On our way to do another boring story, this time regarding the details of Johnstown’s $90 million metro district deal for Scheels, we stumbled across just how serious the developer, Michael Schlup, felony convictions really are that we had been hearing about but local media has decided not to investigate. see our story
Schlup would not even pass the very casual background questions of the Johnstown Saddle Club to handle their petty cash at rodeos yet Johnstown officials voted earlier this month to trust him with $90 million in taxpayer funds for a massive development. Here is a brief list of the items we found;
1. According to Kansas media, Schlup served time in jail in the 1990’s for loan fraud after being indicted for “Conspiracy to Commit Loan Application Fraud” for loans on houses he developed.
2. Schlup pleaded guilty to 14 felony counts in 2007 for hiring illegal aliens, paying them in cash and failing to pay payroll taxes (up to 30 on one job site according to the prosecutor).
3. Schlup was sued and settled with the widow of one undocumented worker who fell to his death and another who was badly injured and apparently couldn’t get any compensation from Schlup who kept them off his books.
4. Schlup is reported to have paid $11 million only two years ago to a condo association for building condominiums where the patios were so unsafe the local fire department had to condemn them. The homeowners spent years suing Schlup before finally getting the settlement which included a gag-order.
So if Johnstown wants to create a concentration camp or maybe the factory from Schindler’s list – they have the perfect candidate. But allowing Michael Schlup even near the public’s treasury, or placing him in-charge of a construction project is asking for nothing but trouble.