Middleton Employee Utilized Public Works Garage for Business Operations Over a Decade, Reveals Documents

Middleton has introduced new policies in response to an investigation uncovering the misuse of taxpayer money by an employee who operated his personal snow removal business from a town garage for over a decade. The investigation, prompted by internal records and videos submitted to Middleton's Human Resources Department, focused on Ryan Madigan, the former public services supervisor who is no longer employed by the city.

Eleven videos captured Madigan engaging in activities outside working hours, utilizing non-city vehicles. He was observed accessing the city's fuel locker and transferring fuel tanks to and from private vehicles.

While the investigation found no evidence of the first two claims against Madigan—fuel theft from the Town of Middleton MOC and equipment theft—the third claim was substantiated. The records revealed that Madigan had been conducting his profitable personal business from the Middleton Operations Center, utilizing town equipment and resources, for a minimum of ten years. The revelation came to light when another employee in his department installed a hidden camera in the garage for after-hours surveillance.

Town Administrator Bryan Gadow, leading the investigation, emphasized the importance of responsible management of taxpayer funds and resources, expressing the need for clear expectations moving forward. Although the video evidence did not conclusively prove fuel theft, investigative documents suggest that it was likely occurring.

Gadow acknowledged uncertainty regarding how the situation remained undetected for such an extended period but cited recent leadership changes and a prompt and thorough investigation once the evidence surfaced.

Regarding disciplinary actions, Gadow found that existing Middleton Township rules did not explicitly prohibit personal use of city property by taxpayers. Consequently, policy revisions are underway to establish clear and legally binding expectations, aiming to prevent similar incidents from occurring in the future.

Gadow stated that if additional information surfaces, further investigations may be conducted regarding the fuel discrepancies. In light of the substantiated allegations, Public Works Director Shawn Stauske sent a letter to Madigan, offering him the choice to either resign for operating a private business on city property or face termination. Madigan chose to resign, receiving a $30,000 payment for claimed overtime work totaling 467 hours. Additionally, a new policy addressing the approval of overtime has been implemented in response to this incident.

Records indicate that Stauske, who failed to report or investigate the situation, was placed on probation for six months.

Despite numerous attempts to contact Madigan for comment over the past month, he has yet to respond to NBC15 Investigates.

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