MADISON, WIS. - Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Todd Goldbeck, 46, Middleton, Wisconsin was sentenced by U.S. District Judge William M. Conley to one year and one day in federal prison for committing perjury during a bankruptcy proceeding. Judge Conley also ordered Goldbeck to pay restitution in the amount of $2,466,550.46 to Summit Credit Union. Goldbeck pleaded guilty to this charge during a combined plea and sentencing hearing on Friday, August 7.
In 2015, Goldbeck received a $2.4 million government-backed loan from Summit Credit Union and the Small Business Administration (SBA) to build a sports complex in Jefferson, Wisconsin. Summit and SBA approved the loan based on a several documents Goldbeck submitted, including: (1) a construction contract that estimated the total cost of the building at approximately $2.5 million; and (2) a signed lease agreement between Goldbeck and a regional medical center showing the medical center agreed to rent a portion of the completed building.
After construction began, Goldbeck contacted Summit and requested an additional $2.5 million to finish the project. Goldbeck claimed Summit knew the sports complex was a two-phase project. Goldbeck supported his request with a second construction contract estimating the total cost of the project at approximately $5 million. The new loan was not approved, and Goldbeck never completed the building.
Summit filed a civil suit against Goldbeck in Dane County Circuit Court, and obtained a money judgment in the amount of approximately $2.5 million. After entry of this judgment, Goldbeck filed a bankruptcy petition in the Western District of Wisconsin. During the proceedings, Goldbeck told the bankruptcy trustee, under oath, that Summit knew the building was a two-phase project when they closed the loan. Goldbeck also told the bankruptcy trustee that he did not forge the lease with the medical center.
During the course of the criminal investigation, law enforcement officials obtained documents and emails showing Goldbeck intentionally misrepresented the cost and scope of the project. In addition, law enforcement officials received sworn affidavits from employees at the medical center stating they never signed a lease agreement with Goldbeck.
At sentencing, Judge Conley told Goldbeck that his hubris fueled his scheme to defraud Summit and the SBA. When his scheme failed, Goldbeck “doubled-down” and lied to the bankruptcy trustee.
The charge against Goldbeck was the result of an investigation conducted by the Small Business Administration – Office of Inspector General and the Federal Bureau of Investigation, with the assistance of the Office of the U.S. Trustee for the Western District of Wisconsin. The prosecution of the case has been handled by Assistant U.S. Attorney Chadwick M. Elgersma.
USAO - Wisconsin, Western;
Small Business Administration OIG