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ComEd and Exelon hit with grand jury subpoena on Sen. Sandoval

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Commonwealth Edison is again enmeshed in a federal investigation of corruption in Illinois politics.

The utility, along with parent Exelon, received a grand jury subpoena Oct. 4 requiring “production of records of any communications with certain individuals and entities, including Illinois State Senator Martin Sandoval,” the companies disclosed last night in a Securities & Exchange Commission filing. […]

For ComEd and Exelon, it’s the second federal subpoena they’ve received in the past three months. Earlier, they acknowledged requests for information surrounding “lobbying activities” from the U.S. attorney’s office in Chicago. That investigation focused at least in part on former Southwest Side Ald. Michael Zalewski’s efforts to get lobbying work for ComEd, according to reports at the time. Zalewski has been a close ally of House Speaker Michael Madigan for years.

* From the company’s SEC filing…

As previously disclosed, Exelon Corporation and Commonwealth Edison Company (the “Companies”) received a grand jury subpoena from the U.S. Attorney’s Office for the Northern District of Illinois, which required production of information concerning lobbying activities in the State of Illinois. On October 4, 2019, the Companies received a second grand jury subpoena from the U.S. Attorney’s Office for the Northern District of Illinois that requires production of records of any communications with certain individuals and entities, including Illinois State Senator Martin Sandoval.

The Companies have cooperated fully with the U.S. Attorney and intend to continue to cooperate fully and expeditiously with any government requests or inquiries. On June 21, 2019, the Exelon Corporation Board formed a Special Oversight Committee, consisting solely of independent directors, to oversee the Companies’ cooperation and compliance with the subpoena, any further action taken by the U.S. Attorney and any resulting actions that may be required or recommended. The Special Oversight Committee has engaged independent outside counsel to advise and assist the Committee.

You know it’s serious when a company creates an oversight committee like that with outside counsel.

Whew.

…Adding… I should’ve added this for context, although it’s difficult to know for certain right now if this is, um, related…

Sandoval’s daughter, Angie, works for ComEd as a senior account representative.

posted by Rich Miller
Thursday, Oct 10, 19 @ 8:55 am

Comments

i hope victory reyes can get some of that outside legal work responding to the fed request. at least he has experience with federal investigation . . . unlike the legal work he gets representing Com Ed before the ICC wherein he had no prior experience.

Comment by dying HDO Thursday, Oct 10, 19 @ 9:04 am
Rich, when was the last week you didn’t have a blog post that was corruption related?

Comment by Just Me Thursday, Oct 10, 19 @ 9:09 am
I read the SEC report as we will save the company and throw every Illinois lol under the bus….

Comment by Not a Billionaire Thursday, Oct 10, 19 @ 9:11 am
If the end target isn’t Marty, the pressure and case revolving around so much Marty touched is one heck of a stepping stone.

Like Burger King and Burke, will it turn out to be someone had enough of Sandoval and dropped so many dimes they came with their own Brink’s truck?

Comment by Oswego Willy Thursday, Oct 10, 19 @ 9:12 am
“Rich, when was the last week you didn’t have a blog post that was corruption related?”

Mike Royko was a liberal who reported on and ripped corruption. It’s a severe dereliction of duty for a political journalist to not report on alleged or actual political corruption.

Comment by Grandson of Man Thursday, Oct 10, 19 @ 9:17 am
This is serious stuff. But, we don’t know what exactly they are fishing for. “Certain individuals and entities” is a giant guess.

Comment by Steve Thursday, Oct 10, 19 @ 9:18 am
- Grandson of Man -

Is more than correct. If you aren’t covering this unfolding story then you aren’t covering the political news.

Comment by Steve Thursday, Oct 10, 19 @ 9:19 am
Remind me to pull out my tiny violin for ComEd and Exelon. They get rate hikes faster than items from Veruca Salt’s dad.

Comment by Jocko Thursday, Oct 10, 19 @ 9:25 am
Yes, the independent oversight committee is serious. It indicates they feel a need to work separately from interested directors and management, some of whom may be under scrutiny for their roles in the dealings being looked at.

Comment by Ron Burgundy Thursday, Oct 10, 19 @ 9:28 am
To OW on the dimes/Brinks truck: Absolutely correct.
To Jocko on Com Ed rate hikes: The Illinois Commerce Commission routinely grants rate hikes..which are often overturned in the courts. ICC is loaded with utility people stacking the deck.

Comment by revvedup Thursday, Oct 10, 19 @ 10:06 am
I noticed that Fidel Marquez was recently deregistered as an Exclusive Agency on ComEd’s lobbying disclosure.

Will be interesting to see who they drop as their lobbyists this year, and who is no longer their lobbyist next year that was this year.

Comment by Rahm's Middle Finger Thursday, Oct 10, 19 @ 10:15 am
==ICC is loaded with utility people stacking the deck.==

So is the legislature. Apparently a federal investigation is the only thing that can stop utilities from getting their rate hikes in Illinois

Comment by Lester Holt’s Mustache Thursday, Oct 10, 19 @ 10:26 am
“Mike Royko was a liberal who reported on and ripped corruption.”

By the end of his career, some folks were slamming Royko for being too conservative.

Comment by Practical Politics Thursday, Oct 10, 19 @ 10:27 am
= They get rate hikes faster than items from Veruca Salt’s dad. =

She was a bad egg… the same can probably be said for ComEd/Exelon.

Comment by cover Thursday, Oct 10, 19 @ 10:39 am
@dying HDO….oh, snap…

Comment by Amalia Thursday, Oct 10, 19 @ 10:50 am
==By the end of his career, some folks were slamming Royko for being too conservative.==

That stuff never ends. Good thing they didn’t have twitter when Royko was around, they’d have pulled their hair out whenever he sat next to a republican at a football game

Comment by Lester Holt’s Mustache Thursday, Oct 10, 19 @ 11:31 am
Sandoval the elected, Zalewski the appointed Chair of the ICC, and Zalewski the lobbyist…yeah, seems legit to me.

Comment by GetOverIt Thursday, Oct 10, 19 @ 1:43 pm
The man needs to resign. He’s no Tony Soprano

Comment by JennaM Thursday, Oct 10, 19 @ 1:43 pm
Another nail in the coffin for fall energy legislation.

Comment by Nobody Sent Thursday, Oct 10, 19 @ 2:07 pm
Royko actually did a column about the benefits of the Machine and clout for residents, where you contact the ward organization people and stuff gets done, like fixing broken sidewalks—as opposed to detached, faceless bureaucrats on the other end of a phone line, who don’t care or have any personal stake in the problem.

Comment by Grandson of Man Thursday, Oct 10, 19 @ 4:52 pm