WINNECONNE (NBC 26) — Winneconne School District on Wednesday released its investigation into former administrator Margaret "Peggy" Larson, alleging that she violated numerous school board policies.
Larson retired effective Oct. 2. Under the terms of her retirement agreement, she will continue to receive her full salary through June 2027.
The retirement followed an independent investigation by the law firm von Briesen & Roper, commissioned by the Winneconne Board of Education. The investigation found substantial evidence that Larson violated multiple Board policies, including staff ethics and student records policies. Investigators concluded her conduct created "significant — and potentially irreconcilable — issues of trust" between her and the Board, according to records.
Key findings of the investigation include:
- Larson shared confidential information about a student's preferred graduation name with a district employee investigators determined had "no legitimate educational interest" in that information, likely violating Board Policy 8330 — Student Records and the district's obligations under the federal Family Educational Rights and Privacy Act (FERPA).
- Larson allegedly misled the employee about the nature of a meeting between Board President Kati Calewarts and a student's parent, setting off a series of disruptive events, including a public accusation at the June 1, 2026, Board meeting.
- Larson initially refused to add a closed-session item to the Board agenda as directed by the Board president, ultimately amending it later in the week.
- Larson encouraged hundreds of members of the public to attend the closed-session meeting.
- Larson refused to leave the July 13, 2026, closed-session meeting despite being told she was not needed. She was permitted to stay on the condition she not disclose the contents. Investigators found she told a reporter shortly after the meeting that it "was not about me."
- On Aug. 20, 2026, a signed legal engagement letter between the district and von Briesen & Roper was posted publicly on Facebook by a person investigators identified as being involved in a recall petition targeting a current Board member. Investigators concluded Larson was the only person who could have shared the document.
The investigation also found that a seperate district employee, who has remained unnamed, violated Board policies 4210 and 4310 by making reckless and inaccurate public statements at the June 1 Board meeting accusing Calewarts of violating FERPA. In a June 5, 2026, email, the employee acknowledged her "perception of the events was incomplete."
The investigation's conclusion states: "Ironically, while [the employee] alleged that Board President Calewarts violated 'FERPA,' substantial evidence indicates that Superintendent Larson was the party responsible for violating policy associated with confidential student information and records."
According to records, the chain of events originated in late May, when an 18-year-old transgender student requested to be announced by a preferred name at graduation. The student is not identified in the records due to protections under Wisconsin Statute 118.125 and FERPA. The student ultimately asked to be called by their legal name at the ceremony.
The retirement agreement includes a no-admission-of-liability clause and restricts future employment references from the district to confirmation of Larson's positions, dates of employment and voluntary retirement.
The records were released in response to a public records request submitted by NBC 26.
