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WJBD - Local News - Rutherford Accuser has History of Money Troubles

Rutherford Accuser has History of Money Troubles

CHICAGO (AP) - A former employee accusing Illinois Treasurer Dan Rutherford of sexual harassment and making staff do political work on state time has a history of financial problems. 

Ed Michalowski filed a federal lawsuit Monday against Rutherford, who's seeking the Republican nomination for governor. Rutherford denies the allegations. 

Michalowski and his wife are divorcing. Public records show they filed for bankruptcy in 2011, claiming assets of $295,000 and liabilities of $642,000. A judgment of foreclosure and sale was entered against Michalowski's Chicago condo in October.

Rutherford has said Michalowski and his attorney offered to "walk away and keep (the allegations) under wraps" in exchange for $300,000.

But Michalowski told The Associated Press he wasn't motivated by money. He says he has a new job and is "not in harm's way financially."

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