Illinois has a reputation for corrupt governors and shady politics. Unfortunately, this corruption is not only reserved for the governors, but also the mayors of small towns.
Schauf has now been sentenced to 18 months in federal prison for using fake invoices to skim tens of thousands of dollars from the town. He has also been fined $5,000 and ordered to repay $54,288.74 in restitution to Bridgeport. After prison, he will face three years of supervised release.
On November 6, 2012, Schauf, still mayor at the time, was indicted, along with Paul R. Kramer of Vincennes, IN. In March, Schauf pleaded guilty to three charges of mail fraud and one charge of obstruction of justice. He admitted that from July 2008 until March of 2011, he had conducted a scheme to defraud the city of Bridgeport, along with its residents, by submitting false invoices, contracts, and bills for services. As part of this scheme, Schauf often sought out family and friends to provide services or equipment to Bridgeport. He then submitted invoices or contracts to mislead officials and taxpayers of the true costs. He would deposit checks received for the work or equipment into his personal bank account and paid cash for amounts less than the invoices, making a profit from the difference.
Schauf also admitted that on November 10, 2011, he obstructed justice by telling another person to give false and misleading information to the Federal Bureau of Investigation.
Kramer, 62, was Schauf's co-defendant. He pled guilty in March to two counts of making false statements to the FBI and is scheduled to be sentenced on October 31, 2013, in United States District Court.