In March of this year, the the United States Attorney’s Office accused the three owners of Dick’s Roof Repair Service in Kenosha with conspiracy to defraud the United States. According to federal court documents, Jeffrey P. Milkie, Richard (Rick) J. Milkie, and Richard Pignotti, have equally owned and operated Dick’s Roof Repair Service for many years.Jeffrey and Rick Milkie are brothers, and Richard Pignotti is their brother-in-law. The United States Attorney of the Wisconsin Eastern district alleges that the three men conspired with each other to under-report income to the tune of $1,500,000. This was done beginning “by at least January, 2014 and continuing until at least April, 2018.”
The investigation showed that during the years at issue, each man was paid an annual salary of $60,000 plus company profits. Each of the owners would occasionally ask the office manager to tell clients to make checks payable to one of the owners personally. Clients making such payments were issued a handwritten receipt, rather than a QuickBooks-generated receipt. None of the checks made payable to owners directly were included in the QuickBooks gross receipts, thus not reported as income for the business. The United States Attorney said that the three men skimmed money for at least 5 years. Further, the three owners transferred the skimmed money into investment accounts such as vanguard. “Specifically, Jeffrey P. Milkie transferred $306,000 into investment accounts, Richard W. Pignotti transferred $590,000 into investment accounts and Richard J. Milkie transferred $256,500 into investment accounts.” The approximately $1.5 million in undeclared income mean that the men skipped out on half a million dollars in taxes.
All three men have taken plea deals in which they admit that they conspired to defraud the United States and pleaded guilty to the felony counts. All three men also waived indictments by grand juries. Richard Pignotti and Richard Milkie have both been sentenced but Jeffrey Milkie, has yet to be sentenced and asked the judge to allow him to obtain a third party pre-sentence investigation. Brian McTernan, a Kenosha businessman who owns a cell phone store on 75th Street, wrote letters of recommendation for both of the Milkies. McTernan said that Rick Milkie is a “pillar of the Kenosha Community.” Jeffrey Milkie also received a letter of support by McTernan. Jeff Milkie is also a board member of the Boys & girls Club of Kenosha.
All three men will be sentenced to probation for two years each, and they must pay $321,192 to the IRS, which they have already done. According to the sentencing documents all three men will be prohibited from ever possessing a firearm again, which is the case for anyone convicted of a felony.
According to the company website, Dick Milkie started the business in 1957 and he later passed the business on to his two sons and son-in-law.