Capitol Fax.com - Your Illinois News Radar » *** UPDATED x2 *** AT&T Illinois agrees to pay $23 million fine, admit guilt as result of Madigan probe
SUBSCRIBE to Capitol Fax      Advertise Here      About     Exclusive Subscriber Content     Updated Posts    Contact Rich Miller
CapitolFax.com
To subscribe to Capitol Fax, click here.
*** UPDATED x2 *** AT&T Illinois agrees to pay $23 million fine, admit guilt as result of Madigan probe

Friday, Oct 14, 2022 - Posted by Rich Miller

* Jason Meisner and Ray Long at the Tribune

AT&T Illinois has agreed to pay a $23 million fine as part of a federal criminal investigation into the company’s illegal efforts to influence former House Speaker Michael Madigan.

The investigation of AT&T Illinois, which was previously reported by the Tribune earlier this year, is being resolved with a deferred prosecution agreement under which the company admitted it arranged for payments to be made to an ally of Madigan to influence the powerful speaker’s efforts to assist with legislation sought by the company in Springfield.

In exchange for admitting guilt and paying a $23 million fine, the charge will be dropped by the U.S. Attorney’s Office in two years. […]

The payments to [former state Rep. Edward Acevedo] were made via a lobbying contract between AT&T and Thomas Cullen, a former Madigan staffer and longtime political strategist aligned with the speaker, two sources told the newspaper.

Acevedo was a registered lobbyist at the time, state records show, but not for AT&T, and the sources said the amount of work Acevedo actually did for AT&T is in question.

Whew. Stay tuned because this post will be updated.

*** UPDATE 1 *** AT&T’s response…


* From the US Attorney…

The former president of Illinois Bell Telephone Company, which does business as AT&T Illinois, has been charged in federal court with participating in a conspiracy to unlawfully influence the former Illinois Speaker of the House of Representatives involving the company’s efforts to advance legislation in the Illinois General Assembly.

PAUL LA SCHIAZZA conspired in 2017 with former Speaker Michael J. Madigan, Madigan’s close friend, Michael McClain, and others, to corruptly arrange for $22,500 to be paid to a Madigan ally, according to a five-count indictment unsealed today in U.S. District Court in Chicago. AT&T Illinois caused the payments to be made through an intermediary – a lobbying firm that performed services for AT&T Illinois – to conceal the true nature of the payments, which was to influence and reward Madigan’s efforts as Speaker to assist the company with respect to certain legislation, the indictment alleges. Although the members of the conspiracy formulated a pretextual assignment for Madigan’s ally to disguise why the ally was being paid, the ally performed no actual work for AT&T Illinois and had no role in advancing the legislation, the indictment states.

La Schiazza, 65, is charged with one count of conspiracy, one count of corruptly giving something of value to reward a public official, and three counts of using a facility in interstate commerce to promote unlawful activity. Arraignment in federal court in Chicago has not yet been scheduled.

The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Ashley T. Johnson, Acting Special Agent-in-Charge of the Chicago Field Office of the FBI; and Justin Campbell, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago. The government is represented by Assistant U.S. Attorneys Amarjeet S. Bhachu, Diane MacArthur, Timothy J. Chapman, Sarah E. Streicker, Michelle Kramer, and Julia Schwartz.

Also today, the U.S. Attorney’s Office filed a one-count criminal information charging AT&T Illinois with using an interstate facility to promote unlawful activity.

The public is reminded that charges are not evidence of guilt. Defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.

The indictment is here.

* Also…

Illinois Bell Telephone Company, LLC, which does business as AT&T Illinois, today agreed to pay $23 million to resolve a federal criminal investigation into alleged misconduct involving the company’s efforts to unlawfully influence former Illinois Speaker of the House Michael J. Madigan.

The investigation of AT&T Illinois is being resolved with a deferred prosecution agreement under which the company admitted it arranged for payments to be made to an ally of Madigan to influence and reward Madigan’s efforts to assist AT&T Illinois with respect to legislation sought by the company. The U.S. Attorney’s Office today filed a one-count criminal information in U.S. District Court in Chicago charging AT&T Illinois with using an interstate facility to promote legislative misconduct. Under the agreement, the government will defer prosecution on the charge for two years and then seek to dismiss it if AT&T Illinois abides by certain conditions, including continuing to cooperate with any investigation related to the misconduct alleged in the information.

The deferred prosecution agreement requires AT&T Illinois to pay $23 million to the federal Crime Victims Fund. Arraignment in federal court in Chicago has not yet been scheduled.

The charge and the deferred prosecution agreement were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Ashley T. Johnson, Acting Special Agent-in-Charge of the Chicago Field Office of the FBI; and Justin Campbell, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago. The government is represented by Assistant U.S. Attorneys Amarjeet S. Bhachu, Diane MacArthur, Timothy J. Chapman, Sarah E. Streicker, Michelle Kramer, and Julia Schwartz.

AT&T Illinois’s admissions regarding the charged conduct are contained in a Statement of Facts attached to the deferred prosecution agreement. AT&T Illinois admitted that in 2017 it arranged for an ally of Madigan to indirectly receive $22,500 in payments from the company. The company paid the money through an intermediary – a lobbying firm that performed services for AT&T Illinois. Although AT&T Illinois employees formulated a pretextual assignment for Madigan’s ally to disguise why the ally was being paid, the ally performed no actual work for AT&T Illinois and the company made no effort to ensure any work was performed. AT&T Illinois acknowledged in the agreement that AT&T Illinois’s then-president used an interstate facility to facilitate Madigan’s indirect receipt of a thing of value, namely the payments made to his ally, in exchange for Madigan’s vote and influence over a bill.

In addition to the monetary penalty and its continued cooperation with the government, AT&T Illinois’s obligations under the agreement include implementing a new compliance and ethics program and providing annual reports to the government regarding remediation and implementation of the program. If AT&T Illinois fails to completely fulfill each of its obligations under the agreement during the two-year term, the U.S. Attorney’s Office can initiate prosecution of the charged offense.

The deferred prosecution agreement is here. The “information” is here.

*** UPDATE 2 *** Gonna be a busy Friday…


…Adding… The superseding indictment is here.

…Adding… ILGOP…

“Indicted former House Speaker Mike Madigan’s legacy continues to haunt Illinois as he now faces additional corruption-related charges. Since 2019, nine Chicago Democratic Aldermen & women, three Democratic State Representatives, and four Democratic State Senators have been indicted or convicted on corruption-related charges, including Madigan himself.

While these additional charges, as well as AT&T’s settlement, is another step towards justice, with Ilinois Democrats and their corruption charges, it’s like the “Never Ending Story”. This sad saga hasn’t ended with Madigan. It will only end when Democratic leaders like Speaker Welch and Senate President Harmon stop turning a blind eye to Madiganesque behavior in their caucuses.”

       

24 Comments
  1. - Phenomynous - Friday, Oct 14, 22 @ 8:38 am:

    Because…Madigan!


  2. - Bruce( no not him) - Friday, Oct 14, 22 @ 8:57 am:

    Mike Madigan, the gift that keeps on giving. (To the Republicans)


  3. - AcademicUnionStateEmployee - Friday, Oct 14, 22 @ 9:10 am:

    I wouldn’t be surprised if the landline phones in Madigan’s home and offices were made by Illinois Bell and ca. 1970s.


  4. - Anon 9:11 - Friday, Oct 14, 22 @ 9:12 am:

    Tribune’s Meisner reports former AT&T President Paul LaSchiazza also indicted.


  5. - SpiDem - Friday, Oct 14, 22 @ 9:18 am:

    Trib is also reporting superseding indictment of Madigan and McClain have been filed adding new charges


  6. - DougChicago - Friday, Oct 14, 22 @ 9:33 am:

    A busy and largely irrelevant day.

    I’m sure Mr. LaSchiazza has a lot going on and maybe, if the world is at least partially fair, some folks in the government relations department at AT&T are emptying their desks.

    But I’m sure Mr Cullen’s lobbying business continues to thrive (although maybe he must proceed now somewhat incognito to accomplish his skulduggery).

    And there isn’t a single undecided voter in Illinois who will be swayed by this news.


  7. - Colin O’Scopy - Friday, Oct 14, 22 @ 9:38 am:

    @DougChicago, You likely have never met Tom Cullen. He’s an honest and ethical person, despite what you’ve written. Let the facts come out before you reach your conclusions about someone you don’t know.


  8. - Rabid - Friday, Oct 14, 22 @ 9:40 am:

    CUB got anything to say? Is this why the AT&T/directTV bill doubled?


  9. - low level - Friday, Oct 14, 22 @ 9:58 am:

    Although Ive never been a fan of term limits, passing and enacting them for the leaders may very well have been the best thing for the leaders themselves, even if they didnt realize it at the time.


  10. - OneMan - Friday, Oct 14, 22 @ 10:00 am:

    The Madigan trial will be interesting, almost wonder how many other utilities will end up getting referenced.

    If the GOP figured out how to make it less about Madigan and more about a ‘Springfield corruption tax’, giving the impression that you pay more for phone and power because of corruption it might be more effective. Wouldn’t work for this cycle, not sure it will work int he future but I think it is a better approach than just screaming ‘Madigan’.


  11. - DownStateGrl - Friday, Oct 14, 22 @ 10:06 am:

    Where does this leave Cullen? It was his contract, right? That was being used to disguise the deal?


  12. - Sue - Friday, Oct 14, 22 @ 10:09 am:

    Recognize the DOJ often affords deferred pros agreements but why is it that not everyone is afforded the same opportunity. I am sure Madigan would gladly pay millions for the same deal


  13. - Oswego Willy - Friday, Oct 14, 22 @ 10:12 am:

    This is actually *bad* news for Republicans wanting and knowing they need to move forward to be viable as a party.

    This only fuels this ugly, ignorant, political thinking that can’t grasp why the super-minority status is maintained

    How many voters are swayed today by this happening?

    The GOP allegedly has these voters.


  14. - Norseman - Friday, Oct 14, 22 @ 10:19 am:

    Evidently, election eve prosecution deference doesn’t apply to state political figures.


  15. - Because I said so... - Friday, Oct 14, 22 @ 10:24 am:

    Colin O’Scopy got it right. Tom Cullen is a wonderful guy. Let’s let this play out before anyone smears his good name.


  16. - Amalia - Friday, Oct 14, 22 @ 10:27 am:

    oh, the political chatter on A T & T is going to get much worse.


  17. - DougChicago - Friday, Oct 14, 22 @ 10:49 am:

    What always surprises me is why they hide this. Just do some work. Have them pay you. Make a call. Walk around the capitol. Pop into someone’s office and say hello. Properly register as a lobbyist — no one reads that information much less cares about it outside of a scandal. No one will ever evaluate the quality of your work if you do something.


  18. - notafraid - Friday, Oct 14, 22 @ 11:08 am:

    Looking ever worse for Madigan. Plays no role in the voter’s mind when it comes election day as to whether they will switch to Baily because of this issue.


  19. - low level - Friday, Oct 14, 22 @ 11:12 am:

    ==What always surprises me is why they hide this. Just do some work.==. Yep. 100%.


  20. - Donnie Elgin - Friday, Oct 14, 22 @ 11:16 am:

    “I am sure Madigan would gladly pay millions for the same deal”

    Madigan’s the big fish, who is he gonna roll on? Feds don’t give deals to the big fish.


  21. - Oswego Willy - Friday, Oct 14, 22 @ 12:34 pm:

    To the actual post, my apologies,

    This is huge to the idea of what will be the hard line measured in indictments and possible convictions to the actors involved.

    There’s art, science, finesse, deference, and nuance to lobbying, the process as such, thru sponsors of bills, committee movements, amendments, passage, “other chamber”, process again…

    My point is, a pay schedule for an individual in the process that seemingly links actions by 177 others, other lobbyists, other actors, this is a huge wow, and I’m fascinated how seemingly unrelated hurdles are given reward to alleged bad actors towards an outcome.

    If you think reading this I think it’s all bunk, think again.

    I do want to see, grasp, understand, and know where the unseen lines were crossed to the seen lines of flat out silly to decisions on their face begin and end with “don’t take the money. Ever”

    A jury will need to learn that even the best lobbyists find where pressure helps or hurts, and the worst lobbyists find the value and costs to ease any pressures.

    We will see. Whew.


  22. - Nobody Sent - Friday, Oct 14, 22 @ 12:58 pm:

    Illinois needs a complete review of how it legislates and regulates utilities. As is apparent from multiple uncontested court filings, the corruption has been going on for years.


  23. - Midwesterner - Friday, Oct 14, 22 @ 12:59 pm:

    Must admit my surprise that neither Bailey’s team nor Profft have thought to go populist, ala Pat Quinn, on the utilities, all of the Democratic ties and the very consumer unfriendly legal and regulatory license by Dem dominated legislature and state boards.


  24. - low level - Friday, Oct 14, 22 @ 1:32 pm:

    ==all of the Democratic ties and the very consumer unfriendly legal and regulatory license by Dem dominated legislature and state boards.==

    Maybe because the GOP has worked up in their heads even worse consumer legislation and ways to get wealthy off old ladies?


Sorry, comments for this post are now closed.


* Showcasing The Retailers Who Make Illinois Work
* Reader comments closed for the holidays
* And the winners are…
* SUBSCRIBERS ONLY - Update to previous editions
* Isabel’s afternoon roundup
* Report: Far-right Illinois billionaires may have skirted immigration rules
* Question of the day: Golden Horseshoe Awards (Updated)
* Energy Storage Brings Cheaper Electricity, Greater Reliability
* Open thread
* Isabel’s morning briefing
* SUBSCRIBERS ONLY - Today's edition of Capitol Fax (use all CAPS in password)
* Live coverage
* Selected press releases (Live updates)
* Yesterday's stories

Support CapitolFax.com
Visit our advertisers...

...............

...............

...............

...............

...............

...............

...............


Loading


Main Menu
Home
Illinois
YouTube
Pundit rankings
Obama
Subscriber Content
Durbin
Burris
Blagojevich Trial
Advertising
Updated Posts
Polls

Archives
December 2024
November 2024
October 2024
September 2024
August 2024
July 2024
June 2024
May 2024
April 2024
March 2024
February 2024
January 2024
December 2023
November 2023
October 2023
September 2023
August 2023
July 2023
June 2023
May 2023
April 2023
March 2023
February 2023
January 2023
December 2022
November 2022
October 2022
September 2022
August 2022
July 2022
June 2022
May 2022
April 2022
March 2022
February 2022
January 2022
December 2021
November 2021
October 2021
September 2021
August 2021
July 2021
June 2021
May 2021
April 2021
March 2021
February 2021
January 2021
December 2020
November 2020
October 2020
September 2020
August 2020
July 2020
June 2020
May 2020
April 2020
March 2020
February 2020
January 2020
December 2019
November 2019
October 2019
September 2019
August 2019
July 2019
June 2019
May 2019
April 2019
March 2019
February 2019
January 2019
December 2018
November 2018
October 2018
September 2018
August 2018
July 2018
June 2018
May 2018
April 2018
March 2018
February 2018
January 2018
December 2017
November 2017
October 2017
September 2017
August 2017
July 2017
June 2017
May 2017
April 2017
March 2017
February 2017
January 2017
December 2016
November 2016
October 2016
September 2016
August 2016
July 2016
June 2016
May 2016
April 2016
March 2016
February 2016
January 2016
December 2015
November 2015
October 2015
September 2015
August 2015
July 2015
June 2015
May 2015
April 2015
March 2015
February 2015
January 2015
December 2014
November 2014
October 2014
September 2014
August 2014
July 2014
June 2014
May 2014
April 2014
March 2014
February 2014
January 2014
December 2013
November 2013
October 2013
September 2013
August 2013
July 2013
June 2013
May 2013
April 2013
March 2013
February 2013
January 2013
December 2012
November 2012
October 2012
September 2012
August 2012
July 2012
June 2012
May 2012
April 2012
March 2012
February 2012
January 2012
December 2011
November 2011
October 2011
September 2011
August 2011
July 2011
June 2011
May 2011
April 2011
March 2011
February 2011
January 2011
December 2010
November 2010
October 2010
September 2010
August 2010
July 2010
June 2010
May 2010
April 2010
March 2010
February 2010
January 2010
December 2009
November 2009
October 2009
September 2009
August 2009
July 2009
June 2009
May 2009
April 2009
March 2009
February 2009
January 2009
December 2008
November 2008
October 2008
September 2008
August 2008
July 2008
June 2008
May 2008
April 2008
March 2008
February 2008
January 2008
December 2007
November 2007
October 2007
September 2007
August 2007
July 2007
June 2007
May 2007
April 2007
March 2007
February 2007
January 2007
December 2006
November 2006
October 2006
September 2006
August 2006
July 2006
June 2006
May 2006
April 2006
March 2006
February 2006
January 2006
December 2005
April 2005
March 2005
February 2005
January 2005
December 2004
November 2004
October 2004

Blog*Spot Archives
November 2005
October 2005
September 2005
August 2005
July 2005
June 2005
May 2005

Syndication

RSS Feed 2.0
Comments RSS 2.0




Hosted by MCS SUBSCRIBE to Capitol Fax Advertise Here Mobile Version Contact Rich Miller