* CBS…
Claiming sending secret militarized federal agents to Chicago “would spell disaster,” Mayor Lori Lightfoot on Monday sent President Donald Trump a letter instead urging him to support new laws to help get illegal guns off the streets.
CBS News has learned the Trump Administration will be sending 175 federal agents to Chicago this week to assist police in curbing violent crime. The agents will come from Chicago, Detroit, St. Paul, Nashville, and likely Atlanta.
The agents will focus on illegal gun sales, gun violence, and outstanding warrants, according to one of the sources.
* CBS sources aside, there’s a growing worry in Chicago that the White House will try to repeat its Portland approach. From the Washington Post…
The Oregon attorney general filed a lawsuit late Friday night alleging that the federal government had violated Oregonians’ civil rights by seizing and detaining them without probable cause during protests against police brutality in the past week.
The legal action comes after days of intensifying clashes between the Trump administration and Portland officials, who have accused federal agencies of heavy-handed tactics that inflame unrest and threaten citizens.
Department of Homeland Security agents have swarmed the city in recent days, arguing that they are needed to restore order after nearly two months of demonstrations. But local officials, including Oregon Gov. Kate Brown (D) and Portland Mayor Ted Wheeler (D), have implored the agency to step down, with the mayor calling the police force President Trump’s “personal army” and suggesting its tactics are only making things worse.
* Tribune…
At an unrelated news conference Monday morning, Mayor Lori Lightfoot said she has great concerns about the general possibility of President Donald Trump sending feds to Chicago based on what has happened in Portland. […]
“We don’t need federal agents without any insignia taking people off the streets and holding them, I think, unlawfully,” Lightfoot said.
* From Lightfoot’s letter to the president…
“…What is needed more than anything in an operation to protect lives is a clear mission, a detailed operations plan, and a chain of command. Secret, federal agents who do not know Chicago, are unfamiliar with the unique circumstances of our neighborhoods and who would operate outside the established infrastructure of local law enforcement would not be effective, regardless of the number, and worse will foment a massive wave of opposition.”
“Deploying resources like we have seen in Portland,” she wrote, “does not make residents safer, particularly when gun violence plays a significant role in Chicago’s loss of life.”
In a statement, a Lightfoot spokesman said, “Should the Trump Administration foolishly try to usurp our local authority, (Lightfoot) will not hesitate to take decisive action to stop this unwanted and dangerous intrusion.”
* The governor was asked about the White House plan today at a Metro East press conference…
My job is to protect the civil liberties of the people of Illinois. This is a wrongheaded move on the part of Donald Trump, on the part of the Department of Homeland Security.
I have put a call into the Acting Secretary of the Department of Homeland Security. He’s refused to call me back telling us that he couldn’t possibly get back to me until about 48 hours from now. That’s ridiculous.
They’re thinking about sending agents in, Federal Protective Service agents into the state of Illinois. They need to answer to the governor of the state to the mayor of the City of Chicago, to the attorney general of the State of Illinois.
We’re going to do everything we can to prevent them from coming. And if they do come, we’re going to do everything we can from a legal perspective to get them out.
Take a very deep breath before commenting.
…Adding… Two things are going over peoples’ heads in comments. 1) The Federal Protective Service is not a police unit. It guards buildings. It’s not capable of police work. 2) The governor has said he doesn’t want that unit deployed in Illinois. He and Mayor Lightfoot never said they wouldn’t welcome other sorts of help from the feds. So, stop reading what you want to read and instead read the actual words in front of your face.
*** UPDATE *** Like I said, some of y’all were getting all huffy for no good reason…
President Donald Trump will be sending federal law enforcement agents to help police and the U.S. attorney’s office fight Chicago violence and the city intends to cooperate, Mayor Lori Lightfoot said. […]
Still, she was careful to say her understanding of the situation “at this point” is that the Trump administration won’t be “foolishly” deploying unidentified troops but will be sending additional agents with the FBI, Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms and Explosives to Chicago.
Unlike what happened in Portland recently, Lightfoot said, the city will get resources that will plug into “existing federal agencies” that already work with Chicago.
“We welcome actual partnership, but we do not welcome dictatorship, we do not welcome authoritarianism, and we do not welcome unconstitutional arrest and detainment of our residents,” Lightfoot said.
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* Press release…
The Illinois State Rifle Association and the Second Amendment Foundation today filed a lawsuit in federal court seeking to force the Illinois State Police (ISP) to comply with the mandated 30-day requirement to issue a Firearm Owner’s Identification (FOID) Card if the applicant meets all qualifications.
“We’ve been looking at this problem for a long time, gathering information for filing this lawsuit, and that day has finally come,” said Richard Pearson, ISRA executive director. “These delays have gone on long enough. We had hoped to avoid litigation, but at this moment, we have no choice.”
The lawsuit was filed in U.S. District Court for the Northern District of Illinois, Eastern Division, on behalf of D’Andre Bradley, David D. Moore and Tara D. Moore, and Brett O. Shelton. They are represented by attorneys David G. Sigale of Wheaton, Ill., Gregory A. Bedell of Chicago, and Jacob Huebert of Phoenix, Ariz. The case is supported by the Goldwater Institute. The lawsuit is known as Bradley v. Kelly.
Named as defendants are ISP Director Brendan F. Kelly and ISP Firearms Services Bureau Chief Jessica Trame, in their official capacities.
“The law requires that the Illinois State Police either approve or deny a FOID card application within 30 days,” said SAF founder and Executive Vice President Alan M. Gottlieb. “But ISP has been dragging its feet, leaving applicants in limbo for months. Sometimes the agency doesn’t act for as long as 60 or even 90 days. You can bet that if a private citizen had to comply with a legal requirement within 30 days, he or she would be in big trouble for not meeting that deadline.
“This has been going on for years,” he added, “and it has to stop. It is especially important now, with the surge in FOID applications as a response to recent civil unrest that has included looting and violence. Illinois residents expect efficiency, not excuses, and they haven’t been getting it.”
The suit is here.
*** UPDATE *** From the Illinois State Police…
The Illinois State Police agree FOID applications should be processed quickly and within the statutory guidelines. Financial instability brought on by the lack of a budget in the prior administration greatly impacted the processing of FOID applications by the Firearms Services Bureau. Gov. Pritzker’s budget and the fiscal assurance it brings will allow the ISP to continue efforts to hire at least 32 additional analysts and invest in technology upgrades. This year alone, FSB processed 65,969 new FOID applications.
Nonetheless, with an explosion of applications and firearms purchases during the pandemic and current events — 62,832 FOID applications and 65,222 FTIP applications just last month — broader legislative remedies to streamline and modernize the FOID process will be necessary to meet statutory timelines. We look forward to working with all interested parties and members of the general assembly to reach those solutions.
The Firearms Services Bureau is committed to resolving the issues and meeting our public safety mission.
Background…
The number of new FOID applications received from June 1, 2020 through June 30, 2020 totals 62,823 compared to 25,359 for the same time period in 2019 resulting in an increase of 148%.
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Longshot day at the ISBE
Tuesday, Jul 21, 2020 - Posted by Rich Miller
* Illinois Public Radio…
Rapper Kanye West was among those submitting petitions for the fall ballot Illinois on the final day for independent and third party candidates to file.
West said he is running for president. But he has missed the deadline to file in several states. While he was on time in Illinois, filing does not guarantee a spot on the ballot. Pettitions can be challenged for the number of signatures and their vailidity. West did not have a vice presidential candidate file with him. […]
A judge eased signature requirements for third parties this year due to the COVID-19 outbreak. That made it much easier for the Libertarian candidates running for the legislature to get on the ballot. Steve Suess, the party’s state chairman, said that should send a message to the two major parties. […]
More than 10 Libertarians are running either for a legislative or a congressional seat in Illinois, along with the offices of President and U-S Senate. The Green Party also has several running for state legislative posts.
You can see all the newly filed candidates by clicking here.
* Fox News…
Four minutes before the Illinois State Board of Elections 5 p.m. CT deadline, two [West] representatives filed 412 petition sheets with election officials, a spokesperson confirmed to Fox News.
Election officials will be counting those signatures of registered Illinois voters, of which he was supposed to have had at least 2,500 to get on the ballot. Petition sheets usually contain 10 names per sheet.
They contain 10 lines per sheet. Those lines aren’t always filled with valid names or any names, for that matter. We shall see.
…Adding… This was an obvious rush job and they may not survive a challenge…
* Bernie…
In a central Illinois race, Angel Sides, who got less than 5 percent of the vote in a five-way, 2018 Democratic primary for the U.S. House from the 13th Congressional District, filed as a Green Party candidate in the 87th House District, where state Rep. Tim Butler, R-Springfield, has been unopposed.
In the 96th House District, John Keating II of Springfield filed as a Green Party candidate. He’s taking on Democratic state Rep. Sue Scherer and Republican Charlie McGorray, both of Decatur.
In the 100th District, where Democrat Brandon Adams of Jacksonville already was taking on Rep. C.D. Davidsmeyer, R-Jacksonville, two candidates filed Monday: Thomas Kuna of Kane, in Greene County, on the Bullmoose party; and Ralph Sides under the banner of the Pro-Gun Pro-Life party.
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* Background is here if you need it. IDPH press release last night…
The Illinois Department of Public Health is closely monitoring a rise in cases in the Metro East region, COVID-19 region 4, as the region surpasses 7 percent positivity rate as of today, July 20, fueled by 7 consecutive days of positivity rate increases. Under the plan to combat a resurgence of COVID-19 announced by Governor Pritzker and the Illinois Department of Public Health last week, a region will automatically move to the first tier of mitigation steps following three consecutive days averaging greater than an 8 percent positivity rate.
Randolph and St. Clair counties are currently the primary contributors to the rise in positivity rate in region 4 of the new mitigation plan, but there are concerning trends and behaviors throughout the region, which also includes Bond, Clinton, Madison, Monroe, Randolph, and Washington counties. Several of these counties also border and are home to residents who travel frequently to Missouri where less stringent mitigations have been in place.
A number of the individuals who have tested positive have informed public health officials that they engaged in some of the same activities. Specifically, four individuals told public health officials that they participated in events or were close contacts of participants in events involving the party bus company the “Shakin’ Shuttle”
Public health officials are also concerned with reports of large gatherings without social distancing taking place in the region. Specifically, Hidden Lake Winery in Aviston is reported to have hosted several large events, contrary to public health guidance.
Public health officials are also responding to an outbreak at Chester Mental Health Center in Randolph County, where 6 residents and 41 staff members have tested positive for COVID-19 since June 25. The Department of Human Services is working closely with local health departments and officials to help prevent further spread and keep residents and staff safe.
“Businesses that disregard public health guidance are putting themselves and their communities at risk and threatening the progress we’ve made for the vast majority of businesses that are safely reopening,” said Governor JB Pritzker. “I urge county and local officials in the Metro East region to take action in response to those who refuse to help keep people safe and to consider broader mitigations before the state is required to take action. As I’ve said, local officials are our first line of defense when it comes to concerning trends in their communities, but IDPH is ready to take immediate action if the data requires it.”
“This virus is still out there and it is the responsibility of all of us, local officials, businesses, and every day Illinoisans, to take the actions we know will keep people safe,” said IDPH Director Dr. Ngozi Ezike. “We know from the data that large gatherings and groups of people in confined closed spaces can lead to a spike in cases, and we have seen some examples popping up right now. IDPH will work closely with our local health department partners to respond to these concerning trends and will not hesitate to restore mitigations to prevent a full resurgence of COVID-19.”
Under the new mitigation plan announced last week, additional mitigation steps will be reinstated in a region following a sustained rise in the positivity rate along with either a sustained increase in COVID-19 hospital admissions or a critical reduction in hospital bed capacity. A sustained rise in the positivity rate is defined as an increase in the 7-day rolling average for 7 days out of a 10-day period. In addition, if a region hits three consecutive days of an 8 percent average positivity rate, automatic action will be required.
The first tier of mitigation steps can include suspending indoor bar service, reducing indoor dining capacity, reducing elective surgeries and procedures, placing additional limits on gatherings and room capacity, expanding remote work, as well as potential further mitigation steps relating to recreational activities, retail, and salon and personal care based on data received.
As always, local officials remain the first line of defense in the fight against COVID-19. Local officials can and should enforce public health guidance from the state. Local officials are also encouraged to put in place additional public health guidance that expands upon guidance from the state and meets the needs of their unique communities. IDPH works closely with local health department across the state and is always eager to be a partner in that effort.
*** UPDATE *** That’s a big quarantine…
The Clinton County Health Department has asked at least 160 residents to quarantine after large gatherings where people did not wear face masks, according to agency officials.
Sean Eifert, the health department administrator, said people infected with the virus traveled to bars and other businesses the weekend of Saturday, July 11, but he declined to publicly identify the locations.
The health department believes it tracked down all residents who had “close contact” with the infected people at the gatherings, according to agency spokeswoman Louise McMinn. She said close contact is being within 6 feet for 15 minutes. […]
Eifert said the health department is not publicly identifying the places where the exposure occurred at this time because of the potential “economic fallout” for businesses associated with the coronavirus and liability for the health department. He said the department may decide to name the businesses if customers or workers outside of the “close contact” group test positive.
Just saying, not saying, but the above-mentioned Hidden Lake Winery is in Clinton County. The county GOP central committee meets at the winery every month.
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* Media advisory…
Illinois House Republicans Call for Special Session on Ethics Reform
WHO: Illinois State Representatives Deanne Mazzochi (R-Elmhurst), Ryan Spain (R-Peoria), Dan Ugaste (R-Geneva) and Grant Wehrli (R-Naperville).
WHAT: House Republicans call on Governor Pritzker to convene special session on ethics reform.
WHEN: 10:30 A.M. on Tuesday, July 21, 2020
* Press release…
State Representatives David Allen Welter (R-Morris) and Keith Wheeler (R-Oswego) are calling for a joint hearing of the House Public Utilities and Energy & Environment Committees to investigate the lobbying and bribery practices of ComEd during the period of 2011-2019 to determine the impact on ratepayers both residential and commercial in terms of higher costs passed on to them as a result.
The United States Attorney for the Northern District of Illinois filed charges against Commonwealth Edison on July 17 that detailed corruption related to the company’s efforts to influence and reward “Public Official A”, believed to be House Speaker Michael Madigan, in order to receive passage of legislation favorable to the utility.
“While the U.S. Attorney’s Office investigated criminal activity during the time period in question related to ComEd’s efforts to influence “Public Official A” in order to get legislation they wanted passed, the issue of what impact those activities had on ratepayers and state policy needs to be fully investigated and made public,” Rep. Keith Wheeler said.
Rep. David Welter added, “ComEd employs nearly 6,300 hardworking and dedicated professionals throughout Chicago and northern Illinois who are ratepayers too. They and every ComEd customer in Illinois deserve accountability in the form of answers as to what cost the bribery allegations specified by the U.S. Attorney’s Office had on ratepayers. If you paid more for electricity because of corruption, you deserve to know all the facts about it.”
Wheeler and Welter sent a joint letter to Representative Ann Williams (D-Chicago), Chairperson of the Energy & Environment Committee and Representative Larry Walsh, Jr. (D-Joliet), Chairperson of the Public Utilities Committee requesting that the two committees hold a joint hearing to investigate the impact on ratepayers of ComEd’s activities during the period outlined in the U.S. Attorney’s court filing on Friday.
* Meanwhile, on the other side of the building, the Senate Republican Caucus issued this statement today…
Illinois House Speaker Michael Madigan exerts absolute control over what issues get a hearing and which get a vote in the Illinois House. As the US Attorney announced last week, that process allegedly comes with a price.
Illinois Democrats, who control both chambers of the Illinois legislature, should embrace reforms that will ensure all the power of legislating is not consolidated into the hands of one allegedly corrupt process. This can be done by improving transparency and enacting a fair redistricting process.
What is abundantly clear to our caucus and every concerned citizen in Illinois is the fact that Michael Madigan can no longer serve as Speaker of the Illinois House, and he should step aside from this leadership position immediately.
…Adding… Center Square…
Gov. J.B. Pritzker said Monday he has no plans to call a special session of the legislature to take up ethics reform.
During an appearance in Peoria on Monday, Pritzker would not commit to calling a special session to take up the issue even though earlier in the day he said lobbying reform was needed.
“I am hoping that in November that we will be able to take up again the work by the ethics commission that was put together in the General Assembly, a bi-partisan commission that was doing quite good work before they were cut short by COVID-19,” the governor said.
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I suppose it could be worse
Tuesday, Jul 21, 2020 - Posted by Rich Miller
* Just a reminder that they have term limits in Ohio…
Federal officials arrested Ohio House Speaker Larry Householder on Tuesday in connection with a $60 million bribery case.
U.S. Attorney David DeVillers’ office would not discuss details of the case, but a source involved in the investigation confirmed Householder’s arrest to the Cincinnati Enquirer.
Four others were arrested, the source said.
Background…
Householder, a farmer and businessman in Glenford, has led the GOP-controlled Ohio House since January 2019. He previously held the speaker’s gavel 2001 to 2004 but left due to term limits. He returned to the House in January 2017 and mounted a campaign to become the first lawmaker to recapture the speakership in nearly six decades.
Dude moves fast. Busted after a year and a half.
Householder’s predecessor resigned in disgrace…
On April 10, 2018, [Ohio Speaker Cliff Rosenberger] announced he would resign effective May 1, 2018 amid an FBI investigation of his “lavish lifestyle” and “relationships with lobbyists and donors.” On April 12, 2018, Rosenberger announced he was immediately resigning
…Adding… This is apparently about a nuclear power plant bailout bill…
The investigation centers on House Bill 6, the $1 billion-plus ratepayer bailout of two Ohio nuclear power plants owned by FirstEnergy Solutions (now Energy Harbor) that Householder helped push through last year with the help of millions in dark money, according to the Toledo Blade.
Besides Householder, four others have been arrested, according to sources and media reports: former Ohio Republican Party Chair-turned-consultant Matt Borges, prominent lobbyist Neil Clark, FirstEnergy Solutions lobbyist Juan Cespedes, and Householder aide Jeff Longstreth.
…Adding… Meanwhile, in New York…
[Former NY Assembly Speaker Sheldon Silver], originally convicted on multiple counts of corruption in 2015, won a minor victory on Tuesday when the United States Court of Appeals for the Second Circuit overturned a subsequent 2018 conviction on the grounds that it didn’t identify specifically enough a quid pro quo between Silver and a Columbia University cancer researcher from whom Silver was found guilty of taking bribes. Still, the three-judge panel affirmed the bulk of the conviction, likely guaranteeing that Silver will see prison time.
…Adding… Check this out…
Ohio is giving Illinois a real run for its money.
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* Hmm…
Yeah, I’m really wondering what happens if she uses that sort of framing during a legislative committee hearing.
* From the transcript…
Mark Maxwell:
“Last week we heard from John Bouman, the head of the — formerly with the Shriver Center on Poverty Law — who now heads up a ballot initiative committee trying to persuade voters to ‘Vote Yes for the Fair Tax.’ That’s what their ballot initiative is called. Of course, it refers to the graduated income tax rate structure that would require Illinois to abolish the flat tax we have in place embedded in our Constitution right now. This week, we hear the counter argument from Cindy Neal, who was the chair of the Leadership Council for the NFIB, the National Federation of Independent Business and a business owner in Peoria helping recruit employees and find them jobs in that area. Cindy, it’s good to have you with us.”
Cindy Neal 3:03
Thank you. Thank you, Mark.
Mark Maxwell 3:05
You were at that big press conference that coordinated statewide push a week ago trying to persuade voters of the downside of this. From your vantage point, is there something fundamentally unfair with a graduated income tax rate structure? For example, should the federal government change from where they are now to a flat income tax?
Cindy Neal 3:31
I would love to see the federal government change to a flat income tax. I think that that is what a fair tax is all about. If you pay, if everybody pays the same percentage on your income, I don’t know what could be more fair than that. So if you’re a multimillionaire versus someone who’s at entry level, I think that’s fair and it mathematically is beautiful and perfect.
Mark Maxwell 3:53
It’s a round number. It’s a clean number, but there’s also the reality that the supporters of this graduated income tax — one that has been, you know, in our federal system for decades now — they point out that the people who only make 20 or $30,000 a year, once they pay their taxes and their mortgage and their rent and all that, they live paycheck to paycheck, and they have very little left over. Someone who makes $250,000 a year or a million dollars a year pays their taxes and their mortgage and they have this much bigger chunk of the pie leftover. They have more disposable income. Is that not fair for people who are doing quite well for themselves in this system to kick in a little more to the systems that they take advantage of?
Cindy Neal 4:36
You know, I think that the people that are in those higher income brackets tend to be who I call the makers, and the folks that are in the lower income brackets tend to be what I call the takers. And I do believe that as somebody starting out in life and trying to raise your family, sometimes you need help from different programs and agencies and that’s why we all pay into our tax system to help those folks. But I don’t want to take away from the makers or make them pay more because those are the folks technically, that are reinvesting in businesses, providing employment opportunities for those people that are working their way up the career ladder and are trying to support their families locally.
Mark Maxwell 5:16
I don’t know if Abraham Lincoln would have used some of that same phrase, he often referred to a labor of being worthy of their of the spoils of their labor. You’re calling them takers. These are people who work their way through life.
Cindy Neal 5:29
No, I no… I wouldn’t necessarily I… Takers because they are still needing assistance. So, maybe that’s not the greatest terminology, but it rhymes with makers. So, there are people that make opportunities for others as far as in their business. And normally the folks that are in the higher income brackets, turn around and reinvest that money in new capital equipment, hiring more workers in
Mark Maxwell 5:51
Or their bigger house or their yacht, or a boat.
Cindy Neal 5:56
Sure. As you alluded to Lincoln, why not enjoy the spoils of your labors?
Discuss.
…Adding… React…
“The so-called low income ‘takers’ are the 97% of Illinoisans, many of whom are our nurses, teachers, grocery store clerks and other essential workers, who have been unfairly carrying the tax burden in our state for far too long. The Fair Tax is our chance to finally set things right,” said Quentin Fulks, Chairman of Vote Yes For Fairness. “Cindy Neal and opponents of the Fair Tax are only out to protect the millionaires and billionaires who benefit from our current broken system: one that enables the wealthy, so-called ‘makers’ to get away without paying their fair share. This attack on low-income Illinoisans coming from someone who two weeks ago claimed to be part of a ‘grassroots’ organization opposing the Fair Tax is not only despicable, it’s pure hypocrisy.”
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* Press release from Mayor Lori Lightfoot…
The conduct admitted to by ComEd in the Deferred Prosecution Agreement unveiled today is deeply disturbing. The Department of Justice is appropriately holding ComEd accountable for their criminal conduct. As a significant vendor for the City of Chicago, ComEd must also be accountable to the taxpayers and residents of Chicago. As Mayor, I have made transparency, reform and accountability pillars of my administration. And, as a former federal prosecutor myself, I know the thorough and meticulous work that goes into the scale of this kind of investigation and this type of agreement.
As a City, we are committed to ensuring that all Chicagoans can access high quality, reliable services at rates that are affordable for all our residents, particularly our most vulnerable. It is also critical that consumer voices are heard in response to today’s announcement, which is why the Committee on Environmental Protection and Energy will hold a public hearing on July 30th to hear directly from ComEd leadership as well as from residents. Chicagoans deserve fairness and transparency from all who are paid with taxpayer dollars, and my administration will do everything in our power to ensure that expectation is a reality.
*** UPDATE *** Hmm…
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* Here we go…
US Attorney John Lausch is speaking to the media right now. Click here to watch. I’ll update if necessary.
…Adding… Lausch…
Our federal investigations of corruption in Illinois are ongoing. We’ve got a lot of work ahead of us, and we will get that work done.
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* Gov. Pritzker said this at the end of his prepared remarks today about today’s ComEd stories…
I have read several of the articles today. And I am deeply troubled and frankly, I’m furious with what is being reported.
The speaker has a lot he needs to answer for, to authorities, to investigators and most importantly to the people of Illinois.
These allegations strike at the core of what public service means. It’s a high calling, public service. It’s a high calling, one in which we serve with a sacred trust to put the people first.
If these allegations of wrongdoing by the speaker are true, there is no question that he will have betrayed the public trust and he must resign, therefore.
In the meantime, I urge the speaker to fully cooperate with the investigation and answer all questions as quickly as possible.
I’ll update with any responses to questions.
…Adding… He was asked about the other story today regarding his property taxes…
There’s nothing new to tell you. I learned about this from a reporter. The facts about this matter have been public for some time and they’ve extensively been discussed as they were in the 2018 election, and they’ve been fully aired. And as I’ve always said, any review will show that all the rules were followed, but I’ve not been contacted by federal authorities nor has my wife.
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* Press release…
Exelon Corp. and its ComEd subsidiary today announced that ComEd has entered into an agreement with the U.S. Attorney’s Office for the Northern District of Illinois to resolve the previously disclosed investigation into ComEd’s historical lobbying practices in Illinois. The resolution ends the investigation into ComEd by the Department of Justice (DOJ).
Exelon CEO Christopher M. Crane said, “We are committed to maintaining the highest standards of integrity and ethical behavior. In the past, some of ComEd’s lobbying practices and interactions with public officials did not live up to that commitment. When we learned about the inappropriate conduct, we acted swiftly to investigate. We concluded from the investigation that a small number of senior ComEd employees and outside contractors orchestrated this misconduct, and they no longer work for the company. Since then, we have taken robust action to aggressively identify and address deficiencies, including enhancing our compliance governance and our lobbying policies to prevent this type of conduct. We apologize for the past conduct that didn’t live up to our own values, and we will ensure this cannot happen again.”
Under the three-year deferred prosecution agreement, ComEd has agreed to make payments totaling $200 million, and has agreed to the government’s filing of a single charge that will be dismissed at the end of the three-year term, provided it abides by all terms of the agreement. The fine will not be recovered in rates or charged to customers. The conduct at issue in the agreement relates only to ComEd, and the agreement does not contain any allegation of misconduct by Exelon or Exelon Generation. The agreement resolves the government’s investigation into both ComEd and Exelon. The related Securities and Exchange Commission investigation and civil lawsuits remain pending.
ComEd fully and substantially cooperated with the U.S. Attorney’s Office from the beginning of the investigation, and since that time, has taken extensive remedial measures. ComEd’s remediation and cooperation efforts were acknowledged specifically by the government in the resolution agreement.
As part of its remediation, Exelon implemented four new mandatory policies that apply to employees who interact with public officials. These policies lay out specific rules, procedures and tracking mechanisms governing 1) interactions with public officials; 2) vetting and monitoring of lobbyists and political consultants; 3) employment referrals or requests from public officials; and 4) vendor referrals or requests from public officials.
The policies also prohibit subcontracting of third-party lobbyists and political consultants, and hiring of such firms includes oversight from the company’s ethics and compliance team, led by David Glockner, Exelon’s executive vice president of Compliance and Audit. Glockner was appointed to his role in March 2020 after having previously served as a senior Securities and Exchange Commission official and chief of the Criminal Division in the U.S. Attorney’s Office for the Northern District of Illinois, among other roles.
In addition, the company is conducting training on the new policies for employees as well as lobbying and political consulting partners. While the misconduct was limited to ComEd, the policies apply across all Exelon subsidiaries in Illinois and all other jurisdictions where Exelon operates, and are available on the company website.
Exelon and its operating companies are dedicated to providing customers and communities with clean, reliable, low-cost energy at the highest levels of service, efficiency and operational performance.
*** UPDATE 1 *** Illinois PIRG Director Abe Scarr…
Today’s filing confirms what we have long suspected and feared: that ComEd and its parent company Exelon’s remarkable public policy success since 2011 was made possible through a corrupt and illegal political influence operation.
It is important to remember that ComEd was in crisis in the decade leading up the passage of the Energy Infrastructure Modernization Act (EIMA) in 2011. Its distribution system suffered from chronic reliability problems stemming from decades of mismanagement. ComEd was in a financially and politically precarious position, threatening bankruptcy. Former Exelon CEO John Roe said Speaker Madigan was, through this time, a “foe.” ComEd’s political and financial fortunes then changed dramatically, starting with the passage of EIMA in 2011.
EIMA, followed by a trailer bill in 2013, radically changed utility regulation in Illinois, guaranteeing utility profits through so-called “formula” rate making, and reducing the Illinois Commerce Commission to a rubber stamp for company profits. Through EIMA and follow up legislation, ComEd’s annual authorized profits have grown by 47 percent between 2011 to 2019, when they reached over $739 million.
While the actions of federal prosecutors may deliver a legal remedy for ComEd’s criminal actions, it will not address the public policy harms this corruption wrought. The Illinois General Assembly must act to right the wrongs of the past decade, including revoking formula rates, reducing utilities’ ability to influence public policy through political contributions, lobbying and rate-payer funded charitable giving, and addressing the damaging conflicts of interest inherent to Exelon’s ownership of ComEd.
*** UPDATE 2 *** Crain’s has the response from a spokesperson for former ComEd CEO Anne Pramaggiore…
“Ms. Pramaggiore has done nothing wrong and any inference to the contrary is misguided and false. The fact is she led a distinguished career at Exelon, helping guide the company to high levels of reliability and record levels of customer satisfaction while implementing successful programs to improve utility infrastructure. During her tenure, she and other current and former ComEd and Exelon executives received, evaluated and granted many requests to provide appropriate and valuable services to the companies, none of which constitute unlawful activity.”
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* Press release…
This morning, the U.S. Attorney’s Office of the Northern District of Illinois announced that after a years long federal investigation into a widespread bribery scheme, ComEd has agreed to pay $200 million to resolve the case. In their release, the U.S. The Attorney’s Office stated that “ComEd Admits Arranging Jobs and Contracts for Political Allies of High-Level State of Illinois Official.”
That high-level State of Illinois Official is none other than Speaker Mike Madigan.
Illinois Republican Party Chairman Tim Schneider released the following statement in response to today’s news along with the ongoing federal investigation into Governor JB Pritzker:
“The people of Illinois now live in a state where both the Speaker of the House and the Governor are under criminal investigation. Even for a state with a history of corruption, this is unprecedented. Crimes of bribery and tax fraud cannot be tolerated from our elected officials. As we learn more about the bribery investigation into Speaker Madigan and the property tax fraud investigation into Governor Pritzker, our hearts go out to the people of Illinois who are once again left yearning for elected leaders who work for them, not for themselves. The Democratic culture of corruption in Illinois must come to an end.”
*** UPDATE 1 *** From the GOP delegation…
Congressmen Rodney Davis (IL-13), Darin LaHood (IL-18), John Shimkus (IL-15), Adam Kinzinger (IL-16), and Mike Bost (IL-12) released the following statement regarding the unprecedented developments in ongoing federal criminal investigations of Speaker Michael Madigan and Governor J.B. Pritzker:
“Illinoisans are sadly no strangers to corruption in our state’s politics, but simultaneous federal criminal investigations into both the Speaker of the House and the Governor are truly unprecedented. Today’s developments in the ongoing bribery investigation against Speaker Madigan and the property tax fraud investigation against Governor Pritzker are disturbing. We fully support U.S. Attorney John Lausch and other federal officials in their important work to bring those who violate the public’s trust to justice. The people of Illinois deserve better than Illinois Democrats’ embarrassing, systemic corruption.”
…Adding… Press release…
Illinois Rising Action executive director Kayleen Carlson released the following statement in response to the ongoing federal investigations of Governor JB Pritzker and Speaker Mike Madigan:
“For too long, corruption has been the calling card for government and politics in Illinois. Today it’s more of the same with the news that Speaker Mike Madigan is under federal investigation for bribery and Governor JB Pritzker is under investigation for property tax fraud. The people of Illinois have once again been betrayed by elected leaders at the top of the Illinois Democratic Party. These investigations should serve as yet another reminder that corruption is still running rampant and that Illinois Democrats are only interested in serving themselves, and not the people they were elected to represent.”
…Adding… Another one from the ILGOP…
Illinois Republican Party Chairman Tim Schneider has released a statement following the separate press conferences of Governor Pritzker and U.S. Attorney Lausch:
“Based on the evidence presented today by the United States Attorney’s Office, and in the context of months of revelations about the federal investigation into Speaker Michael Madigan and his closest associates, we believe it’s time for Speaker Madigan to do the right thing for Illinois and resign his office.
Governor Pritzker’s refusal to make such a clear statement may have to do with his own federal investigation into property tax fraud. Perhaps he is concerned that calling on Speaker Madigan to resign will lead to calls for his own resignation. We cannot discern when Governor Pritzker thinks Speaker Madigan should resign: next week, only when he’s indicted or only after he’s been convicted. Nor can we discern whether Governor Pritzker will commit to resigning should the allegations against him bear truth.
The people of Illinois cannot afford this scandal to drag on for months and years. Speaker Madigan should spare the citizens of Illinois by resigning immediately. Should the federal probe of Governor Pritzker’s property tax fraud continue to escalate, we would expect him to do the same.”
Rep. Batinick…
With Federal Prosecutors filing federal bribery charges against Commonwealth Edison Company (“ComEd”) and implicating Illinois House Speaker Mike Madigan, State Representative Mark Batinick (R-Plainfield) is renewing his call for Madigan to resign and demanding lawmakers return to Springfield to pass comprehensive ethics reform.
Today’s charges come after a yearlong corruption investigation into state and local governments. ComEd has agreed to resolve the investigation through a deferred prosecution agreement with the U.S. Attorney’s office, which include paying a $200 million fine. Through that agreement ComEd, the largest electric utility company in Illinois, has admitted it arranged jobs, subcontracts and pay-offs for political associates of Mike Madigan.
“I was the first elected official to call for the Speaker to resign and that sentiment rings even truer today,” said Rep. Batinick. “If we are going to truly root out corruption in our system, it starts from the top down. Elected officials need to be held the most accountable and with today’s charges, it is clear that the time has come for the Speaker to answer to the people of Illinois.”
In 2016, Rep. Batinick worked tirelessly against a ComEd bailout bill, SB2814, which required a statewide rate hike to prevent the closure of two nuclear power plants in Illinois. The rate increase provided for in SB2814 was expected to generate more than $200 million a year over the next ten years, but was the key factor in the federal probe against ComEd. For Batinick, this bailout was nothing more than a politically-connected coalition of Energy Industry players rushing through a complicated bill to force electric rate increases throughout Illinois. In 2019, he filed legislation, HB3987, to eliminate the bailout, which was never called by the Speaker for consideration.
The Representative is calling for lawmakers to return to Springfield to work on a comprehensive ethics reform package. “As lawmakers, we need to get back to Springfield and adopt stronger ethics laws. While the sense of urgency to make this change has been lost on the majority party for far too long, today’s federal charges reinforce what the Republican caucus has been supporting for years: we need change in Illinois and it must come soon.”
An ethics reform package filed by the House Republicans last year was never given consideration in the House of Representatives. A list of that legislation is here.
*** UPDATE 2 *** Leader Durkin…
Illinois House Republican Leader Jim Durkin (R-Western Springs) released the following statement on the new information released from the ongoing federal corruption investigations:
“Earlier this week, I pushed to reform our broken political system in Illinois and once again, Speaker Madigan dismissed the need for ethics reform in Illinois. Today, we see why.
The announcement against ComEd and “Public Official A” and the ongoing investigation of Cook County Property tax corruption are another sad commentary on the state of our state. The deep federal investigations into the highest members of the Democratic Party and their abuse of the Cook County property tax system is finally coming to light.
For too long, one man, Speaker Madigan, has held so much power, and the old axiom holds true: power tends to corrupt, and absolute power corrupts absolutely.
The chance for ethics reform this session has been blocked. Any hope for real property tax reform has been stalled. The system has been rigged to benefit those in power, and to keep the Democratic Party in control while the citizens of Cook County and Illinois suffer.
Today, I hope, is a day of awakening for citizens of Illinois. We sit here in a bankrupt state, burdened by the actions, or in many cases inaction, of the Democratic Party of Illinois that through Speaker Madigan has held the reins of power for decades.
The allegations presented today are troubling and downright depressing. Speaker Madigan needs to “speak” up on this issue, and if the allegations are true, he needs to resign immediately. Just as important, I hope that members of the General Assembly in the majority party, the Democratic Party, have the courage to finally stand up and demand an explanation of their leader that they have for decades elected to rule.
The citizens of Illinois deserve so much better.”
*** UPDATE 3 *** Leader Brady…
The following is a statement by Senate Republican Leader Bill Brady.
“At the same time Illinois Democrats are pushing for a massive tax increase, residents are again confronted with Democratic corruption at the highest levels of their state government. If the allegations reported today against Speaker Madigan turn out to be true, then he should resign.”
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* Let’s take a look at ComEd’s deferred prosecution agreement, starting with this section entitled “Hiring of Public Official A’s [Speaker Madigan’s] Associates as Vendor ‘Subcontractors’ Who Performed Little or No Work for ComEd”…
Beginning no later than in or around 2011, Public Official A and Individual A sought to obtain from ComEd jobs, vendor subcontracts, and monetary payments associated with those jobs and subcontracts for various associates of Public Official A, such as precinct captains who operated within Public Official A’s legislative district.
In or around 2011, Individual A and Lobbyist 1 developed a plan to direct money to two of Public Official A’s associates (“Associate 1” and “Associate 2”) by having ComEd pay them indirectly as subcontractors to Consultant 1. Payments to Associate 1 and Associate 2, as well as later payments to other subcontracted associates of Public Official A, continued until in or around 2019, even though those associates did little or no work during that period.
Consultant 1 agreed in 2011 that Public Official A’s associates would be identified as subcontractors under Consultant 1’s contract and that ComEd’s payments to Consultant 1 would be increased to cover payments to those subcontractors. Between in or around 2011 and 2019, Consultant 1 executed written contracts and submitted invoices to ComEd that made it falsely appear that the payments made to Company 1 were all in return for Consultant 1’s advice on “legislative issues” and “legislative risk management activities,” and other similar matters, when in fact a portion of the compensation paid to Company 1 was intended for ultimate payment to Public Official A’s associates, who in fact did little or no work for ComEd. Consultant 1 and Company 1 did little, if anything, to direct or supervise the activities of Public Official A’s associates, even though they were subcontracted under and received payments through Company 1. Moreover, because they were paid indirectly through Company 1, the payments to Public Official A’s associates over the course of approximately eight years were not reflected in the vendor payment system used by ComEd, and as a result, despite that Public Official A’s associates were subcontracted under and receiving payments through Company 1, no such payments were identifiable in ComEd’s vendor payment system.
Certain senior executives and agents of ComEd were aware of these payments from their inception until they were discontinued in or around 2019. For example, in or around May 2018, Public Official A, through Individual A, asked CEO-1 to hire a political ally of Public Official A who was retiring from the Chicago City Council at the end of the month (“Associate 3”).
Public Official A, we know, is Speaker Madigan. The alderman who retired in 2018 was likely Michael Zalewski. Could “Consultant 1″ be this guy?…
For example, the previously unreported records show ComEd paid Jay D. Doherty and Associates $3,104,250 between 2011 and 2018. That amount is almost six times greater than the roughly $530,000 he disclosed being paid by ComEd in lobbyist disclosures filed with the city of Chicago. In federal filings, ComEd vaguely listed Doherty’s work only as “business consulting.” […]
WBEZ has reported that investigators are looking into whether Doherty served as a “pass through” for ComEd’s under-the-radar deals with politically connected individuals and companies, some of whom are suspected of doing little or no work.
* Those alleged pass-through payments to Consultant 1 explained…
Certain senior executives and agents of ComEd were also aware of the purpose of these payments to Public Official A’s associates, namely, that they were intended to influence and reward Public Official A in connection with Public Official A’s official duties and to advance ComEd’s business interests.
The feds don’t come right out and say it, but they’re all but alleging bribery here.
* “Individual A” looks to my eyes to be Mike McClain…
On or about May 16, 2018, Individual A explained to Senior Executive 1 why certain individuals were being paid indirectly through Company 1, by making reference to their utility to Public Official A’s political operation. Individual A identified Associate 1, one of the several individuals on Company 1’s payroll, as “one of the top three precinct captains” who also “trains people how to go door to door . . . so just to give you an idea how important the guy is.” […]
On or about February 11, 2019, Individual A had a conversation with Lobbyist 1, who by that time had retired from ComEd, but had continued to serve as a paid external lobbyist to ComEd. In discussing how the renewal of Company 1’s contract—which included significant payments to Company 1 to account for indirect payments to Public Official A’s associates—should be communicated internally, Individual A said, “We had to hire these guys because [Public Official A] came to us. It’s just that simple.” Lobbyist 1 agreed, and added, “It’s, it’s clean for all of us.”
Lobbyist 1, in my opinion, looks like John Hooker.
* Here’s where the alleged quid pro quo comes in…
Consultant 1 emphasized that he had told no one of the arrangement per instructions previously given to Consultant 1, and cautioned Senior Executive 1 that ComEd should not tamper with the arrangement because “your money comes from Springfield,” and that Consultant 1 had “every reason to believe” that Individual A had spoken to Public Official A about the retention of Public Official A’s associates, and knew Lobbyist 1 had done so Consultant 1 added that Public Official A’s associates “keep their mouth shut, and, you know, so. But, do they do anything for me on a day to day basis? No.” Consultant 1 explained that these payments were made “to keep [Public Official A] happy, I think it’s worth it, because you’d hear otherwise.”
* More…
On or about March 5, 2019, Individual A and ComEd personnel participated in a meeting during which they discussed Company 1’s contract and why the indirect payments to Public Official A’s associates made under the guise of that contract should be continued for another year. During that meeting, Individual A explained that for decades, Public Official A had named individuals to be ComEd employees, such as meter readers, as part of an “old-fashioned patronage system.” In response, a ComEd employee acknowledged that such hires could be a “chip” used by ComEd. ComEd renewed Company 1’s contract.
* We know that the feds were listening to McClain’s phone calls. This looks like an example…
On or about March 6, 2019, Individual A and Lobbyist 1 discussed the renewal of Company 1’s contract. During the conversation, Lobbyist 1 explained that “with the [Consultant 1] stuff, you got a little leg up,” to which Individual A agreed. Lobbyist 1 later added, “I mean it’s uh, unmentioned, but you know, that which is understood need not be mentioned.” Individual A responded, “Right. Exactly. Exactly.”
* From the section entitled “Appointment of Board Member 1 as Member of the Board of Directors at the Request of Public Official A”…
Beginning in or around 2017, Public Official A sought the appointment of an associate to the ComEd Board of Directors (hereinafter referred to as “Board Member 1”). Public Official A’s request was communicated by Individual A to CEO-1. In or around May 2018, in response to internal company opposition to the appointment of Board Member 1, CEO-1 asked Individual A if Public Official A would be satisfied if CEO-1 arranged for Board Member 1 to receive a part-time job that paid an equivalent amount of money to a board member position, namely, $78,000 a year. Individual A told CEO-1 that Public Official A would appreciate if CEO-1 would “keep pressing” for the appointment of Board Member 1, and CEO-1 agreed to do so. In or around September 2018, CEO-1 (who by this time had been promoted to an executive position within Exelon Utilities, in which capacity CEO-1 maintained oversight authority over ComEd) assured Individual A that CEO-1 was continuing to advocate for the appointment of Board Member 1 made at Public Official A’s request because “You take good care of me and so does our friend [Public Official A] and I will do the best that I can to, to take care of you.”
On or about April 25, 2019, CEO-1 advised Individual A by text message, “Just sent out Board approval to appoint [Board Member 1] to ComEd Board.” The following day, April 26, 2019, ComEd filed a notice with the United States Securities and Exchange Commission stating that Board Member 1 had served as a director of ComEd since April 2019. Although ComEd and Exelon conducted due diligence on Board Member 1 and ultimately determined he was qualified for a Board position, no one at ComEd or Exelon recruited Board Member 1 to serve as a director, and ComEd did not interview or vet other outside candidates for the vacant board seat. ComEd appointed Board Member 1, in part, with the intent to influence and reward Public Official A in connection with Public Official A’s official duties.
Whoa. Legal or not, that’s brazen.
…Adding… From an SEC filing under “Election of Directors”…
Juan Ochoa, Age 48. Mr. Ochoa has served as a Director of ComEd since April 2019.
* “Retention of Law Firm A”…
In or around 2011, ComEd agreed to retain Law Firm A, and entered into a contract pursuant to which ComEd agreed to provide Law Firm A with a minimum of 850 hours of attorney work per year. This contract was entered into with Law Firm A, in part, with the intent to influence and reward Public Official A in connection with Public Official A’s official duties and because personnel and agents of ComEd understood that giving this contract to Law Firm A was important to Public Official A. In 2016, Law Firm A’s contract was up for renewal. As part of renewal discussions, personnel within ComEd sought to reduce the hours of legal work they provided to Law Firm A from the 850 hours specified in the 2011 retention agreement because ComEd paid only for hours worked and there was not enough appropriate legal work to give to Law Firm A to fill 850 annual hours.
Thereafter, an attorney associated with Law Firm A [Lawyer A] complained to Individual A about ComEd’s effort to reduce the amount of work provided to Law Firm A. On or about January 20, 2016, Individual A contacted CEO-1 and wrote, “I am sure you know how valuable [Lawyer A] is to our Friend [Public Official A],” and then went on to write, “I know the drill and so do you. If you do not get involve [sic] and resolve this issue of 850 hours for his law firm per year then he will go to our Friend [Public Official A]. Our Friend [Public Official A] will call me and then I will call you. Is this a drill we must go through?” CEO-1 replied in writing, “Sorry. No one informed me. I am on this.” Thereafter, CEO-1 tasked a ComEd employee, who was assigned as a “project manager” to assist with the project of obtaining legislative approval of FEJA, to ensure that Law Firm A’s contract was renewed. The project manager had no oversight authority over ComEd’s legal department and was not otherwise involved in deciding what legal professionals the legal department retained. The project manager was assigned the task of ensuring Law Firm A’s contract was renewed because the work provided to Law Firm A was, in part, designed to influence and reward Public Official A in connection with Public Official A’s official duties, including the promotion and passage of FEJA. ComEd agreed in or around June 2016 to renew Law Firm A’s contract with substantially reduced annual hours.
* “Internship Program”…
Beginning no later than 2013, and continuing until in or around 2019, ComEd operated an internship program. As part of the program, ComEd would accept a specified target number of students who primarily resided in a Chicago ward that Public Official A was associated with (“Public Official A’s Ward”) and that were recommended to ComEd by associates of Public Official A, including Individual A. ComEd hired students from Public Official A’s Ward, in part, with the intent to influence and reward Public Official A in connection with Public Official A’s official duties.
* “Benefit to ComEd”…
Between in or around 2011 and in or around 2019, during the same time frame that ComEd was making payments to Public Official A’s associates, and extending other benefits for the purpose of influencing and rewarding Public Official A, ComEd was also seeking Public Official A’s support for legislation that was beneficial to ComEd, including EIMA and FEJA, that would ensure a continued favorable rate structure for ComEd. ComEd acknowledges that the reasonably foreseeable anticipated benefits to ComEd of such legislation exceeded $150,000,000.
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* This is one crazy day, campers. Here’s Tim Novak…
Federal prosecutors have made a series of requests to the Cook County assessor’s office over the past five months for records regarding the $330,000 property tax break that Gov. J.B. Pritzker got on a Gold Coast mansion — a break he got in part because the toilets were disconnected during a stalled remodeling job.
Records obtained by the Chicago Sun-Times show the U.S. attorney’s office in Chicago has asked Cook County Assessor Fritz Kaegi for all emails and any other communications dating to 2012 regarding the tax break that Kaegi’s predecessor, Joseph Berrios, gave Pritzker.
As they continue an investigation prompted by a Sun-Times report in May 2017, they have asked for information including the name of every employee who, under Berrios, “worked, reviewed and/or approved” the tax break for one of the two mansions Pritzker owns on North Astor Street. Pritzker reimbursed Cook County the full value of the tax break in 2018.
Rather than obtain those names through subpoenas, prosecutors sent Kaegi’s staff a series of emails beginning Jan. 17 that cited a wide range of specific records, which he has agreed to turn over, records show.
* Just a few of the other properties the feds were interested in…
• 1 N. LaSalle St., a Loop skyscraper owned by ONL Properties. Burke’s law firm filed eight appeals between 2010 and 2017. During that time, Berrios moved to drastically increase his estimation of the property’s value but backed down. That resulted in Burke getting more than $1.9 million in property savings for the owners. On top of that, he got them a tax refund of $101,951 last year when a Cook County judge agreed to lower the 2015 assessment, when the tax bill totaled $2,098,342. […]
• 730 Franklin Building, a commercial building at 300 W. Superior St., filed five appeals to Berrios’ office, at first using Madigan’s law firm and then switching to Flanagan last year. […]
• Gibson’s, 1028 N. Rush St., a steakhouse popular with Chicago’s movers and shakers, has long been represented by property tax attorney Michael Crane, whose nephew Christopher Crowley was Berrios’s chief of staff in the assessor’s office. […]
• Erie Cafe, 530 E. Erie St., a steakhouse where Berrios is among the clout-heavy regulars. It was also the site of his retirement party before he left office in December 2018.
Go read the whole thing.
…Adding… From the governor’s daily public schedule…
What: Gov. Pritzker to discuss local jobs supported by the Summer Youth Employment Program.
Where: Employee Connections, 2504 Washington Street, Waukegan
When: 12:00 p.m.
Watch live: https://www.Illinois.gov/LiveVideo
What: Gov. Pritzker to discuss the census and the importance of being counted.
Where: Hinkston Park, 810 Baldwin Avenue, Waukegan
When: 1:00 p.m.
Watch live: https://www.Illinois.gov/LiveVideo
Note: No additional media availability.
I’ve asked whether he’s still planning to do these events. I’ll let you know what I hear back.
*** UPDATE *** I’m told the schedule stands as is.
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* Sun-Times…
ComEd will pay $200 million to end a federal criminal investigation into a years-long bribery scheme, the U.S. Attorney’s office announced Friday.
In doing so, it is admitting it arranged jobs, subcontracts and pay-offs for associates of “a high-level elected official for the state of Illinois.” That person is identified as “Public Official A” in a news release that implicates House Speaker Michael Madigan.
“Public Official A controlled what measures were called for a vote in the Illinois House of Representatives and exerted substantial influence over fellow lawmakers concerning legislation affecting ComEd,” the U.S. Attorney’s office said in a news release.
ComEd is resolving the investigation through a deferred prosecution agreement that will include the $200 million fine, according to the feds.
* Press release…
Commonwealth Edison Company (“ComEd”), the largest electric utility in Illinois, has agreed to pay $200 million to resolve a federal criminal investigation into a years-long bribery scheme, the U.S. Attorney’s Office in Chicago announced today.
The criminal investigation of ComEd is being resolved with a deferred prosecution agreement under which ComEd admitted it arranged jobs, vendor subcontracts, and monetary payments associated with those jobs and subcontracts, for various associates of a high-level elected official for the state of Illinois, to influence and reward the official’s efforts to assist ComEd with respect to legislation concerning ComEd and its business. The U.S. Attorney’s Office today filed a one-count criminal information in U.S. District Court in Chicago charging ComEd with bribery. Under the agreement, the government will defer prosecution on the charge for three years and then seek to dismiss it if ComEd abides by certain conditions, including continuing to cooperate with ongoing investigations of individuals or other entities related to the conduct described in the bribery charge.
The deferred prosecution agreement, which is subject to approval by the U.S. District Court, requires ComEd to pay a $200 million fine. A court date for the approval hearing has not yet been scheduled.
The bribery charge and deferred prosecution agreement were 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 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, Matthew L. Kutcher, and Michelle Kramer.
In addition to the monetary penalty and obligation to continue cooperating with government investigations, ComEd’s obligations under the deferred prosecution agreement include enhancing its compliance program and providing annual reports to the government regarding remediation and implementation of its compliance measures. If ComEd fails to completely perform or fulfill each of its obligations under the agreement during the three-year term, the U.S. Attorney’s Office can initiate prosecution of the charged offense.
ComEd’s admissions regarding the charged conduct are contained in a Statement of Facts attached to the deferred prosecution agreement. ComEd admitted that its efforts to influence and reward the high-level elected official – identified in the Statement of Facts as “Public Official A” – began in or around 2011 and continued through in or around 2019. During that time, the Illinois General Assembly considered bills and passed legislation that had a substantial impact on ComEd’s operations and profitability, including legislation that affected the regulatory process used to determine the electricity rates ComEd charged its customers. Public Official A controlled what measures were called for a vote in the Illinois House of Representatives and exerted substantial influence over fellow lawmakers concerning legislation affecting ComEd. The company admitted that it arranged for jobs and vendor subcontracts for Public Official A’s political allies and workers even in instances where those people performed little or no work that they were purportedly hired by ComEd to perform.
In addition to the jobs and contracts, ComEd further admitted that it undertook other efforts to influence and reward Public Official A, including by appointing an individual to ComEd’s Board of Directors at the request of Public Official A; retaining a particular law firm at the request of Public Official A; and accepting into the company’s internship program a certain amount of students who resided in the Chicago ward where Public Official A was associated.
To date, ComEd has provided substantial cooperation with the federal investigations. Per the terms of the agreement, the company will continue to provide such cooperation until all investigations and prosecutions arising out of the charged conduct are concluded.
Click here for the ComEd Deferred Prosecution Agreement. Click here for the criminal information…
Public Official A was the Speaker of the House of Representatives and an elected member of that body. As Speaker of the House of Representatives, Public Official A was able to exercise control over what measures were called for a vote in the House of Representatives. Public Official A also exercised substantial influence and control over fellow lawmakers concerning legislation, including legislation affecting ComEd.
Beginning no later than in or around 2011, and continuing through in or around 2019, in the Northern District of Illinois, Eastern Division, and elsewhere,
COMMONWEALTH EDISON COMPANY,
defendant herein, corruptly gave, offered, and agreed to give things of value, namely, jobs, vendor subcontracts, and monetary payments associated with those jobs and subcontracts, for the benefit of Public Official A and Public Official A’s associates, with intent to influence and reward Public Official A, as an agent of the State of Illinois, a State government that during each of the twelve-month calendar years from 2011 to 2019, received federal benefits in excess of $10,000, in connection with any business, transaction, and series of transactions of $5,000 or more of the State of Illinois, namely, legislation affecting ComEd and its business;
In violation of Title 18, United States Code, Section 666(a)(2).
…Adding… Sounds like we’ll know more later today. Media advisory…
WHO: John R. Lausch, Jr., United States Attorney for the Northern District of Illinois
Emmerson Buie, Jr., Special Agent-in-Charge of the FBI Chicago Field Office
Kathy A. Enstrom, Special Agent-in-Charge of the Chicago Office of the IRS Criminal Investigation Division
WHAT: The officials will announce developments in a public corruption investigation.
WHERE: Enclosed courtyard of the Dirksen Federal Building, 219 S. Dearborn St., Chicago IL 60604
Media credentials and masks will be required to access the news conference.
WHEN: Friday, July 17, 2020, 12:30 p.m. CDT
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