Chapter One: The Denial

John’s home — modest and well-kept — sat at the bottom of a gradual slope, a design flaw the city had long ignored. That morning, stormwater backed up into his basement, causing tens of thousands of dollars in damage. He filed insurance claims, expecting the city’s liability policy to honor its commitments.

But something strange happened.

On September 5th, 2017, the Elkhorn City Council held a closed-door session. The public saw only a clipped version of the meeting — missing its first 20 minutes. A critical span, it would turn out, because those first moments included a presentation from residents detailing the infrastructure failures and establishing standing for their insurance claims.

Then came the motion: deny all claims related to the July 12th flood.

It wasn’t a legal ruling. It wasn’t based on investigation. It was a blanket denial — passed unanimously — during the same meeting where the council also voted on renewing their liability policy with CVMIC, the city's insurer, and how to divvy up CVMIC dividends.

Chapter Two: The Conflict of Interest

Later that year, John made a public records request and recently — eight years after the event — he finally received what changed everything: a copy of the 2017 CVMIC insurance contract.

Buried in the legalese was a clause titled “DUTIES”. It clearly stated that all insured claims must be forwarded to the insurer. Yet, CVMIC had advised the city to do the opposite — to deny those claims outright.

Why?

Because doing so meant no claims were formally processed. The city retained its $100,000 deductible, and CVMIC reported zero loss experience for the year. The optics were clean, and the books stayed in the black. But residents? They bore the cost — financially, emotionally, and in some cases, physically.

By legal definition, this was fraud:

"An intentional act of deception resulting in a personal or financial gain and a corresponding injury to another party."

Chapter Three: The Web of Actors

John wasn’t alone. Over ten individuals were implicated in the unfolding scandal: city administrators, council members, CVMIC representatives — all allegedly playing their part in a well-coordinated coverup.

Some benefited from dividends, others from reelection optics, others from simple silence.

But now, one of them — a convicted participant — faced up to 35 years in prison. The dominoes had started to fall.

Chapter Four: The Clock Starts Now

According to Wisconsin law, the statute of limitations on fraud begins not at the time of the act, but at the time of discovery. For John, that date was May 14th, 2025, when the 2017 insurance policy finally landed in his mailbox.

He wasted no time.

At 6:42 a.m. on April 12, 2025, the Wisconsin Office of the Commissioner of Insurance (OCI) received the full transmittal — evidence, complaint, timeline, and video records. The ball was now in their court.

John made one thing crystal clear:

“If I or my family comes under threat, it all goes public at once.”

Chapter Five: The Reckoning

City government fraud isn’t just a scandal. It's a betrayal.

And in Elkhorn, that betrayal washed in with the floodwaters. But the cover-up that followed — orchestrated with whispered motions and doctored minutes — was the real storm.

Now, as investigations ramp up and the truth comes to light, John and his neighbors finally stand a chance at justice.

And Elkhorn?

It faces a reckoning long overdue.