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VRDOLYAK INDICTED * Updated x9 *

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Illinois

*** The full indictment can be downloaded here. ***

*** The press release issued by Fitzgerald can be downloaded here. ***

*** If you missed Fitzgerald’s press conference, you can watch part of it at NBC5’s website by clicking here. ***

*** UPDATE 9 *** Vrdolyak’s mouthpiece speaks to the Sun-Times…

Responding to the indictment, Vrdolyak’s lawyer, Michael Monico, said: “We do not believe that the charges will withold the scrutiny of a public trial. He did not engage in a scheme with Mr. Levine. He did not pay him any money, and he did not agree to pay him any money. Mr. Vrdolyak is not guilty of these charges.”

*** UPDATE 8 *** From the press release…

If convicted, each count of mail fraud and wire fraud carries a maximum penalty of 20 years in prison and a $250,000 fine, and the bribery count carries a maximum penalty of 10 years in prison and a $250,000 fine. The Court, however, would determine the appropriate sentence to be imposed.

*** UPDATE 7 *** John Kass’ column is already up. It ends like this…

I never thought they’d get him. They don’t call him Fast Eddie for nothing.

*** UPDATE 6 *** ABC7 is carrying the press conference live right now. Go here. NBC5’s live video feed can be found here.

*** UPDATE 5 *** From the indictment…

VRDOLYAK and Levine agreed that VRDOLYAK would solicit Smithfield Properties to purchase the Scholl Property and that Levine, with VRDOLYAKâ€™s knowledge, would misuse, and did misuse, Levineâ€™s position and influence as a [Finch University of Health Sciences/Chicago Medical School] CMS trustee to arrange a sale of the Scholl Property to Smithfield Properties in exchange for a payment that would benefit Levine. VRDOLYAK ultimately entered into an agreement with Smithfield Properties to receive a $1.5 million payment after Smithfield Properties acquired the Scholl Property and repaid certain project costs. VRDOLYAK and Levine agreed that after VRDOLYAK received the $1.5 million payment, VRDOLYAK would deliver a portion of that amount to Levine.

[…]

At different times, VRDOLYAK and Levine discussed disguising VRDOLYAKâ€™s transfer of the money to Levine through various subterfuges: by arranging for VRDOLYAK to make a sham loan to Levineâ€™s wife, by having VRDOLYAK repay a loan that Levine would make with a business associate of VRDOLYAKâ€™s, and by having VRDOLYAK make payments to Levine in cash. During this time period, VRDOLYAK talked with Smithfield Properties about the timing of Smithfield Propertiesâ€™s payment to VRDOLYAK and VRDOLYAK then shared this information with Levine.

*** UPDATE 4 *** From CBS2…

Vrdolyak is accused of scheming with businessman and Republican insider Stuart Levine to get a kickback for Levine from the 2004 sale of the old Dr. William F. Scholl School of Podiatric Medicine at 1001 N. Dearborn St. for a condo project.

Vrdolyak, 69, was charged with one count of mail fraud, two counts of wire fraud and one count of bribery, according to the U.S. Attorney’s office. He will be arraigned at a later date.

*** UPDATE 3 ***
From Crain’s…

Former Chicago Ald. Edward Vrdolyak (10th) has been indicted on federal fraud and bribery charges, the U.S. Attorneyâ€™s office announced early Thursday afternoon.

*** UPDATE 1 *** John Kass explained “Operation Board Games” in a column…

Just as that March 2005 memo downgrading Fitzgerald was making its way to the White House, Fitzgerald’s office in Chicago was proceeding in a fascinating political corruption probe involving alleged kickbacks requiring state approval for the construction of hospitals.

That case would mushroom into Operation Board Games, revealing bipartisan political influence in hundreds of millions of dollars invested through state pension funds. […]

The FBI and federal prosecutors here investigated how hundreds of millions of dollars in public pension investments were made, and the influence exerted by political insiders who brokered ridiculously lucrative pension fund deals.

Fitzgerald characterized the scheme as “pay-to-play on steroids.” The investigation began with hospital construction irregularities, and it led like a trail of bread crumbs to top Republican and Democratic insiders in Illinois.

Those who have pleaded guilty include senior Republican fundraiser Stuart Levine and Democrat Joe Cari, the former finance chairman for the Democratic National Committee. Cari and Levine are cooperating with federal authorities. […]

Individuals A and K have not been indicted. But the Tribune identified them as Big Bob Kjellander (pronounced $hell-ander) and his buddy, Big Bill Cellini, the political boss of Springfield.

*** UPDATE 2 *** The Tribune has a brief story up…

Sources have said recorded conversations included Levine speaking to a number of figures, including former Chicago Ald. Edward Vrdolyak.

A lawyer for Vrdolyak, Michael Monico, said this morning he had not been made aware of any charges. Randall Samborn, a spokesman for the U.S. attorney’s office in Chicago, said the office had no comment.

Vrdolyak has never before been charged criminally, despite frequently coming under investigation during his decades in politics.

I wonder what this might be about? [Emphasis added]…

FOR IMMEDIATE RELEASE
THURSDAY MAY 10, 2007

PRESS CONFERENCE ADVISORY

Patrick J. Fitzgerald, United States Attorney for the Northern District of Illinois, together with Robert D. Grant, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; Thomas P. Brady, Inspector-in-Charge of the U.S. Postal Inspection Service; James Vanderberg, Special Agent-in-Charge of the U.S. Department of Labor Office of Inspector General in Chicago; and Byram Tichenor, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago, will hold a press conference at 1:30 p.m. today, Thursday May 10, 2007, to announce federal criminal charges resulting from Operation Board Games, a public corruption investigation of alleged insider-dealing, influence-peddling and kickbacks involving private interests and public duties.

The press conference will be held in the U.S. Attorneyâ€™s Press Conference Room on the 11th floor, north end, of the Dirksen Federal Courthouse, 219 S. Dearborn St., Chicago. The charges and a detailed press release will be available shortly before the start of the press conference. There are no court appearances scheduled for today in connection with this matter.

I’ll open comments when we know what’s going on.

posted by Rich Miller
Thursday, May 10, 07 @ 10:19 am

Comments

Surprise Fast Eddie is dirty! Talk about new developments; the only things nice about this is they finally have the evidence to indict him. He and those that have hung with him over the years have had plenty of “shady” dealings. The feds just couldn’t pin anything on him in the past. They should take a broader look at Eddie, his family and friends. Family is in the ownerhsip of VIPs on north side.

Comment by Anonymous Thursday, May 10, 07 @ 1:35 pm
Couldn’t happen to a more deserving politician - probably the biigest rogue/operator in Chicago politics.

Comment by Captain America Thursday, May 10, 07 @ 1:39 pm
Somewhere a crusty, white haired former union organizer from the SE side is laughing. heartily.

Comment by not on the clout list Thursday, May 10, 07 @ 1:45 pm
Did Fitz just upstage any talk of boring tax stuff tonight?

Comment by Bill Baar Thursday, May 10, 07 @ 1:55 pm
Heads will roll. Stay Classy Chicago

Comment by Ron Burgundy Thursday, May 10, 07 @ 2:19 pm
Fast Eddy lost a step and got tackled from behind.

Comment by Huh? Thursday, May 10, 07 @ 2:20 pm
Didn’t Blagojevich try to get Fast Eddie Vrdolyak elected as Mayor of Chicago not long ago?

Comment by Oops! Thursday, May 10, 07 @ 2:22 pm
Didn’t Blagojevich try to get Fast Eddie Vrdolyak elected Mayor of Chicago not long ago?

Comment by Oops! Thursday, May 10, 07 @ 2:22 pm
Sorry about the double posting.

Comment by Oops! Thursday, May 10, 07 @ 2:24 pm
And this is why Fitzgerald called a press conference ? An old has been like Vrdolyak. No wonder he got that rating from the Justice Department.

Comment by Lula May Thursday, May 10, 07 @ 2:34 pm
Even to hardcore Chicago political junkies, Ed Vrdolyak ceased being a person of interest around the time the lights went up at Wrigley Field. I was under the impression that he had died years ago.

Comment by Anon Thursday, May 10, 07 @ 2:43 pm
Don’t ask for whom the bell tolls. It tolls for Edddddddddddddddddddddddddddddieeeeeeeee.

Remember innocent until proven guilty. Or in this case until he states his name………VDROLYAK.

Greed and a sense of entitlement are a terrible thing. It is going to be fun to watch.

Although I do feel sorry for anyone targeted by the feds. Even those who clearly deserve it……..such as the formerly Fast One.

Comment by irishpirate Thursday, May 10, 07 @ 2:46 pm
Hey steve schnorf,
Start your cellini apology now. For you springfieldidiots who have bent and flat broken the law over these past decades, have a party because it looks like they are going to finally get to your leader mr w.f. cellini. Hopefully before he dies. He and his whole family have terrible genes so they better hurry. I saw him the other day and he looks like death warmed over. I think the stress is getting to the family because even his always on the money fake wife is looking a little rough and distracted.
Mr. Smith went to washington and told the truth. It is taking some time but Peter’s little speech from a few years back is starting to take hold. We all knew it was true then and it is probably even more true now. Those stupid cheap hotels are going to bring down something much bigger. If I was alexi I would go out every day and spill a little more of the story. To get elected in this state you no longer need to be nice to the mob. You can call them out. It leads to more votes. Or are we getting a new mob.

Comment by howard Thursday, May 10, 07 @ 2:55 pm
Methinks something else will be coming down the pipes sooner than later. I hope that Fitz can concentrate on Illinois full-time and forget about the D.C. hooplah. After all, Bush’s special prosecutor looks like he’s smelled first blood. Uh-oh.

Comment by Team Sleep Thursday, May 10, 07 @ 3:01 pm
This has been rumored now for a solid year. Hard to believe this is all there is. No one has any love for Vrdolyak (except, of course, his fishing buddy, John Kass), but how — if no money was actually realized from the “scheme” — can there be a completed wire fraud? Attempted wire fraud is a crime? Moreover, remove the pejoratives from the indictment and it sounds virtually indistinguishable from what is known in other jurisdictions (not governed by Patrick Fitzgerald) as a “real estate commission.” The horror.

Comment by Anonymous Thursday, May 10, 07 @ 3:22 pm
don’t bet the milk money that Eddie sees more than 18 months with a significant fine. Hell, he may beat it altogether…he still is Fast Eddie at 69 y.o., what will people call him if he beats this??? Faster Eddie?

Comment by 10th ward Thursday, May 10, 07 @ 3:47 pm
Generally, I prefer the terms nonpartisan or multi-partisan; however, in this situation it is actually appropriate to call this bipartisan corruption. Just another brick in the wall, I guess.

Comment by Squideshi Thursday, May 10, 07 @ 3:53 pm
The Tribune reports that the 1.5 M payment from Smithfield (the buyer of the real estate) to Vrdolyak was “secret.” If that’s the case, doesn’t that mean Smithfield was part of tbe same scheme? Was there any hint of this in the information provided by Fitzgerald?

Comment by Chicago guy Thursday, May 10, 07 @ 4:40 pm
Wonder if Fast Eddie bounced little Rod on his knee back in the day?

Comment by Cosmic Flow Thursday, May 10, 07 @ 4:43 pm
Now the big question is whether Fast Eddie will “go canary” on his buds, or if he’s a stand up guy.

Fortunately,I believe he still has a law firm that can defend him “at cost”.

Think Big Jim will also come to his defense, or is he too busy covering his tail on this Suntimes/Black deal?

Just think how many big shots Fast Eddie can send up the river if he turns rat.

Citizen “B”? Big Bob?, Citizen “C”? The whole fifth floor of city hall?

I get the feeling Fitz is fishing for bigger game here than Fast Eddie.

Comment by PalosParkBob Thursday, May 10, 07 @ 5:13 pm
Anonymous 3:22,

Imagine your aged grandmother asks you to sell her house on her behalf. “Get the best price you can,” she tells you. You promise that you will.

After hanging up the telephone on anyone else who calls to enquire about buying the house, you sell to your good friend, Ernie. Later, you and Ernie discuss the least visible ways in which he can express his gratitude for the deal you gave him.

Looks kind of funny, doesn’t it? Different from what a real estate broker would do in an arm’s length transaction?

That stuff in the indictment about “fiduciary duty and duty of honest services” does sometimes seem to confuse people.

Comment by Ivory-billed Woodpecker Thursday, May 10, 07 @ 5:43 pm
This has to make a lot of Illinois power players very nervous. Are the dealings described here that much different than what many others are doing every day in Illinois?

What if “consulting fee” or “finder’s fee” was substituted for “kickback”?

Comment by GOP'er Thursday, May 10, 07 @ 6:39 pm
To Ivory-billed Pecker –

Thank you for the pedantic example. The only one “confusing” breach of fiduciary duty with a crime is you — and of course 219 South Dearborn. What, in your example, would lead to criminal charges? You’ve described nothing more than a run-of-the mill civil action.

Comment by Anonymous Thursday, May 10, 07 @ 7:11 pm
Aaron Freeman got a chuckle out of this, I shouldn’t wonder. Well once again it’s not really Fitzmas, I’m beginning to feel like Linus in that pumpkin patch. At this rate, he won;t get around to Blags until halfway thru the first Obama administration.

Comment by Gregor Thursday, May 10, 07 @ 7:59 pm
Anonymous 7:11 pm,

I am not a criminal attorney, but I play one on tv, and if you don’t understand the legal underpinnings of why these charges constitute a crime then I suspect you should spend less time at Wolf Lake on the SE side and more time in a law library.

My personal guess is that Eddie V. will fight this. Be convicted. Sent to prison. Also I think he is likely to not help the feds on any other cases.

Only time will tell.

Comment by irishpirate Thursday, May 10, 07 @ 8:00 pm
I bet Rich Daley is having a nice laugh about this. Eddie V could never beat him.

Comment by the ole precinct captain Thursday, May 10, 07 @ 10:38 pm
How exactly does attacking a family’s health problems coincide with politics? Over the years I have seen many things from both sides of the isles…Granted Alexi has been a go getter since his win and he is very impressive - but taking cheap shots at the medical conditions of (BC) family memebers really seems a bit over the top…unless that is all you have?????

Comment by howard seems a tad bit bitter Thursday, May 10, 07 @ 11:47 pm
Rod Blagojevich’s first law job was in the Law Offices of Ed Vrdolyak LTD. Blagojevich ran the lakefront for Vrdolyak for Mayor in 87 with little George and there is a beautiful Serbians for Vrdolyak button with Blagojevich in the background.
Although Blagojevich is not nearly as smart as Vrdolyak.
Vrdolyak is also veryclose to Chris Kelly and mediated a number of disputes.

Comment by Petar Friday, May 11, 07 @ 12:49 am
Vrdolyak is a fascinating and stand up guy.
He is a part of Chicago history.
He came up the hard way in politics and didn’t have a Irish daddy to give him a seat.
I like him and always will.

Comment by Stan Friday, May 11, 07 @ 7:13 am
Discussions around the water cooler yesterday was “what’s going on here”. Is Fitzgerald trying to sweat other people? Surely Fitzgerald wouldn’t call a press conference for this? The charges and the accused don’t seem to warrant all this hype.

Comment by Lula May Friday, May 11, 07 @ 7:20 am
11:47
Is that you steve?

Comment by howard Friday, May 11, 07 @ 7:26 am
Comments got a bit mean here. Howard needs to settle down.

Comment by Anon Friday, May 11, 07 @ 8:48 am