Wisconsin Democrats Call For Tougher Corporate Fraud Penalties

Several Democrats are introducing a bill that would impose a seven-year penalty on businesses that deceive the state when applying for financial help from the Wisconsin Economic Development Corporation.

Assembly Republicans recently passed bills that would tighten access to FoodShare and cut off unemployment benefits for seven years if people repeatedly lie on their applications. The Democratic state lawmakers behind the new proposal — which takes a cue from the Republican measures with its seven-year penalty — say the GOP’s focus on reducing fraud in government programs should carry over to businesses who lie to the state.

State Sen. Dave Hansen of Green Bay said fraud is fraud, no matter who’s committing it.

“A real concern should be corporate — I repeat — corporate welfare fraud, where the ability to steal millions from state taxpayers can happen in a single case,” he said.

Hansen’s call comes days after Democratic U.S. Sen. Tammy Baldwin asked the U.S. Department of Justice to investigate three WEDC loans, and after the Assembly Speaker Robin Vos discussed a rebranding of the agency.