* Mark Brown and I are pretty much on the same page…
[Former state Sen. Rickey] Hendon’s fingerprints turned up all over a federal criminal complaint unsealed Tuesday in U.S. District Court, where seven people — most of them with some connection to his political organization — were charged with paying kickbacks to a make-believe federal official in exchange for $25,000 government grants.
While Hendon is not named in the complaint, among the defendants are his former campaign treasurer, Dean Nichols, of Oak Park, and three others who had been paid for doing work for his campaign committee — Reggi Hopkins, Regina Hollie and Anthony Johnson, all of Chicago. Another defendant, Elliott Kozel, had been a small-time Hendon campaign contributor.
The criminal complaint goes out of its way to mention that Nichols was the treasurer for a campaign committee for a former Illinois state senator, which is how the U.S. attorney’s office blows a kiss to somebody like Hendon to make sure he knows they’re still thinking about him.
They also mention that the nephew of this former state senator has drawn their attention. The complaint says that the senator, clearly meaning Hendon, insisted that his nephew get cut in on two grants totaling $210,000 that he helped Hopkins obtain in 2007 and 2008.
Hendon had received plenty of prior notice that the feds have him in their sights.
Long before Tuesday’s arrests, it had been previously reported that federal authorities out of Springfield were investigating allegations that thousands of dollars from state health-care grants had been paid to Hendon campaign workers. Two women involved with the Chicago Chapter of the National Black Nurses Association were indicted last June for allegedly siphoning off $500,000 from state grants that Hendon had helped them obtain.
* Greg Hinz…
What may be more interesting, however, are comments in an affidavit filed by an FBI agent about Mr. Hendon and another defendant, Reggie Hopkins.
Describing Mr. Hendon only as “a former state senator” whose campaign treasurer was Mr. Nichols, the agent attested that, in 2007, Mr. Hopkins received a $190,000 state grant.
The grant allegedly was steered to him by the former state senator — with the understanding that “a portion of the proceeds” would go to the senator’s nephew and Mr. Nichols.
Mr. Hopkins’ group, called MIW Foundation, also received a $20,000 grant in 2008, allegedly submitting a budget that showed that the former state senator’s nephew would get $3,250 and Mr. Hopkins $4,250 in salary.
Beyond that, in a recorded conversation Mr. Hopkins told the confidential witness that he was donating 15 percent of grant payments back to Mr. Hendon as a campaign “donation.”
In a press release, Acting U.S. Attorney Gary Shapiro describes that ex-state-senator matter as “background for the investigation.”
* Sun-Times…
The charges make clear that federal law enforcement is attempting to lift the veil on the way taxpayer money is passed out in Springfield.
Charges detail a system in which tens of thousands of dollars in state grants could easily be directed to cronies and relatives, with seemingly little oversight or back checks to see who is actually receiving money at a time when Illinois has reached a fiscal budget crisis. The charges say that in 2007, Hopkins received a $190,000 grant that Hendon earmarked allegedly with the understanding that Hopkins would “provide a portion of the proceeds to [Hendon’s] nephew.” State records show that money went to an organization called MIW Foundation. Hopkins told the cooperator in a conversation that was caught on tape that what he had “been doing is donating 15 percent of what I make off of grants, back to [Hendon’s] campaign . . . I just do it as a donation.”
Hopkins and Nichols each were donors to Hendon, with Nichols — described in state campaign records as an accountant — giving the former West Side Democrat $4,500 in contributions and loans.
The complaint is here.
Discuss.
- Huh? - Wednesday, Jul 18, 12 @ 10:24 am:
Cue the shark music.
- Dee Lay - Wednesday, Jul 18, 12 @ 10:29 am:
“which is how the U.S. attorney’s office blows a kiss to somebody like Hendon to make sure he knows they’re still thinking about him.”
That’s a f’n golden line right there. Kudos to Brown.
- Responsa - Wednesday, Jul 18, 12 @ 10:39 am:
And think that a few more pensions could have been paid or funded with that same amount of wasted “grant” money. The hits keep coming and add up. Does anyone really blame taxpayers for rebelling against kicking in even more when what has already been collected is so often found to have been used frivolously and without oversight?
- Ghost of John Brown - Wednesday, Jul 18, 12 @ 10:40 am:
“Hollywood” could end up the subject of a movie, but not the kind of “Hollywood” that I’m sure he always envisioned.
- Liberty First - Wednesday, Jul 18, 12 @ 10:41 am:
This is rampant in state government.
- wordslinger - Wednesday, Jul 18, 12 @ 10:48 am:
–Charges detail a system in which tens of thousands of dollars in state grants could easily be directed to cronies and relatives, with seemingly little oversight or back checks to see who is actually receiving money at a time when Illinois has reached a fiscal budget crisis.–
What’s the relevance here? No one is being charged with anything regarding state grants.
- langhorne - Wednesday, Jul 18, 12 @ 10:54 am:
i would be interested in knowing how many of such “wayward” grants were initiated by member initiatives. i have a hunch there would be a strong correlation. it is one thing to appropriate money for a new track and football field for the local high school–thats straightforward. it is another thing for a crafty individual to make up a do-good sounding name and purpose for a front group to receive and squander/share money. remember isbe saying they didnt have the staff to oversee such grants? i doubt other grantor agencies did much better.
in spite of newspaper accounts exposing several such sham operations, these bozos plowed straight ahead. free money: indict me! indict me!
- langhorne - Wednesday, Jul 18, 12 @ 11:00 am:
wordslinger–
the state grant process is at the heart of the scheme. senator puts in a member initiative for the local group “good guys for literacy” to tutor at risk kids after school for $150k. dceo or isbe gets the address for the group, sends them a grant contract, and the check follows. the contract calls for a couple reports which, even if filed, are worthless. what could be sweeter?
- Esquire - Wednesday, Jul 18, 12 @ 11:11 am:
After decades of controversy and scandal, the legislative scholarship program was recently eliminated. It is high time that the state grants awarded on the basis of “Member initiatives” also be abolished. There was no meaningful oversight and some fake organizations were founded solely to cash in on the available grants. Some incumbent politicians used the process to enrich their followers and to cover the precincts with workers or to indirectly purchase votes. Get rid of this garbage and return the money to the state treasury.
- wordslinger - Wednesday, Jul 18, 12 @ 11:16 am:
–the state grant process is at the heart of the scheme.–
Not according to the charges. All the charges are related to bribes and kickbacks involving a phony federal official and fictitious federal grants.
- amalia - Wednesday, Jul 18, 12 @ 11:19 am:
rollin’ rollin’ rollin’…Rawhide!
- Skirmisher - Wednesday, Jul 18, 12 @ 11:20 am:
Langhorne is spot on. That is how the whole shady process works and has worked for years. Some of the most flagrant abuses I observed were in the day when the Republicans controlled everything. the program wasn’t called “Bilk Illinois” for nothing.
- langhorne - Wednesday, Jul 18, 12 @ 12:04 pm:
wordslinger–
the state grant process is the model for the illegitimate, but acceptable, way of doing things. the feds used a fake fedl grant for their own purposes. maybe it was easier to set up and keep secret. or maybe it gave them advantage in framing charges.
earmarked grants are easier to subvert than legitimate established programs that are based on statutory authority, have a clear purpose and criteria, transparency and meaningful oversight.
it is hard for a grantor agency to say no to a member initiative sponsored by a legislative leader or member of an approp committee that can punish them.
- Cook County Commoner - Wednesday, Jul 18, 12 @ 12:07 pm:
And how many of our so-called “honest” state reps and senators noticed the stink and said nothing. How many of them turned their backs in exchange for a vote on a piece of legislation or some help during a tight election.
- wordslinger - Wednesday, Jul 18, 12 @ 12:13 pm:
–the state grant process is the model for the illegitimate, but acceptable, way of doing things. the feds used a fake fedl grant for their own purposes.–
So prosecute the alleged crimes in the state system.
- mark walker - Wednesday, Jul 18, 12 @ 12:28 pm:
Again, the best fix will be a process fix.
Legislator recommendations should not be acceptable as part of any grant process, and agencies should universally communicate and enforce that any such requests will be ignored.
Legislators still can have input on choices in infrastructure improvements — e.g. which local roads, public school roofs, or sewars get fixed first, from a list of previously approved projects from IDOT or other agencies. They do have better local knowledge on needs like that. That should be the extent of “member initiatives” with state or federal funds.
That’s how I ran my office, and I admit it upset a few people who expected otherwise.
- mark walker - Wednesday, Jul 18, 12 @ 1:44 pm:
Upon reflection, I wasn’t perfect in application of this policy of no recommendations, but it’s a good policy.
- bored now - Wednesday, Jul 18, 12 @ 2:00 pm:
==how many of our so-called “honest” state reps and senators noticed the stink and said nothing. How many of them turned their backs in exchange for a vote on a piece of legislation or some help during a tight election.==
this isn’t the question. reformers in illinois politics don’t survive by being on the opposite side of the ‘machine’ every time. the more independent a politician is in this state, the greater the need for them to pick their battles and/or priorities. reform-minded voters have to recognize this — it’s not whether reform-minded politicians understand the system here well-enough to actually have some success in making the changes they seek instead of just tilting at wind mills…
- Anonymous - Wednesday, Jul 18, 12 @ 2:17 pm:
This thread can’t be separated from the thread before it, about the use of the mole.
A corrupt police officer was caught. He agreed to cooperate. He may have provided information about a state senator’s campaign treasurer, about whom the government may already have had additional information. Presumably with information establishing predisposition, the government set up an undercover scheme to get the campaign treasurer. It (apparently) worked, and led to some more people who signed up for criminal activity. The government went as far as it could, then charged the schemes that it had. (It may have more that hasn’t been charged, or may be hoping some additional cooperators appear.)
The government has said the corrupt police officer will be charged. At that time, we’ll find out if he’s still on the force and, if so, where he’s been assigned and what his bosses were told.
If he’s been out making arrests that may now be called into question — or if people he arrested before may have to be freed — the government’s conduct may be subject to question. But it’s way too soon to have an educated opinion on whether the government’s conduct in using this mole was fair or not — we don’t have enough of the facts.
- Boone Logan Square - Wednesday, Jul 18, 12 @ 3:48 pm:
As long as the warden will allow Sen. Hendon to produce radio ads from the facility, let the government’s case proceed.
- Holdingontomywallet - Wednesday, Jul 18, 12 @ 9:04 pm:
Move on, “it’s just Ricky being Ricky” or “Nichols being Nichols”, nothing to see here. Illinois polotics at its finest.
- Holdingontomywallet - Wednesday, Jul 18, 12 @ 9:05 pm:
Politics…
- Fed Up - Wednesday, Jul 18, 12 @ 10:43 pm:
Seems like this has been an open secret regarding Hendon and grants for a long time. Newspapers have written stories on his so called after school programs. hopefully the feds follow up that blown kiss with a unsealed indictment. Maybe if a few of these tutoring programs and after school matters programs were legit Chicago wouldnt be murder capitol of U.S.