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Tribune uncovers dubious grant program; Bernie lays out questionable contribution

Monday, Jul 21, 2008 - Posted by Rich Miller

[Updated and bumped up for obvious reasons.]

* The Tribune has a story in Sunday’s edition about its thorough investigation of apparently bogus after-school grants. The $20,000 grants are noncompetitive and are essentially awarded by Senate Democrats. One in particular…

Powerful Senate Democrats quietly gave out the money to hand-picked nonprofits, schools, businesses and churches. The lawmakers funneled the money through the Illinois State Board of Education, which rubber-stamped the choices.

But a Tribune investigation found that nearly half of the 48 groups that got money this past school year were running dubious programs, or declined to show how they spent the money. About a dozen of the grants went to established programs with a history of tutoring or mentoring school-age children.

All of the questionable projects share the same sponsor: West Side Sen. Rickey Hendon (D-Chicago), who awarded many grants to campaign workers and donors, the investigation found.

* If the Tribune story is accurate, many of these grants were just cash payouts…

In his application, Tate promised to tutor 12 to 20 children five days a week. But during a June visit to Revival Fellowship Church of God in Christ, where Tate says he runs his tutoring sessions, no one was there except the pastor, Rev. John Jackson. He said Tate paid him $1,500 to rent space in May and June, but he could not explain why no one was there that day.

The Tribune stopped by the following week and found three families sitting in the church hall waiting for Tate. Two youngsters played on unplugged computers while three others ran around the room.

* And here’s the sidebar

Hendon pointed out that former U.S. Rep. Dan Rostenkowski (D-Ill.)—who later went to federal prison for mail fraud—earned praise for “bringing home the money” when he was chairman of the House Ways and Means Committee. “Well, I’m the West Side chairman of the Ways and Means Committee,” Hendon said. […]

Two years ago, the state demanded partial repayment of a $275,000 grant awarded, at Hendon’s request, to a non-profit that promised job training for homeless men. The state said the group improperly gave nearly half the grant to a board member, who couldn’t document how he spent the money. That board member had close ties to Hendon.

In 2002, the Illinois attorney general’s office sued a woman, alleging she misspent the $175,000 state grant she was supposed to use for a job-training program for low-income mothers. A Cook County judge ordered her to pay back the grant, a portion of which Hendon helped her secure.

In 1998, the state demanded a West Side redevelopment group return nearly half of the $500,000 grant Hendon helped arrange. The senator had asked the company to subcontract part of the work to another redevelopment firm where his then-wife served as executive director, records show.

* Meanwhile, Bernie had quite the story yesterday

What a coup it seemed to be for the Christian County Democratic Party to get a visit from Gov. Rod Blagojevich for a county party fundraiser back on April 9.
Well, the coup ended up being Blagojevich’s, and some troubling questions arise from that event.

It turns out that, one week after the event, on April 16, the Christian County Democrats donated $25,000 to Blagojevich. The county party had raised only $32,580 in the six-month period, ending June 30, that included the event, and the party left itself with just $3,212 in cash on hand at the end of June.

Then on May 2, less than four weeks after the fundraiser, Jack Mazzotti, a pharmacist and chairman of Christian County Democrats, was named to the Mid-Illinois Medical District Commission.

Hmm. Where have I seen that $25,000 figure before? Oh, yeah, that’s right. A cynic (and maybe even the federales) might think that $25,000 was the standard price for a state board or commission seat.

There’s more. Much more. So go read the whole thing.

       

66 Comments
  1. - Anonymous 45 - Monday, Jul 21, 08 @ 6:28 am:

    If this could be the beginning of the end of his career, I couldn’t be happier…who could replace him that would be a better “public servant” ?


  2. - bored now - Monday, Jul 21, 08 @ 6:50 am:

    was rosty ever accused of procuring funding for fraudulent operations? hendon’s comparisons to the congressman seem a bit far fetched…


  3. - Dan S, a voter and Cubs Fan - Monday, Jul 21, 08 @ 7:08 am:

    Another example of why there is a need for the budget process to start at zero. Every budget line item should start at zero each year and every line item must be justified so this type of theft does not take place


  4. - Cat - Monday, Jul 21, 08 @ 7:32 am:

    If some of this was federal money, congratulations, you just won a visit from the feds.


  5. - wordslinger - Monday, Jul 21, 08 @ 7:49 am:

    This is the kind of stuff a big-time paper should do. It’s been rough at the Tribune lately; hats off.

    Ugly story all the way around. Robbing the state under the guise of helping poor kids — and then not delivering — is the kind of corruption few can stomach.

    Not only do some of these look like payoffs, but you have to ask the question: Was a grant prereq a willingness to kick some of the money back?

    And if any state agency cannot properly monitor a grant program, as the Board of Ed claims here, how about no grants?

    Still, there’s a silver lining to every cloud:

    === A third (winning applicant) wrote that he’d pay himself $475 a month for a year to tutor children. When state officials e-mailed back that the grant lasted only six months, he replied that he’d pay himself $950 a month.===

    That man has a future in corporate America or government.


  6. - Anonymous - Monday, Jul 21, 08 @ 7:59 am:

    Where do I sign up for the “re-elect Rickey” campaign?


  7. - Ghost - Monday, Jul 21, 08 @ 8:05 am:

    I wonder how long Jones will keep Hendon on rules! This casts back on Jones as well, especially given how he was tieing in with Hendon on suporting pay raises.

    Hendon gives out political payoffs to pals and demands he get a 12% pay raise for doing it.


  8. - The Fox - Monday, Jul 21, 08 @ 8:10 am:

    Looks like the Atty. General’s office has blinkers on. The silence is deafening.


  9. - Greg - Monday, Jul 21, 08 @ 8:15 am:

    This should really help convince the populace that the state needs more revenue.


  10. - The Century Club - Monday, Jul 21, 08 @ 8:17 am:

    Maybe today’s question of the day should be to name a worthwhile organization working in Rickey Hendon’s district that should have gotten one of those grants.


  11. - Ghost - Monday, Jul 21, 08 @ 8:18 am:

    This is on top of the recent 14 million for “jobs” the Gov just put into chicago, and that money is going to the kids of clout parents.!

    And this is the administartion that the republicans want to hand 34 Billion to dole out!


  12. - Leave a light on George - Monday, Jul 21, 08 @ 8:26 am:

    Not a hard man to track. Leaves $20,000 checks where ever he goes.


  13. - BigDog - Monday, Jul 21, 08 @ 8:35 am:

    If there were any true justice in the world of Illinois politics, Rickey would be out on his rear immediately, and Jones and Blago would be under investigation yesterday for perpetrating this obvious scam operation. When are the people of this state going to get their heads out of their behinds and demand better representation. I’ll bet if Hendon was up for reelection tomorrow, the voters in his district would reelect him in a landslide, despite the fact that he’s pawning off their destitute status to “bring home” all this money that he’s essentially giving away to friends. Disgusting. I hope and pray that there’s an indictment with his name on it in the near future.


  14. - One of the 35 - Monday, Jul 21, 08 @ 8:36 am:

    Hendon is also a great PR guy. I remember a couple of years ago being in the Stratton Building elevator with 3 mayors and hearing this guy use the F word at least 10 or 12 times during the short ride up. The elected officials in the elevator asked “Who was that jerk?” They were not impressed.


  15. - He Gone.... - Monday, Jul 21, 08 @ 8:39 am:

    “Hollywood Hendon” has for years taken advantage of his position and it is about time they begin to investigate his organization. This is just one more example how the pigs are trying to becomes hogs. Hollywood works for Cook County but that is not enough, he wants all of the spoils and thus will eventually be caught with his hand in the cookie jar….he has got to go…


  16. - Ghost - Monday, Jul 21, 08 @ 8:41 am:

    Rich you should apply for one of theses, you can run an after school program tutoring “children” (in college) on journalism. This way the State will pay you to have KFan (cover COTW meetings).


  17. - Kevin Fanning - Monday, Jul 21, 08 @ 8:46 am:

    lol


  18. - Anonymous45 - Monday, Jul 21, 08 @ 8:48 am:

    Ghost-seems to me Republican insiders do well under this administration: see Cellini, Kjellander etc…skimming the top off 34 million would be a nice payday for a select few…


  19. - Vote Quimby! - Monday, Jul 21, 08 @ 8:52 am:

    ==Jesse Ruiz, chairman of the state Board of Education, said his agency does not have the manpower to police the grantees. “We would prefer this was a competitive-bid process,” he said. “But the lawmakers are directing where this money goes, and we can only trust that the elected officials are being prudent with taxpayer money==

    Did he say this with a straight face? I haven’t heard ‘trust the elected officials’ in a while. Great piece by the Trib….definitely worth the whole read. It’s sad to see how brazenly these guys steal our money. And they want us to give them a $34 billion checkbook? I hope Holl’e'ywood (don’t forget the e in the application) is indicted along with the others.


  20. - Bill - Monday, Jul 21, 08 @ 8:53 am:

    $25,000?????
    So the price to play is half of what it once was?
    Talk about stagflation!


  21. - Kevin Fanning - Monday, Jul 21, 08 @ 8:58 am:

    === $25,000?????
    So the price to play is half of what it once was?====

    I thought the magic number was always $25,000?


  22. - Dan S, a voter and Cubs Fan - Monday, Jul 21, 08 @ 9:03 am:

    Let me get this straight, Blagoof is already under investigation, the State of Illinois has the reputation as a corupt government and the feds are investigateing every where but these theives continue the stealing? This is the worst case of “white collar” crime I have ever witnessed. Come on Fitz,start rounding these crooks up!! PLEASE


  23. - anon - Monday, Jul 21, 08 @ 9:03 am:

    The agencies who are the middlemen for these “member intitiatives” are required to get documentation from the grantees both as a stipulation for receiving the grant in the first place (providing scopes of work for the expenditure of the mmoney), and as a report of how the money was used. This creates an auditable trail. I bet if the press had the resources, it would find Sen. Hendon’s initiatives are the tip of a pretty good sized iceberg. Does the Auditor General review these initiatives?


  24. - wordslinger - Monday, Jul 21, 08 @ 9:06 am:

    Why do all these guys bust their hump to get no-pay positions on state boards that have the say over billions in investments?

    I’m joking. Still given recent history and the current investigative climate, there’s at least some chutzpah at work here.


  25. - Bill - Monday, Jul 21, 08 @ 9:06 am:

    According to Mell it was $50k. Of course he retracted that statement when Kelly threatened to sue him.


  26. - freelance editor - Monday, Jul 21, 08 @ 9:19 am:

    Best quote from the article:
    The billboards still are not up, she said, but she expects them up this week. Marsh explained that she was having trouble tracking down Latino teenagers to photograph so she could make the billboard ads more diverse.


  27. - Kevin Fanning - Monday, Jul 21, 08 @ 9:22 am:

    ===According to Mell it was $50k===

    Yeah I think I remember reading that too. But from what I remember most of the media was reporting that $25,000 was the magic number. For instance, I vaguely remember a tribune story all about the number of people who donated $25,000 and got state contracts in return. like this one….

    Many large contributions to the governor came from donors already linked to the case against Rezko, including two appointees to the state hospital board. Each gave Blagojevich $25,000 shortly after their appointments.

    I could be wrong though.


  28. - fed up - Monday, Jul 21, 08 @ 9:44 am:

    Thank you tribune. WHAT ARE WE PAYING lISA MADIGAN FOR AGAIN. She must be practicing her i want to be govenor speech because she sure as hell isnt protecting the Ill. taxpayer.


  29. - anon - Monday, Jul 21, 08 @ 9:48 am:

    you’re both right. mell said the number was $50,000 then the newsies said it was $25,000. They’re both wrong.


  30. - Little Egypt - Monday, Jul 21, 08 @ 9:52 am:

    Where do I sign up for my $20,000? I’ll drive up to Rickey’s district once a week and pay some church $1,500 for the right to use their address. Ricky, good ol’ buddy, I’m here for ya. I can even give you some of that $20K back in the form of a campaign contribution if you like. Who’da thunk getting free money was this easy?


  31. - Cassandra - Monday, Jul 21, 08 @ 9:56 am:

    The Trib reporters should get an award for this; I assume with newsroom cuts generally, newspapers will be doing fewer of these exposes, which is unfortunate for all of us.

    Hendon does sound rather, well, sleazy, but that doesn’t mean his constituents don’t love him for bringing home the bacon, or trying to. I wouldn’t predict an immediate departure from the Senate floor. Or even in a few years. Once we Illinoisians elect somebody, they tend to stay on and on and on….look at our Blago, going for a third term, bet on it.

    When you put politicians next to a pile of money
    many tend to get itchy fingers. We can’t stop them from making these iffy grants, apparently, but we could improve oversight of the grants. And once problems are identified with one legislator’s grants, shouldn’t they get extra scrutiny. Our
    public bureaucrats are supposed to be watching our money; maybe CMS, the Auditor Gen, etc should look a little harder.

    And of course all of the happy recipients of these
    “troubled” grants should be audited by both the state and federal IRS. It may be that in Illinois
    you get to rip off the state, but at least the beneficiaries of Illinois’ rampant corruption should be required to pay taxes on the money they steal. And penalties if they cheated. It’s the right thing to do.


  32. - Rich Miller - Monday, Jul 21, 08 @ 10:00 am:

    anon 9:48 am, you’ve been posting here long enough to think of a unique name.

    Try a bit of creativity. Thanks.


  33. - trafficmatt - Monday, Jul 21, 08 @ 10:01 am:

    Rich,

    Do you think the money from the Christian County folks could also be related to Taylorville Correctional Center?

    http://www.pjstar.com/news_state/x8
    75595493/State-senators-call-fo
    r-review-of-prisons


  34. - the Patriot - Monday, Jul 21, 08 @ 10:11 am:

    All of the problems in Springfield point to one underlying question. When will the Feds indict the Governor? I heard this weekend the feds have a policy not to indict a sitting governor. Has anyone actually put this question to Patrick Fitzgerald or done research to see if how many Guvs get to finish their terms.

    The implications on this policy would be huge. Since Madigan’s hold on IL seems to be slipping and the Republicans can spell Governor, this guy could win again in 2010.

    What would this policy may give the dead recall movement?


  35. - wordslinger - Monday, Jul 21, 08 @ 10:34 am:

    Sitting governors Fletcher of Kentucky and Vila of Puerto Rico were recently indicted by federal grand juries.

    I don’t think the Feds roll that way anymore, if they ever did.


  36. - presto - Monday, Jul 21, 08 @ 10:43 am:

    Are these folks going to run the summer jobs for kids program? That nonexsistant program and these clowns have all the creditials needed to take the Illinois taxpayer: close connection to Rod or one of his buddies, don’t deliver, may only exist on paper, and a willingness to avoid the truth.


  37. - Anonymous - Monday, Jul 21, 08 @ 10:43 am:

    +++++
    Ricky, good ol’ buddy, I’m here for ya. I can even give you some of that $20K back in the form of a campaign contribution if you like.

    +++++

    You forgot Rickey’s requirement: you must put the “e” in his name. You misspelled his name. This would disqualify you.

    Rickey has some pretty strict standards, I’d say.

    Clever one, that Rickey.


  38. - Little Egypt - Monday, Jul 21, 08 @ 10:53 am:

    Sorry, sorry, sorry. Hey RickEy, good ol’ buddy……..I’ll take for a little less than the $20K as my punishment.


  39. - Anon - Monday, Jul 21, 08 @ 11:08 am:

    ===According to Mell it was $50k===

    Maybe his cut was $25k before he went public, and $0 afterwards, and the Governor’s people simply cut the price to reflect the reduced cost. Guess they weren’t as quick as the winning applicant who offered to take $950 rather than $475 when the situation changed.


  40. - Captain America - Monday, Jul 21, 08 @ 11:17 am:

    Hollywood - I’ll bet Fitz and company are reading the newspapers. Subpoenas will probably be issued forthwith, even though the feds have bigger fish to fry.


  41. - Historic Site Volunteer - Monday, Jul 21, 08 @ 11:26 am:

    Boy….what our historic site could have done with one of Rick”E”y’s grants. Maybe we wouldn’t be laying off half our staff. This kind of stuff makes me sick….


  42. - Macbeth - Monday, Jul 21, 08 @ 11:48 am:

    I’m actually getting the distinct feeling that the real problem — even more so than the governor (who might simply be devoid of savvy) — is Jones and crew.

    Jones and crew *don’t* lack the savvy, that’s for sure.


  43. - Phineas J. Whoopee - Monday, Jul 21, 08 @ 11:53 am:

    After school programs are needed to keep kids off the streets in high crime areas, provide education and positive activities that compete with the draw of joining a gang. It is appalling that leaders in the community misuse these funds for their personal and political gain even as children are being murdered in the same areas where the programs are supposed to be counteracting the violence.

    Rickey Henden’s attempt at justifying his complicity is indefensible. How can these people sleep at night?


  44. - Moderate Repub - Monday, Jul 21, 08 @ 12:05 pm:

    Cat - Monday, Jul 21, 08 @ 7:32 am:

    “If some of this was federal money, congratulations, you just won a visit from the feds.

    Its not Fed money, but that doesn’t mean the Feds won’t investigate. Its obvious that there is some fraud going on with these small grants. I just don’t know what the stipulations are during the grant request process. Unfortunatly, it will take Hendon going to jail to get him out of his seat. His constituents will never vote him out.


  45. - Gregor - Monday, Jul 21, 08 @ 12:47 pm:

    How about an update on those campaign flyers put out using Hendon’s postage meter, the really scurrilous ones? What ever came of that story?

    I have a hard time reconciling that that chamber at the same time once held Hendon AND Obama in it.
    Best and worst the state has to offer.


  46. - Rich Miller - Monday, Jul 21, 08 @ 12:50 pm:

    Gregor, I think you’re confusing Hendon with Ken Dunkin.


  47. - Bill - Monday, Jul 21, 08 @ 1:42 pm:

    anon, 9:48am,
    How about GoSoxxx?


  48. - Commenter formerly known as anon - Monday, Jul 21, 08 @ 1:43 pm:

    You’ve outed me Rich. Now I have to tell my parents. Whew, thats gonna be a tough one. Maybe i’ll loosen them up with a couple of cosmo’s.


  49. - Commenter formerly known as anon - Monday, Jul 21, 08 @ 1:45 pm:

    Rich, out of curiosity, how often do you check the IP addresses of those who post anon or anonymous?


  50. - Rich Miller - Monday, Jul 21, 08 @ 1:52 pm:

    When I feel like it.


  51. - Bill - Monday, Jul 21, 08 @ 1:55 pm:

    lol


  52. - Commenter formerly known as anon - Monday, Jul 21, 08 @ 1:58 pm:

    That is a good answer. Thats what I tell my mom when she asks when I’ll clean my room. Work’s every time.


  53. - Rich Miller - Monday, Jul 21, 08 @ 2:00 pm:

    Whatever. I asked you to pick a name. Don’t get all crybaby on us.


  54. - puddle - Monday, Jul 21, 08 @ 2:04 pm:

    A little sensitive today Rich?


  55. - Rich Miller - Monday, Jul 21, 08 @ 2:05 pm:

    No, but you’re wasting my time on a busy day with this nonsense. Move along or go away.


  56. - plutocrat03 - Monday, Jul 21, 08 @ 2:23 pm:

    Great article on the part of the Chicago Tribune. Makes me think of the old days where the media was actually a watch dog for the common citizen.

    That said, so what? So far no call to arms to recoup this misspent cash, no mea culpas, just a shrug of the shoulders and a stack of cashed 25,000 checks to special friends of special people.

    Amd oh by the way, thos kids got exploited one again.

    Viva the Chicago machine, long live the corruption.


  57. - Secret Square - Monday, Jul 21, 08 @ 2:32 pm:

    Re Anonymous 10:43’s comment: Rick-Ey must be a real stickler for protocol at times. Didn’t he recently try to get ex-cop Salvador Diaz voted off the Prisoner Review Board because Diaz failed to ask for his “blessing” before seeking reappointment?


  58. - commenter fromerly known as anon - Monday, Jul 21, 08 @ 2:44 pm:

    is it possible that mr. mazzotti was in line for the spot before the fundraiser was even discussed? he is a good man and extremely competent and doesnt need to pay for his appointments. yet another benign coincidence turned into an absurd story that gets the rumor mill working again.


  59. - Rich Miller - Monday, Jul 21, 08 @ 2:46 pm:

    ===yet another benign coincidence===

    I won’t make any judgements on this particular case, but there are few coincidences in Illinois politics. Particulary involving $25,000 campaign checks.


  60. - Vote Quimby! - Monday, Jul 21, 08 @ 2:48 pm:

    ==Rickey Henden’s attempt at justifying his complicity is indefensible. How can these people sleep at night? ==

    Do we need to look up the definition of ’sociopath’ again? And why they are drawn to politics?


  61. - Clay Davis - Monday, Jul 21, 08 @ 2:58 pm:

    Remind anyone of The Wire???


  62. - VanillaMan - Monday, Jul 21, 08 @ 3:06 pm:

    There is no political competition in Chicago or Cook County, and there is very effective political competition in Illinois.

    So the elected officials don’t have to care except in regards to their own relationships in the GA, the Council, and on the Board. So all it takes is a wink and a nod. A contribution and a rumor. That is Illinois government at this time.

    We have to take control with a Con-Con this November.


  63. - Bill - Monday, Jul 21, 08 @ 3:43 pm:

    ==We have to take control with a Con-Con this November.==
    Who is “we”?
    If you think that a con con will do anything to change the way this state operates, you are in for a big disappointment. Be careful what you wish for.
    More likely, after a con con you will pay even more taxes and have even less control than you have now. You heard it here first.
    To the post:
    It looks like everybody’s contributions, with a few exceptions like Hynes and Alveraz, are down. People are voting with their wallets which will have a much greater effect than any con con.


  64. - Ghost - Monday, Jul 21, 08 @ 3:44 pm:

    Rickey Hendon is not corrupt, its the voices inside his head that are.


  65. - Vote Quimby! - Monday, Jul 21, 08 @ 3:58 pm:

    ==Not bad for a little ol’ rep, eh?==

    Thanks for the tidbit about Hoffman. Perhaps his close ties to Blago will (eventually) snuff out any statewide hopes…..


  66. - Gregor - Monday, Jul 21, 08 @ 5:48 pm:

    Sorry for my earlier confusion, It’s because I revile Hendon and Dunkin equally.

    So what ABOUT the Dunkin flyer thing, anyway?


Sorry, comments for this post are now closed.


* Isabel’s afternoon roundup
* Pritzker says he 'remains skeptical' about Bears proposal: 'I'm not sure that this is among the highest priorities for taxpayers' (Updated)
* It’s just a bill
* It sure looks like lawmakers were right to be worried
* Flashback: Candidate Johnson opposed Bears stadium subsidies (Updated x2)
* $117.7B Economic Impact: More Than Healthcare Providers, Hospitals Are Economic Engines
* Open thread
* Isabel’s morning briefing
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