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Kenosha County Eye

Three Owners Of Dick’s Roofing Guilty Of Conspiracy To Defraud The United States: $1.5 Million In Unreported Income


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.”

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Jeff Milkie, Rick Milkie, and Richard Pignotti

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.

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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.

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  • Kevin Mathewson

    Kevin Mathewson is a disciple of Christ, husband and a father to two wonderful children. Mathewson was born and raised in Lake County, IL and worked as a police & fire dispatcher from 2005 to 2010 in Round Lake Beach, IL. Mathewson moved to Kenosha County in 2006, later being elected to the position of Alderman of the 8th District in 2012 and 2016. Mathewson is a private investigator, security contractor, journalist, and photographer. He enjoys spending time with his family, watching movies, camping and boating. His favorite amendment is the second, followed closely by the first. He loves his country and community.


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43 Responses

      1. Oh well, just less money for federal corporate welfare programs to massive corporations and billionaire CEO’s who do all they can to cut wages and benefits to regular, hard working and oblivious Americans.

    1. Shut up. Without taxation, we wouldn’t been able to supply our young men with weapons to go off and kill brown people for the past 20 years.

      1. I agree blacks need to stop killing blacks … weres your BLM ?… Oh there to buzy skimming money to buy 6 million dollor homes.. WITH TAX FREE MONEY.!!!!

  1. Being in business is a risk . People in business put everything the have on the line in order to stay afloat in hard times. In the eyes of the IRS what these guys done was wrong . Why because they have their hands in your pockets before you do ! So opinion wise what these 3 did is attempt to build a better life for themselves by using the profits of their labors before the government got their cut . Someone within their organization dropped the dime on them to the IRS . Note to business people keep your pretax business practice close to the vest or you to will become a dick in the eyes of the IRS

  2. They should have bolted the non united states of Israel like I did. The irs is a criminal enterprise and they can fuck off.

  3. Oh, I wanted to add. Two of their employees turned them in. Employees are a risk and business owners should have the least amount as possible.

  4. Also there was a whistle blower award of 10% from the irs for the main employee that turned their bosses in. Some of the roof projects required city permits. There was no entry in their accounting. The irs requested all roofing projects in kenosha and racine building departments that had permits and played matching. I guess the employee earned her own bonus all while being paid by dicks roofing.

      1. `what is not true? you stated what i wrote is incorrect. I am the former building inspector of kenosha. i contact racine and kenosha building inspectors that i know. both racine and kenosha inspectors verified that IRS requested and obtained permits. And yes, a Dick’s roofing employee blew the whistle. Do you want me to name her? i can!

        1. Dennis where do you get your information? Go ahead and name her…lol you have no fucking clue what you are talking about!

        2. Dennis where do you get your information? Go ahead and name her…lol you have no clue what you are talking about!

        3. Dennis, I am VERY familiar with the situation and there was no “whistle blower”. You clearly are misinformed. Way to act like you know what happened though haha

          1. Anonymous,
            Agree with you. This Dennis knows nothing about the situation. For someone that worked for the City of Kenosha and has these so-called friends in Kenosha government should know that Kenosha doesn’t require roofing, windows or siding permits. Kenosha County Eye should do on article on Dennis and why he was let go from the city of Kenosha as an inspector. I don’t know why Dennis fled the US and left children here, but many can speculate. Also, why he is so worried about what happens here while abroad and bashes America every chance he gets is questionable.
            He also quoted the wrong amount on IRS whistleblowers its15% minimal and 30% max.

  5. Every bar/bartender should be charged with this same “crime”. I know they all don’t claim every dollar that they bring in, for good reason.

  6. I no longer care to comment on your stories, since you will delete the ones you don’t like. It’s your website, so I really have no right to gripe.

  7. I’m surprised at all of the “law and order” people defending this. I guess if Trump did it, it’s ok for everyone else too. SMH. This is stealing, from you and I.

    1. Yah, I wonder about some of the “law and order” people too …… the ones who drive 10-15 over the limit and think “thats” ok ………. and a bunch of other stuff as well.
      If you’re “law and order”, that means ALL laws … not the ones you pick-out.
      If one doesn’t want to pay taxes then make enough tax-deductible donations to not have to.

      1. In addition to your TAX argument, I’d like to add all of the so called minors, that are taxed, but not allowed to reap the benefits of qualifying as an adult.

  8. Shame on them and since they made restitution and forfeited some rights the deed was done and punishment has been accomplished.

    You could set up the same scenario with some politicians or government employees and they would walk out the door, ill gotten funds untouched, and pension intact.
    And….possibly get a new second gig in some government agency or non-profit.

    My sympathies lie with the roofers.

  9. Looks like an interesting split on the opinions. Seems that half don’t want to share their paycheck with strangers and half don’t want to work and earn a paycheck. The math doesn’t seem real complicated.

  10. Didn’t pay tax on 1.5 million? I wonder how any jobs Stei brink Jr as well as with Rick Greeno didn’t pay taxes on all their side jobs?
    Haven’t heard anything on Steibrink Jr’s hearings. Anything new?

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