[Now-former Deputy Director of the Tourism Office, Daniel Thomas] began at DCEO in July 2023 after being the owner and Chief Executive Officer of TimeZoneOne, a communications agency and DCEO vendor. The OEIG’s investigation showed that when Mr. Thomas was hired, he did not reveal to DCEO he was still being paid by TimeZoneOne and DCEO made only a cursory inquiry about his previous ownership of the company. The OEIG’s investigation determined, in part, that after his hire at DCEO Mr. Thomas violated conflict of interest policies by participating in contractual decisions involving TimeZoneOne’s business with the state while he continued to be paid by TimeZoneOne.
The investigation revealed that when Mr. Thomas started working at DCEO, he continued to receive approximately $117,000 in earnout payments from his 2020 sale of TimeZoneOne, and was actively involved in negotiations of the earnout amount, expressing in an email to the new owner of TimeZoneOne, that he continued to be a “true champion” of TimeZoneOne. Meanwhile, TimeZoneOne’s billing for subcontracted work for the state increased by over $600,000 during the fiscal year after Mr. Thomas began working at DCEO. For instance, in that fiscal year, he was involved in the decision to award TimeZoneOne a project under a subcontract, to produce 30 additional videos over the 15 videos it was contracted to produce in the previous year. In addition, the state’s payments to TimeZoneOne under its contract directly with DCEO increased by about $1 million in the fiscal year after Mr. Thomas began working for DCEO.
In addition to the increase in state funds going to TimeZoneOne, the OEIG also found that DCEO paid significant amounts of money to TimeZoneOne for years without supporting documentation or reconciliation of the expenses. […]
Furthermore, the investigation revealed that TimeZoneOne regularly paid for travel expenses incurred by Mr. Thomas as part of his state duties, as well as travel expenses for at least one other DCEO employee, even though this was not specified in TimeZoneOne’s contract. At least some of the expenses raised red flags under the State travel rules, such as business or first class flights and alcoholic beverages, and there was no advance written approval for the payments by the Executive Director of the Executive Ethics Commission, as required by Executive Order 15-09.
The OEIG determined that DCEO committed mismanagement by placing Mr. Thomas in charge of the Tourism Office, despite knowing about his prior relationship with TimeZoneOne, but not taking reasonable steps to determine if there was an actual or perceived conflict, as well, allowing contractual payments to be made with state funds without ensuring reconciliations were performed to support such payments In addition, it was clear to DCEO management that TimeZoneOne was paying for at least some of Mr. Thomas’s and his subordinates’ travel, yet no action was taken to ensure such payments were appropriate and that the travel rules were followed.
As a result of the investigation, Mr. Thomas was discharged and another DCEO employee’s contract was terminated. In addition, DCEO is conducting an audit of TimeZoneOne’s billings and reconciliations, and is implementing new or updated policies and procedures for conflicts of interest, vendor billing, and travel expenses. The Office of the Governor also directed the Governor’s Office of Management and Budget to develop training for agency fiscal offices relating to necessary documentation and reconciliation for vendor payments.
- Center Drift - Monday, Apr 21, 25 @ 2:52 pm:
Illinois Government official cheats. A headline that surprises no one in Illinois. The behavior keeps occurring, only the names change.
- Carbon Date - Monday, Apr 21, 25 @ 3:29 pm:
Take the garbage out. Outrageous breach of trust.
- Early Illinoisan - Monday, Apr 21, 25 @ 3:32 pm:
Start connecting dots. Who recommended him. Who approved the hire. Who knew what and when (and after it came to light, etc.). Who was the other DCEO employee whose travel expenses were also being paid by TimeZone?
- 47th Ward - Monday, Apr 21, 25 @ 3:36 pm:
Working for the state is not at all like working in the private sector. Apparently this guy didn’t take his ethics training seriously. Fill out the proper forms, disclose the conflict, pretend you can’t use your old company’s credit card like it is still yours. It really isn’t terribly complicated.
Is it ego or just stupidity? Both?
- Demoralized - Monday, Apr 21, 25 @ 3:47 pm:
This is the kind of conflict of interest that just blares horns screaming there is a conflict. Looks like there is absolutely no oversight of the tourism office. And this guy clearly didn’t understand he was taking a government job and was no longer in a “wine and dine” kind of job.
- NotRich - Monday, Apr 21, 25 @ 3:48 pm:
This is why you don’t run for a 3rd term. Drip drip drip of bad stories.. budget issues .. scandal..
- Fan - Monday, Apr 21, 25 @ 4:04 pm:
This is a small example that makes the case as to why JB should not seek re-election. If a big embarrassment happens while he running for President, it could be a big problem.
- NotYourGramma - Monday, Apr 21, 25 @ 4:08 pm:
Former state employee here. The updating of policies and procedures, travel expenses? They’re terrible. They make no sense and are antiquated and confusing. They need a complete overhaul but it’s not the reason the fraud happened. He knew what he was doing was wrong.
- Rich Miller - Monday, Apr 21, 25 @ 4:09 pm:
=== If a big embarrassment happens while he running for President, it could be a big problem. ===
On the other hand, the new governor could just blame it on him.
- Donnie Elgin - Monday, Apr 21, 25 @ 4:14 pm:
JB has a real problem with his State Agencies. Illinois Veterans Affairs (LaSalle home abuse), IDOC (massive COVID-19 unemployment claim abuse), DCFS (violated state laws meant to protect kids from abuse/neglect). IDPH (ethics acts, Choate home abuse), ICC (Chair linked to ComEd scandal ), and now DCEO conflict of interest. Every admin will have issues, but JB’s seem pervasive. He is either incompetent or he is inattentive to these types of issues. And yet he’s like the Teflon Don, as none of this has stuck to him in terms of political fallout.
- NotYourGramma - Monday, Apr 21, 25 @ 4:39 pm:
As an aside, to everyone saying there is no oversight, nothing changes - they literally caught the guy and fired him. It came out in a year. Given the investigation that had to happen, that’s pretty quick the way these things go. So take a breath. No fraud would be great. But catching it means the system is working. And that’s really important.
- Old glory - Monday, Apr 21, 25 @ 4:39 pm:
People knew about this, but many, like me, knew that raising this with DCEO leadership, or even leadership in the Governors office, would get you blackballed. Never has there been a tighter circle of control around a governor, where information and communications are filtered, or outright prevented from reaching the boss. Who even knows how much these gov’s office leaders are paid anymore? When is the last time the governor was asked what those whose salaries are subsidized by his personal billions are currently making? He matched their state salaries back in 2018. Are we expected to believe that their pay has not increased? Circle way too tight. This will hurt the Governor.
- Old glory - Monday, Apr 21, 25 @ 4:46 pm:
Also, all contracts awarded by tourism under Thomas should be thrown out. At a minimum, every unsuccessful bidder should file formal protests or sue the state. This report would make Abraham Lincoln rollover in his grave.
- Just Me 2 - Monday, Apr 21, 25 @ 4:58 pm:
His name is going to reappear in 2028 for sure.
- Donnie Elgin - Monday, Apr 21, 25 @ 5:07 pm:
=His name is going to reappear in 2028=
Sure, the guy was scamming the system - but there is this from his legal team response …
“Daniel Thomas is a loving husband, dog dad, and avid world traveler with a passion for storytelling and a commitment to helping tourism destinations reach their full potential”
“
- Dotnonymous x - Monday, Apr 21, 25 @ 5:26 pm:
Didn’t even raise an eyebrow, I’m so accustomed.