Burch pleads guilty to money laundering

Thursday, July 26, 2007 2:10 AM CDT

Journal Times staff

RACINE -

A former broker convicted of laundering about $370,000 in cash for former SC Johnson Transportation Director Milton E. Morris has been sentenced to three years in prison.

John C. Burch pleaded guilty in October to one count of money laundering. The charge carried a maximum possible sentence of 20 years imprisonment and $500,000 in fines.

He was sentenced Tuesday to three years in prison and two years of probation.

Burch, of Racine, was a licensed stockbroker for Wachovia Securities in Kenosha. He retired in February 2006.

He met Morris at the Kenosha Country Club and, through a mutual friend, began taking tens of thousands of dollars from Morris.

Burch opened several checking accounts at Racine banks, and between July 2001 and December 2004 he made 130 cash deposits, totalling more than $432,657. Cash in the accounts was moved to a home equity loan and securities account before $370,331.24 was ultimately deposited in Morris's Wachovia account.

Morris was fired from SC Johnson in October 2004, and the company has filed a civil suit against him, alleging he had a long-running kickback scheme involving several transportation companies that worked with SC Johnson. Katherine M. Scheller, Morris's deputy transportation director, is also a defendant in the suit.

The suit alleges Morris channeled millions of dollars in transportation jobs to several companies in exchange for cash, gifts and trips.

The company's investigation found Morris deposited more than $1.2 million, beyond his salary, into bank accounts over the years of the scheme. He also reportedly had large amounts of cash in safe deposit boxes.

SC Johnson contends Morris cost the company tens of millions of dollars in unwarranted trucking costs.

Morris' jury trial is currently scheduled for July 2008.

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