
Pettit
The Wisconsin Department of Justice announced Tuesday that it filed a criminal complaint against retired Oregon police chief Doug Pettit for filing false tax returns.
According to the complaint, Pettit submitted tax returns to the Wisconsin Department of Revenue for 2010, 2011, and 2012 that did not include income he’d made providing security services to private businesses, including the Union Sports Club.
The total amount of unreported income throughout the three-year period is $43,083, resulting in the underpayment of income taxes to the State of Wisconsin in the amount of $2,946, the DOJ said in a new release.
Filing a false or fraudulent tax return is a Class H felony in Wisconsin. The maximum penalty includes a fine not to exceed $10,000 and up to six years in prison.
Phone calls to Pettit’s home Tuesday were not returned.
The DOJ notified village officials in April that it was investigating the police department and that the investigation focused on Pettit. The Village Board then initiated its own investigation, which concluded in late August at a cost of about $195,000.
Pettit began using personal and medical leave from the village in May and officially retired Sept. 1.
In a statement released Aug. 28, the village alleged Pettit and many officers used village equipment, including uniforms and squad cars, for off-duty work over a several-year period at Union Sports Club. They accepted cash payments or personal checks for the security service. In some cases, the report said, Pettit accepted cash and paid officers for the work.
When officers worked for other venues while off-duty, they were paid by personal check by the business and did not have taxes deducted from their compensation.
Pettit and several officers used village resources to communicate regarding off-duty work opportunities, scheduling, preparing billing invoices, and to develop safety and security plans for entities outside of the village.
Village equipment that was no longer used by the department was found at and used by Pettit and officers for their off-duty work.
Pettit also directed his administrative assistant and command staff to perform work, during village work time, in furtherance of this off-duty work, the village’s investigation found.
Pettit did not report to the Village Board about the significant law enforcement services needed at the Union Sports Club, including drug and alcohol incidents and physical violence at the club.
The village’s report said Pettit conducted an alcohol license compliance check at the sports club and directed a subordinate to sign the compliance check document instead of signing it himself.
He also failed to properly inform the Village Board of incidents occurring at Union Sports Club that were material to alcohol licensing decisions, such as failing to inform the board of a 2012 raid by the DOR and alleged violations of law reported by the DOR to Pettit.
The report also alleged Pettit took measures to keep information about law enforcement involvement at the sports club from becoming public by requesting the removal of information from logs reviewed by the Oregon Observer.
Pettit retired after serving as chief of police for 29 years. He would have completed 39 years at the police department in December. He left village employment with full retirement benefits intact and was earning an annual salary of $96,000 at the time of his retirement.
Village President Steve Staton told the Observer in September that Pettit had “betrayed” the Village of Oregon and called his actions “reprehensible.”
Pettit said over the summer that the investigation was one-sided and didn’t tell the whole story. He has refused to comment since then.