* WBEZ…
Illinois House Speaker Michael Madigan was named in a federal subpoena to a prominent Chicago public affairs organization last spring as part of a sprawling FBI probe into political hiring and contracting at Commonwealth Edison, WBEZ has learned.
A source familiar with the subpoena confirms the FBI delivered that request for documents to the City Club of Chicago in May, at the same time the feds executed a search warrant on the group’s Michigan Avenue office downtown.
The subpoena listed the names of between 10 and 20 individuals and requested the group’s correspondence with those people, according to the source, who spoke on the condition of anonymity.
* Background is here if you need it. City Club press release…
In mid-May of 2019 the City Club of Chicago was served at its office with a subpoena and warrant issued by a federal grand jury. The City Club of Chicago has fully cooperated with the government’s request for information and documents. City Club is not the subject of an investigation; rather, it is one of many entities and individuals who have been served to provide information. The City Club of Chicago has not had any further requests since its last production in July.
More context from the Tribune…
The mid-May timing matches that of several raids by federal agents, including the home of retired ComEd lobbyist Michael McClain, a longtime confidant of House Speaker Michael Madigan.
The City Club’s president, Jay Doherty, is a ComEd lobbyist. He has not returned calls for comment.
* Now, on to a Tribune story from late Friday…
A burgeoning federal investigation into ComEd’s lobbying activities centers on whether the utility giant hired politically connected lobbyists to curry favor with lawmakers in exchange for favorable action at the Illinois Capitol, a source familiar with the probe told the Tribune on Friday.
As part of the investigation, authorities are scrutinizing certain ComEd executives and have zeroed in on payments through the company’s vast network of consultants to some individuals to seemingly circumvent lobbying disclosure rules, the source said. Some of the people who wound up being paid seemed to have done little actual work, the source added.
Among the payments, authorities suspect, were thousands of dollars in checks written to Kevin Quinn, an ousted political operative of House Speaker Michael Madigan, according to the source. The Tribune first reported the checks were under scrutiny in July.
The first to paragraphs of that story are very similar to the language also used in the WBEZ story linked above.
If the feds are going after entities which hire “politically connected lobbyists to curry favor with lawmakers in exchange for favorable action” or (WBEZ version) “multiple politically connected employees and consultants in exchange for favorable government actions” then just about everyone is gonna get whacked.
But I don’t think that’s what it means. I think it means some “suggestions” may have been made to entities to hire or retain certain lobbyists, consultants, etc.
The Kevin Quinn thing is a bit puzzling, however, because all we know so far is that some individuals chipped in to ostensibly help him out. So, we’ll have to watch that play out.
* Back to the WBEZ story…
State records show Doherty has another client called Catalyst Consulting Group, Inc., a Chicago-based information technology firm. That firm lists only two lobbyists in its 2019 lobbyist registration: Doherty and Jordan Matyas, who is a former Regional Transportation Authority lobbyist and Madigan’s son-in-law.
Interesting.
A bit of the back-story on Matyas…
The son-in-law of powerful House Speaker Michael Madigan is leaving his job as a top administrator at the Regional Transportation Authority after a turbulent few years. […]
Matyas and former CEO Joe Costello were the subject of an internal investigation in 2012 by an outside attorney after complaints of inappropriate behavior surfaced. The report by attorney Renee Benjamin found that complaints of low morale, a “culture of fear” and “use of racial slurs and sexually explicit language” were credible.
Matyas vehemently denied using offensive language, saying it was “antithetical to my character, my history and everything I believe.” […]
Matyas, an attorney, was hired at the RTA in 2011 as a government affairs manager at a time when the Illinois legislature was contemplating a bill to eliminate the agency.
* One more…
The daughter of embattled state Sen. Martin Sandoval received more than $52,000 in political donations in late 2017 and 2018 from individuals and companies whose names have recently surfaced as part of an ongoing, wide-ranging federal investigation into public corruption. […]
As part of the sprawling probe, investigators are looking into allegations that Sen. Sandoval, a Chicago Democrat, used his official position to steer business to at least one company in exchange for kickbacks, a source with knowledge of the investigation told the Tribune.
“Sprawling probe” is absolutely correct. This thing is going all over the place.
- @misterjayem - Monday, Oct 21, 19 @ 9:38 am:
“Illinois House Speaker Michael Madigan was named in a federal subpoena *** The subpoena listed the names of between 10 and 20 individuals and requested the group’s correspondence with those people”
Buffers.
– MrJM
- Ron Burgundy - Monday, Oct 21, 19 @ 9:41 am:
Yeah it is a bit confusing, but the theory seems to be that a deal was made with ComEd to improve their standing in Springfield and grease the wheels for their bills, in exchange for them taking care of some of the Speaker’s guys by putting them on the ComEd payroll, and then not lobbying because they didn’t need to. Lots of questions remain, including what were they doing instead of lobbying (political work?), and who on the inside orchestrated the whole thing.
- Smalls - Monday, Oct 21, 19 @ 9:52 am:
My belief is that these raids, along with whatever indictments come down the road (yes, I’m making a presumption that there will be some indictments), are going to sink the possibilities for a progressive income tax passage.
- Steve - Monday, Oct 21, 19 @ 9:55 am:
Happened in May. Now we are finding out about it many months later. That’s the way cooperation with the FBI often works on big cases.
- Perrid - Monday, Oct 21, 19 @ 9:56 am:
Sounds like fishing to me, time will tell if they got any bites.
- Smalls - Monday, Oct 21, 19 @ 10:00 am:
==Sounds like fishing to me==
Judges generally don’t sign off on fishing expeditions, without pretty good proof of something. But you are right, this is all speculation and only time will tell.
- Oswego Willy - Monday, Oct 21, 19 @ 10:00 am:
=== Now we are finding out about it many months later.===
It appears it was leaked.
We’re still waiting on the Dorothy Brown investigation findings.
Watching what does happens is now the tact that people are fearing most, milk is either spilled or not, we’ll see if the need to clean up the milk will lead deeper.
- Precinct Captain - Monday, Oct 21, 19 @ 10:01 am:
Sprawling?
Like an expedition in large waters?
A fishing expedition? Seems more and more like that by day, especially considering how SCOTUS has taken an expansive view of what public officials and advocates are allowed to do.
- Lucky Pierre - Monday, Oct 21, 19 @ 10:02 am:
In order to get this many search warrants the Judge has to believe a crime was committed.
Our constitution does not allow for unreasonable search and seizure “fishing expeditions”
- Rich Miller - Monday, Oct 21, 19 @ 10:05 am:
===and then not lobbying because they didn’t need to===
Maybe. But sometimes companies hire lobbyists to prevent them from working for the other side.
- NIref - Monday, Oct 21, 19 @ 10:06 am:
Sprawling, at least in the amount of information acquired by the the local news outlets. The feds are always a few steps ahead of the public knowledge in these cases.
- YourMove - Monday, Oct 21, 19 @ 10:08 am:
1. Activist judges do sign off on fishing expeditions. 2. This is a problem when referrals are being criminalized.
- YourMove - Monday, Oct 21, 19 @ 10:09 am:
Rich is right…common practice amongst law firms as well.
- Sue - Monday, Oct 21, 19 @ 10:09 am:
Oh how the mighty will fall. At Least Lisa can’t be faulted for her impeccable timing to exit the stage
- Oswego Willy - Monday, Oct 21, 19 @ 10:09 am:
=== But sometimes companies hire lobbyists to prevent them from working for the other side.===
Had this point brought up to me over the weekend.
You sideline some the best that can submarine your bill, you have an easier time with those already working against you.
So now it’ll be “against the law” to sideline possible opponents?
Is it a “ghost” lobbying gig if your charge is to not help the opposition?
I hadn’t gone that deep in my own thinking until it was reminded this weekend.
The company may not like “no work” lobbyists, but to process it might be the genius move?
- Filo - Monday, Oct 21, 19 @ 10:11 am:
This is not the first time the City Club has been under investigation…although it appears Lisa Madigan decided there was nothing wrong.
https://www.chicagomag.com/Chicago-Magazine/June-2012/Jay-Doherty-and-the-City-Club-of-Chicago-Under-Fire/
- Oswego Willy - Monday, Oct 21, 19 @ 10:11 am:
=== how the mighty will fall.===
Speculative, almost to a want.
We’ll know who falls where when we know. Are you still waiting on Dorothy Brown too?
- Birdseed - Monday, Oct 21, 19 @ 10:16 am:
The moves being made by ComEd and Exelon do not line up with the “fishing expedition” theory at all.
- BloomingDale Billy - Monday, Oct 21, 19 @ 10:20 am:
This is great watching the Dems eat each other, the GOP leadership is so afraid of Madigan (or likely to be raided next week) they are afraid to capitalize on this.
- Oswego Willy - Monday, Oct 21, 19 @ 10:22 am:
=== the GOP leadership is so afraid of Madigan (or likely to be raided next week) they are afraid to capitalize on this.===
Explain how they should capitalize on this;
A movie? T-shirts, $130+ million on “Fire Madigan”, and note the GOP has about 9 nickels right now, or maybe 7 days of paid media for it…
… so, please, how do you see the Rauner GOP capitalizing here. Thanks.
Oh, sorry, my bad… Trump is on the ballot too.
- efudd - Monday, Oct 21, 19 @ 10:23 am:
“watching the Dems eat each other”
Yeah, no. There are a few Dems in Springfield that wouldn’t shed too many tears IF this ensnared Madigan.
One of them sits in the governor’s office.
- Roman - Monday, Oct 21, 19 @ 10:24 am:
== have zeroed in on payments…to seemingly circumvent lobbying disclosure rules ==
Disclosure rules? If ComEd paid someone to lobby the legislature without any pubic disclosure, that’s obviously against the law — a first year law student could prosecute that case. But if ComEd paid someone to be a “consultant” instead of a “lobbyist” and that person never actually lobbied a legislator, the disclosure law is probably not being violated. That kind of arrangement could be considered a back-door bribe in order to curry favor and create a favorable legislative environment, but that is a much, much tougher case to prove up, requiring lots of evidence and cooperating witnesses. Which would explain the “sprawling” nature of the investigation.
- lobby - Monday, Oct 21, 19 @ 10:27 am:
== I think it means some “suggestions” may have been made to entities to hire or retain certain lobbyists, consultants, etc.==
Isn’t that what lobbying is to some extent? You hire someone who has a relationship with an elected official in the hopes that person can sway the elected official to see things the way the client wants to see them? .
- Been There - Monday, Oct 21, 19 @ 10:27 am:
===in exchange for them taking care of some of the Speaker’s guys by putting them on the ComEd payroll, and then not lobbying because they didn’t need to====
I don’t think ComEd has been putting them on the payroll as employees. They all seem to be contract lobbyist and as stated by Rich sometimes you hire so the opposition can’t. But either way how are they going to prove if these lobbyist did any work? No one keeps track that I ran into a legislator in the tunnel and talked about legislation. At least I haven’t noticed any cameras there yet. Pretty much no way to prove if they did any work or not. The results on the roll call are what matter.
- James the Intolerant - Monday, Oct 21, 19 @ 10:29 am:
No work lobbyists or no show lobbyists-Sopranos reference
- Original Rambler - Monday, Oct 21, 19 @ 10:29 am:
Smalls you need to provide the linkage for that opinion.
- Ron Burgundy - Monday, Oct 21, 19 @ 10:29 am:
—Maybe. But sometimes companies hire lobbyists to prevent them from working for the other side.—
OK yeah. That makes a lot of sense. I was kind of operating under the theory that perhaps they were setting up an arm of their political operation under the auspices of ComEd — with the idea that “we can’t pay them to do political work on state time because that’s illegal, but maybe ComEd can pay them instead?”
- Steve - Monday, Oct 21, 19 @ 10:31 am:
If someone is lobbying a politician and they put someone on a payroll in an exchange for a vote… that could be a legal problem if it can be documented.
- Ron Burgundy - Monday, Oct 21, 19 @ 10:33 am:
—Isn’t that what lobbying is to some extent? You hire someone who has a relationship with an elected official in the hopes that person can sway the elected official to see things the way the client wants to see them?—
Yeah but usually the official or their people don’t say who that person should be.
- Powdered Whig - Monday, Oct 21, 19 @ 10:33 am:
=== Yeah it is a bit confusing, but the theory seems to be that a deal was made with ComEd to improve their standing in Springfield and grease the wheels for their bills, in exchange for them taking care of some of the Speaker’s guys by putting them on the ComEd payroll, and then not lobbying because they didn’t need to. Lots of questions remain, including what were they doing instead of lobbying (political work?), and who on the inside orchestrated the whole thing. ===
The way I see it, the sole issue is whether the government can prove that legislators agreed to vote for the rate hikes or other legislation if ComEd agreed to hire folks they recommended. That’s it. I really doubt that the Speaker would have done that.
If we are talking about who recommended who, or how much work so and so lobbyist does - I think it sets a dangerous precedent in that the government will now be interjecting itself into the operations of private businesses. I really don’t think the government should be doing that.
- Powdered Whig - Monday, Oct 21, 19 @ 10:39 am:
=== Yeah but usually the official or their people don’t say who that person should be. ===
Sure they do. And that is not necessarily an illegal thing to do. Think of a legislator that believes in a particular issue. That person may recommend a lobbyist that they believe will be successful in advocating for that issue. Recommendations are not always the result of nefarious intentions.
- Colin O'Scopy - Monday, Oct 21, 19 @ 10:43 am:
Some families are going to have some uncomfortable silences at Thanksgiving dinner in a month or so.
- Donnie Elgin - Monday, Oct 21, 19 @ 10:48 am:
This is big news - now that the head of the operation has officially been named in FBI probe his underlings will feel more enticed to cooperate. They wont be fingered for dropping the first dime.
- Oswego Willy - Monday, Oct 21, 19 @ 10:49 am:
=== officially===
It’s a leak. If the FBI goes in front of a podium or issues a release…
- Donnie Elgin - Monday, Oct 21, 19 @ 11:03 am:
typo ? “The first to paragraphs” - two ?
- Notorious RBG - Monday, Oct 21, 19 @ 11:08 am:
Both of the most recent WBEZ stories talk about how the actions may have been in exchange for rate increases… but none of the named individuals had anything to do with setting utility rates… interesting that the rate angle is coming out before anyone knows about any links to the ICC.
- Responsa - Monday, Oct 21, 19 @ 11:17 am:
The old Chicago Magazine article linked above by Filo is pretty good reading. Cashing in thousands of Lettuce Entertain You loyalty points from City Club’s account for apparently personal use? Really Mr. Doherty? If true, that was unbelievably petty and clueless in terms of its appearance.
- @misterjayem - Monday, Oct 21, 19 @ 11:25 am:
In Illinois v. Gates, 462 U.S. 213 (1983), the United States Supreme Court explicitly held that, “The task of the issuing magistrate is simply to make a practical, common-sense decision whether, given all the circumstances set forth in the affidavit before him, there is a fair probability that contraband or evidence of a crime will be found in a particular place.”
Under Gates, a judge doesn’t even need to believe that there is a better-than-even chance that a crime was committed — a “substantial chance” or “fair probability” of criminal activity alone can establish the probable cause for a search warrant.
And that’s been the law of the land for 36 years.
– MrJM
- Not a Superstar - Monday, Oct 21, 19 @ 11:25 am:
Amazing stuff. We will have to see. But to the arm-chair gurus of white collar criminal law, I advise patience and skepticism. The US Supreme Court has been chipping away at the non-quid pro quo corruption sufficient to sustain a conviction of a public official.
- Just Me - Monday, Oct 21, 19 @ 11:29 am:
===Matyas, an attorney, was hired at the RTA in 2011 as a government affairs manager at a time when the Illinois legislature was contemplating a bill to eliminate the agency.===
Someone with more time on their hands than I should FOIA the RTA on the decision to hire Matyas, and if anyone from the Speaker’s Office recommend him.
- Rich Miller - Monday, Oct 21, 19 @ 11:32 am:
===had anything to do with setting utility rates===
ComEd has been trying to extend the sunset on its rate law for another decade.
- OneMan - Monday, Oct 21, 19 @ 11:32 am:
nstead of joining in on the semantics argument (is it lobbying vs. consulting), I would suggest that if anyone ends up getting indited on with all of this, it is going to be a big problem for ComEd. The ‘well it is legal’ argument isn’t going to play well in Peoria.
Even if it isn’t technically ‘ratepayer money,’ it is ratepayer money from a perception standpoint. In a best-case scenario is being used to pay politically connected people to do nothing.
You are going to have the goo-goos coming after ComEd for this. You will also have pearl-clutching from the legislature that is going to be shocked, shocked I say that this sort of thing is going on. Good luck getting a rate increase anytime soon.
Fortunately for the Democrats in general, Trump is going to be on the ballot, and the Illinois GOP is a joke.
Unfortunately for the proponents of the graduated income tax, this (again assuming something comes of it by November), plays to the whole ‘you can’t trust Springfield’ narrative. If I were running the anti-graduated tax side, I would use this sort of thing as the narrative; you will be giving more money to folks who don’t look out for you, but their guys.
Overall it plays to a simple theme that Springfield isn’t interested in what is best for you, but what is best for them.
- Responsa - Monday, Oct 21, 19 @ 11:37 am:
Too bad Matyas is not a specialty sheep farmer or opera singer or high school math teacher. Staying far, far away from politics, government agencies and lobbying would have been such a good idea.
- Sue - Monday, Oct 21, 19 @ 11:37 am:
OW- kind of feeling bad for you today. The water you carry for the speaker is getting heavier by the hour😀
- Grandson of Man - Monday, Oct 21, 19 @ 11:56 am:
“you will be giving more money to folks who don’t look out for you, but their guys”
Actually you will be giving less money to Springfield if you’re in the vast majority of taxpayers.
- Oswego Willy - Monday, Oct 21, 19 @ 12:12 pm:
- Sue -
I’m not a Madigan apologist, but I am a realist to not only the politics, but to what we know without mouth-breathing fervor for an angry want.
You don’t know the difference. That’s on you.
:)
- Nagidam - Monday, Oct 21, 19 @ 1:03 pm:
Oswego Willy,
Now would be a good time for a Tom Cross joke. Someone needs to lighten the commenters up today. People seem a bit edgy even for a Monday.
- Oswego Willy - Monday, Oct 21, 19 @ 1:10 pm:
- Nagidam -
I did sneak a quick 9 holes in on Friday.
I think Tom across is avoiding me. A skins game could be a fun fundraiser?
Of course, he can play places like Medinah, I’m pretty sure I can spell Medinah.
- Nagidam - Monday, Oct 21, 19 @ 1:17 pm:
===A skins game could be a fun fundraiser?===
Only if I can caddy. Hell I’ll pay just to caddy. We can all go eat at a City Club function afterward. (too soon?)
- Oswego Willy - Monday, Oct 21, 19 @ 1:20 pm:
=== Only if I can caddy.===
Fair enough. We’ll hash out the loop and such.
===Hell I’ll pay just to caddy.===
Nope. If you’re on the bag, the player pays the freight.
===We can all go eat at a City Club function afterward. (too soon?)===
Oh, not at all. You need to get Sneed to call me ageless and priceless or some other “Sneedism”, then…
:)
- OneMan - Monday, Oct 21, 19 @ 1:23 pm:
Actually you will be giving less money to Springfield if you’re in the vast majority of taxpayers.
Creating fear, uncertainty and doubt about that is going to be the low hanging fruit of the whole campaign. If the pro ‘fair tax’ argument is trust us, we are only going to tax rich folks, good luck with that. I think making the arugment that you can’t ‘trust them’ is not going to be that hard.
- Oswego Willy - Monday, Oct 21, 19 @ 1:34 pm:
- Think before you speak -
Maybe you should take your name out for a spin, lol.
We don’t know what we don’t know.
Can it be a RICO case, looks that it could be, but your speculation is talking before your knowing.
Watch what does happen. There’s lots there we know, but the dots to make the legal case are still hidden, even if they seem “obvious”
Far too many folks;
“Convict them, then we’ll try them”
Because you don’t agree politically with someone doesn’t mean legal processes should be skipped.
- Sue - Monday, Oct 21, 19 @ 2:27 pm:
Oswego- sorry to disappoint you but it’s no coincidence that most of the people the feds are interested are lifers working for the Speaker. The investigation is larger then operation Board Games. Question will be who is going to be the Bill Cellini?
- Powdered Whig - Monday, Oct 21, 19 @ 2:38 pm:
=== sorry to disappoint you but it’s no coincidence that most of the people the feds are interested are lifers working for the Speaker ===
That’s just not true. There were dozens of people raided/received subpoenas/ referenced in subpoenas that never worked for the Speaker.
- Oswego Willy - Monday, Oct 21, 19 @ 2:40 pm:
=== sorry to disappoint you but it’s no coincidence that most of the people the feds are interested are lifers working for the Speaker. The investigation is larger then operation Board Games.===
Is that a “wish” or a fact on the connection.
This is a big investigation, I’m waiting on indictments. Why aren’t you?
- Donnie Elgin - Monday, Oct 21, 19 @ 2:40 pm:
Has disgraced Teamsters president Coli been sentenced yet ? Found guilty in July, he is cooperating with the Feds in return for reduced stretch.
http://www.tdu.org/coli_agrees_to_cooperate_with_feds_to_get_lighter_sentence
- Sue - Monday, Oct 21, 19 @ 2:45 pm:
Ok sorry I stand corrected. Change most to a good number
- Oswego Willy - Monday, Oct 21, 19 @ 2:50 pm:
- Sue -
Here’s the thing;
Ya wanted to make it about me. Why? In your fervor to do so, you’ve gone to hyperbole. Read what I wrote, exactly as I wrote it. The “glee” in these processes neglect a few things, like this idea we convict before we even charge.
I’m waiting and watching. It’s huge. It makes the huge look small. Take one breath, maybe two. Watch what does happen.
Those folks holding their breaths on Dorothy Brown are passed out, less the years they held that breath.
- don the legend - Monday, Oct 21, 19 @ 3:48 pm:
OW, for Sue and others there is no fun in taking a breath or two.