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A look at the US Attorney’s latest filing in the corruption case against the ComEd Four

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* Click here to read the US Attorney’s “Santiago Proffer.” Tribune

Two months ahead of trial, federal prosecutors late Tuesday revealed new details of wiretapped conversations and other evidence they intend to use against four people accused in an alleged bribery scheme between Commonwealth Edison and then-House Speaker Michael Madigan. […]

— A ComEd lawyer is expected to testify that the man accused of orchestrating the scheme, ex-lobbyist Michael McClain, had such a longstanding and close relationship with Madigan that he was sometimes referred to within ComEd as a “double agent.” […]

— In 2016, McClain wrote a letter Madigan saying he wanted to let his “real” client know he was retiring from lobbying, but still willing to do “assignments” for him. “I am at the bridge with my musket standing with and for the Madigan family,” he wrote, according to a copy included in the filing. […]

— Former McPier boss Juan Ochoa is expected to testify how he enlisted the help of a member of Congress [Luis Gutierrez] in 2017 to help repair his tattered political relationship with Madigan and ultimately secure a lucrative position on ComEd’s Board of Directors.

— Prosecutors also intend to call Ed Moody, the former Cook County Recorder of Deeds and longtime 13th Ward precinct captain, who will testify Madigan told him it was ok that he was being paid by ComEd for doing next to nothing because he was “a valuable political operative” and that campaign work “was what was important to Madigan.”

Ed Moody is gonna testify? Whew.

* Moody is identified only as Individual 13W-3 in the proffer

The government expects to call Individual 13W-3 as a witness at trial. Individual 13W-3 is one of the subcontractors who was paid through intermediaries such as Doherty, Intermediary 2, and Intermediary 3. The government anticipates that Individual 13W-3 will confirm that Individual 13W-3 performed little or no work in return for payments received indirectly from ComEd, and that the payments were made simply because Individual 13W-3 was a valuable political operative for Madigan. […]

Individual 13W-3 will testify that s/he received a series of patronage jobs—other jobs that Madigan secured for Individual 13W-3 as compensation for Individual 13W-3’s work as a precinct captain and for other political campaign work Individual 13W-3 performed for Madigan. These patronage positions included jobs in local government.

Individual 13W-3 continued to work very hard for Madigan on political campaigns, in part because Individual 13W-3 enjoyed the work, and in part out of fear that Madigan would threaten Individual 13W-3’s government job. Indeed, Individual 13W-3’s understanding was that if Individual 13W-3 did not perform well during political campaigns, Madigan could cause him/her to be removed from their government job.

Individual 13W-3 is expected to testify that, in addition to the government positions that Madigan obtained for Individual 13W-3, Madigan also arranged for Individual 13W-3 to receive additional money. Specifically, Individual 13W-3 asked Madigan for a job as a consultant or lobbyist where Individual 13W-3 could make an additional $45,000 per year, so that Individual 13W-3 had sufficient funds for his/her retirement. Ultimately, Madigan informed Individual 13W-3 that s/he would be “working for McClain.” Individual 13W-3 knew McClain to be a part of Madigan’s “kitchen cabinet,” that is, s/he knew McClain to be one of the Madigan’s closest confidants and advisors. However, Madigan told Individual 13W-3 that he (Madigan) controlled the contract, and that if Individual 13W-3 left the organization (meaning Madigan’s political organization), Individual 13W-3 would no longer work for McClain. […]

Individual 13W-3 will testify that payments from Intermediary 2 ended, and he began receiving payments from Intermediary 3, who was a lobbyist and former Illinois State Representative who was close to Madigan. Intermediary 3 received a consulting contract from Intermediary 3 that referenced providing services to ComEd. Individual 13W-3 signed the contract that suggested that Individual 13W-3 would provide services to ComEd, but it was apparent quite quickly that Individual 13W-3 was not going to do any work for ComEd.

Specifically, Individual 13W-3 will testify that approximately two to three weeks after receiving the contract from Intermediary 3, Individual 13W-3 had a conversation with Madigan while Individual 13W-3 was out doing campaign work in the 13th Ward. During that conversation, Individual 13W-3 expressed his/her concern to Madigan that Individual 13W-3 had not been doing any work for ComEd as the contract suggested.

Madigan responded that Individual 13W-3 did not have to worry about that, because what Individual 13W-3 was doing right then—meaning campaign work—was what was important to Madigan. Madigan further told Individual 13W-3 that Individual 13W-3 was doing what Intermediary 3 and ComEd wanted Individual 13W-3 to be doing. Individual 13W-3 understood Madigan to be referring to political campaign work for Madigan, and further understood s/he did not have to worry about doing any work for ComEd. [Emphasis added.]

Boom.

* Sun-Times

In summer 2018, months before it became apparent they were the targets of a federal investigation, then-Illinois House Speaker Michael Madigan was reminded by a longtime confidant about a contract they’d help someone land that tied the person to ComEd.

Madigan then interrupted his confidant, Michael McClain. The men were allegedly near the end of an almost decade-long scheme, in which they convinced ComEd to give Madigan’s associates jobs, contracts and money in order to curry favor with the speaker.

“Some of these guys have made out like bandits, Mike,” Madigan quipped, according to a newly released transcript of the conversation that was caught on a federal wiretap.

“Oh my God, for very little work too,” McClain said, coughing amid his response. “Very little work.”

Now, federal prosecutors say that conversation is evidence that Madigan and McClain understood that people employed by ComEd at Madigan’s request were doing little or no work for the utility. “Indeed,” Assistant U.S. Attorney Amarjeet Bhachu wrote, “many of the Madigan subcontractors made out like thieves, just as Madigan observed.”

* Check out the Mapes reference

The government anticipates introducing recordings of other benefits the defendants sought to solicit and confer on Madigan. For example, on or about December 11, 2018 (McClain Phone, Session #18290), Madigan asked McClain if he had received a resume for a named individual who was related to a local public official, and told McClain that his “thought was there might be a place for her at ComEd.” McClain advised Madigan he would bring the resume with him when he had breakfast with Marquez.

As another example, on or about April 9, 2019 (McClain Phone, Session #17513), John Hooker had a telephone call with Marquez. During the call, Hooker reported to Marquez that Pramaggiore was exploring hiring Madigan’s former chief of staff [Tim Mapes], who had left his position in the wake of allegations of harassment made by other State employees. Hooker explained that Pramaggiore wanted to have the former chief of staff work for her, but Pramaggiore wanted to “pay him but hide his contract in someone else’s,” and Hooker had suggested “put him in as a consultant with McClain.” McClain similarly suggested to Marquez that ComEd could “hide things” by employing Madigan’s former chief of staff as a consultant through a third party in an intercepted phone call. (McClain Phone, Session #3870.) Of course, Pramaggiore’s and McClain’s proposed method of concealment of payments to Madigan’s former chief of staff had been employed by the coconspirators with the Madigan subcontractors for years to great effect.

As another example, on February 16, 2019, McClain spoke to another ComEd lobbyist, in follow-up to that lobbyist’s request that Madigan help him secure more lobbying work. McClain acknowledged that the lobbyist had come to see the Speaker; McClain told him that “we’re on it” and “this is [Madigan’s] return call.” The lobbyist told McClain that he was hoping to get more work and acknowledged that he enjoyed his work for ComEd. McClain Phone, Session #20021. This call demonstrates that McClain acted as Madigan’s agent (“this is his return call”), and Madigan arranged for McClain to help to secure consulting work at ComEd and other companies for individuals connected to Madigan.

* McClain wasn’t wrong when he said Madigan was his “real” client

On or about November 16, 2018 (McClain Phone, Session# 14849), Madigan reviewed his efforts to gather votes to be re-elected Speaker with McClain, discussed McClain arranging to have a message passed to Illinois’ Joint Committee on Administrative Rules concerning a prior directive issued by Governor Rauner. In addition, McClain asked Madigan when McClain should call a named State Representative that Madigan wished to retire and “lower the boom” on the State Representative; Madigan instructed McClain to do so “sooner rather than later.” Thereafter, on or about August 11, 2018 (McClain Phone, Session #15167), McClain called the named State Representative to tell them that “this is no longer me talking, I’m an agent,” on behalf of someone [Madigan] who thought the Representative ought to “move on” and was not interested in moving the State Representative “up in leadership.” (McClain made a number of other calls in which he discussed his communications with that State Representative on Madigan’s behalf.

* Remember this?

On or about September 5, 2018 (McClain Phone, Session #12860) during a telephone call between Madigan and McClain, Madigan asked for McClain’s advice on how to respond to the Senate President, who was understood to have authorized political advertisements to be broadcast that cast Madigan in a negative light. McClain advised Madigan to “let your agents do it for . . . now,” “I’d let us handle this for twenty-four, forty-eight hours and if [the Senate President] by that time hasn’t called you, then I guess you, you’re gonna have to call him . . .”

* ComEd’s former senior vice president of external and governmental affairs Fidel Marquez lays it out

Marquez learned after he assumed this position that two Madigan associates— Individual 13W-1 and Individual 13W-2—were being paid by ComEd as “subcontractors” through JDDA, and soon after, a third Madigan associate, Individual 13W-3, was added as a subcontractor. Marquez will explain that the payments to Individual 13W-1 and Individual 13W-2 continued through the entirety of his service as Senior Vice President of Governmental and External Affairs,8 and the payments continued to Individual 13W- 3 until and including 2018 (though Individual 13W-3 was paid through multiple third parties, including JDDA, Intermediary 2, and Intermediary 3 as discussed further below).

Marquez will testify that (i) he never asked any of these individuals to perform any work for ComEd, and did not expect them to perform any work for ComEd; (ii) Marquez was never informed they were performing work for anyone at ComEd; and (iii) none of them had any unique skills that ComEd needed or wanted. The method of paying them—that is, as subcontractors—was unusual. The intermediaries, like JDDA, served as “pass through” entities in order to pay the subcontractors. Marquez is expected to further testify that while paying individuals as requested by Madigan and McClain did not guarantee legislative success, the purpose of the payments was to influence Madigan and to ensure Madigan did not act against ComEd and its legislative requests and agenda due to a failure to fulfill his hiring requests.

Emphasis added.

posted by Rich Miller
Wednesday, Jan 11, 23 @ 12:58 pm

Comments

  1. Many people worked very hard for Madigan over the years, and he took a big Trump on them and their work to help people he describes as thieves.

    Comment by Three Dimensional Checkers Wednesday, Jan 11, 23 @ 1:15 pm

  2. We haven’t heard much from/about Luis Gutierrez since he retired. He’s been rather quiet even on the subject of immigration which he was passionate about.

    Comment by Steve Wednesday, Jan 11, 23 @ 1:25 pm

  3. I guess I’m glad the MJM friends aren’t racing to say this is all nonsense, and I understand why many will be slow to criticize him here…The shadow still remains…lol

    Comment by Lincoln Lad Wednesday, Jan 11, 23 @ 1:43 pm

  4. Ed Moody testifying against Madigan is perhaps the most stunning thing I have learned to date in this entire saga.

    The Moody brothers always look at Madigan as a surrogate father, of sorts. Simply stunning

    Comment by SpiDem Wednesday, Jan 11, 23 @ 1:44 pm

  5. “What do I tell you. Never talk on the phone.”

    What is interesting is brazen openness to be “forthright” to be self-serving to the politics, and the politics of power, and harnessing power for those closely aligned, “friends”, and some now might say “co-conspirators”

    This case will be something

    In an election year too

    Comment by Oswego Willy Wednesday, Jan 11, 23 @ 1:47 pm

  6. === Ed Moody is gonna testify? Whew. ===

    The Feds are really reaching now. Anyone who knows him knows that he has serious credibility issues.

    Comment by Hannibal Lecter Wednesday, Jan 11, 23 @ 1:49 pm

  7. Ann Pramaggiore you seemed like such a good person when I talked with you. the idea of burying the problematic Mapes in your world is offensive especially to women.

    Comment by Amalia Wednesday, Jan 11, 23 @ 1:52 pm

  8. And this does not start until April of 2024? A lot of fodder for the republi…. never mind, that thought is all wasted on the current Illinois GOP.

    Comment by Lurker Wednesday, Jan 11, 23 @ 2:00 pm

  9. =Hannibal Lecter=

    I’m pretty sure nobody who knows Ed Moody will be on the jury. They will have only his sworn testimony, and physical evidence suggesting that he did not perform any work for ComEd.

    Comment by Graybeard Wednesday, Jan 11, 23 @ 2:04 pm

  10. === The Moody brothers always look at Madigan as a surrogate father, of sorts. Simply stunning ===

    That’s what they say. But what they say and what is the truth are two different things.

    Comment by Hannibal Lecter Wednesday, Jan 11, 23 @ 2:06 pm

  11. === I’m pretty sure nobody who knows Ed Moody will be on the jury. ===

    Ha! That’s probably true, and I think that would upset him more than anything else.

    Comment by Hannibal Lecter Wednesday, Jan 11, 23 @ 2:07 pm

  12. ==I’m pretty sure nobody who knows Ed Moody will be on the jury. They will have only his sworn testimony, and physical evidence suggesting that he did not perform any work for ComEd.==

    The defense is almost certainly gonna have character witnesses testify about Moody. Shouldn’t be too hard.

    Comment by ElTacoBandito Wednesday, Jan 11, 23 @ 2:22 pm

  13. Reads like a Mario Puzo novel.

    Comment by Chicagonk Wednesday, Jan 11, 23 @ 2:24 pm

  14. I’m not sure people realize how close Ed Moody snd his brother were to Madigan and the entire 13th Ward. The Moody Brothers were well known throughout the organization. This cant be easy for him. MJM took him and his brother from nothing and became something through hard work.

    McClain came up w this idea of the no work consulting contracts? What a moron if true. Total rocks for brains, not just for the idea (if true) for no work contracts, but also for the amount of stuff he put in writing.

    Not a good day for Madigan to say the least.

    Comment by low level Wednesday, Jan 11, 23 @ 2:32 pm

  15. These folks should have worked out a plea deal a long time ago.
    Some of them will probably die in jail.
    Not sure why they would not step forward and cooperate with the FBI and the US Attorney’s Office on getting the whole corruption thing cleaned up. I suspect many of them have quite a few tales to tell.

    Comment by Back to the Future Wednesday, Jan 11, 23 @ 2:35 pm

  16. ===Not sure why they would not step forward and cooperate===

    That door closed like a year ago.

    Comment by Rich Miller Wednesday, Jan 11, 23 @ 2:39 pm

  17. === The Moody Brothers were well known throughout the organization. ===

    Well known does not mean well liked.

    Comment by Hannibal Lecter Wednesday, Jan 11, 23 @ 2:49 pm

  18. ==Well known does not mean well liked.==

    Absolutely fair point, I had issues myself until I got to know them better; but rather what I am speaking to is this idea that somehow Ed Moody isnt believable. I think a jury will find him very credible, just like they will find Cullen extremely credible.

    Comment by low level Wednesday, Jan 11, 23 @ 2:57 pm

  19. =I’m pretty sure nobody who knows Ed Moody will be on the jury. They will have only his sworn testimony, and physical evidence suggesting that he did not perform any work for ComEd.=

    Cross examination, anyone? Bueller? Also, as someone else mentioned, character witnesses.

    Comment by Joe Bidenopolous Wednesday, Jan 11, 23 @ 3:00 pm

  20. Does anyone know when Mapes trial starts

    Comment by Nickname Wednesday, Jan 11, 23 @ 3:00 pm

  21. To my previous comment - MJM probably knows where more of the Moody skeletons are than Ed and Fred themselves. They might be able to destroy Ed’s credibility without follow-up witnesses.

    Comment by Joe Bidenopolous Wednesday, Jan 11, 23 @ 3:01 pm

  22. “That door closed like a year ago”

    Not saying you are wrong, but sometimes the door stays open until the jury comes back. Of course, the price can go up a lot.

    The FBI and the US attorney’s office spent a lot of time and taxpayer money on this case and may just want to go to verdict. Seems like it appears they have a strong case and the defendants continue to say they are innocent -time will tell.

    Going to be interesting.

    Comment by Back to the Future Wednesday, Jan 11, 23 @ 3:02 pm

  23. === I think a jury will find him very credible ===

    Until the defense destroys him in cross-examination.

    Comment by Hannibal Lecter Wednesday, Jan 11, 23 @ 3:02 pm

  24. ===Well known does not mean well liked===

    Don’t think they cared about that. They knew what their roles were and they played them pretty well.

    Comment by Rich Miller Wednesday, Jan 11, 23 @ 3:02 pm

  25. Federal prisons are filled with people who believed that attacking a witness’ credibility would be easy and effective.

    Comment by Graybeard Wednesday, Jan 11, 23 @ 3:10 pm

  26. ===Until the defense destroys him in cross-examination.===

    A brick is not a wall. The defense can humiliate Moody all they want. Madigan’s and McClain’s own words confirm the conspiracy.

    Comment by Three Dimensional Checkers Wednesday, Jan 11, 23 @ 3:53 pm

  27. ==McClain asked Madigan when McClain should call a named State Representative that Madigan wished to retire and “lower the boom”==.

    Any idea who? Im at a loss, esp for this conversation happening in Aug 2018.

    Comment by low level Wednesday, Jan 11, 23 @ 4:01 pm

  28. === A brick is not a wall. The defense can humiliate Moody all they want. Madigan’s and McClain’s own words confirm the conspiracy. ===

    I wasn’t commenting on what the other evidence would show. I was specifically commenting on the credibility of Ed Moody.

    Comment by Hannibal Lecter Wednesday, Jan 11, 23 @ 4:02 pm

  29. The upcoming trial of the ComEd Four deserves a large helping of seasoned carmel and cheese Chicago style popcorn.

    Comment by Rudy’s teeth Wednesday, Jan 11, 23 @ 4:09 pm

  30. == he has serious credibility issues == Ed came across very well with people whose doors he knocked on. That’s why he and Fred were legendary. A jury may find him likeable. I wonder if his cooperation is due to threatened prosecution if he didn’t.

    Comment by anon2 Wednesday, Jan 11, 23 @ 6:36 pm

  31. Will Fred be called to testify by MM, trashing Ed’s credibility? This could be fun.

    Comment by Original Rambler Wednesday, Jan 11, 23 @ 9:05 pm

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