“If you spend segregated fee money to fund an event that creates a profit, the segregated fee money has to be reimbursed.” – UWM Internal Audit Director Paul Rediske

Former Student Association (SA) President Russell Rueden was charged with five criminal counts of theft, including three felonies, over the summer.

If convicted, each felony carries a maximum punishment of three and a half years in prison and a $10,000 fine. An investigation was launched stemming from a $10,000 check that was written to Rueden’s advertising firm AcerPrudens and cashed in August of last year. The check was written by ex-Student Housing Administrative Council (SHAC) President Matt Franson, but was never authorized or approved by that governing body.

Other allegations involve a $3200 contribution from Time Warner Cable to provide food for Welcome Week and be its exclusive sponsor. TWC was solicited to cover the cost of food for the event despite the fact that the university was providing the food, charging only for set-up costs. The complaint alleges that TWC was misled and would not have contributed the money had they known they were not providing the food for Welcome Week.

The other felony charges involve the transfer of funds without consent and with intent to convert to Rueden’s own use, or to the use of anyone but the owner or designated recipient. Additionally, Rueden was charged with two misdemeanors involving $1600 in funds raised from a flower and T-shirt sale that were never deposited into an SA account. The complaint alleges that Rueden received money from the fundraisers but never deposited the cash.

Money raised through use of segregated fee money is subject to follow Wisconsin State Statute F20.

“If you spend segregated fee money to fund an event that creates a profit, the segregated fee money has to be reimbursed,” said UWM Internal Audit Director Paul Rediske. The net profit must then be distributed to the stated cause for the fundraiser, which is verified by the Student Activities Office. Any fundraising event must have a stated purpose that is approved by SAO.

The administration is also looking into how to handle the situation. On Aug. 19, UWM’s Non-Academic Misconduct Committee met to hear the charges against Rueden and to determine his punishment.

He chose to have a closed meeting, and the witnesses called to testify were sequestered, meaning that they were questioned and released individually. The contents of the meeting are protected by the Family Educational Rights and Privacy Act (FERPA) and details are vague at this point.

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