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“The payments were aimed at currying favor with certain lawmakers”

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* The Tribune has a new story up about ComEd and Exelon lobbyists and their connections to Speaker Madigan and others. It’s pretty similar to the WBEZ story from earlier this week. But this paragraph has its most succinct explanation yet for what the feds appear to be after…

As part of the investigation, authorities are scrutinizing certain ComEd executives and have zeroed in on payments through the company’s vast network of consultants to some individuals who seemed to have done little actual work, the source said. The payments were aimed at currying favor with certain lawmakers while circumventing lobbying disclosure rules, the source added.

That last bit about “currying favor” with lawmakers is new. Click here for a previous version.

* Also from today’s WBEZ blockbuster…

The practice of embedding clout-heavy contractors and hires on the company’s payroll offers a way to gain legislative favors outside of public scrutiny. It’s a small investment with potential to pay huge gains if the utility runs the legislative table in Springfield, as it has in years past.

Both outlets are basically saying the same thing here.

* And that made me think of this passage in a recent WBEZ story…

ComEd ended its Springfield lobbying contract with Elgin-based Stratagem Consulting Group on Oct. 3, WBEZ has learned. The firm is co-owned by 36th Ward Ald. Gilbert Villegas, Jr., who is Mayor Lori Lightfoot’s floor leader, trusted with guiding major legislative initiatives through the City Council. […]

Villegas said he profited from its deal with ComEd and all of the firm’s clients.

But on Friday, he also told WBEZ that he did not do any work for ComEd personally under that deal. Villegas was not a registered lobbyist for the company in Springfield. Stratagem’s lobbyists for ComEd were Villegas’ business partner, Elgin City Council member Baldemar Lopez, and another man.

Until last week, Villegas was the most prominent member of disgraced former Rep. Luis Arroyo’s political organization.

Let’s make this clear: I do not know if Ald. Villegas is under federal suspicion, nor do I know if his firm’s ComEd contract is being looked at. But he shared profits from ComEd even though he didn’t register as a ComEd lobbyist and was super-close to then-Rep. Arroyo. That’s all I’m saying. Period.

posted by Rich Miller
Friday, Nov 8, 19 @ 11:45 am

Comments

==payments through the company’s vast network of consultants to some individuals who seemed to have done little actual work==

Seems like a RICO/Criminal Enterprise issue, not a lobbyist disclosure enhancement issue. If folks were being paid indirectly, disclosure already exists for these subcontracts and if lobbying “work” occurred, disclosure exists for this.

Comment by Just Sayin' Friday, Nov 8, 19 @ 11:55 am
===Seems like a RICO/Criminal Enterprise issue===

It does indeed.

Comment by Rich Miller Friday, Nov 8, 19 @ 11:58 am
So some clever lawyers somewhere along the way may have looked at the current law and found a way to circumvent it–at least for now. This stuff does not spring out of nature organically.

Comment by Responsa Friday, Nov 8, 19 @ 12:15 pm
Kind of entertaining how quickly Lightfoot steps into doo-doo with a close ally.

Comment by Not required Friday, Nov 8, 19 @ 12:16 pm
Worth noting that RICO can cover criminal acts going back ten years — that’s a fairly permissive statute of limitations. Lot’s of ComEd legislation passed during that time, including the creation of their formula rate structure.

Having said that, RICO prosecution are pretty rare in public corruption cases. Hard to prove up.

Comment by Roman Friday, Nov 8, 19 @ 12:18 pm
Looks like something maybe about to hit the fan. Like I said a day or two ago, you can’t legislate honesty. You just hope that people in office will follow the rules but as we can see money talks.

Comment by Ginhouse Tommy Friday, Nov 8, 19 @ 12:26 pm
RICO cases baby hard to prove up. But I kind of envision the feds phones right now are lighting up like they’re giving out free concert tickets 4 those who want to be the first in for the best deal

Comment by Drake Mallard Friday, Nov 8, 19 @ 12:28 pm
What the voters wont do, the Feds will. Corrupt leaders can’t run sham candidates or file thousands of fake forms rescinding candidate signatures to avoid charges.

Comment by Donnie Elgin Friday, Nov 8, 19 @ 12:36 pm
===envision the feds phones right now are lighting up===

I think your vision may be 20/20. lol

Comment by Rich Miller Friday, Nov 8, 19 @ 12:38 pm
Is this new, “hires on the company’s payroll”, turning comed into a political dumping ground w/out shakman/rutan concerns? Not sure that’s what they’re trying to imply?

Comment by rutro Friday, Nov 8, 19 @ 12:45 pm
===Is this new===

No. It’s always been thus. The company really jacked up political hiring during Harold Washington’s tenure because white aldermen/legislators couldn’t get jobs.

Comment by Rich Miller Friday, Nov 8, 19 @ 12:47 pm
I guess the next question is whether this is happening with other companies. I can think of quite a few industries that have gotten favorable treatment in Springfield. Does favorable treatment or legislative wins now warrant scrutiny. I get ComEd/Exelon are on subpoenas and have brought the scrutiny to their door.

Comment by Nagidam Friday, Nov 8, 19 @ 12:47 pm
===envision the feds phones right now are lighting up===

Maybe that tweet from Arroyo the other day actually meant he was turning on his “freinds”. Kind of warning them. Although I think his “friends” would already figure him to sell people out to save himself./Snark

Comment by BigLou Friday, Nov 8, 19 @ 12:56 pm
Heidner Properties sold land in the 36th ward to Bernard Eldelman. Previous attempts to develop the land that by the way didn’t request TIF money were blocked by Ald Villegas. Now with Edelman as the new owner, Villegas has requested $3.3 Million TIF to develop a storage facility.

Comment by Another Heidner connection Friday, Nov 8, 19 @ 1:03 pm
Great reporting by WBEZ .Capitol Fax Trib and Sun-Times.
Gotta a feeling something good will come of it.

Comment by Back to the Future Friday, Nov 8, 19 @ 1:18 pm
I also think the folks at Peoples, Nicor, Ameren, American Water, Dynegy, NRG, etc. are sitting anxiously hoping this mixroscope stays limited to ComEd as well.

Maybe they should be getting out ahead of their own and avoiding the drip drip drip…

Comment by Ok Friday, Nov 8, 19 @ 1:22 pm
The John Kasses of the world have fantasized about Ed Burke or Mike Madigan getting prosecuted under RICO, but it would be more likely for a charge like that to be directed at a private company with a well defined hierarchy and a single mission.

A few years back, the feds hit executives at a healthcare company in Texas with a RICO prosecution for paying kickbacks and campaign contributions to local officials in exchange for getting contracts to manage their employee heath plans. You can see some parallels in what’s playing out here.

Comment by Roman Friday, Nov 8, 19 @ 1:24 pm
Could be a RICO/Criminal Enterprise issue. Interesting times for ComEd.

https://archives.fbi.gov/archives/elpaso/press-releases/2010/ep090210.htm

Comment by ETown60120 Friday, Nov 8, 19 @ 1:47 pm
Could look at some state agencies that rely heavily on consulting firms with weak oversight. (IDOT)…millions going out with questionable returns and vague billing.

Comment by Ron Popeil Friday, Nov 8, 19 @ 3:09 pm
–I also think the folks at Peoples, Nicor, Ameren, American Water, Dynegy, NRG, etc. are sitting anxiously hoping this mixroscope stays limited to ComEd as well.–

Good observation.

Can the Feds extend the current investigation into other corporations? In other words, did all this start from ComEd/Exelon, or from their investigation into specific politicians/political players/clouted third parties?

It’s kind of unreasonable to imagine that ComEd was doing it but others weren’t.

Very, very long books are going to be written about this whole affair in days to come.

Hope JB is up to cleaning out the Augean stables, because it’s going to be a long, hard slug.

Comment by dbk Friday, Nov 8, 19 @ 3:43 pm
Just go read the Trib article posted on the website- by the time this is over a lot of folks are going to be headed toward camp fed- great time to be a white collar criminal attorney- this investigation is the biggest probe in decades- they will need to start importing lawyers from out of state to staff all of the subjects and targets and witnesses

Comment by Sue Friday, Nov 8, 19 @ 5:04 pm