Perez Gives Favor for Vote - Incident Detail Report

Note: This is a hand-typed copy because the print was too light for scanning. I do have the original Incident detail report in my possession if anyone would like it faxed to them, let me know. Thank you.

During the course of investigating a political flyer case, case 06-0012-297, I had occasion to speak to Henry Capetillo. While speaking to Capetillo about this political flyer investigation, he brought up some very serious allegations pertaining to activity conducted by Alderman James Graf and Mayor Juan Perez. This allegation, which will be explained in more detail in the following paragraphs, was known to members of the Sheboygan Taxpayer Alliance, which included Donna Suscha; Ernest aka Mike Keppler; Ed Wackowski; Carter Pawlus; Susan Hundley; and Alderman Renee Suscha. Henry Capetillo advised me that he and Susan Hundley have also have made Senator Joe Leibham aware of it, and henry feels that in his discussions with Susan Hundley, she has made one of the former heads of the Sheboygan Chamber of Commerce aware of it, that being David Gass. Henry gave details on this allegation, with some historical perspective, and did so by an interview and also a subsequent written statement, which is as follows:

“My name is Henry Capetillo. I am 55 years of age and was born on /51. I am single and now reside at 1619 North 33rd Street, Sheboygan, Wisconsin, 458-2837. To Detective Mark Kolosovsky, March 17th, 2006. On Tuesday, January 17, 2006, the Sheboygan Press ran a story “Alderman’s Wife to be Tourism Coordinator”. The article was about the hiring of Yolanda Graf, Alderman Graf’s wife. Mrs. Graf would start working on January 30th, 2006, at an hourly rate of $18.51 per hour. I read the article that morning about 9 o’clock. At this time, I was spokesman for the Sheboygan Taxpayers Alliance.

Furthermore, I listened to the Nick Reed show that day and heard his comments on the newspaper article. During the show, he commented about the hiring of Alderman Graf’s wife, her starting salary, and questioned if the Sheboygan County Taxpayers Alliance might be concerned. After listening to Mr. Reed, I contacted Susan Hundley to see if she had been listening to WHBL and Mr. Reed. I commented to her that I could not believe that Mrs. Graf was hired and at a starting salary of $18.51 per hour. I further commented that I recalled that it was Alderman Graf who cast the tying vote to bring tourism in-house and take the contract away from the Chamber of Commerce. I asked Susan if she had taped that council meeting or if she could remember if in fact Alderman Graf had cast the trying vote. She responded by saying that she thought he did and commented that he had voted during various committee meetings just the opposite. That being that the Chamber should retain the tourism contract. I told Susan that I thought this was too much of a coincidence for all this to be happening.

It was at this time that she said what I am about to tell you is very confidential and that I could not repeat it to anyone, not even to individuals in the Sheboygan Taxpayers Alliance. I conveyed to her that I promised not to say a word to anyone. She went on to say that after the city council meeting that voted to bring tourism in-house and take the contract away from the chamber of Commerce, she had talked to Alderman Renee Suscha. She went on to say that Alderman Renee Suscha had told her that the reason Alderman Graf had changed his vote was because Mayor Perez had promised Alderman Graf that if he voted to bring tourism in-house that his wife would be hired for one of the positions that would be created for tourism. I could not believe what I was hearing, but I told Susan, well that explains what has happened.

One of the items on the agenda, for the January 19th, 2006, Sheboygan County Taxpayers Alliance meeting was the tourism coordinator position. During the discussion I strongly encouraged the group to take this on as an issue and make a recommendation that we develop a news release that stated that we should be looking into the hiring of Yolanda graf and at such a high starting salary. The group agreed that I should develop the new release and that I should send a copy of what I developed to Carter Pawlus and Mike (Ernest) Keppler (President of Sheboygan County Taxpayers Alliance) for their review. After their review and comments I would be authorized to distribute the news release to the news media. I worked on the new release on January 21st, 22nd, and 23rd. On January 21st, 2006, I e-mailed Carter and Mike a copy of the first draft. I received a corrected copy back from Carter on January 22nd, 2006. I also faxed a copy to Susan on January 21st, 2006, for her review. She thought it was okay. On January 23rd, I talked to Mike and read him the news release because he said he had not received my e-mail. He said I should make a small change in the starting salary section and in the summary section of the news release, other than that he thought it sounded good. On January 23rd, 2006, I faxed a copy of the news release to Renee Suscha for her information. That evening when I got home from work, there was a fax from Renee Suscha that instructed me to make changes to the news release that took the focus off the hiring of Yolanda Graf, and focused on the starting salary. Because I had already received approval from Mike Keppler and Carter Pawlus, I did not make any revisions to the news release. On January 24th, 2006, I delivered the news release to WHBL and the Sheboygan Press. That morning, Nick Reed read the Sheboygan County Taxpayers Alliance news release on his radio program. It was shortly after that I received a call from Mike Keppler telling me that Renee, Carter, and himself were not happy about the news release since I had received their approval on the content of the news release. He went on to tell me that Renee had felt that we should have not questioned the hiring of Yolanda Graf, but to have concentrated on the starting salary and the wage scale. Later on I spoke to Susan, she reaffirmed that Mike, Renee and Carter were not happy with the news release, and that Mike had told her that Renee had said that the Sheboygan County Taxpayers Alliance needed a different spokesperson and that I should be replaced. She further commented that Renee had talked to Carter and Mike to change their views of the news release. My comment was that she just worried about how Juan would react to the news release, since we both knew how and why Yolanda Graf received her new job. I also told Susan that I was instructed from Mike not to contact the media for any reason. I further commented that I felt that they did not want me to upset any plans they may have regarding the news release and the hiring of Yolanda Graf. That afternoon Mayor Juan Perez, Paulette Enders (Director of City Development), and Sue Hart (Mayor’s Assistant) were on the Nick Reed radio program defending the hiring of Yolanda Graf. I believe that Renee informed the Mayor that I was preparing the news release prior to its release. That is why they were able to react so quickly and respond to the media.

On January 25th, 2006, the Sheboygan Press ran a new article about the Sheboygan County Taxpayers Alliance news release. In the article, it comments that I did not have any comment. Eric Larose, the reporter who was working in the Sheboygan Press article that ran on January 24th, 2006, contacted me. I informed him that I could not comment on the news release, since I was instructed by the group not to make any comment on the news release.

Up to the time that I resigned from the Sheboygan County Taxpayers Alliance, I had various conversations with Mike Keppler regarding the situation that led to the hiring of Yolanda Graf and how the group was covering up for Mayor and Renee.”
Signed Henry Capetillo, dated 3/17/06, witnessed Det. Kolosovsky

When I met with Henry Capetillo for the purpose of him giving me this statement, I also had a long interview with him concerning the facts of this case. He focused on the tourism coordinator position, and basically initiated the conversation with me by giving details of the historical development of the tourism coordinator in chronological order. He provided me with papers that he and Susan Hundley had gathered. These papers consisted of a copy of the R.O. No. 563-05-06, referred to Salaries and Grievances, dated February 6, 2006, stating:

Submitting a communication being a Press Release from the Sheboygan County Taxpayers Alliance stating they have very serious concerns regarding the Sheboygan Tourism Coordinator Position and stating those concerns.

The next document I was provided was the press release that Henry Capetillo gave to WHBL. That press release is as follows:

“January 4, 2006

Our primary mission as members of the Sheboygan County Taxpayers Alliance is to bring to light fiscally irresponsible actions by our elected officials and or questionable use of tax dollars that erodes the public trust. By identifying and highlighting these questionable acts, we hope to inform the public and put our elected officials on notice that we will be proactive in order to change the pervasive “tax and spend” mind-set of our elected officials.

The Sheboygan Taxpayers Alliance has very serious concerns regarding the Sheboygan Tourism Coordinator Position. Our concerns are as follows:

Starting Salary
How was the starting salary determined? For example, is this the high, low or mid range for this Salary Category. If it happens to be the high range than why was this individual started at this high wage level. How does this salary relate to other individual salaries that are in the same Salary Category? For example, if the salary is at the high range, how long did present employees at this same salary have to work in order to get to this salary range (5 yrs, 7 yrs, 10 yrs.)? Starting a part-time Tourism Coordinator at an hourly rate of over $18.00 is just too high. Given the clerical duties of this position, it is hard to justify such an excessive salary. If the starting hourly wage for the Tourism Coordinator is a reflection of other entry-level hourly wages for city positions than we really do have a serious problem with this system.

FTE (full time equivalency) status and benefits
If, this is a part-time position does its equivalency status allow for benefits? For example, positions that are at least 30 hours in the private sector allow full time benefits such as health insurance, retirement, vacation, and sick leave. Is this Sheboygan Tourism Coordinator Position eligible for full time benefits such as healthy insurance, retirement, vacation and sick leave, since it is only a 20 hours a week position? We know that State Statute mandates that the city pay into the pension fund for anyone who works more than 600 hours a year, which is equivalent to working only 12 hours per week. Furthermore, was the Coordinator Position developed to be permanent or LTE (Limited Term Employment) position?

Hiring Process for the Sheboygan Tourism Coordinator Position
Was the hiring process for this position the same as any other new City of Sheboygan position? If not, why would this position warrant a different hiring process? Why was the newly hired Manager of tourism not involved in the development of the position job description and interviewing process? If the reason is that the Manager of Tourism was not in hours as of yet, then why the rush to hire the Tourism Coordinator? Since the Manager of Tourism will be supervising the Tourism Coordinator, it would seem that the individual supervising the position would naturally be involved in interviewing and the selection process. Furthermore, if you just hired a Manager of Tourism that has numerous years of experience in the field, it would be logical that you would want that individual’s expertise in the staff development, hiring process, and organizational aspects for the formation of the Tourism Department.

Summary
We would ask that the council look at the aforementioned items of concern and bring some transparency to this issue. At this time there are such questions as, was this individual the best qualified person for the job out of the thirty some applicants, was the hiring process the same as for any other City of Sheboygan position, was there sufficient time allocated for the selection process, or this particular position, was it absolutely necessary to hire this individual without the involvement of the Tourism Manager?

Is it just a coincidence that alderman Graf’s wife was hired for the Tourism Coordinator? Although, there may not be any conflict of interest with her hiring, it is a fact that Alderman Graf was the tying vote to not contract with the Chamber of Commerce for tourism promotion and thereby creating a Tourism Department with the City of Sheboygan.

In addition, was it prudent to develop a Tourism Coordinator position of an administrative assistant at a lower salary range? We know that the money being utilized to establish a Tourism Department and hiring staff is generated by room tax dollars and not property taxes. Just because room tax dollars are the source of revenue does not justify spending this money in excessive salaries or positions. Any questionable use of tax dollars should be a concern to any person in the City of Sheboygan. We would like to remind our elected officials that they have an obligation to the taxpayers to make sure their money is being spent wisely.

Respectfully,
Henry Capetillo
Spokesman Sheboygan Taxpayers Allliance”
Henry Capetillo writes as a side note on this copy of this press release that Paulette Enders never addressed this issue in her statement from 3/8/06 read at Salaries and Grievances Committee. The issue he is referring to is a paragraph that reads, “Is it just a coincidence that alderman Graf’s wife is hired for the Tourism Coordinator? etc.” He also states that after she read her statement at the Salaries and Grievance Committee, the vote was taken to file Henry Capetillo’s letter, the floor was not open for discussion, nor public input before the vote was taken.

The next document I was proved was Paulette Enders’ statement, which was read on Wednesday, March 8th, 2006, at the Salaries and Grievance Committee in response to Henry Capetillo’s letter. Again he writes she never addressed the concern about Jim Graf’s wife being hired. Her statement is as follows:

“*Starting Salary
After the decision was made to bring Tourism in-house by the Common Council, a position description for the Tourism Coordinator was created. The duties, responsibilities, and experience of the position were compared to other positions in the City’s Table of Organization. Based upon the duties, the position was given a grade. Each grade has a particular range. The position description and grade were submitted to the Salaries and Grievances Committee for their review and consideration. On Wednesday, September 7, 2005, the Committee approved both the Trouism Coordinator and the Tourism Managers position descriptions, as well as position grades. The ranges for both positions were discussed at that meeting. Ultimately the final action was to accept and adopt the Tourism Division as a division of the Department of Planning and Development’s Table of Organization. The Committee’s recommendation was sent to the Common Council and the positions, grades, and T.O. change were approved on October 3, 2005. (See attached Salaries and Grievances agenda and minutes, position descriptions and Common Council minutes).

In December, Kim Swisher accepted the Tourism Manager position for a salary above the low point of the range, but below the mid-point. In January, Yolanda Graf accepted the Coordinator position at the starting point of the grade’s range. Because the Human Resources Director has the ability to authorize salaries within a certain range, no further action was required by the Salaries and Grievances Committee.

*FTE (full-time equivalency) Status and Benefits
The Tourism Coordinator position is a permanent position. In the year 2006, the position is budgeted as a part-time position (20 hours per week.) This fact was mentioned at the Wednesday, September 7, 2005, Salaries and Grievances Committee. The position is eligible for pro-rated benefits, not full-time benefits.

The Human Resources Department has information pertaining to benefits for part-time, non-represented employees.

*Hiring Process
After the T.O. was changed, I requested Human Resources place advertisements for the positions in the Sheboygan Press; Milwaukee, Madison, and Green Bay newspapers; the League of Municipalities website; International Association of CVBs website; and other mass e-mailings across the state.

During the months of November and December applications were reviewed, and phone and personal interviews were conducted by the team consisting of: Paulette Enders, Department of Planning and Development Director; Alderperson Bill Stephen (also a member of the Tourism Advisory Committee); Susan Hart, Mayoral Administrative Officer; and Ed Surek, Human Resources Director. All candidates were asked identical questions in both the phone and personal interviews. Manager candidates were also asked to submit a proposed Marketing Plan as a part of their personal interviews.

After the field was narrowed down to two for both positions, the final decision was made by Paulette Enders and Pete Fullerton.

The hiring process for these two positions was not any different than the process used to hire other similar City positions. The process was consistent, formal, and painstakingly fair to all candidates, as is the practice of the Department of Planning and Development when interviewing candidates for various positions.

Although Kim Swisher was not directly involved in the hiring of the Tourism Coordinator, when the field was narrowed to two for the Manager’s position, both were asked what they would like to see in a Tourism Coordinator (experience, expertise, personality, etc.). When Kim was selected as Manager, her recommendations were used when making the final Coordinator selection. As I mentioned to the Salaries and Grievances Committee in September, I wanted both positions filled as soon as possible. 1.5 staff people is a lean organization when addressing all the duties involved in promoting tourism. The Chamber’s contract was set to expire at the end of 2005, and I was striving to meet the needs our visitors and residents without missing a step.

*Summary
Yolanda Graf was selected from a pool of over 30 candidates. Ms. Graf has an Associate Degree in Marketing from Lakeshore Technical College, as well as marketing experience from her former place of employment. Additionally, Yolanda possesses extensive knowledge of the community, an invaluable asset to a tourism division.”

The next document I have is an agenda of the Salaries and Grievances Committee meeting on Wednesday, September 7, 2005, at 4:10 p.m. at the Police Conference Room in City Hall. Present were Alderpersons Eldon Burg, Jim Graf, Dan Berg, Bonnie Cerda, Donald Van Akkeren, and Ex-officio Member Edward Surek, Director of Human Resources. Number 5 on that agenda was the Creation of the Tourism Division, where Paulette Enders was to attend.

The next document was an Amended Minutes for the Salaries and Grievances Committee meeting of September 7, 2005. The minutes specific to Number 5, the Creation of the Tourism Division are as follows:

“5. Creation of the Tourism Division
The Council voted to bring tourism in house. Paulette Enders was asked to look at job descriptions along with adjusting the Table of Organization. She contacted a couple of communities with tourism or CVB’s in house. The salary range for the Coordinator is $38,498 – 51,995 depending on hours worked. (the budget will be set for a part-time person). The Manager of Tourism’s range is $48,497 – 69,498. With fringe benefits it would be about $107,000 for both positions (although the Table of Organization states two full-time positions, the Tourism Coordinator will be budgeted for part-time at this time). Because the division will be funded with room tax dollars and room tax dollars fluctuate, the budget may be adjusted based on actual.

Paulette Enders. Plan to hire the Manager first by December 1st. There is some room tax money available for that. We want to be ready when this comes in-house January 1st. The part-time would be hired shortly after. Ms. Enders confirmed with Finance Department that the monies are available to hire December 1st.

Ald. Cerda to Paulette: Will there be other costs in the start-up of Tourism and what account will the costs come from. How is the upfront cost for marketing going to be funded (what account).

Paulette Enders: You would have to ask Rich Gebhart what account would be used. The division has not been created. Our start-up costs will be kept to a minimum. We are planning on contacting Emmons-Napp to look at how we can re-arrange two existing workstations. As far as consultants, DuFour and Jon Rost are currently performing work for specific projects (i.e., South Pier). Any new contracts would be approved through the proper committee/Common Council.

Ald. Eldon Burg: We need as clear a line as possible using room tax dollars.

Paulette Enders stated that is done now with block grants and that she didn’t anticipate using any other of her staff to help with tourism other than during peak times (i.e. significant mailings, etc.)

Tourism will be housed in City Development. If there is any additional cost, we will keep it to a minimum (space, furniture, supplies).

Ald. Dan Berg: Ald. Graf said the Chamber didn’t do every item stated in the contract, but our Alderpersons oversaw the Chamber and should share in the blame. Ald. Dan Berg would have liked to give the Chamber one more year.

Motion by Ald. Graf to accept and adopt the tourism division. Second by Ald. Eldon Burg.

Ald. Graf: Because this has been moved in-house, the Chamber is moving forward getting ready for this to happen. There are several businesses, such as bed and breakfasts, depending on us to do this. I think we should move forward so we are ready to go forward by January 1st.

Paulette Enders: The creation of the division will take approximately one month to create. If this is delayed it will put us further behind.

Ald. Eldon Burg: Even though I am in favor of in-house tourism, it is time for us to move along.

Ald. Cerda: I am little in disagreement (to approve this). There are too many unanswered questions. Paulette has done a great job and this is not directed at Paulette. Even the lodging recognizes there is no goal setting in place.

Paulette Enders: We did have a meeting with approximately one-half of Sheboygan’s lodging facilities. We discussed the advisory committee and the hiring of a Tourism Manager. I also mentioned a marketing plan and the fact that although I proposed a budget with specific line items (i.e., print advertising, fulfillment, trade shows), getting into specifics would have been premature considering the fact we want to receive a lot of input from the advisory committee and local lodging.

Ald. Graf: Regarding Ald. Dan Berg. I have been on CVB (Convention and Visitors Bureau) for two years. When it came to approving their budget, they passed around proofs. As a rep, you would say if that’s what you have done, it is okay. It wasn’t like everything was laid out – we saw a lot after the fact.

Ald. Dan Berg: Everyone went along with it because it was the same as before.

Vote. Ayes, Ald. Graf, Ald. Eldon Burg, Ald. D. Van Akkeren. No votes by Ald. Cerda, Ald. Dan Berg.

Ald. Dan Berg: Request that when this document is created for Council, he would like to have on the document those alderpersons who voted to approve and those who voted to disapprove.

Ald. Van Akkeren said if you don’t want to sign the document, you do not have to.”

Highlighted on this document are specific sections, the first being Alderman Dan, stating, “Alderman Graf said the Chamber didn’t do every item stated in the contract, but our Alderpersons oversaw the Chamber and should share in the blame. Ald. Dan Berg would have liked to give the Chamber one more year.” There was a motion by Alderman Graf to accept and adopt the tourism division, second by Alderman Eldon Burg.

The third highlight is Alderman Graf, “Because this has been moved in-house, the Chamber is moving forward getting ready for this to happen. There are several businesses, such as bed and breakfasts depending on us to do this. I think we should move forward so we are ready to go forward January 1st.

Another highlight, “Ald. Cerda. I am a little in disagreement (to approve this). There are too many unanswered questions. Paulette has done a great job and this is not directed at Paulette. Even the lodging recognizes there is no goal setting in place.”

Also highlighted: “Paulette Enders. We did have a meeting with approximately one-half of Sheboygan’s lodging facilities.” Written on the side of this statement, either by Henry or Susan Hundley, 2 out of 11.

Another highlighted paragraph reads, “Ald. Graf. Regarding Ald. Dan Berg. I have been on CVB (Convention and Visitors Bureau) for two years. When it came to approving their budget, they passed around proofs. As a rep, you would say if that’s what you have done it is o.k. It wasn’t like everything was laid out – we saw a lot after the fact.” A note written by Susan or Henry on the side of this paragraph is “Not true!”.

The last highlighted paragraph is, “Ald. Dan Berg. Requested that when this document is created for Council, he would like to have on the document those alderpersons who voted to approve and those who voted to disapprove. Ald. Van Akkeren said if you don’t want to sign the document, you do not have to.”

The next document I received was a copy of a draft of Yolanda Graf’s position of Tourism Coordinator. Another document was the draft of the manager of Tourism, which is Kim Swisher’s position. The last documents are papers showing the change of ordinance to create the tourism positions and the benefit packages that cover these positions.

Henry also provided me with copies of the Sheboygan County Taxpayers Alliance meetings, newspaper articles, e-mails, and a fax from Renee Suscha. Henry stated that he got a lot of criticism after releasing the news release, even though it was approved by members of the Taxpayers Alliance. He stated that they focused on the fact that he should not have made mention of the development of the position, only the salary of the position. He stated that there was some in-house discussion about the position itself, and most of the members basically told him, look, even if the Mayor did something illegal by promising Alderman Graf that his wife would attain a position on this tourism board if he voted to create it, the Mayor still is conducting City business better than Mayor Schramm ever did. Regarding that promise, Henry states than Susan told this to David Gass at the Republican caucus back in January, and that Susan and him also talked to Senator Leibham about this. I asked him specifically if he has talked to Renee about her knowledge of this promise, and he stated that he assumes Renee either had negotiations with the mayor about the promise or talked to the Mayor personally. He stated that his suspicions were confirmed by the Sheboygan Taxpayers Alliance’s not wanting to mention the promise anymore, not wanting to do anything about it. He also stated that Mike Keppler, who is now the head of the Sheboygan County Taxpayers Alliance, made the statement to Susan, “Why would you want to do this, two people could go to jail over this”. He stated that Mike also made this statement about two people going to jail again at a meeting that was attended by Renee Suscha, Susan Hundley, and Mike Keppler on Saturday, March 18th. He also stated that they have threatened Susan that they will discredit her if she pushed this position, and that Renee Suscha told Susan that the Mayor has stated that they can get flyers out on her (Susan). Henry stated that the Sheboygan Taxpayers Alliance is pressing Susan to file a complaint against the Library Board to get Bernie Markevitch out and replaced by one of their own, that being Ed Wackowski.

Henry feels that Renee Suscha is somewhat being used by the Mayor and being set up for a fall, and he states his suspicions are confirmed by several issues that Renee has brought up on the council floor. One of these issues was accusing the police department of lying when they created a report about the closing of a roadway. Henry insists that the strong language that Renee was using, specifically using the word “lie” was encouraged by Mayor Perez and that he also encouraged her to bring up the issue of a police dog at the Council, and questioned its cost, when he, in fact, knows it’s justified. He feels that when all this information comes out about the promise and Renee is compelled to tell the truth, no one will believe what the mayor told her about him promising Jim Graf’s wife this position because she has been proven wrong or unjustified on these other positions.

He states basically the Mayor’s response will be who can believe what Renee says, cause look what she said about the police department. As previously indicated, the vote for the Tourism Coordinator position was in August or September, and Susan was shocked about this vote, and she called Renee and that’s when Renee told her about the promise. Henry states that Susan reported this issue as an ethics violation, which is already being investigated by Dean Nichols of the Wisconsin Department of Justice. Henry stated that Dean Nichols is also going to be calling the Chief concerning this specific investigation.

Henry stated that there appears to be a lot of things going on to push the agenda of the mayor. He acknowledges the Mayor has the legal right to have a specific agenda and push for its passage, but states there are several things he feels are not only unethical, but illegal, that the Mayor is doing to promote his position. He states another one of those would be a new committee that the Mayor is developing called the Labor Committee. He stated that the Mayor promised Mike Keppler a position on that committee, and Henry feels he is doing that just to keep the Sheboygan Taxpayers Alliance in his pocket. It should be noted that Mike Keppler did attain that position, as promised, at a subsequent council meeting

In further conversations with Henry Capetillo, it appears that in his discussions with Susan Hundley, she would be willing to assist in this investigation by providing any information she is aware of. I advised Henry that I would very much like to meet with Susan Hundley, and will do so at such time that I am able to organize the information he is providing me. Henry was asked if he could contact Susan and advise her that I would be speaking to her sometime in the future, and he advised that he would.

During the course of this investigation, I had occasion to speak with Lt. Schafhauser and DC Sherven, and part of that discussion focused on whether our department should continue to investigate this matter, or if it should be turned over to a State agency, based on the political sensitivity. It was decided that I would continue with my attempts to solicit more information from Henry via a possible one-party consent phone call to the Mayor and/or Renee Suscha or other such covert arrangements.

I again spoke with Henry Capetillo, and arrangements were made to … (a couple of sentences were blacked out at this point…picking up where it left off) I again contacted Henry Capetillo on the 21st of March, and at that time he felt that (section blacked out) …would not be productive, based on what had transpired at the council meeting. He suggested that I get a copy of that council meeting, one of which was obtained. He also informed me that in his discussions with Susan Hundley, he feels that she would be receptive to (Section blacked out again).

As previously stated, Henry Capetillo informed me that Agent Dean Nichols of the Department of justice had been contacted by Susan Hundley, and this had been reported to him. I called Dean Nichols, and he did return my call a day later. When I spoke to him, he confirmed that his office had been made aware of this new allegation by Susan Hundley; however, he had not yet assigned an agent. I brought him up-to-date on some of the details of my investigation, which seemed to mirror the information that he had received. He informed me that he too felt that either his department or some other department other than ours would be handling this investigation, due to its sensitive nature, and he advised that he would contact DC Wojs to discuss this matter further. I informed him that at this time, I would be awaiting a decision based on his discussions with DC Wojs on which direction to go on this investigation. DET KOLOSOVSKY/tms

CC: 185