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* Jason Meisner and Ray Long at the Tribune…
AT&T Illinois has agreed to pay a $23 million fine as part of a federal criminal investigation into the company’s illegal efforts to influence former House Speaker Michael Madigan.
The investigation of AT&T Illinois, which was previously reported by the Tribune earlier this year, is being resolved with a deferred prosecution agreement under which the company admitted it arranged for payments to be made to an ally of Madigan to influence the powerful speaker’s efforts to assist with legislation sought by the company in Springfield.
In exchange for admitting guilt and paying a $23 million fine, the charge will be dropped by the U.S. Attorney’s Office in two years. […]
The payments to [former state Rep. Edward Acevedo] were made via a lobbying contract between AT&T and Thomas Cullen, a former Madigan staffer and longtime political strategist aligned with the speaker, two sources told the newspaper.
Acevedo was a registered lobbyist at the time, state records show, but not for AT&T, and the sources said the amount of work Acevedo actually did for AT&T is in question.
Whew. Stay tuned because this post will be updated.
*** UPDATE 1 *** AT&T’s response…
AT&T has issued this response to news of its involvement in the Springfield/Madigan corruption scandal pic.twitter.com/EQKq5LgjGq
— Dan Mihalopoulos (@dmihalopoulos) October 14, 2022
* From the US Attorney…
The former president of Illinois Bell Telephone Company, which does business as AT&T Illinois, has been charged in federal court with participating in a conspiracy to unlawfully influence the former Illinois Speaker of the House of Representatives involving the company’s efforts to advance legislation in the Illinois General Assembly.
PAUL LA SCHIAZZA conspired in 2017 with former Speaker Michael J. Madigan, Madigan’s close friend, Michael McClain, and others, to corruptly arrange for $22,500 to be paid to a Madigan ally, according to a five-count indictment unsealed today in U.S. District Court in Chicago. AT&T Illinois caused the payments to be made through an intermediary – a lobbying firm that performed services for AT&T Illinois – to conceal the true nature of the payments, which was to influence and reward Madigan’s efforts as Speaker to assist the company with respect to certain legislation, the indictment alleges. Although the members of the conspiracy formulated a pretextual assignment for Madigan’s ally to disguise why the ally was being paid, the ally performed no actual work for AT&T Illinois and had no role in advancing the legislation, the indictment states.
La Schiazza, 65, is charged with one count of conspiracy, one count of corruptly giving something of value to reward a public official, and three counts of using a facility in interstate commerce to promote unlawful activity. Arraignment in federal court in Chicago has not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Ashley T. Johnson, Acting Special Agent-in-Charge of the Chicago Field Office of the FBI; and Justin Campbell, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago. The government is represented by Assistant U.S. Attorneys Amarjeet S. Bhachu, Diane MacArthur, Timothy J. Chapman, Sarah E. Streicker, Michelle Kramer, and Julia Schwartz.
Also today, the U.S. Attorney’s Office filed a one-count criminal information charging AT&T Illinois with using an interstate facility to promote unlawful activity.
The public is reminded that charges are not evidence of guilt. Defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
The indictment is here.
* Also…
Illinois Bell Telephone Company, LLC, which does business as AT&T Illinois, today agreed to pay $23 million to resolve a federal criminal investigation into alleged misconduct involving the company’s efforts to unlawfully influence former Illinois Speaker of the House Michael J. Madigan.
The investigation of AT&T Illinois is being resolved with a deferred prosecution agreement under which the company admitted it arranged for payments to be made to an ally of Madigan to influence and reward Madigan’s efforts to assist AT&T Illinois with respect to legislation sought by the company. The U.S. Attorney’s Office today filed a one-count criminal information in U.S. District Court in Chicago charging AT&T Illinois with using an interstate facility to promote legislative misconduct. Under the agreement, the government will defer prosecution on the charge for two years and then seek to dismiss it if AT&T Illinois abides by certain conditions, including continuing to cooperate with any investigation related to the misconduct alleged in the information.
The deferred prosecution agreement requires AT&T Illinois to pay $23 million to the federal Crime Victims Fund. Arraignment in federal court in Chicago has not yet been scheduled.
The charge and the deferred prosecution agreement were announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Ashley T. Johnson, Acting Special Agent-in-Charge of the Chicago Field Office of the FBI; and Justin Campbell, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago. The government is represented by Assistant U.S. Attorneys Amarjeet S. Bhachu, Diane MacArthur, Timothy J. Chapman, Sarah E. Streicker, Michelle Kramer, and Julia Schwartz.
AT&T Illinois’s admissions regarding the charged conduct are contained in a Statement of Facts attached to the deferred prosecution agreement. AT&T Illinois admitted that in 2017 it arranged for an ally of Madigan to indirectly receive $22,500 in payments from the company. The company paid the money through an intermediary – a lobbying firm that performed services for AT&T Illinois. Although AT&T Illinois employees formulated a pretextual assignment for Madigan’s ally to disguise why the ally was being paid, the ally performed no actual work for AT&T Illinois and the company made no effort to ensure any work was performed. AT&T Illinois acknowledged in the agreement that AT&T Illinois’s then-president used an interstate facility to facilitate Madigan’s indirect receipt of a thing of value, namely the payments made to his ally, in exchange for Madigan’s vote and influence over a bill.
In addition to the monetary penalty and its continued cooperation with the government, AT&T Illinois’s obligations under the agreement include implementing a new compliance and ethics program and providing annual reports to the government regarding remediation and implementation of the program. If AT&T Illinois fails to completely fulfill each of its obligations under the agreement during the two-year term, the U.S. Attorney’s Office can initiate prosecution of the charged offense.
The deferred prosecution agreement is here. The “information” is here.
*** UPDATE 2 *** Gonna be a busy Friday…
Madigan and longtime confidant Michael McClain now face an additional conspiracy count alleging the corrupt scheme with AT&T Illinois.
— Jon Seidel (@SeidelContent) October 14, 2022
…Adding… The superseding indictment is here.
…Adding… ILGOP…
“Indicted former House Speaker Mike Madigan’s legacy continues to haunt Illinois as he now faces additional corruption-related charges. Since 2019, nine Chicago Democratic Aldermen & women, three Democratic State Representatives, and four Democratic State Senators have been indicted or convicted on corruption-related charges, including Madigan himself.
While these additional charges, as well as AT&T’s settlement, is another step towards justice, with Ilinois Democrats and their corruption charges, it’s like the “Never Ending Story”. This sad saga hasn’t ended with Madigan. It will only end when Democratic leaders like Speaker Welch and Senate President Harmon stop turning a blind eye to Madiganesque behavior in their caucuses.”
posted by Rich Miller
Friday, Oct 14, 22 @ 8:15 am
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Because…Madigan!
Comment by Phenomynous Friday, Oct 14, 22 @ 8:38 am
Mike Madigan, the gift that keeps on giving. (To the Republicans)
Comment by Bruce( no not him) Friday, Oct 14, 22 @ 8:57 am
I wouldn’t be surprised if the landline phones in Madigan’s home and offices were made by Illinois Bell and ca. 1970s.
Comment by AcademicUnionStateEmployee Friday, Oct 14, 22 @ 9:10 am
Tribune’s Meisner reports former AT&T President Paul LaSchiazza also indicted.
Comment by Anon 9:11 Friday, Oct 14, 22 @ 9:12 am
Trib is also reporting superseding indictment of Madigan and McClain have been filed adding new charges
Comment by SpiDem Friday, Oct 14, 22 @ 9:18 am
A busy and largely irrelevant day.
I’m sure Mr. LaSchiazza has a lot going on and maybe, if the world is at least partially fair, some folks in the government relations department at AT&T are emptying their desks.
But I’m sure Mr Cullen’s lobbying business continues to thrive (although maybe he must proceed now somewhat incognito to accomplish his skulduggery).
And there isn’t a single undecided voter in Illinois who will be swayed by this news.
Comment by DougChicago Friday, Oct 14, 22 @ 9:33 am
@DougChicago, You likely have never met Tom Cullen. He’s an honest and ethical person, despite what you’ve written. Let the facts come out before you reach your conclusions about someone you don’t know.
Comment by Colin O’Scopy Friday, Oct 14, 22 @ 9:38 am
CUB got anything to say? Is this why the AT&T/directTV bill doubled?
Comment by Rabid Friday, Oct 14, 22 @ 9:40 am
Although Ive never been a fan of term limits, passing and enacting them for the leaders may very well have been the best thing for the leaders themselves, even if they didnt realize it at the time.
Comment by low level Friday, Oct 14, 22 @ 9:58 am
The Madigan trial will be interesting, almost wonder how many other utilities will end up getting referenced.
If the GOP figured out how to make it less about Madigan and more about a ‘Springfield corruption tax’, giving the impression that you pay more for phone and power because of corruption it might be more effective. Wouldn’t work for this cycle, not sure it will work int he future but I think it is a better approach than just screaming ‘Madigan’.
Comment by OneMan Friday, Oct 14, 22 @ 10:00 am
Where does this leave Cullen? It was his contract, right? That was being used to disguise the deal?
Comment by DownStateGrl Friday, Oct 14, 22 @ 10:06 am
Recognize the DOJ often affords deferred pros agreements but why is it that not everyone is afforded the same opportunity. I am sure Madigan would gladly pay millions for the same deal
Comment by Sue Friday, Oct 14, 22 @ 10:09 am
This is actually *bad* news for Republicans wanting and knowing they need to move forward to be viable as a party.
This only fuels this ugly, ignorant, political thinking that can’t grasp why the super-minority status is maintained
How many voters are swayed today by this happening?
The GOP allegedly has these voters.
Comment by Oswego Willy Friday, Oct 14, 22 @ 10:12 am
Evidently, election eve prosecution deference doesn’t apply to state political figures.
Comment by Norseman Friday, Oct 14, 22 @ 10:19 am
Colin O’Scopy got it right. Tom Cullen is a wonderful guy. Let’s let this play out before anyone smears his good name.
Comment by Because I said so... Friday, Oct 14, 22 @ 10:24 am
oh, the political chatter on A T & T is going to get much worse.
Comment by Amalia Friday, Oct 14, 22 @ 10:27 am
What always surprises me is why they hide this. Just do some work. Have them pay you. Make a call. Walk around the capitol. Pop into someone’s office and say hello. Properly register as a lobbyist — no one reads that information much less cares about it outside of a scandal. No one will ever evaluate the quality of your work if you do something.
Comment by DougChicago Friday, Oct 14, 22 @ 10:49 am
Looking ever worse for Madigan. Plays no role in the voter’s mind when it comes election day as to whether they will switch to Baily because of this issue.
Comment by notafraid Friday, Oct 14, 22 @ 11:08 am
==What always surprises me is why they hide this. Just do some work.==. Yep. 100%.
Comment by low level Friday, Oct 14, 22 @ 11:12 am
“I am sure Madigan would gladly pay millions for the same deal”
Madigan’s the big fish, who is he gonna roll on? Feds don’t give deals to the big fish.
Comment by Donnie Elgin Friday, Oct 14, 22 @ 11:16 am
To the actual post, my apologies,
This is huge to the idea of what will be the hard line measured in indictments and possible convictions to the actors involved.
There’s art, science, finesse, deference, and nuance to lobbying, the process as such, thru sponsors of bills, committee movements, amendments, passage, “other chamber”, process again…
My point is, a pay schedule for an individual in the process that seemingly links actions by 177 others, other lobbyists, other actors, this is a huge wow, and I’m fascinated how seemingly unrelated hurdles are given reward to alleged bad actors towards an outcome.
If you think reading this I think it’s all bunk, think again.
I do want to see, grasp, understand, and know where the unseen lines were crossed to the seen lines of flat out silly to decisions on their face begin and end with “don’t take the money. Ever”
A jury will need to learn that even the best lobbyists find where pressure helps or hurts, and the worst lobbyists find the value and costs to ease any pressures.
We will see. Whew.
Comment by Oswego Willy Friday, Oct 14, 22 @ 12:34 pm
Illinois needs a complete review of how it legislates and regulates utilities. As is apparent from multiple uncontested court filings, the corruption has been going on for years.
Comment by Nobody Sent Friday, Oct 14, 22 @ 12:58 pm
Must admit my surprise that neither Bailey’s team nor Profft have thought to go populist, ala Pat Quinn, on the utilities, all of the Democratic ties and the very consumer unfriendly legal and regulatory license by Dem dominated legislature and state boards.
Comment by Midwesterner Friday, Oct 14, 22 @ 12:59 pm
==all of the Democratic ties and the very consumer unfriendly legal and regulatory license by Dem dominated legislature and state boards.==
Maybe because the GOP has worked up in their heads even worse consumer legislation and ways to get wealthy off old ladies?
Comment by low level Friday, Oct 14, 22 @ 1:32 pm