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Former Sen. Sam McCann indicted on charges of fraud, money laundering and tax evasion

Wednesday, Feb 3, 2021 - Posted by Rich Miller

* Press release…

A grand jury today indicted former Illinois State Senator Sam McCann on charges of fraud, money laundering, and tax evasion related to his alleged misuse of campaign money for personal expenses. The indictment alleges that from May 2015 to June 2020, McCann engaged in a scheme to convert more than $200,000 in contributions and donations made to his campaign committees to pay himself and make personal purchases, and that he concealed his fraud from donors, the public, the Illinois State Board of Elections and law enforcement authorities.

The indictment was announced by Central District of Illinois U.S. Attorney John C. Milhiser; FBI Special Agent in Charge Sean M. Cox, Springfield Division; and, IRS Criminal Investigation Acting Special Agent in Charge David Talcott, St. Louis Field Office.

William Samuel McCann, Jr., 51, of Plainview, Ill., served as a state senator for the 49th District of Illinois from 2011 to 2013, and for the redrawn 50th District from 2013 to January 2019. McCann formed the Conservative Party of Illinois and in 2018, launched an unsuccessful bid for Illinois Governor. McCann previously lived in Carlinville, Ill., and owned and operated two construction related businesses.

McCann organized multiple political committees that were registered with the Illinois State Board of Elections: Sam McCann for Senate; Sam McCann for Senate Committee; McCann for Illinois; and, Conservative Party of Illinois. According to the indictment, from April 2011 to November 2018, McCann and his political committees received more than $5 million in campaign donations.

The indictment alleges multiple instances when McCann used campaign funds to purchase personal vehicles, pay personal debts, make mortgage payments, and pay himself, including the following:

    Ø McCann allegedly used more than $60,000 in campaign funds to partially fund the purchases of a 2017 Ford Expedition in April 2017 and a 2018 Ford F-250 truck in July 2018, which he titled in his own name and used for his personal travel. McCann then used campaign funds for loan payments on the F-250 and for fuel and insurance expenses for both vehicles, while at the same time using campaign funds to reimburse mileage expense claims which he did not incur.
    Ø In April 2018, McCann allegedly used $18,000 in campaign funds to purchase a 2018 recreational travel trailer, and in May 2018, used $25,000 in campaign funds to buy a 2006 recreational motor home, both of which McCann titled in his personal name.
    McCann established an online account with a recreational vehicle rental business in Ohio and listed the vehicles for rent identifying Sam McCann as the owner. McCann then established a second account with the same rental business and identified himself as William McCann, a potential renter, with a different residential address and email than those he listed as the owner. From approximately May 2018 to June 2018, McCann, while representing himself as the renter, William, rented both the travel trailer and motor home from Sam, the owner, through the RV rental business. McCann caused a total of approximately $62,666 in campaign funds be used to pay the rental cost of the vehicles. The rental business retained approximately $9,838 for commission and paid McCann, as the owner, approximately $52,827 by direct deposit to McCann’s personal checking account. McCann reimbursed the campaign accounts $18,000, resulting in more than $77,000 in campaign funds used to buy and rent from himself.
    Ø On or about Oct. 4, 2016, McCann allegedly used a $20,000 cashier’s check funded by a campaign account and issued to himself to pay off a personal loan, including legal fees, that had originally been issued to him as an equipment loan in 2011 and was in collection by the bank due to non-payment.
    Ø From May 2015 to August 2020, McCann allegedly used campaign funds to pay approximately $64,750 on two separate personal mortgage loans that were secured by his former residence in Carlinville and an adjoining property used as an office for his construction business.
    Ø In November 2018, after an unsuccessful campaign for Governor of Illinois, when he was no longer a candidate for office and did not financially support any other candidate, and continuing to June 2020, McCann allegedly caused the Conservative Party of Illinois to issue approximately $187,000 in payments to himself personally and an additional $52,282 in payments for payroll taxes. Using a payroll service, McCann was allegedly able to conceal himself as the payee for the expenditures from the campaign account.
    Ø The indictment also alleges that approximately $50,000 in campaign funds were used for personal expenses including Green Dot credit card payments related to a family vacation in Colorado and other personal expenses, charges from Apple iTunes, Amazon, a skeet and trap club, Cabela’s, Scheels, Best Buy, a gun store, and cash withdrawals.

In addition to wire fraud and money laundering, the indictment charges McCann with one count of tax evasion related to his joint return for calendar year 2018. McCann allegedly failed to report income from his 2018 rental payments to himself for the RV trailer and motor home. In addition, in March 2018, McCann used a $10,000 check issued by a campaign account to make a down payment to a Shipman, Ill., business for a motor home. When the purchase was not completed, the business issued a $10,000 refund check payable to William McCann, which he deposited to his personal checking account and failed to report as income received.

McCann is scheduled to appear via telephone conference on Feb. 16, 2021, at 2:00 p.m. before U.S. Magistrate Judge Tom Schanzle-Haskins for arraignment.

For the period of the alleged fraud scheme, from May 2015 to June 2020, the estimated loss is more than $200,000. If convicted, the statutory penalty for each count of wire fraud (seven counts) and one count of money laundering is up to 20 years in prison. For tax evasion, the statutory penalty is up to five years in prison.

The charges are the result of investigation by the FBI and IRS Criminal Investigation. Assistant U.S. Attorney Timothy A. Bass is representing the government in the prosecution.

Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.

The indictment is here.

…Adding… Meanwhile…


       

48 Comments
  1. - NIU Grad - Wednesday, Feb 3, 21 @ 3:14 pm:

    Considering the “Conservative Party of Illinois” was a one-man party, I’m sure that he can allege that spending those funds on himself was simply “party-building.”


  2. - phocion - Wednesday, Feb 3, 21 @ 3:17 pm:

    I wonder if they’re sweating in Countryside…


  3. - Northsider - Wednesday, Feb 3, 21 @ 3:24 pm:

    From RepubliCON to CONservative, there seems to be a CONstant theme here.


  4. - City Zen - Wednesday, Feb 3, 21 @ 3:28 pm:

    This indictment was brought to you by International Union Of Operating Engineers Local 150.


  5. - Oswego Willy - Wednesday, Feb 3, 21 @ 3:28 pm:

    The only thing I can say… only…

    I was glad he ran for Governor, got ~4% of the vote, likely hurting Rauner.

    That’s it. That’s the comment on that.


  6. - La La Land - Wednesday, Feb 3, 21 @ 3:29 pm:

    The song “I fought the law and law won,” comes to mind.


  7. - SpiDem - Wednesday, Feb 3, 21 @ 3:29 pm:

    This was not on my 2021 corruption bingo card


  8. - Butta - Wednesday, Feb 3, 21 @ 3:31 pm:

    *Pretends to be shocked face*


  9. - fs - Wednesday, Feb 3, 21 @ 3:32 pm:

    Knowing Sam McCann, his scheme was probably banking on a Presidential pardon in 2021


  10. - regnaD kciN - Wednesday, Feb 3, 21 @ 3:35 pm:

    Surprised it took this long.


  11. - TheInvisibleMan - Wednesday, Feb 3, 21 @ 3:35 pm:

    Who was his campaign treasurer.


  12. - Magic Dragon - Wednesday, Feb 3, 21 @ 3:36 pm:

    Guess he really wanted to get to the front of the line for the COVID vaccine.


  13. - The Real Captain - Wednesday, Feb 3, 21 @ 3:38 pm:

    I hope Deanna and Vince are looking down and having a good laugh.


  14. - Ron Burgundy - Wednesday, Feb 3, 21 @ 3:43 pm:

    I should apologize to former Sen. McCann. He was clearly more qualified to be Governor of Illinois than I thought.


  15. - JS Mill - Wednesday, Feb 3, 21 @ 3:48 pm:

    Maybe he can contact Aaron Schock for advice on this one?


  16. - Ron Burgundy - Wednesday, Feb 3, 21 @ 3:50 pm:

    -Can you pay bail with PAC money?-

    Call it “outreach” as in I would like to get “out” of the “reach” of the Feds.


  17. - Responsa - Wednesday, Feb 3, 21 @ 3:50 pm:

    Does anybody remember when they were young and innocent and idealistic and truly believed that pols became pols to do good and perform public service? It’s pretty funny to look back on that, huh? The long list of indictments of pols as bad actors from both parties in Illinois is why nobody trusts politicians.


  18. - Not the Dude - Wednesday, Feb 3, 21 @ 3:54 pm:

    “Who was his campaign treasurer.” Steve Bannon.


  19. - The Magnificent Purple Walnut - Wednesday, Feb 3, 21 @ 3:55 pm:

    Do not pass Go. Do not collect $200.00.


  20. - DuPage Saint - Wednesday, Feb 3, 21 @ 4:00 pm:

    I don’t know how he could keep all that money laundering straight
    Burke will never go to trial. He will die first or become too ill
    What I bet happened to looking into his workmans comp control? That seems to have died on the vine


  21. - Red Ranger - Wednesday, Feb 3, 21 @ 4:07 pm:

    Well, with COIVD restrictions lifting and a trial date not for another year, Sneedless to say, I see Justice Burke, the Chairman and Sneed huddling at a local restaurant soon.


  22. - Ron Burgundy - Wednesday, Feb 3, 21 @ 4:14 pm:

    -Does anybody remember when they were young and innocent and idealistic and truly believed that pols became pols to do good and perform public service?-

    Then you find out that they get power, and get to hang out with the rich and powerful, but if they do the job well and long enough do not get rich themselves. Some of them then decide they should be rich as well as powerful, and then it starts.


  23. - Third Reading - Wednesday, Feb 3, 21 @ 4:16 pm:

    “charges from Apple iTunes, Amazon, a skeet and trap club, Cabela’s, Scheels, Best Buy, a gun store, and cash withdrawals”

    Now that’s a party


  24. - Club J - Wednesday, Feb 3, 21 @ 4:24 pm:

    I wonder if McCann will be Tom DeVore’s plus one at The Lincoln Day Dinner Fundraiser?


  25. - Les Nessman - Wednesday, Feb 3, 21 @ 4:36 pm:

    Ole Motorhome McCann


  26. - blue line - Wednesday, Feb 3, 21 @ 4:36 pm:

    renter=left hand. owner=right hand.


  27. - TomS - Wednesday, Feb 3, 21 @ 4:38 pm:

    Raised $5M for Mike Madigan’s conservative party of state workers created to give him a ‘party’ to run. My bet $4.99M came from Pritzker and cronies


  28. - Oswego Willy - Wednesday, Feb 3, 21 @ 4:41 pm:

    ===My bet===

    Good thing indictment(s) are predicated on actual facts, not feelings, goose bumps, the hairs on a neck rising.

    Good thing.


  29. - danray - Wednesday, Feb 3, 21 @ 4:44 pm:

    Not surprised. More shocked he was caught.


  30. - CookR - Wednesday, Feb 3, 21 @ 4:48 pm:

    When will pols learn that in IL, you can be corrupt or be a maverick, but if you’re both you go to jail.


  31. - Kayak - Wednesday, Feb 3, 21 @ 4:49 pm:

    I can still picture that campaign ad with MCann driving an F-150 down a dusty road like a store bought George Strait. I wonder if this is the same truck.


  32. - Chicago Cynic - Wednesday, Feb 3, 21 @ 4:58 pm:

    “When will pols learn that in IL, you can be corrupt or be a maverick, but if you’re both you go to jail.”

    Thus endeth the lesson. How many other pols do we all know who’ve done something similar, though maybe not quite as brazen. And yet this kind of prosecution is quite rare.


  33. - Highland IL - Wednesday, Feb 3, 21 @ 5:03 pm:

    But Madigan…/s


  34. - Sweet N Sour - Wednesday, Feb 3, 21 @ 5:10 pm:

    Mike Madigan’s favorite state senator…


  35. - BTO2 - Wednesday, Feb 3, 21 @ 5:14 pm:

    I really liked Sam when he was my Senator. Just could never get past all those pesky tax issues.


  36. - Lincoln Lad - Wednesday, Feb 3, 21 @ 5:26 pm:

    Close your eyes… imagine McCann was elected Governor. A motor home in every driveway…


  37. - Inverted Pyramid - Wednesday, Feb 3, 21 @ 5:27 pm:

    Sam “hey brother” McCann, truly a RINO.


  38. - RNUG - Wednesday, Feb 3, 21 @ 7:46 pm:

    I’m going to guess Sam will plead innocent, then try to plea bargain down to a fine, eventual restitution, and probation.


  39. - low level - Wednesday, Feb 3, 21 @ 7:52 pm:

    Burke and / or the Finance Committee doesn’t control Workman’s Comp anymore. It’s handled completely by the Comptroller’s Office - executive branch now.


  40. - TJ - Wednesday, Feb 3, 21 @ 8:41 pm:

    #freesammccann


  41. - Cool Papa Bell - Wednesday, Feb 3, 21 @ 10:07 pm:

    Would a good use of those funds have been to pay for the things you purchase at fairs from, FFA kids and 4H’ers.


  42. - Kayak - Wednesday, Feb 3, 21 @ 10:28 pm:

    That’s a lot of unhappy campers


  43. - Spark - Wednesday, Feb 3, 21 @ 10:50 pm:

    Elected as Tea Party darling. Converted to pubic union shill, then worked to get the opposite party elected. Developed a God complex and ended as a corrupt politician. Almost sad, but truly disgusting.


  44. - ArchPundit - Thursday, Feb 4, 21 @ 12:29 am:

    ===I was glad he ran for Governor, got ~4% of the vote, likely hurting Rauner.

    Yeah, imagine if Rauner had broken 40 percent.


  45. - ArchPundit - Thursday, Feb 4, 21 @ 12:31 am:

    ===Raised $5M for Mike Madigan’s conservative party of state workers created to give him a ‘party’ to run

    You mean union guys who were willing to vote Republican before Republicans attacked the very existence of unions? Shocking those unions don’t just vote Republican even though Republicans threaten their jobs.


  46. - Sunrise road - Thursday, Feb 4, 21 @ 8:12 am:

    No longer protected


  47. - Fly like an eagle - Thursday, Feb 4, 21 @ 10:56 am:

    == Raised $5M for Mike Madigan’s conservative party of state workers created to give him a ‘party’ to run. My bet $4.99M came from Pritzker and cronies.==
    Looking at the New York Times graph where they break down the Illinois gubernatorial race by counties, counties where Pritzker did the worst were counties where McCann did the best. Counties where the contest was close were the counties where McCann was nonexistent. So I would say that McCann took votes from Pritzker.


  48. - walker - Thursday, Feb 4, 21 @ 3:36 pm:

    “Party of one.”


Sorry, comments for this post are now closed.


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