Top two street workers allegedly gave away, sold city property
By Vicky Wedig
Editor
Two former Lake Geneva Street Department employees are charged with 10 felony and four misdemeanor offenses for allegedly giving away city property or selling it and keeping the proceeds in a “slush fund.”
Ronald M. Carstensen, 55, Donald A. Hoeft, 64, and both of Lake Geneva, were charged June 23 in Walworth County Circuit Court with misconduct in public office and multiple counts of theft.
Both are scheduled to make initial court appearances July 22.
Carstensen, the former street department superintendent, is charged with two counts of misconduct in office and six counts of theft.
Hoeft, the former working foreman for the department, is charged with two counts of misconduct in office, three counts of theft and encouraging a violation of probation.
According to the criminal complaint, Carstensen is alleged to have given away more than $25,000 worth of City of Lake Geneva salt and sand to private companies between 2009 and 2013 while working as the superintendent of the city’s Street Department.
The city receives a mix of 80 percent sand and 20 percent salt from Walworth County, which prohibits the sale of the material to private entities. Carstensen allegedly gave $17,000 worth of sand and salt to B&J Landscape on Krueger Road in Lake Geneva and $14,000 worth of sand-salt mix to C&D Landscape on Bowers Road in Elkhorn over the four-year period.
Carstensen also is charged with retaining possession of a sales tax refund check meant for the city. On Sept. 4, a company refunded $20.06 in overcharged sales tax from a city credit card issued to Carstensen. Carstensen allegedly deposited the check into his personal account.
Hoeft is charged with failing to give the City of Lake Geneva proceeds from recycling city oil and scrap metal. According to the complaint, Hoeft is alleged to have sent city employees on scrap metal runs in city vehicles on work time.
Hoeft allegedly received checks written to him personally that the city never received for city oil that a Spring Grove, Ill., company picked up and paid for. Hoeft told police he thought he received $250 from the oil company and gave the cash to Carstensen. Heritage Crystal Clean of Spring Grove reported writing two checks for $240 each to Hoeft personally in 2012 and 2013.
Hoeft also allegedly sold scrap that belonged to the city and turned the money over to Carstensen, who put the cash in a “slush fund” that the city had told the department to get rid of. Seven loads of scrap were sold in 2010 totaling $5,786, which the city never received. In 2012 and 2013, Hoeft allegedly sold another $2,077 worth of scrap that belonged to the city.
Hoeft also is charged with falsely reporting the community service hours that a probationer worked for the Street Department.
Hoeft allegedly signed off on community service hours to a woman required to complete the hours as a result of a drunken driving conviction in exchange for a good price on her truck.
The charges are a result of an investigation by the Lake Geneva Police Department and the Walworth County Sheriff’s Department. Assistant Attorney General Annie Jay represents the state in these matters.
