Metro East fast approaching danger zone
Monday, Jul 20, 2020 - Posted by Rich Miller
* I started warning my subscribers about the Metro East last Tuesday after I checked into why the southern region was posting higher positivity rate numbers than anywhere else. Here’s WGN…
A region of Illinois counties outside St. Louis hit health officials’ “warning” number of days with an increase in the percent of coroanvirus tests which come back positive Monday, approaching the state’s “failsafe” level where reopening measures could be rolled back.
According to the Illinois Department of Public Health, the “Metro East” region in southwest Illinois has seen an increase in test positivity rates for seven over the past 10 days, hitting the “warning” level outlined in the updated “Restore Illinois” plan.
Moreover, the region’s rate was at 7.1 percent as of July 17 and is approaching 8 percent, the point at which Governor JB Pritzker previously said reopening measures would likely be rolled back as part of a “failsafe” if cases exceed that level for three days.
The region includes Bond, Clinton, Madison, Monroe, Randolph, St. Clair and Washington counties.
The state’s numbers are lagging behind by three days. We need updated numbers, for crying out loud.
Also, the state has issued no alerts about this Metro East problem that I’ve seen. Those folks are gonna be blindsided if the state has to take action. The local governments need to step in now and get their hotspots under control. Maybe people like the Monroe County sheriff can finally order his deputies to start enforcing counter-measures while he recovers from COVID-19.
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* Press release…
The Illinois Department of Public Health (IDPH) today announced 1,173 new confirmed cases of coronavirus disease (COVID-19) in Illinois, including 6 additional confirmed deaths.
Cass County – 1 female 90s
Cook County – 1 female 70s, 1 male 90s
DuPage County – 1 male 70s
Peoria County – 1 female 100+
Will County – 1 female 50s
Currently, IDPH is reporting a total of 162,748 cases, including 7,301 deaths, in 102 counties in Illinois. The age of cases ranges from younger than one to older than 100 years. Within the past 24 hours, laboratories have reported 34,598 specimens for a total of 2,279,109. The preliminary seven-day statewide positivity for cases as a percent of total test from July 13 - July 19 is 3.0%. As of last night, 1,410 people in Illinois were reported to be in the hospital with COVID-19. Of those, 308 patients were in the ICU and 133 patients with COVID-19 were on ventilators.
The governor said today that he was frustrated about how hospitalizations and the positivity rate are both staying level, rather than decreasing.
* Press release…
IFT President Dan Montgomery and educators and school staff from around the state today called for remote learning this fall in Illinois’ schools, colleges, and universities. […]
With infection rates becoming unstable and rising in some regions of the state, the union and our members are gravely concerned about the safety of students, educators, and staff. According to a recent Kaiser Foundation study, nearly 24 percent of educators are at high-risk due to underlying health conditions, which further bolsters the need to begin the year with online learning. […]
Though the union believes some types of in-person instruction can be achieved with health and safety mitigation, in the absence of a practical safety plan that includes clear guidance like the union has provided, a return to in-person instruction right now is too great a risk. Too many schools and campuses cannot currently achieve critical safety benchmarks.
Included in the IFT’s guidance for an eventual reopening of schools:
• A call for all school districts and institutions to negotiate safe, effective learning plans with their unions, students, and parents.
• The right of teachers to determine the best mode of instruction.
• Required social distancing and a limit of 15 students per classroom in PreK-12 schools.
• Temperature checks or health screenings for all students, staff, and visitors.
• Adequate testing availability, especially in rural communities.
• Required two-week quarantines for students or staff who test positive or have high-risk exposure to COVID-19.
More here.
* The Southern…
Community colleges in Southern Illinois are preparing for the start of an unusual fall semester with plans to offer a mix of online, in-person and hybrid courses. Though the formats and degree to which in-person classes will be offered vary somewhat from campus to campus, the plans that have been outlined thus far are similar.
The colleges said they are following guidance put forth by the Centers for Disease Control and Prevention, Illinois Department of Public Health and local health departments and the Illinois Community College Board. They also noted that their plans are flexible and include the ability to rapidly shift to distance learning-only platforms if necessitated by the spread of COVID-19.
* May 15…
Illinois Gov. J.B. Pritzker is threatening to use local law enforcement and state police against businesses that reopen in defiance of his policies.
The governor gave the stern warning on the same day Madison County officials have gone against the governor’s public health orders and started to reopen.
The Monroe County Sheriff Neal Rohlfing posted this statement to the department’s Facebook page today:
“It has been very frustrating to watch this public health issue cause the many problems that we face today. I know many of our residents are struggling with the restrictions we are facing from the state. I will always side with our residents Constitutional Rights regardless to what consequences I may have. I was elected by the residents of Monroe County and I will continue to provide the highest level of public safety as long as I am Sheriff!”
* Yesterday…
A county sheriff in southwestern Illinois has tested positive for COVID-19, according to officials.
The Monroe County Sheriff’s Department said Sheriff Neal Rohlfing has been in quarantine since he had symptoms earlier this month. He received a positive test on Wednesday, according to a department statement.
“The sheriff has been lucky and has experienced very mild symptoms,” the statement said.
Glad to hear that he’s going to be OK.
* Tribune’s live blog…
Wisconsin’s largest teachers unions call for online school due to the coronavirus pandemic
Residential buildings to set guest limit at 5 as part of new COVID-19 restrictions announced Monday
COVID-19 took a big toll in Illinois. Will deaths surge again?
Opioid overdoses skyrocket in the face of COVID-19 pandemic; stronger drugs, scarce treatment blamed
The risk of drownings has rarely been higher as Chicago endures a pandemic and one of its hottest summers
Sticky notes on the bathroom door and wipes by the coffee pot. Employees find new rules as they return to the office.
* Sun-Times live blog…
UK COVID-19 vaccine prompts protective immune response in early trial
What we don’t know about how COVID-19 affects kids
‘A dangerous environment’: As churches reopen, coronavirus outbreaks are sprouting and some are keeping doors shut
Even with patrons spaced far apart, moviegoing feels safe and communal
In Arizona, more than 2,000 people went to an ER with coronavirus symptoms on a single day, July 7.
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* From Gov. Pritzker’s Q&A in Peoria today…
Have you had more time to look at Speaker Madigan’s ties to the ComEd charges and do you still think of him as a political ally?
Zing.
* The governor’s response…
Only… Well, you know, let’s set apart the last point that you’re making.
I, you know, let’s just say it’s been very important to me that Speaker Madigan step forward to answer the questions that are raised in that ComEd - I don’t what it’s referred to, information, indictment, I’m not sure. Um, I, so, you know, that’s something that, that has got to get done. I, look, people who serve in public office owe a duty of integrity to the people that they serve. Um, and, and there are allegations that are, some made and some just implied in that document. It raises a lot of questions and I think the speaker is going to have to answer those questions.
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The Madigan problem
Monday, Jul 20, 2020 - Posted by Rich Miller
* It’s no surprise that many suburban legislative districts don’t look too great for Republicans this year. Depending on how far the G goes, even the Madigan stuff might not break through in some races because of a heavily nationalized election. But in districts where President Trump did well, that could be a different story. HGOP press release…
State Representative candidates Amy Elik, Lisa Ciampoli, and David Friess released the following statements regarding the ongoing corruption scandal surrounding House Speaker Michael Madigan and State Representatives Monica Bristow (IL-111), Katie Stuart (IL-112), Nathan Reitz’s (IL-116), continued silence on the matter.
“This is another example – of far too many – that Illinois has a corruption problem,” said Amy Elik, state representative candidate for the 111th district. “While public officials betray the public’s trust, Monica Bristow’s continued silence is just as concerning. She is prioritizing her political ambitions ahead of her sworn duty as a state legislator while Illinois taxpayers continue to be the forgotten voices as tax dollars are mismanaged.”
“Corruption is consuming Illinois government,” said Lisa Ciampoli, state representative candidate for the 112th district. “It’s time to put Illinois on a new path, and the first step is to replace those that fail to speak out against rampant corruption in state government. Katie Stuart’s continued silence shows she is prioritizing party loyalty over taxpayers’ pocketbooks. From day one, I will push for meaningful ethics reform in Springfield.”
“Every time another state corruption investigation is announced, it’s a reminder that our tax dollars are under attack by those choosing to enrich themselves over fulfilling their duty to public service,” said David Friess, state representative candidate for the 116th district. “It’s time for Nathan Reitz to end his silence and join me in calling for Madigan to resign.”
This incident is not the first time area state representatives failed to speak out. When WBEZ covered the story alleging a “powerful former Springfield lobbyist and close friend of House Speaker Madigan” covered up a rape in Champaign and ghost payrolling of government workers, State Representatives Bristow, Stuart, and Reitz failed to hold Madigan accountable.
Alaina Hampton, the individual who sued and settled with Madigan’s operation for sexual harassment, noted in a July 26, 2019 tweet to the Democratic Women’s Caucus, saying:
“I’ve now been waiting a year & a half for you to support me publicly, or even address me by name in a statement. Where are you? What is your stance? We all want to know.”
What does it take for Representatives Bristow, Stuart, and Reitz to speak up?
Trump won Bristow’s district by 16 points, he won Stuart’s by 5.5 and he won Reitz’s by 36. Yes, 36.
* And this is from a suburban/exurban congressional race…
In light of recent news report revealing that House Speaker Michael Madigan is “Public Official A” in the federal bribery investigation of ComEd, Jim Oberweis is calling on Lauren Underwood to cut ties with funds controlled by Speaker Madigan.
The Lauren Underwood Victory Fund is a joint fund-raising committee connected to the Democrat Party of Illinois, which is controlled by House Speaker Michael Madigan. Oberweis is calling on Underwood to cut ties with the Speaker by ending her joint fundraising efforts with organizations he controls.
“It is time for Underwood to stop partnering with Speaker Madigan to raise money for her campaign,” Oberweis said. “The people of the 14th District deserve better. I urge Underwood to do the right thing and end her partnership with the Speaker and condemn his actions. Unfortunately, I suspect all we will get from Rep. Underwood is more silence.”
Underwood has a long history of silence when it comes to Speaker Madigan. She walked away from a question on leaked emails from one of Madigan’s top confidants’ suggesting a rape had been covered up. Instead of answering the question, Underwood walked away in silence. (https://www.youtube.com/watch?v=wy4cwRI3Gag&feature=youtu.be).
“Either she is blind to the cloud of corruption surrounding the Speaker or she is willfully choosing to ignore the truth,” Oberweis said. “Either way, her silence is unacceptable. It is time for Democrat officials at all levels of government to demand new leadership. Michael Madigan is the head of her party. Why is she content to allow a corrupt politician like Speaker Madigan to continue to lead her party? The people of the 14th District deserve answers.”
The attachment is here. Trump won that district by 3.7 percentage points.
Discuss.
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Skillicorn jokes about pandemic deaths
Monday, Jul 20, 2020 - Posted by Rich Miller
* This guy…
* I reached out to his Democratic opponent Suzanne Ness for a reaction…
Over 7400 Illinoisans have lost their lives to this terrible pandemic and Allen Skillicorn chooses to make a joke about it. And while our families have made major changes in their lives to stop the spread of the virus, Skillicorn made two trips to Trump rallies in Oklahoma and Arizona, without a mask or PPE, risking bringing coronavirus back to our community from these virus hotspots. He has shown us again and again that he either isn’t taking this seriously, he doesn’t get it, or he just doesn’t care. Yet again another example of poor leadership. It’s time for a change.
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* Press release…
Mayor Lori E. Lightfoot, the Chicago Department of Public Health (CDPH) and the Department of Business Affairs and Consumer Protection (BACP) announced today a re-tightening of COVID-19 restrictions for bars, restaurants, gyms and personal services as a precautionary move in response to a recent increase in community cases of the virus. Throughout the pandemic, data has guided every move made by the City, and the recent uptick in cases as well as surging COVID-19 activity in other states around the country is cause for concern and motivated this move to dial back reopening in certain high-risk environments.
The reinstatement of certain restrictions will go into effect Friday, July 24 at 12:01 a.m., in order to allow businesses time to prepare. Restrictions will include:
• Bars, taverns, breweries and other establishments that serve alcohol for on-site consumption without a Retail Food license will no longer be able to serve customers indoors.
o Restaurants that serve alcohol will be allowed to continue to operate as long as they abide by ongoing COVID-19 guidance and existing regulations.
o Establishments without food may still provide outdoor service as they did under phase three.
• Maximum party size and table occupancy at restaurants, bars, taverns and breweries will be reduced to six people.
• Indoor fitness class size will be reduced to a maximum of 10 people.
• Personal services requiring the removal of face coverings will no longer be permitted (shaves, facials, etc.).
• Residential property managers will be asked to limit guest entry to five per unit to avoid indoor gatherings and parties.
“We have made so much progress here in Chicago in containing the spread of the virus, protecting our health system and saving lives, and in general, the virus remains under control locally. But we are again seeing a steady increase in new cases,” said Mayor Lightfoot. “While we aren’t near the peak of the pandemic from earlier this year, none of us wants to go back there, and we feel these restrictions will help limit further community spread.”
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* Tribune…
Federal prosecutors in Chicago are amassing records related to property tax assessments conducted under former Cook County Assessor Joe Berrios, including a tax break given to Gov. J.B. Pritzker after toilets were removed from a Gold Coast mansion he owned. […]
In all, the U.S. attorney’s office requested records related to more than 100 properties, obtaining the information through emails sent to current Assessor Fritz Kaegi. […]
In addition to seeking records on the assessments of Pritzker’s side-by-side mansions on Astor Street in the Gold Coast, the U.S. attorney’s office also requested information related to assessments and appeals filed by the Schmidt, Salzman & Moran law firm “on behalf of entities affiliated with the Pritzkers, including (the) Hyatt (hotel chain), Astor Street and Pritzker Group, from Jan. 1, 2016 to present,” according to documents provided to the Tribune through an open records request. […]
A federal source with knowledge of Blanchard’s report said it was unlikely to lead to any criminal charges. However, the source cautioned, the federal government has a number of ongoing public corruption investigations, and authorities do not know where all those efforts ultimately could lead.
Most of those 100 properties do not appear to be Pritzker-related. Go read the whole thing for more.
It’s telling that they’re only requesting public info via email instead of through grand jury subpoenas, which would be used in an actual investigation. As the source noted, one never knows where stuff like this can lead, but this is much less worrisome than the Madigan/ComEd stuff. Right now, anyway, there’s no comparison.
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* Sun-Times editorial board…
But as we read the stunning “statement of facts” that prosecutors laid out Friday that implicated Madigan — but didn’t formally charge him with any crimes — our focus also sharpened on the company that admitted to a series of outrageous bribery schemes: electricity giant ComEd.
The power company admitted to using lobbyists to shower jobs, contracts and payoffs all over Springfield for the sole purpose of gaining favor with Madigan, who denies any wrongdoing but, at minimum, is standing in a bad storm.
ComEd’s criminal conduct is clear and undisputed, and almost comical in its audacity, breadth and sheer enthusiasm.
It’s a wonder — and a shame — that ComEd has only been fined — $200 million — and nobody as of now will be going to prison. The U.S. attorney’s office has deferred criminal charges against the company and its executives for three years, provided they “fully and truthfully cooperate” in the investigation of other “individuals or other entities.” The stock price for ComEd’s parent company, Exelon, closed more than 3% higher in the wake of the news.
It’s a wonder as well, we suppose, that ComEd, a pillar of the Chicago community, could try to work Springfield like a criminal enterprise so aggressively for so long. If nothing else good has come of this, the utility has served up an excellent object lesson in the dangers of tissue-thin regulations on political lobbying in Illinois.
We would hope that every big corporation calls a Zoom meeting next week with their armies of lobbyists to review basic ethical guidelines.
Go read the rest.
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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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Can Madigan make it through again?
Monday, Jul 20, 2020 - Posted by Rich Miller
* My weekly syndicated newspaper column…
One of the most politically powerful entities in this state, ComEd, has basically admitted bribing the most politically powerful person in this state, House Speaker Michael Madigan, and agreed to pay $200 million and continue cooperating with federal investigators for at least the next three years.
And, yet, Madigan himself was not charged, although he was finally served with federal subpoenas the same day ComEd’s “deferred prosecution agreement” with the feds was announced.
If it wasn’t clear before (and it should’ve been), it’s completely obvious now that the U.S. Attorney for the Northern District John Lausch wants to take down the longest-serving House speaker in history.
But first, the prosecutor may need some folks to flip on Madigan or find a paper trail that leads directly to Madigan’s door.
Right now, the federal government has recordings or witness accounts of people close to Madigan demanding or at least soliciting favors on the speaker’s behalf — everything from internships in Madigan’s ward, to a ComEd corporate board seat for a Madigan pal.
However, as former federal prosecutor, 2018 Democratic attorney general candidate and cable TV legal analyst Renato Mariotti wrote on Twitter: “proving that ComEd was involved in a scheme to bribe Madigan is different than proving that Madigan knowingly participated in the scheme.”
Some of the folks close to Madigan may never flip. Mike McClain, Madigan’s closest confidante for decades and ComEd’s former top lobbyist/consultant, indicated to WBEZ that he won’t ever cooperate and, knowing him as I have over the years, I tend to believe him.
But others might crack under pressure.
One Madigan associate was allegedly paid millions by ComEd to hire Madigan’s pals who did little to no work. A law firm close to Madigan saw its billable hours reduced by ComEd and Madigan’s people allegedly put the arm on the company to make the firm whole.
As for Madigan, his office claimed in a statement that he has never asked anyone to hire a no-show worker, nor did he ever “expect to provide anything to a prospective employer if it should choose to hire a person he recommended.”
“He has never made a legislative decision with improper motives and has engaged in no wrongdoing here,” the statement claimed.
ComEd got some truly huge bills passed while it was providing all that largess to Madigan’s organization, but someone telling the company a request was for Madigan is different than proving Madigan ordered it to happen.
Even so, the depth and breadth of Madigan’s apparent influence over ComEd was spectacular and the lengths to which the company would go to pass its legislation through Madigan’s House was mind-boggling. I mean, who gives up a corporate board seat like that unless they badly needed something done and figured it would work?
Gov. J.B. Pritzker quickly announced that Madigan should resign if the allegations were true. But that didn’t prompt much of an outpouring by Madigan’s House Democratic members.
I reached out to three dozen of Madigan’s 73 current members to ask for comment. Most didn’t respond. Some declined to talk. A few issued non-committal statements.
But two did follow Pritzker’s line about what should happen next.
“These allegations are very serious and we must be consistent in our efforts to respect the public trust that is given to us by our residents and the people of Illinois,” Rep. Stephanie Kifowit, D-Oswego, told me. “If the allegations are true, then he must be held to the same standard we have held other former elected officials in our chamber and resign.”
“The conduct alleged is outrageous, and comes at the end of a long chain of unacceptable breaches of the public trust not unlike the pattern of ‘lather, rinse, repeat I referenced a few years ago in discussing the allegations of sexual harassment in his office,” said Rep. Kelly Cassidy, D-Chicago, about Madigan. “I agree with the Governor. If any of these allegations are true and Speaker Madigan or those closest to him are involved, then he must resign.”
But it will take more than two angry members to force Madigan out without a federal indictment.
Keep an eye on the growing ranks of young, progressive House Democrats. They held their fire the day this all came out, but they don’t rely on Madigan’s campaign or patronage help like many of his suburban, Downstate and older members do. If they do ever break against him, things could start changing in a hurry.
I wrote that column on Friday afternoon. As subscribers already know, the House Progressive Caucus sent me a statement Sunday. The caucus issued a press release this morning…
Twelve members of the Illinois House Progressive Caucus issued the following joint statement Monday morning:
On Friday, the US Attorney for the Northern District of Illinois released the deferred prosecution agreement it has reached with ComEd. The behavior alleged in this document is an unacceptable breach of the public trust. If these allegations are true, Speaker Madigan and any other elected official involved in this scheme must resign from public service.
We founded the Progressive Caucus because we believe that government can be, and must be, a force for fairness and justice in people’s lives. This kind of behavior is exactly why so many Illinoisans have lost faith in that notion. We deserve better, and we must demand better.
SIGNED,
Carol Ammons, Caucus Co-Chair
Will Guzzardi, Caucus Co-Chair
Theresa Mah, Caucus Co-Chair
Delia Ramirez, Caucus Secretary
Jennifer Gong-Gershowitz, Caucus Treasurer
Kelly Cassidy
Robyn Gabel
Lindsey LaPointe
Anna Moeller
Anne Stava-Murray
Ann Williams
Yoni Pizer
Others have also come forward.
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Madigan’s subpoena released
Friday, Jul 17, 2020 - Posted by Rich Miller
* Sun-Times…
In fact, the feds earlier on Friday hit Madigan with a fresh subpoena that appears to seriously expand the investigation, with inquiries about AT&T Services Inc., Walgreens and Rush University Medical Center. The document, obtained by the Sun-Times, also seeks records concerning a laundry list of Madigan’s top supporters, including former Aldermen Mike Zalewski and Frank OIivo, current 13th Ward Ald. Marty Quinn, ComEd and Exelon, McClain, properties in Chinatown, previously written about by the Sun-Times, and former Ald. Danny Solis.
Walgreens had no comment. AT&T did not respond to a request for comment. Rush said in a statement only that it “has received and is cooperating with a subpoena for records reflecting work by, and communications with, certain government relations consultants for the period 2014 to the present.”
* Some of the WBEZ story’s list of what information was subpoenaed…
Will Cousineau, a former top Madigan aide-turned-lobbyist for ComEd. He became a lobbyist in 2017 after nearly 18 years as a Madigan aide, including an eight-year run as political director for the speaker and the Madigan-led Democratic Party of Illinois. Cousineau’s lobbying firm stopped representing ComEd in Springfield in October 2019, WBEZ has reported.
Frank Clark, who spent nearly five decades at ComEd, working his way up from the mailroom to become the company’s first Black chairman and CEO, from 2005 to 2012. In 2016, Clark and another ex-ComEd Exec, John Hooker, filed a lawsuit to block a legislative redistricting proposal that threatened Madigan’s grip on political power. Last year, WBEZ reported that Clark’s name appeared on a subpoena — along with Madigan’s — when federal agents raided the City Club of Chicago.
Frank Olivo, the former alderman of Madigan’s 13th Ward power base on Chicago’s Southwest Side. After leaving the City Council, Olivo became a City Hall lobbyist for ComEd, records show. The subpoena also sought records relating to a “Frank Olivo Jr.”
Ed Moody, a veteran precinct captain for Madigan who has been a Democratic Cook County commissioner and the county’s recorder of deeds. Moody has known Madigan since he was a boy and has referred to him as a father figure for him.
Shaw Decremer, a former top political operative for Madigan. The speaker said he cut ties with Decremer over alleged “inappropriate behavior” in 2016 but Decremer continues to lobby in Springfield. His clients have included gambling companies, Major League Baseball and the NBA, state records show.
There’s more.
The full subpoena is here.
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By Hannah Meisel
* This is an incomplete timeline of the sprawling federal corruption probe in Illinois beginning in 2019, and only discusses developments directly related to ComEd, Exelon, House Speaker Mike Madigan and his longtime confidant Mike McClain, revealed in as “Public Official A” and “Individual A,” respectively in federal charging documents on Friday. Raids and other actions related to people like former State Sen. Marty Sandoval (D-Chicago), former State Rep. Luis Arroyo (D-Chicago), former Cook County Comm. Jeff Tobolski (14), Lyons Mayor Chris Getty, Michael Vondra and his companies, and red light camera company SafeSpeed LLC have been left out for sake of brevity and focus, unless directly related to Exelon, ComEd or Madigan…
May 2019 - Feds raid the homes of Mike McClain, former 23rd Ward Ald. Mike Zalewski (referred to as “Associate 3″ in Friday’s federal documents) and Kevin Quinn, a former 13th Ward operative (and brother of 13th Ward Ald. Marty Quinn) who was ousted from Madigan’s org in Feb. 2018 after staffer Alaina Hampton went public with allegations of sexual harassment by Quinn.
FBI also executes a search warrant on the downtown office of the City Club of Chicago, where Jay Doherty was president until ultimately resigning in December.
These raids were revealed by news outlets in June, July and October 2019.
June 26, 2019 - Tribune reports the FBI raided Kevin Quinn’s Chicago home in mid-May 2019.
July 12, 2019 - WBEZ and the BGA report federal agents executed a search warrant at the home of former 23rd Ward Ald. Mike Zalewski in mid-May 2019 and were seeking information related to House Speaker Mike Madigan (Public Official A) and efforts by Mike McClain to get a lobbying contract for Zalewski.
July 15, 2019 - Exelon reveals it received a grand jury subpoena “requiring production of information concerning their lobbying activities in the State of Illinois.”
July 18, 2019 - Tribune reports the FBI raided Mike McClain’s home in mid-May 2019.
July 24, 2019 - Tribune reports the feds are investigating $10,000 checks “from current and former ComEd lobbyists” to Kevin Quinn, as orchestrated by Mike McClain.
The law firm of John Bradley (former downstate Democratic House member turned lobbyist for ComEd) wrote four $1,000 checks to Quinn in the spring of 2019, according to Tribune reporting.
Cornerstone Government Affairs, which represents ComEd, wrote two $1,000 checks to Quinn in Jan. 2019. Former long-serving Madigan political director Will Cousineau is a principal at the firm. Last summer, Cornerstone confirmed to the Tribune that Quinn had been hired as an independent contractor for $1,000/month for six months, ending in March 2019.
Cullen Inc., which has the same address as the lobbying firm of Tom Cullen, another former Madigan political director, wrote a $1,000 check to Quinn in Dec. 2018, according to the Tribune. Cullen has lobbied for ComEd and Ameren.
Quinn was sent a $2,000 check from lobbyist Michael Alvarez’s firm dated Jan. 1, 2019, which said “consulting services Dec. 2018” on the memo line, according to the Tribune. Alvarez has lobbied for ComEd at City Hall.
The Tribune story also turned up a $1,000 check to Quinn “from a businessman who has worked with Madigan’s property tax appeals law firm.” The Sept. 2018 check’s memo line said “McClain.”
September 24, 2019 - Feds raid home, Springfield office and Cicero district office of then-State Sen. Marty Sandoval (D-Chicago). The unredacted search warrant released by the Illinois Senate two weeks later reveals feds sought information ranging from ComEd and Exelon, red light cameras, a video gaming magnate and a suburban road paving company. Sandoval’s daughter, Angie, is a senior account manager at ComEd, according to her LinkedIn profile.
October 4, 2019 - The feds subpoena ComEd for “records of any communications” between the utility and then-State Sen. Marty Sandoval. The subpoena is revealed the following week in a Securities and Exchange Commission filing: “The companies have cooperated fully with the U.S. attorney and intend to continue to cooperate fully and expeditiously with any government requests of inquiries.”
October 11, 2019 - Illinois State Senate releases unredacted version of search warrant executed on Sandoval’s Springfield office.
October 15, 2019 - Exelon CEO Anne Pramamggiore abruptly retires.
October 18, 2019 - WBEZ reports that the FBI raided the City Club of Chicago offices in mid-May, looking into clout hires at ComEd. Then-City Club of Chicago President Jay Doherty was a lobbyist for ComEd. WBEZ’s source involved in the investigation said authorities believed many of the clout hires at ComEd got paid to do little or no work and some were connected to House Speaker Mike Madigan.
October 20, 2019 - WBEZ reports House Speaker Mike Madigan was named in the subpoena requesting correspondence between the City Club of Chicago and a list of 10-20 individuals, including the speaker.
October 28, 2019 - House Speaker Mike Madigan is asked about his name showing up on search warrants and subpoenas. “I’m not a target of anything,” Madigan tells reporters (video here).
October 31, 2019 - Exelon reveals the U.S. Securities and Exchange Commission had also opened an investigation into its lobbying activities. The SEC notified Exelon of the probe on October 22.
November 12, 2019 - Crain’s reports the City Club of Chicago has rejected Jay Doherty’s resignation as president.
November 13, 2019 - Tribune reports the FBI wiretapped Mike McClain’s cell phone calls. WBEZ and the BGA publish a story that found ComEd continued to pay McClain $361,000 for “legal services” in the two years after he officially retired from lobbying for the utility in December 2016, even though he is no longer authorized to practice law in Illinois. A ComEd spokesperson told reporters she believed the payments were mislabeled, and that McClain was providing “political consulting services,” not for lobbying or legal work. She also said McClain stopped working for ComEd in May 2019, which is when feds raided his home.
December 6, 2019 - Jay Doherty resigns as City Club of Chicago president.
January 7, 2020 - WBEZ publishes a story centering around a 2012 email sent from Mike McClain to former Gov. Pat Quinn’s legislative affairs liaison Gary Hannig, and senior advisor Jerry Stermer in Aug. 2012, asking for leniency for Forrest Ashby, who was then working at an Illinois Department of Human Services facility in Rushville. The email said of Ashby: “He has kept his mouth shut on Jones’ ghost workers, the rape in Champaign and other items. He is loyal to the Administration.”
January 9, 2020 - WBEZ reporters find Mike McClain dining at a downtown restaurant and ask him about the 2012 email. “I prefer not to comment right now, but thank you,” McClain said outside of Chicago Cut Steakhouse.
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* Renato Mariotti, a former federal prosecutor, 2018 Democratic attorney general candidate and cable TV legal analyist has an interesting take on today’s events…
What should we make of ComEd’s $200 million deferred prosecution agreement?
This morning, federal prosecutors in Chicago announced a deferred prosecution agreement with Commonwealth Edison (ComEd), in which ComEd agreed to pay a $200 million fine and agreed to entry of a bribery charge against ComEd.
The bribery charge implicates Illinois House Speaker Michael Madigan, alleging that ComEd agreed to give things of value for Madigan’s benefits with the intent to influence and reward Madigan.
The agreement also notes ComEd’s substantial continuing cooperation with the Feds.
These documents make clear that federal prosecutors are trying to build a case against Madigan and believe that they have sufficient evidence to prove a bribery scheme that benefited Madigan.
It does *not* mean that the Feds have sufficient evidence to prove Madigan’s guilt.
Obviously the agreement is bad news for Madigan, and its announcement will send a signal to others that could encourage them to cooperate against Madigan.
The Feds made clear that ComEd has already provided substantial assistance to their investigation.
ComEd would not have agreed to pay $200 million unless the evidence of the scheme was significant. That fine amount was below the Sentencing Guidelines range but it is obviously a significant sum.
So why doesn’t this mean that Madigan himself will necessarily be charged?
Because proving that ComEd was involved in a scheme to bribe Madigan is different than proving that Madigan knowingly participated in the scheme.
ComEd could have dealt with other individuals instead of dealing with Madigan directly, for example.
NOTE: The foregoing is based solely on information in the public record. I know the prosecutors and defense attorneys in this matter but I have no non-public information about ComEd’s criminal liability or the alleged bribery scheme.
In sum, this charge and deferred prosecution agreement make clear that the Feds are investigating Madigan and that they believe they have sufficient evidence to prove the existence of a bribery scheme that benefited him.
It does not yet indicate Madigan will be charged. [Emphasis added.]
* And to his point that today’s action could “send a signal to others that could encourage them to cooperate”…
In other words, either get on the bus or be thrown under it.
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* Press release…
The Illinois Department of Public Health (IDPH) today announced 1,384 new confirmed cases of coronavirus disease (COVID-19) in Illinois, including 22 additional confirmed deaths.
Community based and mobile testing sites have increased access to COVID-19 testing throughout the state, resulting in over 40,000 specimens tested for the second consecutive day. Mobile testing sites will continue to visit counties in Illinois to ensure all residents have access to COVID-19 testing in their communities.
Cook County – 1 female 30s, 1 female 50s, 1 male 50s, 3 males 60s, 1 male 70s, 1 female 80s, 3 males 80s, 2 females 90s, 1 male 90s
DeKalb County – 1 female 80s
DuPage County – 1 male 60s, 1 female 80s
LaSalle County – 1 male 60s
McHenry County – 1 female 50s, 1 female 100+
St. Clair County – 1 female 50s
Woodford County – 1 male 60s
Currently, IDPH is reporting a total of 159,334 cases, including 7,272 deaths, in 102 counties in Illinois. The age of cases ranges from younger than one to older than 100 years. Within the past 24 hours, laboratories have reported 43,692 specimens for a total of 2,166,299. The preliminary seven-day statewide positivity for cases as a percent of total test from July 10–July 16 is 3.0%. As of last night, 1,431 people in Illinois were reported to be in the hospital with COVID-19. Of those, 309 patients were in the ICU and 128 patients with COVID-19 were on ventilators.
* It’s about time that Mayor Langfelder started taking this seriously…
Amid an uptick in positive COVID-19 cases reported in Sangamon County, Springfield Mayor Jim Langfelder said he likely will sign an executive order Friday meant to escalate enforcement of social distancing guidelines and indoor seating limits in bars and restaurants.
According to a draft of the order, bars and restaurants not in compliance with the state’s Phase 4 guidelines will be given a verbal warning to comply. No immediate compliance can result in a $500 fine. A second violation would also result in a $500 fine.
The third violation would likely result in the temporary suspension of the establishment’s liquor license.
The order will rely largely on the broad authority Langfelder holds as the city’s liquor commissioner to regulate the conduct of liquor license holders.
* Sun-Times live blog…
How coronavirus will reshape the upcoming school year
6 key questions about buying a car during the pandemic
COVID-19 claims one of Chicago’s ‘Fighting O’Shea Brothers’
CDC extends US ban on cruise ships through September
List of national retail chains requiring face masks keeps expanding
Pandemic shows the need for an American manufacturing revival that Chicago could lead
Yoan Moncada rejoins White Sox after testing positive for coronavirus.
Once kids go back to school, it’s mask up or go home
* Southern Illinois…
Hundreds of people who attended recent events in Clinton County have been exposed to the coronavirus, the health department said Friday.
Officials believe the virus is widespread in all parts of the county now. And they are worried it could lead to restrictions again after bars, restaurants and other businesses reopened three weeks ago, Clinton County Health Department Administrator Sean Eifert stated in a news release about the situation. […]
The health department said only that the exposure to the virus happened at “several recent large group events” where people were observed not following experts’ recommendations to prevent the virus from spreading, such as wearing face coverings and keeping a distance of at least 6 feet between themselves.
There have also been “numerous social events” that exceeded the state’s 50-person limit, according to the health department.
* Tribune live blog…
Evanston high school district announces students will not attend fall classes in person, reversing earlier statement
Coronavirus mask donations dwindle. Group puts out call for more face coverings for new moms.
Chicago Public Schools proposes hybrid of online and in-person classes for fall, despite union opposition
Gov. J.B. Pritzker takes unusual step of filing a lawsuit to ensure school children wear face coverings
What is herd immunity? And how do we get there on COVID-19?
Abbott earnings top expectations, with $615M in sales from COVID-19 testing
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* Press release…
Below is a statement on behalf of Speaker Madigan. There will be no further comment.
“The Speaker has never helped someone find a job with the expectation that the person would not be asked to perform work by their employer, nor did he ever expect to provide anything to a prospective employer if it should choose to hire a person he recommended. He has never made a legislative decision with improper motives and has engaged in no wrongdoing here. Any claim to the contrary is unfounded.
“This morning the Speaker accepted subpoenas related to his various offices for documents, asking for, among other things, documents related to possible job recommendations. He will cooperate and respond to those requests for documents, which he believes will clearly demonstrate that he has done nothing criminal or improper.”
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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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* Willie Wilson press release…
Minority Whip Durbin has monetized his office and enriched himself through various family members, former staffers and corporate donors. Abraham Lincoln said you can fool all of the people some of the time, and some of the people all the time, but you cannot fool all the people all the time. Durbin has duped the people of Illinois into believing he is a boy scout in Washington, D.C. Durbin’s actions on behalf of his wife’s lobbying clients, and former staffers show a pattern of corruption and pay to play politics on steroids. Therefore, I am calling on the Senate Ethics Committee, the Inspector General, and the media to examine Durbin’s lobbying ties and actions on behalf of his wife’s clients and former staffers clients.
Durbin’s lobbying company benefited greatly from his position in the United States Senate. Durbin should be ashamed of himself for failing to put his constituents before his personal interests. In 2007, Durbin voted against legislation to prohibit spousal lobbying. The following are some of the alarming facts that show a pattern of conflicts of interest by Durbin:
· Durbin’s wife began lobbying in 1998 and retired in 2014, Durbin acknowledged occasional overlap in which his wife’s clients received federal help (Chicago Tribune)
· Two public clients the city of Naperville, and Eastern Illinois University paid Durbin’s wife more than $1 million for lobbying (Chicago Tribune)
· The Naperville contract stated that Durbin’s wife would represent the city’s interests and act as a liaison with state and federal government officials (Chicago Tribune)
· The city of Naperville received millions of dollars in grants from the Federal government while she lobbied for them (Chicago Tribune)
· Durbin awarded millions of dollars to Eastern Illinois University while his wife lobbied for them (Chicago Tribune)
· Durbin earmarked $150,000 to the American Lung Association while his wife was their lobbyist (Chicago Tribune)
· Durbin Voted against legislation in 2007 that would have banned spousal lobbying (Washington Examiner)
· Durbin’s former staffer Amy Ford Souders is married to Patrick Souders, Durbin’s Chief of Staff and has her own lobbying company. She has been lobbying for 18 years (Open Secrets)
· Amy Ford Souders client EPIR, a Defense contractor received a total of $9 million in Earmarked funds from Durbin (Huff Post)
· Durbin has three family members who were/are registered lobbyists: Paul Durbin (son), Marty Durbin (Nephew), and his wife Loretta Durbin (Family Affair 2014 Report)
· In 2008, Durbin’s campaign committee reimbursed Durbin $28,438 for travel expenses (Family Affair 2014 Report)
· In 2010, Durbin’s campaign committee reimbursed Durbin $10,501 for travel expenses (Family Affair 2014 Report)
· Durbin’s net worth is more than $2 million, how does that happen when he has been in office for 37 years straight
Senator Durbin is part of the elite Washington club that has figured out how to make money off their position in government. He has blatantly pursued policies that benefitted his wife, family members and friends. Durbin’s wife and he are one. They file a joint tax return together. They share the same bank account. The millions of dollars Ms. Durbin made from lobbying are shared by Sen. Durbin. This is the kind of swamp that people abhor. Sen. Durbin broke the law and should be held accountable.
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* The rumors started flying early yesterday with panicked, ill-informed Facebook posts like this…
The governor’s office was flooded with calls from people who believed he was about to order schools not to open. The whole idea was ridiculous on its face if you’d taken even a minute to listen to what the governor has been saying. But some parents (who polling shows are in the minority) are truly fired up about this topic and will apparently believe anything.
The rest of the above FB post is cut off, but she also posted the email and phone number of a Pritzker staffer who doesn’t even handle education issues. The Facebook crowd has been bombarding that innocent staffer for days and days on this general topic and the angry emails, even threats, escalated yesterday.
* Even some school superintendents were buying into the rumor. I received several texts from people yesterday myself, including from lobbyists who represent individual school districts.
Here’s an email from a reader last night…
Hey Rich –
I don’t think D25’s drama is something you’d necessarily be interested in writing about, but the updated, late-in-the-day guidance from ISBE referenced in the letter below - that caused D25 to put sharing its school year plans on hold at the last minute - sounds like it could be significant.
My suburban Cook mom group on Facebook is going nuts with rumors. People are posting screenshots of a statement allegedly written on behalf of the State Superintendent to teachers, which states “We are aware of a rumor circulating about the possibility of Governor Pritzker announcing at a press conference tomorrow a return to fully remote learning in the fall. We have confirmed with the Governor’s Office that the rumor is false. At this time there are no changes to the ISBE and IDPH joint transition guidance for the fall.”
As the statement is not on letterhead, doesn’t contain an e-signature, and isn’t on ISBE’s website, everyone thinks it is fake. Additionally, they think it doesn’t jive with what the note below says. Anyway, thought you could be interested.
They won’t believe that, but they’ll believe the rantings of rando locals who claim to have inside knowledge about the governor’s thinking. Ridiculous.
* The local school superintendent’s letter that set so many people off…
This evening, I received some new information related to the 2020-2021 school year. Additionally, we expect that more information may be coming to Superintendents from the State of Illinois very soon. This new information could impact the options for the 2020-2021 school year that we were prepared to share at tonight’s Board of Education meeting.
Therefore, I am removing the agenda item related to our E-learning Plan and the agenda item titled Update on Planning for 2020-2021. We will begin to immediately review the information we received this evening as well as any information we receive from the state. We will announce a special scheduled Board meeting, if necessary, to update the community on our plans for 2020-2021. […]
Thank you for your time,
Lori D. Bein, Ed.D.
Superintendent
Sheesh. Just pick up the phone and call somebody before doing something like that.
People really need to stop believing everything they read on social media. Check the sources before passing along rumors, for crying out loud. Grow the heck up and act like a citizen and not a mushroom.
* Last word goes to the governor’s chief of staff…
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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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