement services to state
agencies in payment of a claim against DOA made by Georgia Thompson, through
her attorneys, Hurley, Burish and Stanton, S.C., for costs incurred in defending Ms.
Thompson. Ms. Thompson was convicted on June 12, 2006, of the federal crimes of
misapplication of funds and theft of honest services (
18 U.S.C. 666 and
1341). She
was fined $4,000, ordered to pay a $200 special assessment and sentenced to 18
months in prison. She began serving her sentence on November 26, 2006, and served
until April 5, 2007, when the U.S. Court of Appeals vacated the judgment of
conviction and ordered her released.
U.S. v. Thompson, 484 F.3d 877 (7th Cir., 2007).
The charges against Ms. Thompson resulted from her involvement in a decision to
award a state contract for travel services. Her involvement in the decision and the
decision regarding the award of the state contract occurred within the scope of her
employment at DOA. The costs to defend Ms. Thompson total $228,792.62 and
include attorney fees, costs, disbursements, a fine, and a special assessment. On
December 4, 2007, the Claims Board recommended payment of this claim to
indemnify Ms. Thompson and her attorneys, Hurley, Burish and Stanton, S.C., on
the basis of equitable principles. The board determined that the defense costs are
an obligation of the state and the charges against Ms. Thompson arose from the
performance of her duties as a DOA employee. The board further determined that
payment of the defense costs furthers the purposes of s. 895.46 (1), Wis. stats., a law
under which the state is responsible for payment of most civil and some criminal
defense costs incurred by public employees when they are proceeded against because
of acts committed within the scope of employment. (The law is not applicable to this
case.) The board also recommended that the claim be paid from a program revenue
appropriation to DOA derived from all revenue sources for provision of procurement
services to state agencies. The payment may increase procurement costs to state
agencies from all revenue sources.
(See
Senate Journal, p. 471).
SB402, s. 1
1Section
1.
Claim against the state. The state shall pay Hurley, Burish and
2Stanton, S.C., of Madison, Wisconsin, $228,792.62 from the appropriation under
3section 20.505 (1) (kf) of the statutes, as affected by the laws of 2007, to indemnify
4Department of Administration employee Georgia Thompson, Madison, Wisconsin,
5for the costs of defending her in a criminal action that was filed against her for acts
6performed during the course of and within the scope of her state employment. Ms.
7Thompson was convicted in federal court in 2006 of misapplication of funds and theft
8of honest services relating to her duties as a state employee. The U.S. Court of
9Appeals later reversed the conviction and entered a judgment of acquittal. Ms.
10Thompson, through her attorneys, made a claim against the state for
11indemnification of the defense costs including attorney fees, costs, disbursements,
12a fine, and a special assessment totaling $228,792.62. Acceptance of this payment
13releases this state and its officers, employees, and agents from any further liability
14or indemnity to Hurley, Burish and Stanton, S.C., or to Ms. Thompson resulting from
1the arrest, conviction, and subsequent acquittal of Ms. Thompson for acts performed
2during the scope of her employment in connection with this matter.
