A European Bank has seized $5.5 million from five Wisconsin school districts. The Kimberly, Kenosha, Whitefish Bay, Waukesha, and West Allis-West Milwaukee school districts borrowed $165 million from Depfa Bank, along with another 35 million in tax dollars, to buy shaky investments to prop up retirement accounts. The investments eventually dried up.
CJ Krawczyk, a lawyer representing the districts, says the seizure does not come as a surprise. The action was in accordance to their loan agreement.
CJ Krawczyk (:22)
The Waukesha district had the most money seized, almost $2.5 million. Kimberly had the smallest amount seized, at just over $134,000.
The districts continue to sue several financial firms who put the deals together, saying the companies were misleading. In January, a judge refused a motion to dismiss the firms from the suit, which Krawcyk calls an “important victory.”