Branstad: More charges possible in DOT fraud case

DES MOINES – More people may be facing charges in a fraud investigation that led to the arrest of a former Iowa Department of Transportation employee, Gov. Terry Branstad said Monday.

David Weigel, 56, was arrested Saturday for allegedly stealing more than $407,430 from the DOT by manipulating land purchases and mowing contracts. Also arrested was an alleged accomplice, Grady Marx, 59, of Sioux City.

A whistleblower in the department alerted DOT Director Paul Trombino III shortly after he arrived on the job, Branstad said. The investigation culminated April 20 as law enforcement from state, local and federal agencies executed Operation Landlord with search warrants at four different locations in Story, Polk and Woodbury counties, according to the Department of Public Safety. Weigel was charged with first-degree theft, conspiracy to commit theft, ongoing criminal conduct, money laundering and felonious misconduct in office.

The charges, Branstad said, “sends a really strong statement if you are involved in fraud we are going to find you and we're going  prosecute you and we're going to seize the property you have inappropriately taken from the state.”

Weigel may have had more accomplices than Marx, 59, Branstad said.

“This is a very complex issue that had been going on over a period of time,” he said at his weekly news conference April 22. “The more they got into it, the more they found. There still may be more out there.”

He encouraged anyone who had dealings with Weigel to talk to the DPS “so we can get to the bottom of all of it.”

The allegations against Weigel, who worked as a DOT right-of-way agent from 1995-2011, are that he stole at least $239,832 from the state while handling sales and leases of DOT land. For example, he told people buying or leasing land to write one check to the DOT and another to him. In another instance, he told a person to write checks to him as the “property manager” of leased land. Another allegation is that he approved payments for “crop sharing” to a farmer leasing DOT land and then received a kickback after the harvest.

Weigel resigned in 2011 after the investigation began.

It's believed Marx defrauded Iowa of at least $237,360.