Former Milwaukee Alderman Michael McGee Jr. Found Guilty on Nine
Counts of Extortion, Corrupt Solicitation, and an Illegal Cash Transaction

Steven M. Biskupic, United States Attorney for the Eastern District of Wisconsin, announced that yesterday evening, a jury returned guilty verdicts against former Milwaukee Alderman Michael McGee Jr. on two counts of extortion, one count of attempted extortion, five counts of corrupt solicitation, and one count of avoiding CTR filing requirements for a $15,000 cash wire transfer.

McGee was indicted after a year-long investigation which commenced when a constituent store owner contacted the FBI and reported that McGee was shaking down business owners in his aldermanic district in exchange for McGee’s support in obtaining or renewing liquor licenses, zoning variances, 24-hour permits, and other issues before the Common Council. At trial, the government proved through the testimony of numerous business owners, as well as body-wire and wire taps recordings from McGee’s cellular telephones, that McGee was regularly shaking down constituent business owners for his political support, and was demanding money, food, free cell phones and minutes, and other things of value from these business owners, who were fearful of McGee’s power to revoke their liquor licenses or otherwise create problems for their businesses.

At trial, wiretap and body wire recordings were played wherein McGee termed himself the “gatekeeper” for licenses in his district, and was heard demanding and collecting thousands of dollars from several business owners. McGee was also heard discussing the immense power he anticipated having because of his impending appointment to the Licenses Committee in Spring 2007 and requested from City Hall staff the contact information and addresses for all 1,200 business owners in the City of Milwaukee who hold liquor or beer licenses.

The jury deliberated for approximately six hours before reaching guilty verdicts on all nine counts. The district court judge, the Honorable Charles N. Clevert, has scheduled McGee’s sentencing for October 2008. McGee faces a maximum of 20 years’ imprisonment on each of the extortion charges, ten years’ imprisonment on each count of corrupt solicitation, and five years on the CTR count.

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