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More on the reported Pritzker probe

Wednesday, Apr 24, 2019 - Posted by Rich Miller

* Tribune

Democratic Gov. J.B. Pritzker’s removal of toilets from an Astor Street mansion to gain a property tax break, a move that gained notoriety during his recent election campaign, is under review by federal prosecutors, WBEZ-FM 91.5 reported Wednesday.

The report, attributed to an unnamed “law enforcement source,” said Pritzker, his wife, M.K., and his brother-in-law, Thomas Muenster, were part of the federal review. The station reported that the review began last October and said there were no signs that any charges were imminent. […]

The scope of any federal review was unclear. Pritzker’s campaign had paid the Perkins Coie law firm a total of $1.5 million since he launched his bid for governor, including $465,456 since Jan. 1, state campaign finance records show.

Cook County Assessor Fritz Kaegi and his predecessor, Joe Berrios, both said on Tuesday they had no knowledge of any federal review.

The assessor says he has no knowledge of an investigation into the property tax break?

What about the Office of the Independent Inspector General of Cook County? That office conducted the investigation which concluded that the property tax reduction was the result of a “scheme to defraud” the county’s taxpayers. The IIG has a lot of documents and information that the feds might need.

* So, I sent a Freedom of Information Act request this afternoon to the county’s inspector general for copies of any federal subpoenas received related to “JB Pritzker, MK Pritzker, Thomas J. Muenster, Christine Lovely and any other person/topic related to the IIG’s 2018 investigation of property tax issues at 1421 N. Astor in Chicago.” I received a swift reply…

Hi Rich,

Our office does not have any documents responsive to your FOIA request below.

Steven E. Cyranoski
FOIA Officer

Federal investigators could just be going off the final and pretty comprehensive IIG document itself. I followed up to ask if any correspondence had been received by the office from the feds and was told that if such documents exist, the IIG could not disclose them because they would be part of the investigatory file, which is supposed to be confidential. (The IIG’s report was leaked last year, you will recall.)

* Sun-Times

At an unrelated news conference Wednesday morning, Pritzker said, “what I know is what you all know from the reporting that was done this week.” […]

Pritzker says he has “no concerns at all” about criminal charges. Pritzker attorney Marc Elias, a partner with the Perkins Coie law firm, in a statement issued earlier Wednesday had said “neither the Governor nor the First Lady have been contacted by law enforcement regarding the property tax appeal.”

Pritzker’s latest quarterly filing with the Illinois State Board of Elections shows he has paid Perkins Coie more than $465,000 this year, but a campaign spokesman said the payments to the law firm were not related to the investigation. The spokesman said the firm was paid for a variety of reasons, including shutting down campaign office and setting up Pritzker’s “blind trust.”

The campaign is also being sued and that costs real money.

The feds could be talking to contractors or others involved. We just don’t know at this point if the case is active or if they’re just kicking over some rocks. The G often works in mysterious ways. The danger is, once they encamp, they tend to stick around.

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*** UPDATED x2 *** All heck breaks loose

Wednesday, Apr 24, 2019 - Posted by Rich Miller

* WBEZ with the scoop

Democratic Illinois Gov. JB Pritzker, his wife and his brother-in-law are under federal criminal investigation for a dubious residential property tax appeal that dogged him during his gubernatorial campaign last year, WBEZ has learned.

A law-enforcement source familiar with the investigation confirmed to WBEZ that the probe, which has not been revealed publicly until now, began last October and remains active. There are no signs that criminal charges are imminent.

WBEZ has also confirmed that Illinois First Lady MK Pritzker’s personal assistant who was involved in the property tax appeal, Christine Lovely, is being represented by one of Chicago’s most high-powered lawyers. Her attorney, Reid Schar, is a former federal prosecutor who helped convict ex-Illinois Gov. Rod Blagojevich on corruption charges. […]

“Neither the Governor nor the First Lady have been contacted by law enforcement regarding the property tax appeal,” said [Marc Elias], a partner with the Perkins Coie law firm, which has done extensive legal work on behalf of Pritzker’s gubernatorial campaign. “We are confident that any further review of the matter will show that the appropriate rules were followed.”

Schar, the attorney for the first’ lady’s assistant, declined to comment.

* I went over this story with subscribers earlier today. But it might be no coincidence that this alleged probe began in October. From an October 3rd Illinois Republican Party press release

The Honorable John R. Lausch, Jr.
United States Attorney’s Office
Northern District of Illinois, Eastern Division
219 S. Dearborn St., 5th Floor
Chicago, IL 60604

Mr. Lausch:

We write to call your attention to a recent Cook County Inspector General investigation which concluded that Jay Robert (J.B.) Pritzker engaged in a “scheme to defraud” Cook County of over $300,000 in improper property tax reductions and refunds.

As reported by the Chicago Sun-Times, the Cook County Assessor’s Office in 2015 reduced the assessed valuation of a mansion owned by Mr. Pritzker from $6.25 million to just under $1.1 million. These reductions allowed Mr. Pritzker to claim $132,747.18 in refunds for property taxes paid in 2012, 2013 and 2014, and reduced his property taxes for 2015 and 2016 by $198,684.85.

The Inspector General’s report concluded that the assessment reductions were reduced due to fraudulent affidavits submitted by Tom Muenster, Mr. Pritzker’s brother-in-law, and Christine Lovely, Mary Kathryn (M.K.) Pritzker’s assistant. These affidavits falsely claimed that the mansion had been “vacant and uninhabitable,” with no working toilets, since January 1, 2012. The Inspector General report found that, contrary to the affidavits, the toilets had been removed on October 6, 2015, just ten days before a scheduled appraisal of the property, at the direction of M.K. Pritzker. According to an email obtained by the Inspector General, Ms. Pritzker directed that the toilets be removed for the express purpose of allowing the house to be declared uninhabitable.

The facts described in the Inspector General’s report appear to constitute fraud and perjury. Since the improperly-obtained refund checks were sent to Mr. Pritzker through the U.S. Mail, a violation of 18 USC 1341 (the Federal Mail Fraud Statute) may have occurred.

Illinois, perhaps more than any other state, has suffered greatly due to public corruption. Four of Illinois’ last nine governors have gone to prison. It is important to send a strong signal to the people of Illinois that no one is above the law, not even billionaires running for Governor. For that reason, we urge you to fully investigate this matter with all due speed.

Sincerely,

U.S. Representative Peter Roskam (IL-6)
U.S. Representative Mike Bost (IL-12)
U.S. Representative Rodney Davis (IL-13)
U.S. Representative Randy Hultgren (IL-14)
U.S. Representative John Shimkus (IL-15)
U.S. Representative Adam Kinzinger (IL-16)
U.S. Representative Darin LaHood (IL-18)

Whatever the case (the story broke about the IG probe shortly before the press release was sent), that’s a fairly decent summary of the claims.

…Adding… From the dark money group Ideas Illinois…

Governor Pritzker should immediately abandon his push for this massive Jobs Tax on middle class families because he can’t expect people to pay more when he is reportedly under criminal investigation for gaming the system to pay less.

The governor likes to call his push for more taxes “fair” but it’s clear he knows nothing about fairness or equity - he needs to drop his push for this Jobs Tax that will only hurt middle class families even further.

…Adding… ILGOP…



…Adding… Unless he backs out, the governor will be taking questions today…

Daily Public Schedule: Wednesday, April 24, 2019

What: Gov. Pritzker and Acting Director Brendan Kelly to hold media availability to discuss efforts to address the state’s DNA backlog.
Where: ISP Forensic Science Center, 1941 Roosevelt Road, Chicago
When: 10:30 a.m.
B-Roll Opportunity: Members of the media will be able to tour the crime lab after the media availability to see how evidence is processed by ISP technicians.

…Adding… RGA

“After just a few short months in office, J.B. Pritzker has already proven to the people of Illinois that he is completely unworthy of their trust,” said RGA Deputy Communications Director John Burke. “This investigation raises serious questions regarding Pritzker’s conduct and shows that he is nothing more than another corrupt politician who thinks he’s above the law, just like his friend Rod Blagojevich.”

*** UPDATE 1 *** Standard response in these matters…


*** UPDATE 2 *** Tina Sfondeles…

Asked if the probe will affect his push for a graduated income tax, Pritzker replied: “all of these things will pass.”

* Meanwhile

The former Illinois legislative inspector general says the ethics commission that oversaw her work buried a report of alleged misconduct by one of their fellow legislators, just one sign of a system she describes as “broken.”

In an op-ed published online Tuesday by the Tribune, ex-watchdog Julie Porter said lawmakers have done little to address these longstanding problems despite warnings from her predecessor and a series of high-profile sexual harassment allegations at the Capitol. Porter was appointed interim IG in November 2017 after alleged victims said their complaints went unheard. […]

State Rep. Avery Bourne, a Republican from downstate Raymond, who chairs the ethics commission, said the bipartisan panel voted unanimously in February not to release the report on alleged misconduct by a lawmaker. Like Porter, she said the law prohibits her from discussing the case.

Bourne said the commission provides a “check and balance” on the work of the inspector general and never got in Porter’s way. […]

Pope, the new inspector general, said a different interpretation of state law led her to close the case Porter wanted to publish. However, Pope said she agrees with her predecessors’ broader criticisms of limits imposed by lawmakers on the inspector general’s independence.

The op-ed is here.

As I’ve told you a couple of times now, I’m on break starting today. I will post again if something major happens, but comments are closed until I return.

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Trust

Wednesday, Apr 24, 2019 - Posted by Advertising Department

[The following is a paid advertisement.]

Gov. J.B. Pritzker’s progressive income tax plan relies on a political promise that Illinois lawmakers won’t hike taxes on the middle class – and that the rich will pay what’s “fair.”

A federal investigation into property tax breaks on Pritzker’s Gold Coast mansion, uncovered by WBEZ, calls further into question why Illinoisans should trust that promise.

The governor’s unwillingness to slow Illinois’ new spending and debt, bad math from his administration, and the experience of the last state to switch to a progressive income tax dictate that Pritzker’s progressive tax constitutional amendment would be a bridge to higher taxes for the middle class. Notably, Illinois property taxes will continue to rise under his plan.

Pritzker and his “fair tax” plan are already underwater in key districts held by Illinois House Democrats, according to polling conducted by Fabrizio, Lee and Associates.

A criminal investigation into the governor over a tax matter is unlikely to help.

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Wednesday, Apr 24, 2019 - Posted by Rich Miller

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*** LIVE COVERAGE ***

Wednesday, Apr 24, 2019 - Posted by Rich Miller

* As I told you yesterday, I’m going on break. But you can still follow all the happenings with ScribbleLive


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« NEWER POSTS PREVIOUS POSTS »
* 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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