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Heads up… *** Updated x14 *** Al Sanchez indicted - Faces 25 years behind bars - Former aldermanic candidate also indicted

Posted in:

* Full indictment here

* Full press release here

————————————————-

US Attorney Patrick Fitzgerald has scheduled a 2 o’clock press conference for today “to announce new criminal charges in an ongoing public corruption investigation.”

Participants will include: Patrick J. Fitzgerald, United States Attorney for the Northern District of Illinois; Robert D. Grant, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; Kenneth T. Lag, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago; and James Vandenberg, Special Agent-in-Charge of Investigations for the U.S. Department of Labor Office of Inspector General in Chicago.

Check back later for more. No comments yet. I’ll open them when we know something.

While we’re waiting for Fitzmas (and the scuttlebutt right now is that it may be city related), I forgot to point out an important aspect of this story about how a federal judge had dismissed charges against Nick Hurtgen.

Grady also found that the mail and wire fraud charges against Hurtgen didn’t specify exactly what the former investment banker did that was illegal.

One of the issues addressed in George Ryan’s appeal is that no actual statutes were violated in his mail fraud convictions.

*** UPDATE *** It’s Al Sanchez.

*** UPDATE 2 *** Sun-Times

Federal authorities have indicted Al Sanchez, a former top aide to Mayor Daley, according to the U.S. Attorney’s office.

Sanchez, a key leader of the Hispanic Democratic Organization, was the mayor’s Streets & Sanitation Department commissioner from 1999 until 2005.

They’re getting very close to the top with this one. Comments are now open.

While we await the official word, here is some background on Sanchez from a Sun-Times story about last December’s indictment of John Resa, an HDO coordinator…

The indictment reveals the feds are probing hiring and promotion fraud under HDO, created in the early 1990s and now about 500 members strong. Though Resa is charged with one count of lying, the indictment lays out HDO’s structure, its voter outreach efforts and an allegation of a broader scheme to reward its volunteers with jobs and promotions.

“This is part of a bigger investigation that does allege a scheme,” Assistant U.S. Attorney Patrick Collins said.

Collins said Resa headed an HDO political army made up of 70 to 80 volunteers.

When Resa wanted to reward them with city jobs or promotions, he went to a former high-ranking city official for help, identified as “Individual A,” who headed HDO’s southeast division, according to the charges. Sources say the individual is former Streets and Sanitation commissioner and HDO lieutenant Al Sanchez, sources say.

Sanchez sponsored Resa and other Resa relatives who got city jobs, according to a clout list kept by the mayor’s patronage director. The list was introduced as evidence in this summer’s City Hall hiring trial of the mayor’s former patronage chief Robert Sorich.

More background on Sanchez and HDO…

On paper, HDO was formed on March 1, 1993. But insiders say that HDO started with Daley’s 1989 election.

Former foot soldiers in Ald. Edward Vrdolyak’s once-mighty 10th Ward organization, which disbanded when the alderman switched parties, crowded the back room, the former volunteer said.

And former Vrdolyak precinct captain Al Sanchez organized the “standing room only” gathering, the former volunteer said.

Degnan’s message was simple.

“‘We’re going to build a Hispanic organization like you have never seen,’” he said, according to the former volunteer.

“That was the inception of HDO. Al [Sanchez] came up with the name, Hispanic Democratic Organization. And Tim said, ‘That’s beautiful.’ “

*** UPDATE 3 *** From Fitzgerald’s office…

A retired commissioner of the City of Chicago’s Department of Streets and Sanitation and a Chicago police officer who has held various city jobs, both of whom were high-level leaders of the Hispanic Democratic Organization (HDO), a citywide political campaign organization, were indicted today on federal charges in connection with the ongoing investigation of city hiring and promotion fraud. The retired commissioner, Alfred Sanchez, a principal organizer for HDO, was charged with engaging in a systematic fraud scheme to provide city jobs, promotions and other employment benefits to induce and reward political campaign work. The second defendant, Aaron Delvalle, who assisted Sanchez in coordinating HDO activities and who received immunity from prosecution relating to this investigation, was charged with perjury for allegedly lying to the federal grand jury about his HDO activities.

Sanchez, 59, of Chicago, was charged with nine counts of mail fraud, and Delvalle, 34, of Chicago, was charged with one count of perjury in a 10-count indictment returned today by a federal grand jury. Both defendants will be arraigned at a later date in U.S. District Court.

*** UPDATE 4 *** Check out “Individual A” in this one…

Sanchez alone was charged with engaging in a fraud scheme beginning no later than 1994 through early 2005. As part of the alleged scheme, Sanchez and uncharged co-schemers Individual A ( who was the overall leader of HDO), Robert Sorich, Jack Drumgould, Delvalle, Patrick Slattery, Roberto Medina and various other city employees and officials, engaged in the following conduct:

o while he was employed at I&I and Streets and Sanitation, Sanchez and certain co-schemers engaged in a systematic effort to provide public financial benefits, in the form of city jobs, promotions, and other employment benefits, in order to induce and reward campaign work to benefit HDO and other private political organizations;

o Sanchez and other co-schemers corrupted the city’s personnel process by awarding city job-related benefits in non-policymaking positions to applicants selected by Sanchez and IGA officials by: falsifying and causing the falsification of ratings forms; signing and causing the signing of fraudulent Shakman certifications; and otherwise granting preferential treatment;

o in the case of “mass” hiring sequences, Sanchez negotiated a certain portion of the total available positions with IGA officials in order to award the positions to individuals selected by Sanchez on the basis of their work on behalf of HDO. Applying political and other considerations, IGA selected the remainder of the candidates for the particular hiring sequence; and

o the individual HDO Southeast participants who received job-related benefits included individuals who provided Sanchez with various personal services and things of value, including home repair work, snow removal, lawn care and yard work.

*** UPDATE 5 ***

* Full indictment here

* Full press release here

*** UPDATE 6 *** More…

The co-schemers allegedly tracked and maintained records relating to city job-related requests on behalf of HDO participants, and officials of HDO North and HDO South also submitted requests for city employment benefits at Streets and Sanitation to IGA officials and Sanchez on behalf of other HDO volunteers.

When he was an I&I official, Sanchez allegedly caused false and fraudulent ratings forms to be signed in order to favor his selections in the award of city job-related benefits. Sanchez and Medina, while at I&I, signed false and fraudulent Shakman certifications, attesting that political considerations played no role in I&I’s hiring sequences, when in fact, they knew that certain hiring decisions were based, in substantial part, on the applicant’s political participation.

*** UPDATE 7 *** Still more…

At Streets and Sanitation, Sanchez and Drumgould allegedly caused certain individual HDO Southeast participants to become eligible to be interviewed for certain hiring sequences, even on occasions when the positions were closed to applications from the general public, and receipt of applications was not permitted under City hiring guidelines.

*** UPDATE 8 *** Sanchez is looking at up to 25 years if convicted…

If convicted, eight of the nine mail fraud counts against Sanchez carries a maximum penalty of 20 years in prison and a $250,000 fine, while a single count carries a maximum term of five years in prison. If convicted of perjury, Delvalle faces a maximum penalty of five years in prison and a $250,000 fine. The Court, however, would determine the appropriate sentence to be imposed.

*** UPDATE 9 *** From the indictment, more on the identity of “Individual A”

Between 1993 and 2000, Individual A was a full-time salaried employee of the City, employed at IGA. From approximately 1995 through 2000, Individual A was a high-ranking official of IGA. […]

From approximately 1995 through 2000, [Robert] Sorich reported to Individual A.

*** UPDATE 10 *** The feds are spelling it differently, but an Aaron Del Valle ran for alderman this year against Ald. Danny Solis and was backed by Sanchez and described as a former aide to Sanchez and active in the HDO. He’s described here as taking a leave of absence from the Chicago police department.

*** UPDATE 11 *** A bit more background…

Del Valle got trounced in that aldermanic race, but there was at least one other HDO member in there as well, Joe Acevedo, the brother of the state Rep. And one of Mike Madigan’s lieutenants, Mike Kasper, was working to keep Cuahutemoc Morfin on the ballot in that district. Morfin was endorsed by former Ald. Ambrosio Medrano, who was knocked off the ballot because he’s a convicted felon. Morfin finished second.

The theory is that HDO and Co. threw a bunch of different guys at Solis to force a runoff. But Solis squeaked by with 51.39 percent of the vote.

*** UPDATE 12 *** Fitzgerald’s spokesman Randall Samborn just confirmed that the “Aaron Delvalle” who was indicted for perjury today is the same HDO-backed “Aaron Del Valle” who ran for alderman this year.

Also, FYI, Aaron Del Valle is not related to City Clerk Miguel del Valle. In fact, Miguel got mighty upset during the campaign that Aaron was using yard signs that looked just like his.

*** UPDATE 13 *** From the AP

Sanchez and Delvalle are the 47th and 48th defendants charged since 2004 in the continuing investigation. Of those defendants, 44 have been convicted, one is dead, and rest of cases are pending.

The accusations against Sanchez surfaced when fired city worker Gerry Sarussi, 50, said he helped three employees with ties to Sanchez get truck-driving licenses without the required training.

Sarussi told the city’s Human Resources Board that he certified in early 2002 that the men were qualified to drive trucks because a supervisor told him that “Al wanted it done.”

Sarussi, who was on disability leave in 2002 when he made the certification and is fighting his dismissal, has said he repeatedly lied to city investigators and hid any connection to Sanchez because a supervisor told him to shield the commissioner and the Hispanic Democratic Organization.

*** UPDATE 14 *** From Chicago Public Radio

[audio:cityroom_20070322_sglinton_U.S..mp3]

posted by Rich Miller
Thursday, Mar 22, 07 @ 11:40 am

Comments

  1. Sorich seemed unlikely to flip since he was a Bridgeport guy–is Sanchez as loyal?

    Comment by ArchPundit Thursday, Mar 22, 07 @ 1:37 pm

  2. I am confident Fitzgerald will persue this to wherever it might lead which is exactly what he should do.

    Comment by Way Northsider Thursday, Mar 22, 07 @ 1:38 pm

  3. Get ready for the City Hall Spin. Has a mayor of Chicago ever been indicted and convicted?

    Comment by Tea Leaves Thursday, Mar 22, 07 @ 1:49 pm

  4. […] Rich points out Fitzgerald is indicting Al Sanchez of the Hispanic Democratic Organization (everyone remember to type this out–it’s rather mysterious as just HDO to readers who aren’t familar) (HDO) and Streets and Sanitation Department Commissioner to Daley. […]

    Pingback by ArchPundit » Blog Archive » One More Shot to Flip Someone Thursday, Mar 22, 07 @ 1:53 pm

  5. They’re definitely closing in on the top but I don’t think they’ll get to Daley. Fitz likely won’t be here after Bush is gone, and IL politicos from both sides are dying for a passive US Attorney. With the US Attorney’s methodical pace they might get to Victor Reyes before ‘09, but not Daley.

    I think Sanchez will play the loyal soldier and stay quiet.

    Comment by Tom Thursday, Mar 22, 07 @ 1:55 pm

  6. Does a Chicago precinct committee person have to live in their own precinct?

    I ask because I have pollwatched in a seemingly all-black southside area that had hispanic precinct captains, all city employees.

    Comment by RBD Thursday, Mar 22, 07 @ 2:06 pm

  7. As someone who knows the HDO M.O. I’m prety sure that the can of worm has exploted. Many heads to roll in all directions of the chicago political chain.

    Comment by Al Sancez cellmate Thursday, Mar 22, 07 @ 2:09 pm

  8. I agree that Fitz just is not moving fast enough right now, given the huge morass of corruption at all government levels, and the coming change in Administrations. The Sanchez investigation has been percolating for more than a year, with witness interviews and what-not, and this indictment has been widely predicted for several months. Perhaps with Libbygate over for the time being, home grown crime can now be the 100% effort.

    Let’s wait and see who “Individual A” turns out to be, but it likely won’t make a difference. Reyes or Degnan, you are still talking about a right hand man and confidant to Daley . . . as close as it gets.

    Comment by Bubs Thursday, Mar 22, 07 @ 2:13 pm

  9. Fitzgerald may eventually clean up city, county and state government, but at the pace he moves, we’ll all be dead.

    Comment by North by Northwest Thursday, Mar 22, 07 @ 2:19 pm

  10. “Has a mayor of Chicago ever been indicted and convicted?”

    No. Of course not. This is CHICAGO. We had mayors we should have indicted, but no.

    The HDO is going through “growing pains”. All the up and coming minority groups go through this stage, don’t they? If they survive they might be neutered. If they don’t survive another organization will be created to continue the tasks at hand. Whenever we see a group taking political power, they often go through these stages as they are challenged by others in power.

    A lot of times, this is considered “reform”. But it always hits just when a group of guys get too big for their own good and start getting sloppy.

    I highly doubt this scandal will result in Regicide.

    Comment by VanillaMan Thursday, Mar 22, 07 @ 2:28 pm

  11. If Fitz and company were really doing their jobs on this patronage stuff the unemployment numbers in Illinois would be skyrocketing.

    Comment by A Citizen Thursday, Mar 22, 07 @ 2:29 pm

  12. By the way, let’s start expecting Fitzgerald to fix our problems. We could have voted out these creeps, but our interest in reform only goes so far doesn’t it?

    It isn’t Fitzgerald’s job to keep our government clean - it is our job - and we are failing.

    Comment by VanillaMan Thursday, Mar 22, 07 @ 2:30 pm

  13. I’m not exactly sure who Individual A is, given the allegations that: “Between 1993 and 2000, Individual A was a full-time salaried employee of the City, employed at IGA. From approximately 1995 through 2000, Individual A was a high-ranking official of IGA. […]

    From approximately 1995 through 2000, [Robert] Sorich reported to Individual A.”

    The stated years do not exactly match up with Victor Reyes. Reyes was Director of the Office of Intergovernmental Affairs from 1995 to 2002. He was an “Assistant to the Mayor”from 1989 to 1995.

    Comment by Bubs Thursday, Mar 22, 07 @ 2:43 pm

  14. My guess is that if Al Sanchez does not want to die in prison he will have to flip and sing like a canary, giving the feds Victor Reyes and Mayor Daley. As for ousting Fitzgerald with the new Presidential term in 2009, it would be politically explosive to dump Fitz even then, regardless of who wins the 2008 election. He will be allowed to stay until his work is done (unless the next President decides to take Carol Marin’s advice and names Fitzgerald the US Attorney General).

    Comment by fedup dem Thursday, Mar 22, 07 @ 2:45 pm

  15. Does anyone really believe that any of this is affecting the activities of politicos who are engaging in this very type of conduct this minute?

    Remember, the guy who fled to Mexico? His compensation is that his son is making millions.

    Comment by Anon Thursday, Mar 22, 07 @ 2:48 pm

  16. Just when they thought it was safe to go back into the water-

    FitzJaws-The Return

    Coming to a govermental agency near you.

    Comment by Garp Thursday, Mar 22, 07 @ 2:57 pm

  17. I am for as much mediocrity like this as Fitz can deliver.

    Yeah for mediocre US Attorneys.

    Comment by Festering Drippage Thursday, Mar 22, 07 @ 3:05 pm

  18. Is Aaron Del Valle related to Miguel Del Valle?

    Comment by Ravenswood Right Winger Thursday, Mar 22, 07 @ 3:06 pm

  19. probably not anymore on the relation to the sen

    Comment by cubs Thursday, Mar 22, 07 @ 3:13 pm

  20. Holy Cow! This is gonna get interesting. It keeps getting closer and closer to Daley. I want to believe that he’s a good, honest mayor, but all these people around him are getting indicted. It doesn’t look good for him.

    Comment by Harry Caray Thursday, Mar 22, 07 @ 3:14 pm

  21. “Is Aaron Del Valle related to Miguel Del Valle?”

    No. And Miguel got very upset when Aaron used yard signs that looked exactly like his.

    Comment by Rich Miller Thursday, Mar 22, 07 @ 3:15 pm

  22. Fitz will have to live many lifetimes to clean up both the State of Illinois and the City of Chicago. Every generation that comes along, think they can get away with it.
    I’m surprised our neighboring states haven’t complained about the stench here in Illinois.

    Comment by Crime Pays In Illinois Thursday, Mar 22, 07 @ 3:20 pm

  23. Whomever the next President is, Democrat or Republican, he or she will not be dumping Fitzgerald. Not a chance.

    Comment by Bridget Dooley Thursday, Mar 22, 07 @ 3:22 pm

  24. Maybe Al Sanchez can get our former GOV. Jim Thompson to represent him. He knows all about patronage. He was the king of patronage when he was in office.

    Comment by John Stevens Thursday, Mar 22, 07 @ 3:49 pm

  25. Is “Individual A” John Doerrer?

    Comment by Anon Thursday, Mar 22, 07 @ 3:51 pm

  26. Rich,

    Could the initials of person A be J.D.?

    I saw Chicago Tonight last night and heard Carol Marin query former US Attorneys Skinner, Valukas and Lassar…they all agreed that Fitz is a first class act and that they have never seen such politicalization in the US Attorneys office…
    chalk up another first for the Bush administration…

    Comment by Loop Lady Thursday, Mar 22, 07 @ 3:55 pm

  27. With all the extensive pervasive plethora pandemic nature to the patronage milieu at all levels of government, it would be less expensive in the long run to legalize it. Would take a lot of the vicarious thrill out of watching these things unfold though.

    Comment by A Citizen Thursday, Mar 22, 07 @ 4:04 pm

  28. John D is on deck, and is as nervous as a fall guy should be.

    Comment by Anonymous Thursday, Mar 22, 07 @ 4:14 pm

  29. Me thinks that PFitz has made this personal. Bush (W) and Daley get along well. Bush had his people try to get rid of Fitz (probably on Daley’s request). So now Fitz is gonna get big Richie. Shouldn’t have honked off the Terminator.

    Comment by Papa Legba Thursday, Mar 22, 07 @ 5:15 pm

  30. The indictment of Sanchez is a form of vindication of those handful of political figures in the Hispanic wards of Chicago who have been constantly battling HDO for years. One of those figures is attorney Frank B. Avila of the Pilsen neighborhood of the 25th Ward, who has for years spoken out against HDO and its leaders like Sanchez (often when no one else was willing to do so). These reform-minded leaders knew what was being done to their communities and had the courage to speak out out against the corruption and the political dirty tricks.

    Comment by Randall Sherman, Secretary/Treasurer, Illinois Committee for Honest Government Thursday, Mar 22, 07 @ 5:22 pm

  31. Q: Is Fitz’s deliberate style is just “working up the food chain”, or something more?

    It might be that he is using convictions of smaller fry to set up the Big Boys for juicier allegations, such as indictment under the Racketeer Influenced Corrupt Organizations Act (RICO) based upon the claim that HDO itself, or the Office of Intergovernmental Affairs, or the City Personnel Office, or any combination, were corrupt (or corrupted) organizations.

    The beauty (or danger, depending on your perspective) of RICO, which was designed to reach mob bosses, is it allows indictment of people that don’t have their actual fingerprints on the criminal enterprise, but are responsible for it, such as . . .

    Comment by Bubs Thursday, Mar 22, 07 @ 6:05 pm

  32. This a smelt fishing town! Occasionally they snag a perch, but with the net old Fitz has been dipping its more like catch and release! i.e. soon to be set loose George Ryan. It’s fun and the little ones seem to satisfy.

    Comment by Pat Hickey Thursday, Mar 22, 07 @ 6:10 pm

  33. A is reyes, right? who are B C and D? and Channel 7 just said there is an E…..

    Comment by Amy Thursday, Mar 22, 07 @ 6:16 pm

  34. Andy Shaw also said that there’re some politicos (elected officials)who might get indicted. He said that he know who they are. Any clues who they are????

    Comment by Polo Thursday, Mar 22, 07 @ 6:46 pm

  35. My guess is that they are democrats.

    Comment by A Citizen Thursday, Mar 22, 07 @ 6:57 pm

  36. Well, we are almost there. Three more to go.

    Comment by Patrick McDonough Thursday, Mar 22, 07 @ 7:28 pm

  37. polo….my guess is that at least one elected official is from the pilsen area. I doubt its Solis.

    Comment by Stranger than fiction Thursday, Mar 22, 07 @ 7:43 pm

  38. question…if Fitz cleans out the 5th floor of City Hall (which I think is coming) what is the line of sucession to the Mayor?

    Comment by in-FITZ- of -rage Thursday, Mar 22, 07 @ 8:01 pm

  39. The mayor pro temp assumes the mayor’s office until a new mayor is selected from among the city council members. Only city coucil members will vote.

    Comment by Polo Thursday, Mar 22, 07 @ 8:28 pm

  40. Well, no more patronage and now this indictment. In 10 years when every department of the City is run like the Post Office, where no one can get anything done, where there is no one to call to get our mail delivered, we all will be so happy.

    Comment by Paddyrollingstone Thursday, Mar 22, 07 @ 8:39 pm

  41. So how does the Toddler maneuver into this one? As I recall he does not have voting rights. Maybe that’ll turn out to be a plus.

    Comment by A Citizen Thursday, Mar 22, 07 @ 8:51 pm

  42. Hey Polo possibly Rep. Richard T. Bradley, this from his website
    In 1993, Bradley returned to the city of Chicago as Deputy Director of the Mayor’s office of Inquiry and Information. There, he supervised 50 communication staff persons and administered community outreach programs. Currently, Bradley works as an Assistant General Superintendent for the Chicago Department of Streets and Sanitation where he manages programs and directs field staff for the department.

    Comment by I am LeN O'Connor Thursday, Mar 22, 07 @ 9:56 pm

  43. Frank Avila (both Jr and Sr) fought against HDO and predicted this years ago. Nobody wanted to listen and everyone was afraid.
    HDO was bad at the beginning and is worse now, thank God it is coming to an end.
    Thank goodness for people like the Avila’s and Jesus Garcia and Nick Valadez who fought HDO.

    Comment by Maria Nino Thursday, Mar 22, 07 @ 10:12 pm

  44. How can Mayor Daley defend Sanchez? That is absurd. This could haunt Daley in a RICO or lying to Federal agents as Daley was informed many times of the antics of Sanchez.

    Sanchez has NO redeeming qualities. He is not a well liked Sorich nor a stand up guy. Al Sanchez is garbage.

    Comment by Gil Valadez Thursday, Mar 22, 07 @ 11:08 pm

  45. > The mayor pro temp [currently Solis] assumes the mayor’s office…

    sorry, no

    The VICE MAYOR (currently STONE) takes over as interrum Mayor if the Mayor is unable

    Comment by Hugh Friday, Mar 23, 07 @ 8:06 am

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