Troubled Milwaukee landlord pleads guilty to distributing heroin
A Milwaukee landlord accused of owning a dozen properties linked to drugs and prostitution in the city has pleaded guilty in federal court to distributing heroin.
Kenneth D. Churchill III pleaded guilty to a charge of distributing heroin, court documents show.
A plea agreement, filed Wednesday in U.S. District Court for the Eastern District of Wisconsin, said that Churchill sold heroin on seven different occasions to undercover law enforcement agents between May and September 2015.
In one of those exchanges, Churchill sold 20 grams of heroin to an undercover agent for $3,000 from his Chevrolet Corvette in a Home Depot parking lot in Milwaukee, according to court documents.
During October of that year, agents obtained warrants to search his business, Churchill III Luxurious Limousine Service Inc., and his home in Muskego, the plea deal said.
When agents arrived to search his business, they arrested Churchill, who had a baggie with 35 grams of heroin in his pocket, the document said.
The plea agreement said that during a search of Churchill's home, agents found six guns and more than $17,000 in cash.
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The agreement was signed Wednesday, two days after the City of Milwaukee filed a lawsuit against Churchill, alleging that he turned a blind eye to drug dealing and prostitution at numerous rental properties.
Churchill and his attorney, Michael Steinle, could not be reached for comment Friday.
Churchill was accused of accepting monthly cash payments to allow drug activity at the properties, according to a civil complaint filed Monday by the city attorney's office. The complaint also said he was personally involved in the "delivery, distribution, manufacture, sale, storage and possession" of controlled substances.
The city is seeking to force the sale of Churchill's 12 properties, saying his "negligent rental and management practices are creating a public nuisance." Drugs linked to his properties include heroin, crack, cocaine and marijuana, the lawsuit said.
The lawsuit said problems involving drugs and other crimes at Churchill's properties have been going on for years. Evidence like hypodermic needles, tourniquets, metal pipes, clear glass tubes with crack cocaine residue and digital scales have been found at the rentals, the complaint said.
Six of his 12 properties reportedly have received drug house designations by police, with two repeatedly getting the designation.
Churchill was repeatedly contacted by Milwaukee police to discuss ongoing drug and nuisance activity at his properties, the city's lawsuit said.
Last month, police found 35 shell casings on the street in front of one of the properties, as well as bullet holes in the home, according to the complaint.
Around that time, a confidential informant provided police with information that Churchill was aware drug activity was occurring at the properties and allowed it to continue if tenants gave him $1,000 monthly cash payments.
Earlier this week, Churchill told WISN-TV he was doing everything he could to keep criminals out of his properties.