* Jason Meisner and Ray Long at the Tribune…
AT&T Illinois has agreed to pay a $23 million fine as part of a federal criminal investigation into the company’s illegal efforts to influence former House Speaker Michael Madigan.
The investigation of AT&T Illinois, which was previously reported by the Tribune earlier this year, is being resolved with a deferred prosecution agreement under which the company admitted it arranged for payments to be made to an ally of Madigan to influence the powerful speaker’s efforts to assist with legislation sought by the company in Springfield.
In exchange for admitting guilt and paying a $23 million fine, the charge will be dropped by the U.S. Attorney’s Office in two years. […]
The payments to [former state Rep. Edward Acevedo] were made via a lobbying contract between AT&T and Thomas Cullen, a former Madigan staffer and longtime political strategist aligned with the speaker, two sources told the newspaper.
Acevedo was a registered lobbyist at the time, state records show, but not for AT&T, and the sources said the amount of work Acevedo actually did for AT&T is in question.
Whew. Stay tuned because this post will be updated.
*** UPDATE 1 *** AT&T’s response…
* From the US Attorney…
The former president of Illinois Bell Telephone Company, which does business as AT&T Illinois, has been charged in federal court with participating in a conspiracy to unlawfully influence the former Illinois Speaker of the House of Representatives involving the company’s efforts to advance legislation in the Illinois General Assembly.
PAUL LA SCHIAZZA conspired in 2017 with former Speaker Michael J. Madigan, Madigan’s close friend, Michael McClain, and others, to corruptly arrange for $22,500 to be paid to a Madigan ally, according to a five-count indictment unsealed today in U.S. District Court in Chicago. AT&T Illinois caused the payments to be made through an intermediary – a lobbying firm that performed services for AT&T Illinois – to conceal the true nature of the payments, which was to influence and reward Madigan’s efforts as Speaker to assist the company with respect to certain legislation, the indictment alleges. Although the members of the conspiracy formulated a pretextual assignment for Madigan’s ally to disguise why the ally was being paid, the ally performed no actual work for AT&T Illinois and had no role in advancing the legislation, the indictment states.
La Schiazza, 65, is charged with one count of conspiracy, one count of corruptly giving something of value to reward a public official, and three counts of using a facility in interstate commerce to promote unlawful activity. Arraignment in federal court in Chicago has not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Ashley T. Johnson, Acting Special Agent-in-Charge of the Chicago Field Office of the FBI; and Justin Campbell, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago. The government is represented by Assistant U.S. Attorneys Amarjeet S. Bhachu, Diane MacArthur, Timothy J. Chapman, Sarah E. Streicker, Michelle Kramer, and Julia Schwartz.
Also today, the U.S. Attorney’s Office filed a one-count criminal information charging AT&T Illinois with using an interstate facility to promote unlawful activity.
The public is reminded that charges are not evidence of guilt. Defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
The indictment is here.
* Also…
Illinois Bell Telephone Company, LLC, which does business as AT&T Illinois, today agreed to pay $23 million to resolve a federal criminal investigation into alleged misconduct involving the company’s efforts to unlawfully influence former Illinois Speaker of the House Michael J. Madigan.
The investigation of AT&T Illinois is being resolved with a deferred prosecution agreement under which the company admitted it arranged for payments to be made to an ally of Madigan to influence and reward Madigan’s efforts to assist AT&T Illinois with respect to legislation sought by the company. The U.S. Attorney’s Office today filed a one-count criminal information in U.S. District Court in Chicago charging AT&T Illinois with using an interstate facility to promote legislative misconduct. Under the agreement, the government will defer prosecution on the charge for two years and then seek to dismiss it if AT&T Illinois abides by certain conditions, including continuing to cooperate with any investigation related to the misconduct alleged in the information.
The deferred prosecution agreement requires AT&T Illinois to pay $23 million to the federal Crime Victims Fund. Arraignment in federal court in Chicago has not yet been scheduled.
The charge and the deferred prosecution agreement were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Ashley T. Johnson, Acting Special Agent-in-Charge of the Chicago Field Office of the FBI; and Justin Campbell, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago. The government is represented by Assistant U.S. Attorneys Amarjeet S. Bhachu, Diane MacArthur, Timothy J. Chapman, Sarah E. Streicker, Michelle Kramer, and Julia Schwartz.
AT&T Illinois’s admissions regarding the charged conduct are contained in a Statement of Facts attached to the deferred prosecution agreement. AT&T Illinois admitted that in 2017 it arranged for an ally of Madigan to indirectly receive $22,500 in payments from the company. The company paid the money through an intermediary – a lobbying firm that performed services for AT&T Illinois. Although AT&T Illinois employees formulated a pretextual assignment for Madigan’s ally to disguise why the ally was being paid, the ally performed no actual work for AT&T Illinois and the company made no effort to ensure any work was performed. AT&T Illinois acknowledged in the agreement that AT&T Illinois’s then-president used an interstate facility to facilitate Madigan’s indirect receipt of a thing of value, namely the payments made to his ally, in exchange for Madigan’s vote and influence over a bill.
In addition to the monetary penalty and its continued cooperation with the government, AT&T Illinois’s obligations under the agreement include implementing a new compliance and ethics program and providing annual reports to the government regarding remediation and implementation of the program. If AT&T Illinois fails to completely fulfill each of its obligations under the agreement during the two-year term, the U.S. Attorney’s Office can initiate prosecution of the charged offense.
The deferred prosecution agreement is here. The “information” is here.
*** UPDATE 2 *** Gonna be a busy Friday…
…Adding… The superseding indictment is here.
…Adding… ILGOP…
“Indicted former House Speaker Mike Madigan’s legacy continues to haunt Illinois as he now faces additional corruption-related charges. Since 2019, nine Chicago Democratic Aldermen & women, three Democratic State Representatives, and four Democratic State Senators have been indicted or convicted on corruption-related charges, including Madigan himself.
While these additional charges, as well as AT&T’s settlement, is another step towards justice, with Ilinois Democrats and their corruption charges, it’s like the “Never Ending Story”. This sad saga hasn’t ended with Madigan. It will only end when Democratic leaders like Speaker Welch and Senate President Harmon stop turning a blind eye to Madiganesque behavior in their caucuses.”