Jobs agency led by Gov. Walker dogged by allegations of shoddy lending, political influence

Economic Indicators Associated Press

Scott Walker is facing potentially embarrassing revelations from an agency once billed as the centerpiece of his plan as Wisconsin's governor to bring 250,000 jobs to the state.

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The Republican presidential candidate led the Wisconsin Economic Development Corporation until stepping down earlier this month after allegations about shoddy lending and favoritism at the agency. A review by The Associated Press found the agency gave $1.2 million to a company whose founder had been sued dozens of times by banks, state tax officials and even a jeweler. Four years later, the company is in a court-appointed receivership.

Former employees describe lax underwriting and a failure to keep track of basic documents at the agency. A Walker spokeswoman, Laurel Patrick, disputed that the agency went awry under Walker's watch.