Investigation Dropped Against Former UNISON CEO: Attorney

MILWAUKEE, WI — Laurene Gramling Lambach was arrested by Milwaukee County investigators on suspicions of theft by fraud, but now, after a three-year investigation, the matter has been dropped with no resulting charges, an attorney for Lambach said in a written statement sent to Patch.

"Charges were not issued because she did nothing wrong," Lambach’s attorney Craig Mastantuono said in a statement. "Laurie was incarcerated, lost her job and was subjected to immense community ridicule as a result of the well-publicized events surrounding her wrongful arrest and detention as well as the subsequent investigation."

Kent Lovern, the chief district attorney for Milwaukee County, told the Journal Sentinel Thursday his office determined no criminal charges were appropriate for Lambach.

She was accused of embezzling money from the non-profit social services agency she was president and CEO of, UNISON. The non-profit crumbled in the wake of the accusations against Lambach, along with the services and resources it provided.

Her husband, Chris Lambach, said in a news release "I am so impressed by the way she [Lambach] managed this unexpected and unprecedented disaster even while quietly reassuring family and friends of a positive outcome. We both are very thankful for the continuous prayers and ongoing support of so many people over the past 36 months."

Lambach's arrest occurred on Nov. 20 in 2018.

It started with an anonymous tip to investigators at the Milwaukee County Audit Services Division. Lambach was held in a Milwaukee County jail until her bail was paid a day later.

A search warrant affidavit obtained by FOX 6 News in 2018 shows the initial investigation centered around federal grant money officials claimed went missing.

Months later, the agency she was accused of embezzling from said they found no evidence, CBS 58 reported in 2019.

In September, Lambach and her husband filed a civil suit against Milwaukee County in the U.S. District Court for the Eastern District of Wisconsin alleging her arrest was unlawful, online court records show.

"The graceful manner in which she handled this whole catastrophe is a great example of her strong faith and resilient character," Chris Lambach said in the news release.

"Our hearts are still broken over the needless destruction of UNISON and SET Ministry, where many thousands of people were able to increase their own self-sufficiency and that of their children over a 45-year history of serving Milwaukee families," he said.

Lambach and her husband have lived in New Berlin for over 20 years.

"We consistently cooperated with that investigation, providing comprehensive information and
documentation supporting the conclusion that Ms. Lambach committed no crime; we regret that authorities delayed their decision for three years before ending their inquiry, while Laurie’s reputation continued to suffer,” Mastantuono said in the statement.

"We are concerned by the lack of sufficient cause for her arrest in November 2018, particularly as Ms. Lambach would have cooperated fully with any request for information by the appropriate authorities without the need to forcibly enter her place of business and arrest her," Mastantuono said in the statement. "It is terribly unfortunate that her detention has utterly destroyed Laurie’s reputation as both a CPA and a well-qualified social-service agency leader in Milwaukee."

Editors note: A previous version of this article referred to UNISON as a "non-profit education company." It has since been corrected to read as "non-profit social services agency."