* I asked Sen. Link earlier today if he was the unidentifed Senator in the Arroyo complaint and he said he wasn’t. But both the Sun-Times and the Tribune say he is. Tribune…
* Sun-Times…
Link, who is an assistant majority leader in the Senate, is not named in the criminal complaint, but referred to as a cooperating witness or CW-1.
Link started cooperating with the feds in 2016 but was initially closed as a source on Nov. 3, 2016, after he allegedly submitted false income tax returns, the complaint states. Link expects to be charged in relation to his taxes, according to the feds, and is working with them now in hopes of getting a break on any sentence he may receive.
In one secretly recorded conversation, Link asks Arroyo what’s in it for him if he helps sponsor Arroyo’s legislation.
The first Arroyo sitdown was in Highland Park. The Senator said he was in the “twilight” of his career. And it was a gaming issue. Again, he denies it. Keep that in mind.
*** UPDATE *** Strongest denial yet…
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* From a press release…
House Speaker Michael J. Madigan released the following statement Monday:
“The charges filed against Representative Arroyo are very serious. We have already contacted Representative Arroyo’s counsel to determine whether he will resign as state representative. I urge Representative Arroyo to resign from the House of Representatives, effective immediately. If he refuses, I will take the necessary steps to begin the process to remove him from office.
“Additionally, I have instructed my staff to begin bringing together stakeholders and experts to closely examine our ethics and lobbying laws and find ways to strengthen existing law.”
* More…
…Adding… If they expel him, they could face a repeat of the Derrick Smith debacle…
The Illinois House expelled one of its members Friday, but state Rep. Derrick Smith remains on the November ballot and still could be re-elected. […]
The Illinois Constitution prohibits either house of the General Assembly from expelling a member more than once for the same offense. So, Smith could reclaim his seat by winning the election.
That’s what happened the last time the House kicked out a member, in 1905. Rep. Frank Comerford, D-Chicago, was ejected after accusing his colleagues of corruption and besmirching their “good name and reputation.” But Comerford won the special election called to fill his seat.
Smith was, indeed, reelected. And then he was convicted and had to resign.
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* Press release…
Illinois State Rep. LUIS ARROYO has been charged in federal court with offering a bribe to a fellow state lawmaker in an effort to influence and reward the lawmaker for supporting legislation that would benefit Arroyo’s private lobbying client.
Arroyo, 65, of Chicago, is charged with one count of federal program bribery, according to a criminal complaint and affidavit filed in U.S. District Court in Chicago. Arroyo made an initial court appearance this morning before U.S. Magistrate Judge Maria Valdez and was ordered released on a personal recognizance bond. The next court date was not immediately set.
The complaint was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago office of the FBI; and Kathy A. Enstrom, Special Agent-in-Charge of the Chicago office of the IRS Criminal Investigation Division. The government is represented by Assistant U.S. Attorneys Christopher Stetler and James Durkin.
Arroyo has represented the 3rd District in the Illinois House of Representatives since 2006. He has also managed Spartacus 3 LLC, a private lobbying firm in Chicago.
According to the complaint, on Aug. 2, 2019, Arroyo offered to pay $2,500 per month to an Illinois state senator in return for the senator’s support of sweepstakes-related legislation that would benefit one of Arroyo’s lobbying clients. On Aug. 22, 2019, Arroyo met with the senator at a restaurant in Skokie and provided him a check for $2,500 as an initial payment, with the expectation that additional payments would be made for the next six to 12 months, the complaint states. The check was made payable to a nominee of the senator for the purpose of concealing the illicit payment, the complaint states.
Federal program bribery is punishable by up to ten years in prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines. The public is reminded that a complaint is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
* More…
*** UPDATE 1 *** Read the full complaint by clicking here.
*** UPDATE 2 *** House Republican Leader Jim Durkin just called on Rep. Arroyo to resign by the end of the day or he would be filing paperwork to invoke House Rule 91, which reads in part…
Disciplinary proceedings may be commenced by filing with the Speaker and theMinority Leader a petition, signed by 3 or more members of the House, for a special investigating committee. The petition shall contain the alleged charge or charges that, if true, may subject the member named in the petition to disciplinary action by the House and may include any other factual information that supports the charge or charges.
*** UPDATE 3 *** From the governor…
These are extremely troubling charges. Corruption, deception and self-dealing have no place in our government, and public officials who betray the public trust have forfeited the privilege of serving. While this investigation and court case continue, Rep. Luis Arroyo must immediately step down from his committee chairmanship, or be removed.
*** UPDATE 4 *** Crain’s…
City records maintained by the Board of Ethics show Arroyo lobbied aldermen on “sweepstakes” legislation on behalf of a firm, V.S.S. Inc. Arroyo and his wife, Maribel, operate Spartacus 3.
Aldermen twice considered legislation to change the city code to ban “free play option” or “sweepstakes” machines that might look like poker, bingo, craps, keno, eight-liner or other similar gaming machines, but don’t require money to play. The City Council changes came amid increased scrutiny of the machines from WBEZ, but neither measure managed to pass.
The complaint suggests Arroyo was planning to pursue legislation in this veto session regarding sweepstakes gaming.
Tribune…
State Rep. Luis Arroyo, a Chicago Democrat, has been hit with a federal charge alleging he agreed to pay a state senator $2,500 a month in bribes in exchange for the senator’s support on legislation involving video gambling sweepstakes games that would benefit one of Arroyo’s lobbying clients.
The 13-page criminal complaint, made public Monday when Arroyo appeared in U.S. District Court, revealed that the undisclosed state senator whom Arroyo allegedly agreed to pay has been cooperating with the FBI since 2016 when he was confronted with evidence that he had filed false income tax returns.
Arroyo delivered the first of the promised $2,500 checks to the senator at a restaurant in Skokie on Aug. 22 as the state senator secretly recorded the conversation, according to the complaint.
“This is, this is the jackpot,” the complaint quoted Arroyo as telling the senator.
Sun-Times…
The feds secretly also recorded some of Arroyo’s conversations over the phone as well as conversations with the state senator, according to court records.
In one secretly recorded conversation, the state senator asks Arroyo what’s in it for him if he helps sponsor Arroyo’s legislation.
Arroyo allegedly responded: “I’m a paid consultant, okay? . . . If you put a price on it, I mean, if you want to get paid, you want somebody else to get a check monthly, a monthly stipend, we could put them on a contract. You tell me what it is. Tell me what you need.”
Center Square…
House Minority Leader Jim Durkin said if Arroyo doesn’t step down by the end of the day, Durkin will file a motion via House rules to begin a special investigation that could lead to Arroyo’s removal.
Durkin said the motion would have to be approved by House Democrats, but he couldn’t say how long the process would take. Durkin said he’s been told nothing by Democratic leadership about Arroyo’s arrest.
“It’s as fast as the Democratic leadership wants it to go,” Durkin said. “I will ask that we move expeditiously and we’ll move accordingly. We can do this in the nest few months. It has to go through the rules committee and has to be approved by the Speaker.”
*** UPDATE 5 *** Stay tuned…
…Adding… Heh…
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* Rep. Arroyo (D-Chicago) chairs the House Appropriations-Capital Committee. He worked with Sen. Martin Sandoval, the former chair of the Senate Transportation Committee, on the infrastructure bill…
This post will be updated.
…Adding… Rep. Arroyo gave up a spot in leadership to take over the chairmanship of that approp committee.
Arroyo’s recent contributions include $5,000 on September 24th from Rick Heidner’s Gold Rush Amusements, Inc. He received $2,500 that same day from ComEd.
*** UPDATE 1 *** Wow…
His attorney is Terence Gillespie. The Sun-Times reports he’d negotiated a $10,000 unsecured bond.
…Adding… Arroyo has a side business called Spartacus 3…
Spartacus 3 offers the most comprehensive Municipal and County business advocacy services. The combined experience of over 20 years in government operations paired with the unparalleled individual skills of our team offer you focus, leadership and reliability for a successful partnership. We will assess the need, identify a strategy with you, procure the necessary documentation and advocate for your business through legislative and regulatory processes until your objective is accomplished. […]
The Spartacus 3 team excels at every dimension of winning political campaigns and has penned many victories in it’s score card. Winning a political or government campaign requires a sharp message. It also requires a sharp field and targeting plan, rapid response, political outreach, press strategy and direct voter contact, all executed without mistakes. Your path to victory starts with us.
The company pays Arroyo’s political committee $1,000 a month in rent.
*** UPDATE 2 *** One of the items listed to be seized on the Sandoval warrant was anything related to “sweepstakes” businesses and/or anything “any issues supported by any of those individuals or businesses.” I do not know if this is related, but Arroyo and his company registered to lobby the Chicago City Council this year on a “Sweepstakes Ordinance.”
*** UPDATE 3 *** Yep. It’s related…
I’ve been watching this sweepstakes issue for a different reason. We’ll see if this leads to where I think it might.
*** UPDATE 4 *** HGOP…
MEDIA ADVISORY: Durkin, HGOP Members to Make Statement on Arrest of State Representative Luis Arroyo
WHAT: Illinois House Republican Leader Jim Durkin, Members of the HGOP Caucus to discuss the arrest of Illinois State Representative Luis Arroyo
WHEN: 1230PM TODAY
WHERE: Capitol Blueroom (Springfield)
…Adding… Sun-Times…
Arroyo’s office released a statement Monday, saying that he “would politely decline to answer any questions concerning today’s events. Suffice it to say that Rep. Arroyo entered a plea of not guilty and believes that he will eventually be completely vindicated of the charges against him.”
I’m told the governor will be issuing a statement soonish.
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Veto session preview
Monday, Oct 28, 2019 - Posted by Rich Miller
* Finke…
With less than a handful of vetoes to deal with, the whole tenor of the session will be determined by how much other stuff lawmakers decide to tackle. And there’s a pretty long list of stuff they could do if they are inclined.
Bills to ban flavored vaping products and to cap out-of-pocket costs for insulin are definitely on the agenda. Both proposals have some intense opposition, so it’s not necessarily a slam-dunk for either one. (Then again, opposition to the insulin bill comes from pharmaceutical and other business interests, which don’t always engender a lot of sympathy in these here parts).
Gov. J.B. PRITZKER said he’s still going to push his idea to consolidate hundreds of downstate police and fire pension systems. But more and more lawmakers seem to not want to rush this idea.
There are other possibilities, but lawmakers may be inclined to basically just rest on the laurels of what was a pretty productive spring session.
It’s hard to say for sure at this point on anything. But I will just remind you that a whole lot of folks were predicting that very little would be accomplished in May, and then everything passed.
* Some really good session previews have been published since Friday. Hannah Meisel begins with the elephant in the room…
Lawmakers will return to Springfield Monday nearly five months after a momentous spring legislative session that saw the passage of massive bills from recreational marijuana legalization to a $45 billion infrastructure plan.
But the political climate has shifted significantly since early June, since the existence of widespread federal corruption probes was revealed over the summer and fall. The inquires appear targeted at Democrats and their allies, but the investigations have also shaken Republicans and longtime Springfield lobbyists who work for bipartisan interests across industries.
Federal agents raided the home, Springfield and district offices of State Sen. Marty Sandoval (D-Chicago) in late September. Since then, search warrants released by the state Senate and other local government bodies revealed federal agents are searching for information about dozens of individuals and businesses. […]
State Sen. Tom Cullerton (D-Villa Park) was indicted in August on 45 counts of embezzlement for allegedly keeping a ghost payroll job with the Teamsters Joint Council 25 in the early years of his time in the Senate.
Neither senator is expected to participate in Veto Session.
The feds also appear to be circling closer to House Speaker Mike Madigan (D-Chicago).
* Team coverage in the Tribune…
Lightfoot has a lot riding on the veto session, which will serve as a major test of her influence in Springfield. When she unveiled her budget plan at a special City Council meeting Wednesday, Lightfoot said the math only works if state lawmakers and Pritzker give Chicago permission to implement a graduated tax on real estate transactions. She also called on the General Assembly to rework the tax structure for a proposed city casino to make it more attractive to potential investors and to “develop a statewide pension reform package.”
But Lightfoot’s $11.65 billion 2020 budget plan doesn’t count on any revenue from the casino or any savings from pension changes at the state level, which could allow the mayor’s office to focus its lobbying efforts on pushing through the real estate transfer tax before the legislature adjourns for the year in mid-November. Her plan calls for raising the tax on the sale of residential and commercial properties worth more than $1 million.
Lightfoot had been saying for months that her spending plan would rely on help from Springfield, but she long left many key people in the dark on the specifics. Her office didn’t brief Pritzker’s staff on the details until a week before she publicly unveiled her budget and four days after she laid out her proposals for rank-and-file lawmakers who represent the city. After her Wednesday budget address, Republican leaders said they were still waiting for details.
Pritzker and legislative leaders have put the onus on Lightfoot to marshal support for her proposals. The mayor’s office declined to comment on its legislative strategy. […]
“Everyone knows that they have a difficult mountain to climb,” [House Majority Leader Greg Harris] said.
* Jerry Nowicki also covers several issues, including pension consolidation…
In recent days, a task force formed by Pritzker recommended the state consolidate 649 suburban and downstate police and firefighter pension funds into just two, saying the move would generate billions of dollars in additional earnings and cut administrative costs over the next 20 years.
The funds would be consolidated into one each for firefighters and police. The Illinois Fraternal Order of Police Labor Council “expressed strong concerns about the recommendations” of the task force in a statement, while the Associated Fire Fighters of Illinois said it supports the recommendations.
Pritzker said this week language for the bill “is being put together now.”
“There are many people who understand that if we want to keep property taxes down, we want to bring them down, that we want to stop the hikes that are occurring everywhere, we’ve got to attack property taxes everywhere we can,” he said. “One of them is to attack it by making sure that our police and fire pensions are reasonably well funded.”
The bill would not, however, address the more than $130 billion in unfunded pension liabilities facing state government, as the funds that would be consolidated are funded by local municipalities, not the state.
Make sure to click on all the links above. There’s just too much content to excerpt here.
…Adding… This is the city’s chief financial officer…
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