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Milwaukee, Milwaukee County, Wisconsin
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John J. Connelly, 61, superintendent of city sewer department's eastern division and brother of ex-alderman Patrick Connelly, arrested for gross fraud in padding payrolls. He cashed checks for non-employees; investigation probes 5,000 checks worth $35-$55 each. Relative may face endorsement charges. Events tied to Jan. 19, 1921 check.
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Investigators Check Over 5,000 Pay Warrants.
Charged with gross fraud, John J. Connelly, superintendent of the eastern division, city sewer department, was arrested shortly before noon Saturday, at the conclusion of a two-day investigation of recent disclosures in the alleged wholesale padding of payrolls in that department.
Connelly is the third man to be arrested as result of disclosures of payroll padding.
Connelly, 61, lives at 770 42nd St. He has long been a city employe, occupying his present position for the last 10 years. He is a brother of Patrick Connelly, former Democratic alderman of the 5th ward
Only One Count Charged.
While the warrant upon which Connelly was arrested contains but one count and charges specifically the obtaining of one check for $37.40, Dist. Atty. Eugene Wengert stated, following Connelly's arrest, that the investigation showed conclusively that he was responsible for obtaining and cashing a number of checks, issued to persons who were not in the employ of his department.
According to Mr. Wengert, approximately 5,000 checks, ranging from $35, to $55 are being investigated by his staff and the police. the investigators being unable at this time to even estimate the probable amount of the sum alleged to have been taken through the padding.
Relative May Face Charge.
The prosecutor also stated that a warrant charging fraudulent indorsement would probably be issued either late Saturday or Monday for a relative of the accused man, who is said to have indorsed the checks.
The check upon which the warrant for Connelly's arrest is based was issued to Richard Coughlin, Jan. 19. 1921. Coughlin told the district attorney he had not been in the employ of the city since 1919.
"The affairs of the eastern sewer division are so muddled up that we can scarcely make progress with our investigation." said the district attorney after he had questioned Connelly for several hours Saturday.
Wife's Name on Checks.
"We have found that a great number of men who worked for Connelly lived either at or near the saloon and rooming house which his wife conducted at 125 Clinton St.
We find that Connelly was in the habit of retaining the checks of the majority of them, giving them a few dollars and their room, board and liquor for the balance.
"A great number of the checks bear. in addition to the supposed indorsement of the employee. either that of Connelly or his wife. In many instances it is probable that the employee indorsed the checks to Connelly, but we have found several cases where the checks came through after the employee states that he had left the employ of the sewer department."
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Story Details
Key Persons
Location
Eastern Division, City Sewer Department; 770 42nd St.; 125 Clinton St.
Event Date
Jan. 19, 1921
Story Details
John J. Connelly, superintendent of the eastern division of the city sewer department, arrested for gross fraud involving payroll padding. He obtained and cashed checks issued to non-employees. Investigation covers approximately 5,000 checks. A relative may face charges for fraudulent indorsement. Connelly's wife conducted a saloon and rooming house where employees lived, and checks were retained by Connelly or his wife in exchange for room, board, and liquor.