LT article: No Charges by DA 6-26-08

Updated: 6/26/2008 9:02:02 AM
No charges filed in Klaus case
By Julian Emerson
Leader-Telegram staff
Current and former Eau Claire school district officials took part in "suspicious" alterations to former Superintendent Bill Klaus' contract, but questions about what roles those officials played precluded the filing of criminal charges against those officials, District Attorney Rich White said.

Conflicting accounts given by Klaus, former school board President Carol Olson and Klaus' then-executive assistant Patti Iverson to police investigators made filing charges against them "a very difficult proposition," White said Tuesday following his announcement Wednesday that he would not prosecute the case.

Without "clear-cut proof" of which of the three individuals is responsible for the contract alterations that would have allowed Klaus to receive his $225,000 retirement stipend earlier than allowed, filing criminal charges wasn't feasible, White said.

Charging all three also would be problematic, he said, because he lacked proof they were acting as co-conspirators with direct knowledge of what the others were doing.

White questioned the apparently improper behavior of district officials regarding Klaus' contract but said those actions weren't enough to merit charges.

"There was nothing there I felt I could prosecute criminally," White said. "There were a lot of proof problems with this."

At issue is exact circumstances regarding the backdating of the document signed by Olson, making it appear as if it was part of Klaus' contract changes the board had approved on Feb. 5.

"We don't know exactly who did what regarding the backdating, and that's a problem," White said. "They each said the others did it."

In July, without the knowledge of board members, Klaus directed Iverson to type a document allowing him to begin receiving payments Aug. 1. Olson signed and backdated the document despite the fact she had left the board three months earlier.

An April 19 Leader-Telegram story detailing the contract alteration prompted Eau Claire police and school board investigations. The school board investigation is ongoing.

Besides questions surrounding the backdating of the document, board members' disagreements about changes to Klaus' contract also made filing charges a difficult proposition, White said.

Three current board members - Carol Craig, Trish Cummins and Brent Wogahn - said the board changed the age at which Klaus could switch from superintendent to Northstar Middle School principal from 55 to 53 but never discussed beginning retirement stipend payments at age 53.

However, former board members Olson, Michael O'Brien and JoAnne Evans told investigators they believe Klaus was to begin receiving stipend payments early, although they stated discussion of the topic was vague and "not made clear."

Board member Mary Kneer told police she doesn't recall discussion of Klaus receiving his stipend early. She previously told the Leader-Telegram the board hadn't discussed granting early payments to Klaus.

On Wednesday Craig reiterated her stance that the board never discussed paying Klaus early retirement benefits.

"Providing for early payment of Dr. Klaus' stipend was not brought before the full board for consideration, thus, it is not in the (board) minutes," Craig said.

O'Brien conceded the document signed by Olson was a bad idea but denied purposeful wrongdoing on the part of Klaus or board members.

"Certainly, there was an error in judgment in creating and signing that document, but there was never any ill intent on the part of anyone involved," said O'Brien, who didn't seek re-election.

Board division regarding the intent of Klaus' contract muddled the case, and the lack of school board oversight of Klaus' contract "made it very difficult to prosecute this," White said,

White also was troubled by the school board's apparent lack of review of Klaus' contract. Besides the age change issue (55 to 53), the contract change also added the phrase "district retirement" to the contract in reference to when Klaus was eligible for his early retirement payments.

Craig, Cummins and Wogahn said those words mean Klaus would have to retire to receive his stipend, while Olson, Evans and O'Brien said the phrase signified that Klaus should have begun receiving the stipend last August.

"There was a lot of confusion about that term," White said "and that made filing charges difficult as well."

White's decision didn't sit well with some residents; Terry Schwartz of Eau Claire said the actions of Olson, Klaus and Iverson merited charges.

"I can't believe they're getting off after what they did," Schwartz said.

White acknowledged public frustration about the lack of charges filed. But that anger should be directed at school officials and not at his office, White said.

Emerson can be reached at 830-5911, (800) 236-7077 or julian.emerson@ecpc.com.