Quantcast
Channel: Chicago Tribune
Viewing all 22701 articles
Browse latest View live

The Madigan Rules

$
0
0
In his rise to the pinnacle of Illinois politics, House Speaker Michael J. Madigan built a reputation for wielding control over every bill, every budget line and every Democratic representative elected to oversee them.

Away from the public eye, the state's ultimate power player enjoyed a similar rise in his private career: rainmaker for one of Chicago's most successful property tax law firms.

In a first-of-its-kind examination, the Tribune found these two careers repeatedly intersect, and in some cases Madigan took public actions that benefited his private clients.

As a public official, he got a private road behind a shopping mall repaved, helped secure state funding for an expanded tollway interchange and intervened for a developer looking for state cash. In each case, Madigan was a private lawyer for businesspeople who stood to benefit.

His list of clients multiplied as Madigan consolidated political muscle over the last two decades. Now, many of his decisions as speaker have the potential to affect someone who has hired Madigan & Getzendanner in hopes of having a tax bill lowered. The Chicago firm represents banks the state regulates, investment houses that have overseen billions of dollars in public pensions, developers who want roads -- all subject to decisions made by a state House in the firm control of their tax lawyer.

It appears Madigan's personal wealth has blossomed along with his two careers, based on the list of investments he provided in ethics statements over the last three decades. But Madigan, like other public officials, is not required to detail the value of those investments. State ethics law requires very little disclosure about how Madigan's public decisions could affect his personal bank accounts.

He declined Tribune requests to detail how much he makes beyond his annual legislative income of more than $95,000. He also declined requests for his appointment calendars, memos and e-mails, citing state public records law that exempts the legislature.

Madigan also refused requests for an interview. In a written statement, he defended his actions and said "my personal code of conduct and compliance with a wide range of government ethics provisions have ensured that I have maintained ethical standards."

That code of conduct -- provided to the Tribune and unpublished until now -- states that Madigan will not offer state benefits to get a client, will not intercede with a state agency for a client and will recuse himself from involvement in a bill "if a client of the law office expresses an interest in legislation such as to create a conflict of interest."

But a Tribune examination of public records and a review of more than 20,000 tax appeals filed by Madigan's firm since 1998 raises questions about where the speaker draws that line.

- Madigan sponsored a $3.5 million state transportation grant to the city of Chicago to rebuild a private road leading to the rear entrances of the Ford City Mall shopping center and Tootsie Roll factory on Chicago's Southwest Side. Both Tootsie Roll Industries Inc. and the mall owner, a company in billionaire Sam Zell's Equity group of companies, were longtime clients of Madigan at the time of the 2003 grant. Zell is also the chairman of Tribune Co., which owns the Chicago Tribune.

- Madigan helped secure $18 million in state money for an expanded Illinois tollway interchange in Hoffman Estates in 2009, a project long sought by suburban officials who formed a coalition of businesspeople in 2001 to help promote the plan. One of the coalition members was a Madigan client, and another hired his firm to appeal its taxes for that same year.

- Madigan called the director of the state's largest pension fund, the Illinois Teachers' Retirement System, in 2005 asking the director to hear a pitch from the developers of a minority-owned firm seeking pension fund money to invest in a Chicago affordable-housing project. The developers hired Madigan's firm to appeal the taxes on property in that project for that same year.

- Madigan pressured the state's multibillion-dollar public pension funds to ban any dealings with financial institutions that make high-risk loans to unqualified homeowners. In 2006, Madigan named four national banks in a letter to the state's pension managers that asked the funds to stop investing and making deposits with any banks that practice predatory lending. All the banks he named were competitors of his firm's banking clients, a fact not disclosed in his letter.

In his written statement, Madigan said there are no conflicts of interest in the Tribune's findings, which he described as "strained attempts to link my legislative actions to clients of the firm who might remotely and incidentally 'benefit' from such action."

By all accounts, the legal work of Madigan & Getzendanner is top-flight. Madigan's partner, Vincent "Bud" Getzendanner, has a reputation as a thorough and effective tax lawyer.

Getzendanner and four other lawyers handle the tax law. Madigan's job is to bring in clients. It's been a formula for success.

An examination of public records shows Madigan & Getzendanner is a dominant player in the lucrative field of property-tax appeal law. Much of the firm's business involves appealing the decisions of the Cook County assessor's office, which sets the value of property for tax purposes.

Most appeals are directed either to the assessor's office or to the county's three-member Board of Review, established as a separate avenue of appeal to contest assessments.

In 2007 alone, the most recent year in which full statistics were available, the small firm filed appeals on Cook County property with a taxable value of nearly $2.1 billion, up nearly sevenfold from 1998.

Some clients interviewed say it's not that simple to separate the expert tax assistance from the political reputation of the man whose name is on the door. "He's the speaker of the House. It can't hurt to hire him," said Jeffrey Rappin, a former vice president and general counsel at The Habitat Co., which has hired Madigan & Getzendanner.

As House speaker since 1983, with the exception of a two-year period when Republicans had control in the mid-1990s, Madigan, 67, keeps tight rein over committee chairmen and other key leaders who control what happens in the House.

His ability to funnel political donations and campaign workers into any corner of the state gives him great influence over rank-and-file Democrats. That influence over lawmakers and other politicians only grew when he became chairman of the Illinois Democratic Party in 1998.

The taciturn Madigan limits his public comments about legislative matters, and in private meetings with the governor and other legislative leaders, he is known to say the least. What he does say often becomes law.

Legislation has little chance without his approval.

"If he's opposed to it, your chances of success are very slim," said former Democratic state Rep. Al Ronan, who served as a committee chairman under Madigan before starting a long career as a lobbyist.

Madigan's reputation as the political grandmaster looms so large, supporters say, he's often suspected of maneuvering behind the scenes when he's not. But in the opaque world of Illinois politics, direct connections are often elusive and state law makes it difficult to sort the public interest from private agendas.

The Tribune found dozens of examples where Madigan & Getzendanner clients received benefits from state government -- contracts, tax credits, road projects, jobs grants, low-income loans.

In most cases it could not be determined whether Madigan played a significant role. It all plays out in a system that thrives on personal relationships and quiet conversations.

Country Club Hills Mayor Dwight Welch, who is seeking Madigan's support for millions of dollars in road improvements surrounding a planned outlet mall being developed by clients of Madigan & Getzendanner, said he has personally met with Madigan several times at the speaker's favorite Springfield restaurant.

"We would sit across the table from Madigan at Saputo's …" Welch said. "Mike is sitting in the same chair, in the same corner, five days of the week. You have to have a relationship with these folks. Politics doesn't get done in writing.

"Nothing gets done until Madigan's people say it's done."

Tribune reporter Ray Long contributed to this report.

dkidwell@tribune.com jchase@tribune.com rgibson@tribune.com

Madigan's kind of town

$
0
0
Not long after developer Anthony Rossi got City Hall approval for a much-needed zoning change in downtown Chicago, he received a surprising phone call from the speaker of the Illinois House.

Michael J. Madigan wasn't calling to talk about state issues. Instead, Madigan was drumming up legal business for his property tax appeal firm.

"When Mike Madigan calls and asks for a meeting, you meet with him," Rossi said in an interview with the Tribune.

Madigan and his law partner met with Rossi in September 2008. Together they went one by one through the portfolio of buildings Rossi represents until he referred them to a downtown high-rise he manages that might need a tax attorney.

"Nobody wants to piss off the speaker of the House," Rossi said. "I mean, I was born and raised in this town."

The firm got the contract. It was another success for Madigan, the rainmaker.

Madigan & Getzendanner has become a go-to firm in Chicago's lucrative field of commercial property tax appeals. In 2008 it represented 45 of the 150 most valuable downtown buildings, based on values set by the last complete city reassessment in 2006, according to public records. That's more than twice what the closest rival represented.

The high-stakes competition to handle tax work for buildings worth hundreds of millions of dollars plays out quietly among a small group of local law firms. Many are armed with deep political connections - including Ald. Ed Burke, former Clinton adviser Kevin O'Keefe and former county Assessor Thomas Tully. Only one has Michael Madigan.

House speaker for a quarter-century and chairman of the Illinois Democratic Party since 1998, Madigan's influence stretches beyond the Statehouse to the corridors of City Hall and the Cook County Building. His political power even touches the levers of government that affect the success of his private law firm.

Ald. Brendan Reilly, who got his start in Illinois politics with a six-year stint in the speaker's office, holds tremendous control over development decisions in his Loop ward where Madigan competes for new clients.

Joseph Berrios, a longtime Madigan ally, sits in judgment over property tax appeals filed by Madigan's firm and others as the senior member of the county Board of Review. At the same time, Berrios' business as a state lobbyist depends on his success in the Statehouse dominated by Madigan.

Now Madigan is putting his political weight behind Berrios' bid to replace a political nemesis - retiring Cook County Assessor James Houlihan, whose office affects Madigan's clients by setting the taxable value for all county real estate.

Madigan declined to be interviewed about what role political connections might play in the tax appeal business. He said in a written statement that most of the firm's new business comes from referrals by other clients or competitive bidding.

Asked about the meeting with Rossi, Madigan said he had no knowledge that Rossi played a role in the firm getting tax work. In looking for business leads, Madigan wrote, the firm keeps an eye on City Council zoning decisions.

In Chicago, aldermen have near-total control over zoning decisions in their wards. Asked whether Madigan talks with his former aide Reilly about potential clients, Madigan spokesman Steve Brown said Madigan "talks to a range of people" who know developers.

"And aldermen could be part of that group," Brown said.

Reilly, alderman for the 42nd Ward since 2007, said he and Madigan still talk about politics, but not about zoning matters.

The client list for Madigan & Getzendanner includes some of the most prestigious skyscrapers in Chicago's famous skyline - from the John Hancock Center on Michigan Avenue to the Prudential Plaza towers across from Millennium Park.

In 2006, the last reassessment year in which full statistics are available, Madigan's firm won enough appeals to cut more than $183 million from the taxable value of the top high-rises it represented, the Tribune examination shows. Most of that success was at the Board of Review, where Madigan ally Berrios is one of three elected members. The panel was established as a separate avenue of appeal to contest the assessor's decisions.

The assessed value for top properties represented by Madigan & Getzendanner clients in the 2006 tax year was cut by more than 11.5 percent at the Board of Review, among the best results of the city's major law firms. At the assessor's office, the assessed value for those same properties was reduced by less than 1 percent - the worst result compared with those same major law firms, the records show.

Asked about the firm's success, clients and competitors say the firm has first-rate lawyers - including Madigan's law partner, Vincent "Bud" Getzendanner - who adeptly handle appeals.

"I respect both administrative bodies and believe they both act with integrity and good faith," Getzendanner said in an e-mail. "I would note that the BOR affords the appellants the opportunity to orally argue their case (which is impractical for the assessor to do) and that this increases the chance that all relevant facts will be considered in reaching a decision."

In his written response, Madigan said his firm does not track rates of success at the assessor versus the Board of Review. He only speculated as to why the firm did better at the board.

"To the extent the firm in recent years has been more successful at the Board of Review, it may be attributable to a systemic difference of opinion between these assessing officials concerning the proper method of valuing property," Madigan said.

Berrios said his political ties to Madigan have nothing to do with the Board of Review's decisions and suggested that the difference had more to do with the strained relationship between Madigan and outgoing, three-term Assessor James Houlihan.

"I'm sure there are some prejudices down there we don't have at the board," Berrios said. "We look at all the information that is brought before us."

Houlihan dismissed the criticism.

"The assessor's office assigns values to commercial properties based solely on economic factors, including rental income, sales of comparable properties and costs," said Eric Herman, a Houlihan spokesman.

Berrios, a former Democratic state lawmaker, served under Madigan in Springfield and now lobbies for clients seeking help in the legislature.

Madigan backed Berrios' successful bid three years ago to become head of the Cook County Democratic Party. Precinct workers from Madigan's Southwest Side power base in the 13th Ward helped Berrios win a tough Board of Review re-election bid in 2008. Berrios confirmed Madigan political workers are assisting in his Feb. 2 Democratic primary bid for assessor.

In late September, Berrios was among hundreds of people to attend Madigan's biggest fundraiser of the year in Chicago, at the Sheraton Chicago Hotel & Towers.

The hotel scene was a two-hour display of Madigan's clout. He stood at the door in front of a banquet room as scores of businessmen and politicians lined up for brief face time with the speaker. Gov. Pat Quinn showed up, as did state lawmakers, county officials and suburban mayors.

That respect is apparent even when it's Madigan looking for the face time.

Developer Sam Roti, whose family is well-known in Chicago politics, said he got a cold-call from the speaker a decade ago.

"He said, 'I'd really like to stop by and meet you,'" said Roti, head of Chicago development firm Markwell Properties. "I never met him before. He said he did research on me and asked if I owned properties."

Roti said he told Madigan he was happy with his current lawyer but agreed to a meeting.

"He wrote up a proposal and it was one-third the price of what I was paying. I was so blown away I showed him my other properties," Roti said of his first and only meeting with Madigan.

Records show Madigan & Getzendanner filed its first appeal for Roti on his 2000 tax bill for the old Motor Club building downtown where Roti had his offices. The firm later handled a hotel Roti once owned next to a landfill in Hillside.

Roti's grand-uncle is Fred Roti, the notorious former 1st Ward alderman who was long reputed to be organized crime's representative in the City Council.

The decision to hire Madigan was based purely on business, Sam Roti said. "I never needed or asked for political favors of any government."

"When you have a political family, you want to stay away from that negative stuff. For me it's more of a negative," he said. "A Madigan and a Roti? I don't want that."

He said Madigan & Getzendanner was still charging him the same price it did when it first took his business.

"Seeing he was able to accomplish the same thing, that made me keep him," Roti said. "He did me a favor calling me up."

Tribune reporters Hal Dardick and Ray Long contributed to this report.

jchase@tribune.com

dkidwell@tribune.com

Madigan swayed U. of I. to admit relatives of allies, donors

$
0
0
House Speaker Michael Madigan swayed the University of Illinois to admit the relatives of public officials, political allies and donors who contributed $115,200 to campaign funds he controls, a Tribune investigation has found.

Only five of the 28 applicants helped in three recent years by the state's most powerful lawmaker lived in Madigan's district, and many would not have been admitted on their own merit.

Among the beneficiaries: North Shore attorney Steven Yonover, a longtime contributor who has donated $71,800 to Madigan-related campaign funds. Three of Yonover's relatives enrolled at the U. of I. in 2008 and 2009 after being sponsored by Madigan. The two who applied for 2009 had been wait-listed, and one had the lowest possible rating given by the admissions office.

Madigan also helped a relative of Thomas Ryan, who in 2005 was convicted of stealing more than $100,000 from the south suburban school district he oversaw. Between 2002 and 2005, Ryan gave Madigan $1,000 and was treasurer of a state school organization whose political arm gave the speaker an additional $30,000. That's around the same time his relative vied for a spot, then enrolled in the U. of I. law school in 2004.

The Tribune investigation is the first detailed public examination of the relationships between U. of I. applicants who received preferential treatment and an elected official responsible for getting them on a secret admissions clout list. While the newspaper previously reported that Madigan's name was associated with more applicants than any other lawmaker, it couldn't determine whom he helped and how they were linked to him.

Now, the Tribune has been able to identify 28 applicants to the Urbana- Champaign or Chicago campuses backed by Madigan, 23 of whom were accepted for undergraduate studies as well as the law school and graduate programs.

Their relatives made direct campaign contributions totaling $50,000 to Madigan and $65,200 in federal and state donations to the Democratic Party of Illinois, which Madigan chairs. In addition, applicants' relatives sat on the boards of organizations when the groups' political action committees donated another $36,700 to those funds.

The speaker's daughter, Attorney General Lisa Madigan, also received $49,245 from those same individuals and PACs.

Combined, the donations totaled $201,145.

Michael Madigan declined to speak to the Tribune but released a statement saying he intervened in admissions cases to be responsive to his constituents and Illinois citizens when they asked for his help. Records show Madigan's office faxed, called and e-mailed university officials on behalf of the students.

"I would do so without regard or consideration as to any political relationships or campaign contributions," Madigan said in the statement.

However, at the time of the requests, the people Madigan helped included the relatives of a Chicago alderman, a high-ranking Chicago Police Department official, a Chicago comptroller and an Appellate Court judge. Two of the applicants are related to Madigan himself.

U. of I. officials have refused to reveal the names of students on the clout lists, or the names of their parents, providing only copies of documents with the names redacted - a move the Tribune is fighting in court. The newspaper is not naming the applicants it identified for this story.

The Tribune connected them to Madigan through multiple sources and university documents provided through the Freedom of Information Act.

The documents show the university took Madigan's requests seriously. About 16.5 percent of the university's operating budget comes from a state appropriation, and Madigan has significant influence over higher education funding.

In one instance, an undergraduate application was twice referred to as a "very important" case, noting that chief university lobbyist Rick Schoell would "call the speaker" about it. Employees of the university's office of governmental affairs repeatedly told a campus official that the request came from Madigan's office.

When referring to a relative of then-Chicago comptroller Tariq Malhance, university lobbyist Terry McLennand wrote in a 2004 e-mail that the applicant was among the "top cases we are watching" after an admissions official wrote that the student was expected "to be denied." "Any and all help on these cases is greatly appreciated," McLennand wrote. Malhance did not return calls for comment, and the relative denied any knowledge of Madigan's help.

Madigan's chief of staff, Tim Mapes, sent an e-mail in 2008 about a relative of Chicago Ald. Frank Olivo, a longtime loyalist in Madigan's political organization. Mapes acknowledged the applicant didn't have the grades needed for a specialized graduate program at the Urbana-Champaign campus. Mapes then sent two follow-up e-mails to Schoell, one of which pressed for a quick resolution. The student was admitted.

Madigan's support, conveyed to admissions officials via university lobbyists, helped applicants in a variety of ways.

The university reversed 10 denials or probable denials. It allowed four students to appeal, an unadvertised option given to rejected students with powerful patrons. Madigan's office also inquired about seven students who were on wait lists - all of whom were eventually admitted.

It is unclear whether the applicants, many of them teenagers at the time, knew about any efforts made on their behalf.

One student admitted from the wait list was a relative of Chicago businessman Thomas Miner, who got an acceptance letter in June 2004, late in the admissions cycle. Admissions officials said in interviews last year that they admitted politically connected students late to avoid calling attention at their high schools, where more qualified students had been denied.

Miner, who describes himself as a longtime friend of Madigan's, said he never asked the speaker for help, but he acknowledged ties to Madigan: His relative was best friends with Madigan's relative, and he donated $3,000 to Lisa Madigan's campaign for attorney general in 2002 and 2003.

Miner's relative left U. of I. in December 2005 and transferred to another school.

"My (relative) does extremely well in the real world," Miner said. "But (my relative) has got allergies against school."

Lisa Madigan's political director, Mary Morrissey, said the attorney general didn't speak with any of the donors regarding inquiries to U. of I. Morrissey declined to discuss Madigan's relationship with any of the specific contributors. Lisa Madigan is not listed on university documents as a sponsor of any of the 28.

"There are no connections to the donations and any requests made to the university, not that we are aware of," Morrissey said.

Michael Madigan told the Tribune in the statement that he never insisted on anyone being admitted. He declined to discuss specific cases but did not dispute any facts about the students or their families provided by the Tribune.

He disagreed that students he backed were underqualified, because, he said, they have done well at the university. Rather, he blamed the admissions system.

"It seems that an imperfect screening and review system, rather than a lack of merit and achievement, might have been the real cause of their denial for admission or placement on a waiting list," he said.

University records show otherwise. One student associated with Madigan who was admitted off a wait list received an F, two D's and 13 C's during his first three years in high school.

Another applicant, who was "moved in" after appealing his rejection and described as "relatively important" by an admissions officer, had missed his first-period class nearly three dozen times in his senior year, according to university records. "The high school counselor was very surprised and not exactly thrilled that he was admitted," the officer wrote in an e-mail to the governmental affairs office.

In some cases, Madigan has a long history with the applicants' relatives.

One of the most prolific Madigan donors linked to the clout lists is Yonover, the North Shore attorney who had three relatives admitted.

Yonover has donated nearly $100,000 to Madigan-related campaign funds - $47,020 to Michael or Lisa Madigan's coffers since at least 1994, and $51,800 to the Democratic Party of Illinois since 1998. Yonover's wife is Illinois Appellate Court Judge Margaret Frossard.

Frossard declined to comment when reached at her chambers and directed questions to her husband. Yonover did not respond to calls or an e-mail.

Thomas Ryan, the former convicted Sauk Village superintendent who made donations to both Michael and Lisa Madigan, is out of prison but could not be reached for comment. His relative, who has graduated from U. of I. and is an attorney in private practice, declined to comment.

Another Madigan contributor whose relatives are on the admissions clout list is Steven Gruca, a retired Cook County probation officer who has given $18,675 to Michael or Lisa Madigan-related funds since 1998. Two of Gruca's relatives applied to U. of I. in 2007, and were accepted for fall 2008. Gruca made his two largest contributions - $2,200 each - in 2007 and 2008.

According to U. of I. records, Madigan received a letter in October 2007 asking for "any consideration" in regards to the Gruca relatives' applications. Madigan's office faxed the letter to the university. The applicants were admitted in December during the first round of notifications, and documents show they were ranked highly by the admissions staff.

Neither Steven Gruca nor his wife, Barbara, a Cook County probation officer, responded to requests for comment.

Steven Gruca's father, Stanley, said he doesn't know if his son asked Madigan for help, but he believes the students deserved to be admitted.

"My son is a big Madigan supporter, so I don't see what the problem would be," said Stanley Gruca.

In the early 1990s, the elder Gruca appeared on the ballot as Madigan's Republican opposition, though news reports at the time indicated he never campaigned against the speaker, and he told the Tribune in an interview last month that he considers himself a lifelong Democrat.

Cook County and Illinois have a rich history of ghost candidates and so-called political plants appearing on the ballot against veteran politicians - the theory being the plants weaken any real opposition. The elder Gruca said he just wanted to know how it felt to run in a political race.

Madigan also sponsored a relative of Steven Hensley, a Madigan campaign contributor and circulator of petitions for the speaker's campaigns. The relative, referred to in university records as a "Madigan request," was an alternate to get into a competitive graduate program at the Chicago campus. The applicant eventually was admitted. What's more, the relative then received more than $32,000 in taxpayer-funded legislative scholarships from the speaker.

Hensley, a Cook County sherriff's office employee, donated $20,375 to Lisa Madigan and Madigan's 13th Ward organization from 1997 to 2009. When reached at the sherrif's office, Hensley said: "I can't talk to you about that. I am at work." He did not return later calls. A woman who answered the phone at Hensley's listed address threatened to call police if a reporter called again.

Madigan and other legislative leaders declined to testify before a Gov. Pat Quinn-appointed commission that investigated the admission scandal last summer. It led to the resignations of the highest-ranking university officials, including the president, chancellor and trustees.

The university later revamped its admissions system. This year, more than 27,000 students vied for about 7,100 spots.

"While in prior years Speaker Madigan made inquiries on behalf of applicants, we know of no instance in which he exerted inappropriate pressure," U. of I. interim President Stanley Ikenberry said in a statement.

Quinn's admissions panel, however, concluded that anything a powerful patron did could influence decisions.

"Even when there was no obvious pressure," the report concluded, "time and time again University admissions officers very reasonably perceived an implicit message - that the applicant should be admitted - simply by virtue of the power and authority of the messengers."

In response to the latest revelations, Oak Lawn mother Sue Reppen, whose two daughters were denied admission to U. of I. in 2008 and 2009, said: "It is politics as usual. It is pay for play with everybody, even the universities."

Tribune reporters Ray Long and David Heinzmann contributed to this report.

jscohen@tribune.com

sstclair@tribune.com

dkidwell@tribune.com

jchase@tribune.com

Madigan's allies get slice of village business

$
0
0
Michael Madigan calmly sliced his daily apple as he listened to the 40-minute pitch from several leaders of Oak Lawn, long frustrated in their efforts to secure money for a dilapidated water system that supplies much of the south suburbs.

At the time of their meeting with the powerful House speaker more than a year ago, the project was all but dead, way down a wish list of community projects.

"We left that meeting thinking wow, this is great," said village Trustee Bob Streit. "We thought it meant we might finally get some help."

They did. Now, the Illinois Environmental Protection Agency is promising at least $40 million in low-interest loans and a commitment to seeing the project through for Oak Lawn and 11 municipalities it serves.

But that's only half the story.

As Madigan put his political force behind the project, firms and lawyers associated with him saw new business flow their way from the Oak Lawn Village Hall. All told, Madigan's allies now stand to make hundreds of thousands of dollars in legal fees.

The speaker recommended the new village attorney, and he helped raise campaign money for the village trustee who recommended another connected law firm to work on the water project.

After nearly three decades as speaker and just as long as a kingpin in the state Democratic Party, Madigan commands a culture that trades favors as currency and rewards the loyal. With a reach that stretches from the corners of state bureaucracies and town halls to the offices of Chicago's most reputable law firms, he thrives atop a government where the well-connected often end up with their own wedge of the apple.

Oak Lawn officials invited Madigan to Village Hall earlier this month to thank him for breaking the bureaucratic logjam. They gave him a framed proclamation, a tour of their new emergency operations center and a catered meal from Palermo's on 95th Street, a favorite Madigan restaurant.

"As you know and I know, government in America is all about people working with people," Madigan told the assembled crowd at the June 8 village meeting. "You work with people. I work with people, and the goal is to have accomplishments."

Madigan declined to be interviewed and rejected requests for records related to his efforts in Oak Lawn. His spokesman Steve Brown said there was no connection between Madigan's support for the water project, his recommendation for the village attorney and his political support for a trustee.

"It was part of his typical effort to build working relationships with local officials," Brown said.

The village officials who visited Madigan agreed.

"When you look at the chronological order of events, it sounds like an incredible coincidence," said Streit, the village trustee who received Madigan's fundraising help. "It almost sounds like this couldn't be a coincidence, but that's not the way it was. I never really thought about it like that."

Tom Phelan, the other Oak Lawn trustee in that initial private meeting with Madigan, said there was no "quid pro quo."

"I guess it's our job to find somebody who isn't connected to Madigan?" Phelan said. "I don't know about that."

The key date for Oak Lawn was April 22, 2009, when Streit, Phelan and the village manager met privately with Madigan during the annual "lobby day" where local government officials come to Springfield to pitch their agendas. Oak Lawn's agenda included plans for $193 million in improvements to a water system that pumps Lake Michigan water to more than 300,000 customers.

Up to then, the village's efforts to find money were plagued by red tape, lost applications and unreturned telephone calls, said Village Manager Larry Deetjen.

Things began to change almost immediately. For instance, when they described unsuccessful efforts to reach staff in the office of U.S. Rep. Dan Lipinski, D-Ill., Madigan offered to make a call.

"And sure enough within 24 hours we got a call from the congressman's staff," Deetjen said.

Madigan-backed lawyer hired

As the water project gained momentum, the Village Board became embroiled in a controversy over alleged overbilling by the village's legal team, which had been recommended by Mayor David Heilmann after his 2005 election.

Phelan led the charge, joined by Streit and other trustees. The mayor acknowledged his friendship with the lawyers, but accused Phelan of trying to boost another law firm, Querrey & Harrow, because of his own relationship with the managing partner, an Oak Lawn resident.

Amid this public feud, the mayor received a rare telephone call from Madigan. Heilmann said Madigan called to suggest Paul O'Grady, a partner at Querrey & Harrow, for the village attorney job.

The mayor said he told Madigan about the dissension over the issue at Village Hall and his concern about Phelan's connections to another partner at the firm. According to Heilmann, Madigan offered to call O'Grady and ask him to withdraw the firm from consideration.

Heilmann said Madigan called back five minutes later to say he had relayed the concerns to O'Grady.

But two weeks later, on Aug. 11, the Village Board fired the previous city attorneys over the billing controversy and hired Querrey & Harrow.

O'Grady has a years-long relationship with Madigan, the chairman of the state Democratic Party. He served as legal counsel to former Cook County Sheriff Michael Sheahan, a Democrat, and helped run the Democratic campaign of Cook County State's Attorney Anita Alvarez. Madigan backed O'Grady in his successful 2008 run for Orland Township supervisor, according to Madigan's spokesman.

"The speaker got to know O'Grady when he was working at the sheriff's office," Brown said. "When he left the sheriff's office he asked the speaker for help in building his law practice."

The speaker's call to Heilmann was made "at O'Grady's request," Brown said.

In a telephone interview, O'Grady said he didn't ask Madigan for help getting the firm work in Oak Lawn.

"I talk with the speaker about eight to 12 times a year," O'Grady said, mostly in passing at social events and political fundraisers. "We say hi, that's about it."

O'Grady and some of the village officials say Heilmann is trying to raise a conflict issue over O'Grady because of his own involvement with the previous village attorneys.

In September, O'Grady's firm offered a job to one of Madigan's top lieutenants in the Illinois House - Rep. Lou Lang, D- Skokie.

"The speaker had absolutely nothing to do with me being hired," Lang said. "He didn't even know I had gone to Querrey & Harrow until more than a month after I had been hired."

Lang said the firm has also hired a Republican legislator.

"It is just a firm that is hiring people who can help them with contacts," Lang said. "I told them if they were interested in having a state representative come on board then they should call me."

Other firms get work

The village was still looking for more legal help in September when Madigan agreed to serve as a sponsor of a fundraiser for Streit, a staunchly conservative trustee who acknowledges never before in his 19-year political career has he enjoyed the speaker's political support.

"He was supportive of the local trustee," Brown said. "He has a general recollection that the trustee does a good job."

That Sept. 30, 2009, fundraiser coincided with Streit's recommendations of two more law firms to serve on the village's new legal team to issue revenue bonds for the water project and other construction work.

Those new lawyers include Mary Patricia Burns, a longtime Madigan supporter and a founding partner at the Chicago firm Burke, Burns & Pinelli Ltd. Madigan listed the firm as a lobbying client in 2001 and 2002 filings with the city of Chicago.

Brown said Madigan recommended the firm for city bond work, but it didn't get the job and Madigan wasn't paid.

Burke, Burns and Pinelli lawyers and their relatives have contributed more than $489,000 to Madigan-related political funds, according to election records. That includes more than $355,000 to the Democratic Party of Illinois chaired by Madigan, more than $56,000 to the speaker's personal campaign fund and more than $77,000 to his daughter, Attorney General Lisa Madigan.

Burns did not respond to requests for comment.

The other bond counsel recommended by Streit was Miller Canfield, an international law firm represented by Chicago partner Paul Durbin, the son of U.S. Sen. Dick Durbin, D-Ill. Paul Durbin declined to comment.

The new firms stand to make tens of thousands of dollars each in legal fees from the village bond work. Querrey & Harrow's annual fees as city attorney are capped at $550,000, unless a major case comes along.

Streit said Madigan played no role in his recommendations to Deetjen, the village manager, on the new firms. Deetjen said he hired the firms without a formal competitive process because the village needed to move quickly to take advantage of bond rates.

"Would I like to have a year to fully vet everyone?" Deetjen said. "Sure, we would always love to have that luxury."

Deetjen said he hopes the village can finance the water distribution project in 2011. In addition to the $40 million in low-interest state loans already promised, the village is lobbying the state's congressional delegation - including Durbin - for help in getting federal stimulus money for the remaining financing, as much as $160 million more, Deetjen said.

This April, the Oak Lawn officials visited Madigan again on lobby day. Also in Madigan's office was Doug Scott, the director of the state EPA.

"This was clearly a historic day for the village of Oak Lawn," Streit later told his fellow trustees as he recounted the meeting.

The village will get $10 million per year for four years, the maximum allowed under the program, once the process is finalized, said EPA spokeswoman Maggie Carson.

The night Madigan was feted by the village trustees, they also received a board-ordered report that blasted the billing practices of the old village attorneys. Mayor Heilmann now acknowledges there may be a problem with overbilling by the firms he brought in. But he contends the switch to new lawyers "reeks of ugly politics."

Streit said Madigan "never said a word to me about law firms" and never offered anything more than a helping hand for the village and its water customers.

"I'm very grateful for the speaker, and I'm impressed with him," Streit said.

Tribune reporter Ray Long contributed to this report.

dkidwell@tribune.com

In Justice deal, all roads lead to Madigan

$
0
0
The mayor of Justice was pondering whom to pick for a new village attorney last year when his local representative, House Speaker Michael Madigan, called with a name.

Madigan suggested Michael T. Del Galdo, describing him as an experienced lawyer and an expert on municipal finance who could help Justice in its ambitious development plans.

The mayor welcomed the suggestion as just one more indication of Madigan's support for the linchpin in those plans - a $10 million interchange on the Tri-State Tollway that village leaders hope will bring a wealth of new businesses, jobs and tax revenue.

"I am very happy the speaker has taken such an interest in our small village," Mayor Krzysztof "Kris" Wasowicz said in a recent interview. "He calls me every four to six weeks, and always a first question is about the tollway project."

Now the growing promise of tollway ramps is spurring new interest in the blue-collar town from some major developers - including two longtime clients of Madigan's private legal practice.

And Del Galdo's law firm, which got the job after Madigan's recommendation, is poised to advise the village on everything from shaping incentive packages for developers to deciding which law firms get contracts to help finance the projects.

It is not the first such confluence of public and private interests for Madigan, whose high-profile role as Springfield's premier power politician typically overshadows the quiet clout he wields at the smallest of village halls.

As speaker, he is the last stop in the suburban clamor for state resources. As the state's top Democrat, he cultivates a network of loyal public officials. And as a name partner in Madigan & Getzendanner, Chicago's pre-eminent real estate tax law firm, he earns a living representing the biggest players in local commercial development.

Madigan maintains there is no connection or conflict in his many roles.

Del Galdo, whose firm took over as village legal counsel in October 2009, said he's had no contact with Madigan about Justice and has had no dealings with developers who are Madigan clients.

"I understand how it might look," said Del Galdo, 37. "But when you have been involved in government as long as I have, and I presume as long as Madigan has, you develop all kinds of relationships that periodically overlap. I know you are trying to connect all the dots, but I can assure you all this is purely a coincidence."

Madigan spokesman Steve Brown said the speaker called the mayor "because Mr. Del Galdo asked him to make the call." Brown declined to say how Madigan knows Del Galdo.

He emphasized that Madigan's personal code of conduct precludes the speaker from having any involvement in development in the village, "so, no, that did not happen."

The Tribune earlier this year detailed how Madigan recommended a new village attorney for Oak Lawn, where law firms with connections to the speaker stand to make hundreds of thousands of dollars in bond fees from a water-main project he backed in Springfield.

In Justice, the development plans could be years away.

But even as the development effort gains steam, FBI agents have come to town asking questions about how Del Galdo's law firm won the village contract.

Del Galdo said he has enjoyed a steady rise as an attorney for suburban governments, and he acknowledged some of them, such as Cicero and Melrose Park, have come under scrutiny by federal corruption investigators. Neither he nor his firm has been accused of any wrongdoing.

He called the federal inquiry in Justice "completely absurd" and suggested it was "sour grapes" from political infighting at Village Hall.

Former Justice Trustee Mike Murray said he approached the FBI about Del Galdo after resigning from the Village Board in a residency dispute earlier this year. Murray said he told agents about Del Galdo making campaign contributions to village officials and about the call from Madigan to the mayor.

Del Galdo said his firm issued the opinion that prompted Murray's ouster. "Somehow he blames me for it, I guess," Del Galdo said.

Mayor Wasowicz acknowledged he also was interviewed by the FBI, and Del Galdo told the Tribune he was aware agents asked the mayor about Madigan's recommendation.

"If the speaker made that call, I am flattered," Del Galdo said. "But it certainly had no bearing on me being hired. I know a lot of politicians, Michael Madigan included, but he has never asked me to do anything for his law firm. He has never asked me to call anyone, never asked me for anything."

There's an unusual wrinkle about that call from Madigan, involving a village trustee - Kinga Bartoszek - who is working to put together a proposed development involving a Madigan client.

The call was preceded, the mayor said, by one from Sebastian Jachymiak, a local towing contractor who lives with Bartoszek. She's a one-time Wasowicz political ally.

Jachymiak told Wasowicz to prepare for an important call, the mayor said, and five minutes later, Madigan phoned to suggest the Del Galdo group.

"He said I know this guy and he's very good" on development financing, the mayor recalled Madigan saying. "He didn't tell us to do it, but he recommended them."

Wasowicz thought it was odd that Jachymiak set up the call, since the mayor has regular contact with the speaker. But he said he appreciated Madigan's input.

"When I got elected, the speaker took an interest in me," Wasowicz said. "You know, we are in his district, so I am his constituent."

Bartoszek and Jachymiak did not return messages.

Campaign records show that three weeks after the Village Board and the mayor hired Del Galdo in late 2009, the attorney started writing campaign checks. Bartoszek received $1,000 from the Del Galdo Law Group and $500 from a Cicero towing company owned by Del Galdo's father-in-law. A couple of months later, Del Galdo also gave $1,500 to the mayor's campaign fund.

Del Galdo said he made the donations because he supports Justice and the two were the only two village officials holding campaign fundraisers at that time.

A review of campaign contribution records shows Del Galdo and lawyers affiliated with his firm have contributed more than $170,000 to various political campaigns since 1998, the bulk of which went to the political campaigns of Cicero Town President Larry Dominick and Melrose Park Mayor Ronald Serpico, two of his firm's longest-standing clients.

Del Galdo came under scrutiny in 2006 after the Tribune reported that the company owned by his father-in-law won the Cicero towing contract despite having never before been in the towing business.

In 2008, the year before Del Galdo was hired in Justice, Madigan pledged his support for the Justice tollway interchange at a breakfast meeting at Village Hall along with U.S. Rep. Dan Lipinski and a half-dozen mayors from surrounding towns.

Madigan "indicated he might have spoken to someone in the governor's office some time ago about that project," said Brown, who declined to provide details. The governor appoints tollway board members.

The village also formed a special incentive zone - called a tax increment financing district - encompassing more than 10 acres surrounding the proposed interchange. The village is working to create an adjacent development district that together would generate more than $55 million to lure developers and pay for other aspects of the project.

Among the developers already expressing an interest are two clients of Madigan's law firm.

In April, Inland Real Estate Group took over the marketing contract for one parcel of blighted land at the end of the proposed tollway ramp.

Inland, based in Oak Brook, is one of the region's largest developers of strip shopping malls and commercial real estate developments. It is also one of the largest suburban clients of Madigan & Getzendanner.

According to Madigan's financial disclosures, he has a certificate of limited partnership in Inland Appreciation Fund, a member of the Inland group of companies. Madigan won't say what his holdings in the company are worth, and state law does not require him to do so.

Inland Group spokesman Matt Tramel said Madigan had no role in the company winning the listing contract.

Another Madigan-connected developer is trying to broker a deal to lease up to 15 acres of undeveloped Catholic cemetery land at 79th Street and Roberts Road. David P. Bossy, a prominent developer of retail shopping centers throughout the Midwest and a longtime client of Madigan's property tax appeal law firm, said he is in the earliest phase of developing a shopping center on the parcel.

Bossy said his Mid-America Development Partners is teaming with another company, The Daly Group, and has sent a letter of intent to lease the property. He said Bartoszek, the village trustee, has talked with his associates, "but none of those conversation involved me."

Bossy said the fact his real estate firms have used Madigan & Getzendanner "has nothing to do with anything." He said he has never spoken with Madigan about the plan.

The project is not dependent on the tollway interchange, "but it would make it better, yes," Bossy said.

dkidwell@tribune.com

Madigan letters offer glimpse of clout in Cook County judge selection

$
0
0
The letters from Illinois House Speaker Michael Madigan are short and to the point.

"Dear Judge," begins one, written on Madigan's General Assembly stationery. "I believe that these people would be excellent members of the judiciary."

Tucked into the letter to Cook County's Circuit Court judges are the names of a handful of lawyers, blessed by Madigan to fill judicial openings.

Madigan's letters provide a glimpse of his influence in what passes for merit selection of associate judges, who are chosen by the county's 275 circuit judges.

Many of those full circuit judges were publicly elected with the help of the Democratic Party that Madigan controls - and the judicial slating committee run by Ald. Edward Burke, 14th. While the party wields overt power in those elections, the process of picking associate judges is touted as a way for talented lawyers to make the bench without bowing to political bosses or wooing uninformed and uninterested voters.

But politicking for the coveted associate judgeships is rampant in Chicago's legal community, and the Tribune found one of the best ways to win a spot is to be on what is widely referred to as "Madigan's list."

Since 2003, Madigan has recommended 37 lawyers to become associate judges, and 25 were selected outright, according to documents obtained by the Tribune and interviews. Several more made it to the bench through appointments.

About half of those on Madigan's list made political donations to his daughter, Attorney General Lisa Madigan, the state's highest law enforcement official. Campaign contributions are common among lawyers vying for judgeships and are typically not large - but enough to indicate the donor recognizes the value of political participation.

Malcolm Rich, executive director of the Chicago Council of Lawyers, which rates judicial candidates, said political pedigree or a familiar-sounding name too often trumps qualifications when the public votes. The process of selecting associate judges is intended to increase diversity and quality on the bench by filtering clout out of the equation.

But Rich acknowledged politics can never be removed completely, and he said the Madigan letters show his organization and others must be constantly vigilant. This year, more than 240 lawyers have applied for 10 associate judge vacancies.

"Obviously, the political process has adapted itself enough that it is identifying people who have connections yet are qualified in their own right," Rich said. "In addition to getting the kind of experience that makes them qualified to become a judge, people are realizing that certain kinds of contributions and friendships don't hurt."

In a statement, Madigan said he makes recommendations free of political influence or self-interest and "because I believe I am an experienced evaluator of those who seek to serve in the judiciary."

Madigan is a name partner in one of the city's top property tax-appeal law firms, Madigan and Getzendanner. The firm's lawyers practice in many venues, including before some circuit judges who got their jobs with the help of the Democratic Party. Madigan said his personal "code of conduct" prohibits any conflict of interest.

"Over a number of years, various people have asked for my support in their bid to be elected associate judge," Madigan said. "My comments in reaction to those requests concerning the election of associate judges are not made on behalf or in connection with my law firm, public or political positions."

Burke, former state Sen. President Emil Jones, D-Chicago, and a variety of other local politicians also promote candidates for the associate judge spots. But in recent years, none did so with the regularity of Madigan, according to the review of recommendation letters obtained by the Tribune and interviews with many participants in the process.

One lawyer said he felt the sting of not being on Madigan's list. The lawyer, a former prosecutor who asked not to be identified because he still hopes to become a judge, said he worked hard to get support of the sitting judges, handing out resumes and visiting their chambers.

"The next thing they would say was, 'Are you on Madigan's list?'" he said. "Then it was, 'Oh, you should be on the list.'"

Associate Judge John Thomas Carr was selected after he was named in Madigan's 2007 letter. He said judges and other lawyers told him being on Madigan's list would be a good thing, so he wrote a letter to the House speaker stressing his qualifications. He said he heard nothing back.

"Then a judge told me, 'You're on Madigan's list,'" he recalled. "I said, 'You're kidding me.'"

Carr said he had no idea why he ended up on the list: "I am not a politician and I have no political friends."

Judge Brian K. Flaherty said he has no idea how he ended up on Madigan's 2003 list. Flaherty, former counsel to then-Democratic Sheriff Michael Sheahan, said he learned about it after the letter was sent to the voting judges.

"People have said being on his list is a good thing," Flaherty said. "I have no idea if that's true or not. I have no idea how the judges view his letters."

Sitting judges who asked not to be identified said they and their colleagues know Madigan's clout as chairman of the Illinois Democratic Party as well as at the state Capitol, where the longtime speaker holds unrivaled control over the General Assembly. The judges said that when a letter from Madigan arrives, they take notice.

"People assume that if you are on Madigan's list, you will get made," one circuit judge said. "Madigan has a lot of power in Springfield. He does things that could affect our salaries and pensions."

State lawmakers must sign off on changes to salary and retirement benefits for the more than 400 judges in the Cook County Circuit Court system, the nation's largest, with courts at the Daley Center in the Loop and six suburban municipal districts.

The Cook County Democratic Party, run by Madigan ally Joseph Berrios, acts as a virtual gatekeeper for candidates seeking to run in the party primary to become a full circuit judge - a win there is tantamount to victory in the general election. That slating process has long been run by Burke, whose wife, Anne Burke, became a Supreme Court justice with the party's help.

This year, as in others when there are associate judge openings, a nominating committee of circuit judges will select a shortlist of finalists from the applicants.

The shortlist sets off a frenzied two weeks of private campaigning. The candidates send cards, letters, resumes and recommendations, and try to visit as many circuit judges as they can and ask for their vote. Ethnic groups lobby for their members to be supported, and circuit judges sometimes write one another letters pushing for candidates they know.

From 2003 through 2009, there were five contests for associate judge, and more than 135 lawyers made the final cut to fill 82 vacancies.

Many got recommendations from judges, lawyers, bar associations and politicians, in letters that often mentioned how they know the candidates and what their qualifications are.

Jones, who retired as state Senate president in 2009, said lawyers came to him and asked for his support, adding he was unsure whether his letters really gave the candidates a boost.

"Maybe they did, maybe they didn't," he said.

Then why write the letters?

"There are some things you just do," Jones said.

Four of the six candidates Jones supported since 2005 became judges, including two who were also backed by Madigan.

Getting the backing of multiple patrons can pay off. Judge Carr, for instance, said he also went to "pay his respects" to Ald. Burke because he had heard it was a good thing to do.

Being a political donor also appears to be an advantage. The vast majority of candidates for associate judge in recent years have made political donations, according to a review of state campaign finance records. More than a dozen lawyers who became associate judges gave to Burke or his political organizations.

Most of the 37 candidates in Madigan's letters did not return messages left by the Tribune.

Carr said he and the other judges on Madigan's 2007 list were qualified and have performed well.

Most of the 37 associate judge hopefuls backed by Madigan were rated "qualified" or "well qualified" by bar associations, with the exception of a handful who were rated "not qualified" by the Chicago Council of Lawyers. Unlike the written recommendations from many other supporters or political patrons, Madigan's letters do not mention the qualifications of those he endorses or how he knows them.

"I think the following people would be good judges," was all he wrote in his 2009 letter.

Some of Madigan's picks don't make it their first time up.

Take Laura Bertucci Smith, a former Cook County prosecutor whose husband is a regular contributor to Democrats. He gave $1,000 to Lisa Madigan in 2002 and $500 in 2003. Bertucci Smith donated $300 to Ald. Burke in 2004. She wasn't picked when she was on the speaker's 2005 list.

But the Illinois Supreme Court appointed her to fill an opening in 2007, and in 2008 she ran for associate judge again. Once again, Madigan backed her and this time she won. Messages left for Bertucci Smith went unreturned.

Likewise, Ellen Mandeltort and Patrice Ball-Reed, both of whom had worked for Lisa Madigan, were bypassed when the speaker recommended them in 2007. But the following year they were picked after again appearing on Madigan's list.

Messages left for Mandeltort and Ball-Reed were not returned.

Still, Madigan's blessing isn't a guarantee.

Defense lawyer Robert G. Clarke was on Madigan's 2007 letter but never was selected.

"The mysteries of higher powers have passed me over," Clarke said, declining to speak about it further.

jcoen@tribune.com

tlighty@tribune.com

Favorable legislation flows to private clients of House Speaker Madigan

$
0
0
Chicago's largest operator of assisted living homes for the poor was looking to grow its business when it decided to add a new member to its legal team: the law firm of House Speaker Michael Madigan.

Within months of that decision, the most powerful lawmaker in Illinois and the chamber he controls voted in 2005 to create a state program that would send tens of millions of dollars to his new client.

Weeks ago, the same client caught another break when a legislative panel advised by top Madigan aides rejected an idea that could have killed its latest venture, a new care center in Lake County.

The case of Pathway Senior Living LLC illustrates how Madigan's public actions have repeatedly benefited his private clients.

As he balances who wins and who loses in the state's struggle to pay the health care bill for its poorest citizens, Madigan made decisions affecting the fortunes of many companies that put money in his pocket. Nursing homes, pharmacies and other assisted living companies in recent years all have hired the property tax law firm where he is the rainmaker-in-chief.

When the House and Senate last week passed a measure to cut Medicaid spending by $1.6 billion that was written by Madigan's office, just a week before the end of the spring session, all those industries were able to avoid the worst of the proposals that targeted them.

The convergence of Madigan's public actions and private business - in a Statehouse where key decisions are shrouded in secrecy - troubles ethics experts interviewed by the Tribune. The newspaper has previously reported that clients of the speaker's tax law firm, Madigan & Getzendanner, have benefited from state projects he helped secure.

Madigan's solution to such situations is a written personal code of conduct that in part says if a client of his law firm expresses an interest in legislation "such as to create a conflict of interest, I recuse myself from consideration of the bill."

Pressed to square his involvement in legislation affecting his clients with his code of conduct, Madigan spokesman Steve Brown said that when the speaker takes action affecting an entire industry, any benefits to his clients do not constitute a conflict. That includes Madigan's vote to create the assisted living program.

"It benefits a whole range of entities across the state including a business that his law firm does the property tax work on," Brown said.

Madigan declined to be interviewed but issued this statement about the Tribune's examination: "The overall approach looks like more garbage from the two garbage haulers who work for a bankrupt company."

Ethics experts describe Madigan's actions as a prime example of why states need stronger ethics and disclosure rules.

"It seems ludicrous to me that he would even suggest he is pushing for legislation that benefits his clients without regard to the interests of those clients," said David H. Laufman, a former federal prosecutor who also served as investigative counsel to the U.S. House Ethics Committee.

"He has worded his code of conduct to be consistent with the way he does business so that he can posit that he is avoiding impropriety," Laufman said of Madigan. "It is full of ambiguity and raises all kinds of questions that call for elucidation by Mr. Madigan on what he thinks constitutes a conflict of interest."

State law does not require Madigan to disclose his income from the law firm. As speaker, he makes decisions behind closed doors, declining to provide any documentation about his contacts with lawmakers, corporate interests and lobbyists.

Illinois' leading reform advocates have called for stronger transparency measures for the Legislature as well as term limits and bans on outside income for its leaders - proposals that have gone nowhere during Madigan's nearly 30-year run as speaker. In that time, he has become the single biggest force in the election of the Democratic majority in the General Assembly, and his firm has become one of the most sought-after tax-appeal shops in Chicago.

"When you have someone with this much impact on major legislation, shouldn't this person find ways to shield himself from firms who are going to be powerfully affected?" said Richard W. Miller, director of the Program on Ethics and Public Life at Cornell University. "By allowing himself to remain attached to private interests - unless he is really heroic - his impartiality of course is affected."

There are other tax lawyers to see in Chicago. But nothing gets done in Springfield without Madigan, who wields unilateral control over the movement of every bill in the House.

That was true in 2005, when a coalition came to the state Legislature seeking to turn a pilot project on assisted living homes for the poor into what is now the permanent Supportive Living Program.

A founding member of that coalition was Pathway Senior Living LLC, Chicago's largest developer of such homes.

The idea was to save money by moving the most able-bodied nursing home patients into these less expensive facilities where they could get the help they need at 60 percent of the Medicaid cost to taxpayers. It was supported by advocates for the poor and politicians from both parties.

Pathway and other companies wanted to expand, but investment money and state incentives were hard to come by because of the tenuous nature of the pilot program.

At about the same time, Pathway, which has long used another law firm for all its property tax business, hired Madigan's firm for a single Chicago property. Public records show Madigan's firm filed its first paperwork on behalf of the company on April 12, 2005.

On May 20, Madigan and the House voted 113-0 to create the permanent program.

The industry boomed after the program became permanent. Pathway has since nearly doubled its facilities to 11 and collected more than $70 million in Medicaid payments, according to state records. It also has received $1.8 million in state-administered tax credits and $5.9 million in state-backed loans for affordable housing, records show

In 2006, Madigan's most-trusted lieutenant, Majority Leader Barbara Flynn Currie, D-Chicago, shepherded a new law that singled out the fledgling industry for a property tax break.

Madigan voted present, as he often does on property tax legislation.

Currie said she can remember no conversations over the bill with either Madigan or Pathway Senior Living. The company supported the change but never lobbied Madigan for it, Pathway Senior Living President E. James Keledjian said.

This year, when Gov. Pat Quinn suggested possible cuts to the Supportive Living Program as part of a long list of options to balance the Medicaid budget, Pathway was among coalition members fighting the cuts.

A lawmaker panel appointed by legislative leaders to grapple with the state's $2.7 billion Medicaid shortfall rejected Quinn's suggestion to stop development of 12 supportive living facilities that had been approved by the state but not yet built. Two were Pathway facilities and two others belong to another Madigan client that was also fighting the cuts. Pathway said it had already abandoned development for one of its facilities.

The Medicaid panel was advised by top Madigan aides and met behind closed doors. Lawmakers later told the Tribune it was a consensus decision to save the facilities.

Pathway executives say their decision to hire Madigan's firm for one project, while retaining their longtime tax lawyer for all their other properties, is unrelated to their Statehouse interests. They say they never discussed legislative issues.

"The reasons they made the Supportive Living Program permanent had nothing to do with us hiring Madigan's law firm," said Pathway President Keledjian. "It had to do with the fact that (such facilities) were saving the state money. It was good public policy. It was logical."

Keledjian said that when his company decided to go with the firm, he met with Madigan's law partner, Vincent "Bud" Getzendanner, at the firm's office.

"While I was there I met Madigan. … I have never worked with Madigan, and I have never spoken to him since. You don't think Madigan does any of the actual work there, do you?"

Other clients interviewed say they hire Madigan's firm because of its well-known tax expertise, especially the legal acumen of Getzendanner. They say hiring the firm has nothing to do with Madigan's power to affect regulation, state subsidies or tax laws.

"It has never entered my mind to call him," said Philip Mappa, president of MR Properties and a longtime Madigan tax client who hopes to break ground on his company's first state-subsidized assisted living facility next year. "We're very careful not to mix business and politics."

Madigan has many other tax clients with a stake in the ongoing Medicaid debate, including the CVS Caremark pharmacy chain. Madigan's firm has represented more than 30 CVS stores in the Chicago area in recent years.

A company spokesman said the chain hired Madigan's firm about a decade ago and lauded its tax expertise. The firm also acknowledged it has lobbied for its interests in Springfield, including on Medicaid reimbursements, but had not met with lawmakers on that issue this year.

"We have met with state legislative members in Illinois, as we do in all states, on issues of importance to the company and have met on occasion with Speaker Madigan," said Michael DeAngelis, public relations director for CVS. He would not say when those meetings happened or what they were about.

Asked whether Madigan or his staff has met with CVS, Brown said, "Not that I noticed, no."

Madigan is well-known for his cloistered management style, holding key policy meetings inside the speaker's suite of offices on the third floor of the Statehouse. When he emerges, his public statements are brief.

Each weekend, Madigan has a marathon meeting with his trusted inner circle to go over their week's assignments, set an agenda for the week ahead and "to strategize on a point of view," said Brown, who attends the three- to four-hour sessions.

Brown said that the specifics of the Medicaid debate have been a large part of these meetings, and that the speaker has been intricately involved in the process throughout, "as any leader should be." He declined to reveal the specifics of the private meetings.

Even the legislative Medicaid advisory committee meets in secret. The public is not invited to listen, no minutes are taken and no recordings made.

Asked why the public can't attend, state Rep. Sara Feigenholtz, D-Chicago, said, "No one has ever asked me that question before.

"I would have to ask (Madigan's) chief of staff what the reasons are behind that," added Feigenholtz, the ranking House Democrat on the panel.

Two top Madigan aides played key roles in the panel's efforts: research director John Lowder and former top lawyer David Ellis. After leaving Madigan's office earlier this year, Ellis returned as a $200-per-hour outside counsel.

"I know the speaker has hired him as a consultant to stay on top of how these cuts are made," said Currie.

While Currie described Ellis as Madigan's "eyes and ears" on Medicaid, it turns out he was also the speaker's hands.

As Feigenholtz presented the final product of the Medicaid negotiations for House approval in late May, she credited Ellis for writing the 450-page manual outlining how the state will cover health care for the poor in the coming year.

Pharmacies face cuts in drug reimbursements under the legislation, but lawmakers largely went with the industry's own suggestions for trimming rather than harsher proposals.

Supportive living homes and nursing homes face rate cuts, but they are lower than first proposed. The supportive living industry got some protection against potentially damaging changes in eligibility rules. And nursing homes won concessions on new rules to increase staffing.

Advocates for nursing home patients were surprised to learn that months of negotiations on new staffing rules were abandoned after the nursing home lobby went to Madigan's office.

"I know you are not happy," Michael Gelder, Quinn's senior health care policy adviser, told them in a conference call. "But I am just reflecting on the way in which these sorts of decisions get made in the speaker's office late at night."

Currie said she trusts Madigan to navigate his interests ethically.

"Generally I know he recuses himself from any vote or any involvement when there are these conflicts of interest," she said. "On the larger issues like this, I don't know that just because he might represent a hospital or a nursing home, that would preclude him from any involvement."

Mappa, the longtime Madigan client, said, "It's a fine line he walks. But I understand the question. And I understand the reason for the question. Did he get the expanded business because he is down there? Or is he down there because he got the expanded business?"

Tribune reporter Ray Long contributed.

dkidwell@tribune.com jchase@tribune.com

Michael Madigan tax clients unscathed in foreclosure debate

$
0
0
As home foreclosures tear apart neighborhoods throughout the state, an annual battle plays out in Springfield between the banking industry and community activists over how to deal with the damage.

The banks always emerge largely unscathed. It happened again last week as the spring legislative session drew to a close - ending efforts to make banks pay millions of dollars for upkeep on abandoned properties and for homeowner counseling.

Illinois House Speaker Michael Madigan says lawmakers are repeatedly outmaneuvered by the powerful banking lobby. But he doesn't mention that some of those same banks - from national chains to community lenders - are clients of his private law firm.

In Madigan's dual roles as the state's most powerful lawmaker and name partner in one of Chicago's most successful property tax firms, he frequently makes public decisions that affect the bottom line of his private clients.

It's a confluence of interests that many involved in the banking fight - including housing advocates and Democratic lawmakers - said they didn't know about.

"It undermines the process. I don't think he should be involved," said Ernie Lukasik, a coordinator with the Northwest Side Housing Center, a nonprofit group that helps homeowners mediate foreclosure cases.

"It's a clear conflict," Lukasik said. "Here he is making laws for the banks while he is working for them."

Madigan refused to be interviewed, but said through a spokesman he has no conflict of interest because legislation he's involved with affects entire industries, such as banking, and not just his clients.

Though many consider Madigan all-powerful after nearly three decades as speaker, spokesman Steve Brown said Madigan's efforts to make predatory lenders and their allies "accountable for the damage they've done" have been stymied by the influential banking lobby.

"We've not been successful, and in some cases, the predators have stopped what Mike Madigan and others have tried to do," Brown said in comments shortly before the session ended. "In some cases, they've watered things down. But the fight continues."

Madigan has previously said he abides by a "personal code of conduct" that includes not offering state benefits to gain clients and recusing himself from considering a bill if a client "expresses an interest in legislation such as to create a conflict of interest."

Ethics experts said neither Madigan's personal code nor Illinois' weak ethics law addresses the potential conflict created by the intersection of the speaker's personal and private interests.

"Someone with a special interest could pour favors on the speaker without explicitly saying, 'By the way, this is for your support'. You shouldn't have to show it's a bribe for it to be prohibited by a code of conduct," said Richard W. Miller, director of the Program of Ethics and Public Life at Cornell University.

"There is also nothing in the speaker's code of conduct that stands in the way of his involvement in a matter where he has powerful personal interests so long as the company that benefits doesn't request it," Miller said.

The Tribune has previously reported that clients of the speaker's tax law firm have benefited from state projects he helped secure; on Sunday, the newspaper disclosed that Madigan's actions on the state's Medicaid program for the poor also affected law clients who put money in his pocket.

Pressed for comment, Madigan issued a statement calling the Tribune's reports "garbage."

Madigan controls the House so tightly he has been nicknamed "The Velvet Hammer" for his ability to bend lawmakers to his will. The speaker's decisions and political brokering are almost always made in secret, as is most of the political maneuvering in Springfield.

State lawmakers wrote themselves out of the transparency laws that govern the rest of state government, and Madigan has refused Tribune requests for any documents related to his actions.

Madigan typically plays his position so close to the vest in Springfield that few know his motives until bills are on their way through the House. Amid that mystique, Madigan played a central role in the outcome of several bills that dealt with foreclosure issues and the banking industry this session.

One bill sponsored by state Rep. Karen Yarbrough, D-Maywood, would have hit both big and small banks by allowing municipalities to force banks to maintain abandoned homes. Supporters said it would help address a blight of weed-and-trash-strewn yards and havens for dangerous derelicts.

Yarbrough said she had high hopes that legislation would pass but quickly learned there wasn't enough support to get the bill passed in the House.

In addition to stopping that legislation, the other priority for the banking industry this legislative session was to pass a measure that would allow them to much more quickly foreclose on and dump abandoned properties from their books. In an effort to win over critics, the banks offered to pay more to help cities around the state maintain abandoned homes.

The bank-backed bill passed the Senate after weeks of closed-door meetings but stalled in the House Rules Committee. Lawmakers and advocates who opposed it credited Madigan, saying he didn't think it raised enough money from big banks for the foreclosure funds.

Then, on the final day of the session, Yarbrough countered with her own version of the fast-track bill. It would raise twice the money - an estimated $50 million - to help municipalities and fund foreclosure counseling services. But it would only impose higher fees on the very largest banks, which have at least $10 billion in assets.

Smaller community banks and credit unions would be spared, and their lobbying association joined housing advocates in supporting it. The Illinois Bankers Association, which was representing the interests of bigger banks, opposed it.

Yarbrough said Madigan, who voted for the bill, provided counsel and was involved in the process nearly the entire time. "He held my hand all the way," she said.

She said she wasn't aware it helped some Madigan banking clients and said Madigan didn't come up with the idea to exclude community banks from the bill. She said those ideas came from housing advocates who were assisting her with the bill and added that Madigan was an advocate for her concerns this session.

The changes were enough, and the House passed the bill 67-48 late Thursday on the last night of the spring session. Yarbrough said she was happy to finally get some form of foreclosure help through the chamber.

But the bill's supporters were disappointed hours later in the Senate. Sen. Jacqueline Collins, D-Chicago, Yarbrough's co-sponsor, was trying to put together a tenuous 30-vote majority needed to pass the bill. But her hopes evaporated as the clock ticked past midnight and she didn't call for a vote.

Collins attributed the loss to the influence of the banking lobby and the reticence of her colleagues to push back. Collins said she wasn't aware Madigan's law firm represents banks.

"He's smart enough to know what is legal and not legal. I don't think he would make that mistake," Collins said. "However, I think perceptions are everything."

She said she also wasn't aware her own Democratic leader, Senate President John Cullerton, D-Chicago, works at a law firm that list banks as clients.

Cullerton works at Thompson Coburn LLP, an international firm of more than 300 lawyers. Cullerton states he only works on issues of charitable organizations and not-for-profits. Madigan & Getzendanner has only six attorneys, including Madigan's partner, Vincent "Bud" Getzendanner.

Madigan's firm has for years represented a number of financial institutions, saving banks millions of dollars by appealing their property tax assessments in Cook County and the suburbs. The firm has filed property tax appeals for some of the state's biggest banks, such as Bank of America, as well as smaller community banks such as Bridgeview Bank and Republic Bank, public records show.

A spokeswoman for Bank of America declined to comment, except to say that an outside firm hired Madigan's law firm. Officials with Republic declined to comment. Officials with Bridgeview and other banks on Madigan's client list did not return repeated calls for comment.

It wasn't the first time some of Madigan's clients got the better of the foreclosure prevention forces.

A similar measure to charge banks fees to fund foreclosure outreach efforts was watered down by the banking industry in 2010 after top Madigan lieutenants took control of the negotiations.

As that 2010 legislative session was coming to a close, Yarbrough and housing advocates were surprised to learn their proposal had been replaced by a compromise bill written by the banking industry. It was sponsored by a different lawmaker, Rep. Joe Lyons, D-Chicago, a member of Madigan's leadership team.

The Lyons bill eliminated the requirement that banks pay a fee for buying property at a judicial sale, and reduced the fee for everyone else.

Yarbrough couldn't believe it as the House leadership team moved the bill for a roll call vote.

"Wow," the stunned lawmaker said when Lyons confirmed that banks wouldn't be charged the fee during floor debate. "So … so, the fee … the fee is awfully low and it's not going to apply to 95 percent of the cases.

"Why is it that when we're dealing with these huge problems, we don't really address the real issue?" Yarbrough asked, according to House transcript of the action. "I don't know how I'm going to go home this weekend and once again done nothing for my constituents in my communities that are suffering so terribly with these foreclosures."

The bank-backed measure passed 87-26 with Madigan voting in favor and Yarbrough voting present.

Community activists hoped their plan would raise millions of dollars a year, but the fund currently has a little more than $166,000.

Lyons told the Tribune the bill was the best version that could pass: "I know Karen Yarborough was against it, but the speaker's staff was trying to get something that would pass."

Lyons said he never spoke directly to the speaker about the legislation and was unaware that Madigan's law firm does tax work for banks that stood to benefit. "If there was any conflict of interest, he would recuse himself from any kind of vote," Lyons said.

Since 2003, Madigan has voted "present" on more than a dozen banking-related pieces of legislation, according to public records. He has not offered any rationale for those votes.

Brown noted that Madigan has pushed legislation that the banking industry opposed that required individuals with low credit scores or other criteria in neighborhoods on Chicago's Southwest and West sides to receive financial advice before a mortgage application could be completed.

The controversial legislation was eventually suspended by then-Gov. Rod Blagojevich amid claims by critics that it was a form of redlining that hurt those areas by dramatically slowing the availability of mortgages in those mostly minority areas.

David H. Laufman, a Washington ethics expert who served as investigative counsel to the U.S. House Ethics Committee, noted that federal ethics law would not allow Madigan to influence legislation in matters where he has a personal financial interest, whether or not the bill is good public policy.

But without adequate disclosure laws, and a clear definition of what constitutes a conflict, "it seems to me it is open season for him to do what he is doing," Laufman said.

"What a state you live in, it really is amazing," he said.

Tribune reporter Ray Long contributed from Springfield.

jchase@tribune.com

dkidwell@tribune.com

Madigan uses war chest to sway vote

$
0
0
Just weeks before the March Democratic primary, a campaign operative for Illinois House Speaker Michael Madigan walked into the headquarters of a candidate for state representative to deliver a message.
   "You aren't going to like me," Shaw Decremer declared to those inside Carole Cheney's headquarters, according to several Cheney staffers in the room.
   Decremer -- a member of Madigan's platoon of campaign soldiers who work for the state when they are not working elections for the boss -- said Madigan was putting his political muscle behind another Democrat in the party primary.
   He strolled around the office, making snide comments about her low-budget campaign until, according to Cheney and other witnesses, Cheney said she had enough and asked him to leave. Before he did, Decremer asked if she would pose with him for a picture.
   "I keep pictures of all the people we beat," he told her.
   And on Election Day, she lost.
   In elections and in the Legislature, Madigan is at the top of his game this spring.
   As it turned out, Cheney was among at least 24 fellow Democrats who lost in part because they were on the wrong side of Madigan'scampaign machine in March. It's a scenario that with rare exception has played out the same way for years: Without Madigan, you lose.
   Those who win form the backbone of the House majority he commands. The Chicago Democrat's control over legislation -- from a multibillion-dollar Medicaid program to mortgage foreclosure laws -- has repeatedly benefited clients of his Chicago property tax law firm, the Tribune has disclosed.
   Experts say the confluence of Madigan's public and private careers raise concerns about potential conflicts of interest -- but those questions are seldom raised in the face of his enormous sway in both the drafting of the state's laws and the elections of its leaders.
   "Madigan clearly has so much power he has made himself impregnable," said James Browning, the regional director of state government operations for the government watchdog group Common Cause, which lobbied unsuccessfully for Illinois lawmakers to keep campaign contribution limits in place. "How do you push back when one man has amassed so much control?"
   That same dominance was on display in the legislative session that ended early Friday, as bills he pushed passed the House and those he opposed died.
   As not only speaker but chairman of the Democratic Party of Illinois, Madigan draws the boundaries of legislative districts. He controls the flow of millions of dollars in political contributions.
   And because Madigan controls both a state staff and a campaign war chest, he has a ready reserve of public employees he shifts off the payroll at will to add muscle to the most powerful election force in the state.
   Decremer and other Democratic staffers are deployed to answer phone calls, schedule campaign events and scour petitions of competing Democrats to get them kicked off the ballot.
   Republicans also have pulled dozens of staffers off the state payroll in election years, but after nearly 30 years as speaker, Madigan is the master at using the levers of government to his political advantage.
   Even before the primary, Madigan had already carved Republican incumbents out of their Illinois House districts and redrawn the legislative maps to tip the scales in the Democrats' favor for the second decade in a row. But that wasn't good enough.
   In select areas of the state -- like the Aurora district where Cheney lost -- the long arm of the state's most powerful politician reached out to help nearly three dozen loyal incumbents and a few handpicked newcomers to ensure they won.
   And in each and every case, they did.
   Public campaign records show Madigan spent more than $550,000. He scored victories in races from heavily Democratic districts in the city, where his candidates will have only nominal Republican opposition in the fall, to competitive areas Downstate where his candidates will be well-positioned to take on targeted Republican lawmakers or seize open seats.
   Madigan paid for polling as well as mailings, distributing dozens of glossy fliers in districts from Decatur to Chicago. Many were identical ads except for the candidate's name, praising the Madigan ally for helping seniors or protecting taxpayers. Other ads targeted primary opponents, including Cheney.
   "This is the party leader trying to decide the nominees. He's trying to pick who will be in the seat when voters are supposed to decide," Cheney said. "It's the same party. I feel like they are eating their own."
   Cheney, a lawyer, was shredded by a Madigan-financed attack that alleged she was an ally of "big banks"-- an ad that ignored the speaker's own ties to the banking industry.
   "When the foreclosure crisis hit our neighborhoods, Carole Cheney stood with her allies defending the big banks," reads one placard featuring a doctored photo of a beaming Cheney holding a wad of cash next to a cigar-chomping man holding a cocktail.
   Cheney told the Tribune she has no idea to what bank ties the ad refers. But she is a partner at the 1,500-lawyer firm Kirkland & Ellis LLP, which counts among its clients Bank of America.
   Madigan & Getzendanner, the six-lawyer firm where Madigan is a senior partner, has repeatedly filed property tax appeals for Bank of America. On Monday, the Tribune reported that banks -- including those who hired Madigan's firm -- were unscathed by housing activists' efforts in Springfield to make them pay more for the damage foreclosures have wrought in neighborhoods around the state.
   Madigan refused to answer questions, characterizing Tribune reporting on him as "garbage." His spokesman, Steve Brown, said that as head of the state Democratic Party, Madigan gets involved in certain primary races in order to make sure the best Democrat ends up in the seat in Springfield.
   "Largely we make an assessment (about) who would be the strongest general election candidate and try to back that person," Brown said. "The ultimate goal is to elect somebody in the general election."
   After polling and fliers, much of Madigan's campaign money went to pay state workers who took leaves from their midlevel jobs to staff key primary races.
   During the March primary season, records show, nearly two dozen state staffers went off the state payroll, being paid instead byMadigan's political funds to work for more than 30 candidates. In many of the less competitive races, the staffers worked for less than a day, simply checking to see if a Madigan-backed candidate had any opponents. In nearly half of the races, which were more competitive, the staffers worked for weeks at a time.
   Public records show a regular routine of House Democratic employees -- from program specialists like Decremer to messengers, photographers and graphics technicians -- taking time off during campaign seasons and then coming back on the state payroll when the elections are over.
   Asked how Madigan can justify keeping the employees on staff when they are clearly not needed for months at a time, Brown said, "We absolutely will not allow taxpayer dollars to be spent on campaigns, so when people go to work on campaigns, they come off the state payroll."
   The state workers aren't needed at their government jobs as much during election cycles because the Legislature meets less frequently during those times, Brown said. Soon after the primary campaign, Decremer and other Madigan staffers were back at work in Springfield.
   Decremer is a fixture at major committee meetings and can often be seen in the House chamber conferring with top Madiganlieutenants.
   To pay for the campaign operation, Madigan has become a prolific political fundraiser with marquee events in Chicago and Springfield, including one held on Lake Springfield last month at the height of the Legislature's spring session.
   Under state law, campaign fundraisers are prohibited on days the Legislature is in session, an attempt to separate politics from lawmaking. Many people avoid the issue by having their fundraisers earlier in the year when the legislative session is less busy. ButMadigan, who controls the legislative calendar, ensures lawmakers are not meeting in the busy month of May when he holds his fundraiser. The only weekday in May that was not a session day this year was Monday, May 7, the day of Madigan's event.
   About 1,000 people attended the event, tossing in at least $150 to shake Madigan's hand, mingle with lobbyists and lawmakers and nosh on finger foods, according to political insiders.
   Madigan controls several massive political war chests, including his own Friends of Michael J. Madigan and the Democratic Majority fund. The multiple political committees give Madigan a way to go beyond restrictions on campaign contributions from legislative and party leaders.
   He has doled out tens of thousands of dollars in political help to primary candidates, including state Rep. Maria "Toni" Berrios, daughter ofMadigan ally Cook County Assessor Joe Berrios, and state Rep. Derrick Smith, who won despite being arrested on federal bribery charges days before the election. Newcomers like Cheney's opponent, Aurora Ald. Stephanie Kifowit, also got Madigan's money.
   Madigan's primary sweep was the first step in his rebound from one of his more difficult election seasons two years ago. He lost several races in the 2010 general election amid a Republican push to power nationwide. Still, he maintained an overwhelming majority in the House and his job as speaker.
   In the days leading up to the March 20 primary, streams of volunteers for Madigan-supported candidates made their way from across the city and suburbs to Madigan's political headquarters on the Southwest Side to collect campaign materials. They spread out to targeted districts to knock on doors and hand out literature.
   "Everybody did their job," Madigan told supporters gathered on primary night at a Holiday Inn in Bedford Park to celebrate his own election win. "It worked out just as we had planned, and the reason is because everybody did their part."
   But some of the Democrats who lost questioned the extent of Madigan's involvement. Neighborhood activist Michael Nardello lost toMadigan-backed incumbent Camille Lilly, a rookie lawmaker, in a race to represent parts of Chicago's West Side and near west suburbs. No Republicans were running in the primary.
   "In theory, he cannot lose in this race. There will be a Democrat in this seat," Nardello said of Madigan. "So his decision to get involved says something.
   "He doesn't just want a Democrat. He wants somebody who will be beholden to him."
   ----------
   jchase@tribune.com
   dkidwell@tribune.com
   rlong@tribune.com

Madigan consolidates power by holding sway in legislative races

$
0
0
Just weeks before the March Democratic primary, a campaign operative for Illinois House Speaker Michael Madigan walked into the headquarters of a candidate for state representative to deliver a message.

"You aren't going to like me," Shaw Decremer declared to those inside Carole Cheney's headquarters, according to several Cheney staffers in the room.

Decremer - a member of Madigan's platoon of campaign soldiers who work for the state when they are not working elections for the boss - said Madigan was putting his political muscle behind another Democrat in the party primary.

He strolled around the office, making snide comments about her low-budget campaign until, according to Cheney and other witnesses, Cheney said she had enough and asked him to leave. Before he did, Decremer asked if she would pose with him for a picture.

"I keep pictures of all the people we beat," he told her.

And on Election Day, she lost.

In elections and in the Legislature, Madigan is at the top of his game this spring.

As it turned out, Cheney was among at least 24 fellow Democrats who lost in part because they were on the wrong side of Madigan's campaign machine in March. It's a scenario that with rare exception has played out the same way for years: Without Madigan, you lose.

Those who win form the backbone of the House majority he commands. The Chicago Democrat's control over legislation - from a multibillion-dollar Medicaid program to mortgage foreclosure laws - has repeatedly benefited clients of his Chicago property tax law firm, the Tribune has disclosed.

Experts say the confluence of Madigan's public and private careers raise concerns about potential conflicts of interest - but those questions are seldom raised in the face of his enormous sway in both the drafting of the state's laws and the elections of its leaders.

"Madigan clearly has so much power he has made himself impregnable," said James Browning, the regional director of state government operations for the government watchdog group Common Cause, which lobbied unsuccessfully for Illinois lawmakers to keep campaign contribution limits in place. "How do you push back when one man has amassed so much control?"

That same dominance was on display in the legislative session that ended early Friday, as bills he pushed passed the House and those he opposed died.

As not only speaker but chairman of the Democratic Party of Illinois, Madigan draws the boundaries of legislative districts. He controls the flow of millions of dollars in political contributions.

And because Madigan controls both a state staff and a campaign war chest, he has a ready reserve of public employees he shifts off the payroll at will to add muscle to the most powerful election force in the state.

Decremer and other Democratic staffers are deployed to answer phone calls, schedule campaign events and scour petitions of competing Democrats to get them kicked off the ballot.

Republicans also have pulled dozens of staffers off the state payroll in election years, but after nearly 30 years as speaker, Madigan is the master at using the levers of government to his political advantage.

Even before the primary, Madigan had already carved Republican incumbents out of their Illinois House districts and redrawn the legislative maps to tip the scales in the Democrats' favor for the second decade in a row. But that wasn't good enough.

In select areas of the state - like the Aurora district where Cheney lost - the long arm of the state's most powerful politician reached out to help nearly three dozen loyal incumbents and a few handpicked newcomers to ensure they won.

And in each and every case, they did.

Public campaign records show Madigan spent more than $550,000. He scored victories in races from heavily Democratic districts in the city, where his candidates will have only nominal Republican opposition in the fall, to competitive areas Downstate where his candidates will be well-positioned to take on targeted Republican lawmakers or seize open seats.

Madigan paid for polling as well as mailings, distributing dozens of glossy fliers in districts from Decatur to Chicago. Many were identical ads except for the candidate's name, praising the Madigan ally for helping seniors or protecting taxpayers. Other ads targeted primary opponents, including Cheney.

"This is the party leader trying to decide the nominees. He's trying to pick who will be in the seat when voters are supposed to decide," Cheney said. "It's the same party. I feel like they are eating their own."

Cheney, a lawyer, was shredded by a Madigan-financed attack that alleged she was an ally of "big banks"- an ad that ignored the speaker's own ties to the banking industry.

"When the foreclosure crisis hit our neighborhoods, Carole Cheney stood with her allies defending the big banks," reads one placard featuring a doctored photo of a beaming Cheney holding a wad of cash next to a cigar-chomping man holding a cocktail.

Cheney told the Tribune she has no idea to what bank ties the ad refers. But she is a partner at the 1,500-lawyer firm Kirkland & Ellis LLP, which counts among its clients Bank of America.

Madigan & Getzendanner, the six-lawyer firm where Madigan is a senior partner, has repeatedly filed property tax appeals for Bank of America. On Monday, the Tribune reported that banks - including those who hired Madigan's firm - were unscathed by housing activists' efforts in Springfield to make them pay more for the damage foreclosures have wrought in neighborhoods around the state.

Madigan refused to answer questions, characterizing Tribune reporting on him as "garbage." His spokesman, Steve Brown, said that as head of the state Democratic Party, Madigan gets involved in certain primary races in order to make sure the best Democrat ends up in the seat in Springfield.

"Largely we make an assessment (about) who would be the strongest general election candidate and try to back that person," Brown said. "The ultimate goal is to elect somebody in the general election."

After polling and fliers, much of Madigan's campaign money went to pay state workers who took leaves from their midlevel jobs to staff key primary races.

During the March primary season, records show, nearly two dozen state staffers went off the state payroll, being paid instead by Madigan's political funds to work for more than 30 candidates. In many of the less competitive races, the staffers worked for less than a day, simply checking to see if a Madigan-backed candidate had any opponents. In nearly half of the races, which were more competitive, the staffers worked for weeks at a time.

Public records show a regular routine of House Democratic employees - from program specialists like Decremer to messengers, photographers and graphics technicians - taking time off during campaign seasons and then coming back on the state payroll when the elections are over.

Asked how Madigan can justify keeping the employees on staff when they are clearly not needed for months at a time, Brown said, "We absolutely will not allow taxpayer dollars to be spent on campaigns, so when people go to work on campaigns, they come off the state payroll."

The state workers aren't needed at their government jobs as much during election cycles because the Legislature meets less frequently during those times, Brown said.

Soon after the primary campaign was done, Decremer and other Madigan staffers were back at work in Springfield.

Decremer is a fixture at major committee meetings and can often be seen in the House chamber conferring with top Madigan lieutenants. He also moves easily through the aisles and to the desks of rank-and-file lawmakers, chatting some up and checking over the shoulders of others.

To pay for the campaign operation, Madigan has become a prolific political fundraiser with marquee events in Chicago and Springfield, including one held on Lake Springfield last month at the height of the Legislature's spring session.

Under state law, campaign fundraisers are prohibited on days the Legislature is in session, an attempt to separate politics from lawmaking. Many people avoid the issue by having their fundraisers earlier in the year when the legislative session is less busy. But Madigan, who controls the legislative calendar, ensures lawmakers are not meeting in the busy month of May when he holds his fundraiser. The only weekday in May that was not a session day this year was Monday, May 7, the day of Madigan's event.

About 1,000 people attended the event, tossing in at least $150 to shake Madigan's hand, mingle with lobbyists and lawmakers and nosh on finger foods, according to political insiders. The event was invitation-only and closed to the news media. A day later, it was back to business at the Capitol.

Madigan controls several massive political war chests, including his own Friends of Michael J. Madigan and the Democratic Majority fund. The multiple political committees give Madigan a way to go beyond restrictions on campaign contributions from legislative and party leaders.

He has doled out tens of thousands of dollars in political help to primary candidates, including state Rep. Maria "Toni" Berrios, daughter of Madigan ally Cook County Assessor Joe Berrios, and state Rep. Derrick Smith, who won despite being arrested on federal bribery charges days before the election. Newcomers like Cheney's opponent, Aurora Ald. Stephanie Kifowit, also got Madigan's money.

Madigan's primary sweep was the first step in his rebound from one of his more difficult election seasons two years ago. He lost several races in the 2010 general election amid a Republican push to power nationwide. Still, he maintained an overwhelming majority in the House and his job as speaker.

In the days leading up to the March 20 primary, streams of volunteers for Madigan-supported candidates made their way from across the city and suburbs to Madigan's political headquarters on the Southwest Side to collect campaign materials. They spread out to targeted districts to knock on doors and hand out literature.

"Everybody did their job," Madigan told supporters gathered on primary night at a Holiday Inn in Bedford Park to celebrate his own election win. "It worked out just as we had planned, and the reason is because everybody did their part."

But some of the Democrats who lost that night questioned the extent of Madigan's involvement. Neighborhood activist Michael Nardello lost to Madigan-backed incumbent Camille Lilly, a rookie lawmaker, in a race to represent parts of Chicago's West Side and near west suburbs. No Republicans were running in the primary.

"In theory, he cannot lose in this race. There will be a Democrat in this seat," Nardello said of Madigan. "So his decision to get involved says something.

"He doesn't just want a Democrat. He wants somebody who will be beholden to him."

jchase@tribune.com dkidwell@tribune.com rlong@tribune.com

Madigan's son's employer rakes in suburbs' insurance business

$
0
0
Municipalities have switched to Mesirow Financial since Andrew Madigan joined firm

Madigan accused of Metra patronage push

$
0
0

A state legislative hearing investigating the severance package for Metra's ousted CEO yielded new details about the controversial deal Thursday, including the revelation that powerful House Speaker Michael Madigan had asked the agency to give one of his political foot soldiers a raise.

Metra officials, who have been highly secretive about the settlement, also confirmed for the first time that former CEO Alex Clifford implicated board Chairman Brad O'Halloran and Vice Chairman Larry Huggins in an eight-page memorandum outlining the patronage pressure he felt during his tenure.

O'Halloran - who repeatedly denied being named in the memo during a Tribune interview earlier this week - voted to approve the $718,000 severance deal after Clifford threatened to file a whistle-blower lawsuit if he could not reach a financial settlement with the agency. Huggins voted present.

Metra officials spent much of the six-hour session in Chicago trying to explain their decision to award the settlement, telling skeptical lawmakers that they had little choice after Clifford informed them that he believed his contract was not being renewed in retaliation for resisting patronage pressure. If Clifford had sued, the legal costs would have been significantly higher than his severance package, officials said.

That argument, however, took a bruising from Metra board member Jack Schaffer, of McHenry County, who told the House Mass Transit Committee that Clifford was pushed out because he didn't know how to play the political game in Illinois.

"This is $250,000 in severance and $500,000 in hush money," Schaffer said of the severance deal. "You have not heard the whole story in any way, shape or form."

Schaffer cast the lone vote in opposition to the June 21 agreement.

Clifford declined to appear before the committee, citing his lawyer's advice and blaming Metra's attorneys for preventing him from testifying. Metra officials denied that suggestion, but said the former CEO would be prohibited from reading or distributing his patronage memorandum.

Asked to respond Thursday, Clifford said in an email that he stood by his attorney's recommendation not to attend.

The session stood in sharp contrast to Metra's perfunctory appearance before the Regional Transportation Authority board Wednesday, as state lawmakers took turns mocking the deal, and demanding that the names of accused public officials be revealed.

They also threatened to subpoena Clifford's memo if the agency did not voluntarily turn it over. The memo became the equivalent of a pivotal "smoking gun" at the hearing.

With the state inspector general watching from the gallery, some legislators even suggested they would have preferred the case to go trial so the grievances could be aired in public rather than shielded by the settlement's nondisclosure clause.

"I wish it would have gone to litigation because I think there are a lot of systemic issues about how this very important service board is run," said Rep. Al Riley, D-Olympia Fields. "This is a public entity. This is not a corporation ... with confidentiality agreements."

The sparks flew early, as Madigan issued an unusual press statement minutes before the hearing began, acknowledging that he had sought a raise for a longtime political supporter who worked for Metra. Until that moment, Metra had not mentioned Madigan's connection to Clifford's patronage complaint.

Madigan said his office recommended in March 2012 that Patrick Ward, a labor relations specialist who made $57,000 annually, receive a merit adjustment based on his education level and job performance. The speaker said that he went to bat for Ward because he hadn't had a raise in three years despite an increase in responsibilities.

At the time, the agency had frozen salary increases for all noncontract employees amid budget constraints.

After learning about Madigan's request, Clifford called Ward into his office and asked about his ties to the speaker, Metra attorney Joseph Gagliardo said. Records show that Ward has worked for Madigan campaigns for more than 15 years and served as a voter registrar for Madigan-backed groups.

Though Ward's supervisor supported a salary boost, Clifford allegedly expressed concern about Madigan's intervention.

"Upon learning of this, the recommendation was withdrawn," the speaker said in a statement.

Ward could not be reached for comment. He is no longer with Metra, Madigan said.

Gagliardo told lawmakers that the Madigan inquiry was mentioned in Clifford's patronage complaint, but he contends the speaker didn't cross the line by inquiring about his friend's salary.

"Elected officials don't lose their legal right to talk to people," Gagliardo said.

Gagliardo would not answer a Tribune reporter's question about why he failed to mention Madigan's ties to the Clifford patronage complaint at the RTA hearing a day earlier, even though he outlined allegations in Clifford's memo.

Madigan's spokesman said the speaker issued the statement Thursday because it was a legislative hearing, and he wanted lawmakers to know about his connection to the controversy.

Metra officials confirmed for the first time that Clifford thinks that Rep. Luis Arroyo, D-Chicago, applied inappropriate pressure by asking the CEO if he would consider a candidate backed by Latino lawmakers for a deputy director post.

Clifford refused to take the candidate's name, Gagliardo said.

Though Gagliardo informed the RTA of the allegation Wednesday, he did not name the lawmaker involved.

Arroyo has denied that he recommended people for Metra jobs or pressured Clifford. He told the Tribune that Clifford invented the patronage allegations as an excuse after the agency lost faith in him.

Gagliardo often referred to his 35 years of labor law experience and said settling "difficult" cases like Clifford's was preferable to protracted litigation.

When asked by lawmakers, Gagliardo said he had no accounting yet of his fees, but said they could exceed $100,000. Legislators seized on this, saying that the whole Clifford affair could end up costing more than a million dollars.

Lawmakers repeatedly brought up Metra's troubled history, which hit a nadir on May 7, 2010, when former Executive Director Phil Pagano committed suicide after an investigation showed he took $475,000 in unapproved vacation pay and forged memos to cover it up.

"Phil Pagano, now this - there's a problem" at Metra, Riley said.

Rep. Jack Franks, D-Woodstock, demanded the entire Metra board resign or be removed, saying that nothing has changed over the years.

"The (mass transit) system is broken and needs to be fixed," Franks said.

At the end of the marathon session, Chairwoman Deborah Mell, D-Chicago, said the panel would consider holding another meeting regarding the matter, and may consider subpoenaing Clifford. Committee members also called for the release of Clifford's memo, dated April 3.

Mell made a point of singling out the Metra board members who were not in attendance: Jack Partelow of Will County; Paul Darley of DuPage County; Norman Carlson of Lake County; Mike McCoy of Kane County; Huggins of Chicago; and suburban Cook County representatives Don De Graff, Stanley Rakestraw, Arlene Mulder and William Widmer III.

Inspector General Ricardo Meza, who testified, seemed to contradict Metra's argument that it could not turn over the April 3 memo.

Meza acknowledged that even though his office had the document, there was nothing to prohibit its release by others.

"What's left that's so confidential?" said Rep. Jeanne Ives, R-Wheaton.

Tribune reporter John Chase contributed.

sstclair@tribune.com

rwronski@tribune.com

Metra CEO memo alleges more Madigan influences

$
0
0

Former Metra CEO Alex Clifford contends his refusal to capitulate to House Speaker Michael Madigan's patronage demands angered some agency board members and ultimately led to his downfall, according to a memorandum obtained by the Tribune.

The eight-page memo - which the agency repeatedly had refused to release - contains allegations far more damning than Metra officials have suggested in recent days and raises new questions about how the commuter rail service operates in clout-friendly Illinois.

The memorandum has been portrayed as the proverbial smoking gun amid multiple investigations into Clifford's ouster and the $718,000 severance package that accompanied it. At least one Metra board member has described the deal as "hush money" to prevent the allegations detailed in the memo from becoming public.

"It underscores the reason why we needed (the memo) in the first place," said Rep. Jack Franks, D-Marengo, who is on the Illinois House Mass Transit Committee investigating the severance settlement. "Now there are even more questions that need to be answered."

Sent to the board April 3, the memo levies previously undisclosed allegations against Chairman Brad O'Halloran and former Chairman Larry Huggins, who remains on the board. Claiming the two conspired to remove him, Clifford said O'Halloran and Huggins criticized him at different times for not acquiescing to lawmakers.

The memo also alleges that O'Halloran ordered Clifford to fire at least two employees - an accusation not mentioned at public hearings on the severance package this week.

O'Halloran denied the allegations in a statement Friday, but did not say why he omitted them while appearing before the Regional Transportation Authority board or the Mass Transit Committee.

"As I testified yesterday, I deny Mr. Clifford's allegations, but, out of an abundance of caution, immediately forwarded all of his claims to the inspector general," O'Halloran said. "I have never intervened with Metra's staff regarding any jobs or contracts."

Metra released the memorandum to the Mass Transit Committee on Friday, under intense pressure from lawmakers to do so. Despite the agency's original assertion that the document was protected by the severance package's confidentiality clause, some legislators threatened to subpoena the memo if the agency refused to turn it over.

"The taxpayers are outraged, and they should be," Rep. Deb Mell, chairwoman of the committee, said Friday. "This needed to come out."

The memo suggests Clifford repeatedly resisted patronage pressure and that no refusal was more damaging to his career than his Madigan rebuke.

In March 2012, Madigan contacted Metra lobbyist Tom Cullen - a former top staffer in the speaker's office - and informed him that he wanted Patrick Ward, a labor relations specialist with the agency, to receive a raise, according to the memo.

The speaker also asked that another unnamed individual be given a job, Clifford wrote.

Clifford said he ordered his staff not to respond to the requests, but the issue resurfaced six months later when then-Chairman Huggins said the speaker wanted Ward to be given a pay increase. The memo states Clifford refused the request, which prompted an argument with Huggins.

Madigan has said his office recommended that Ward, who made $57,000 annually, receive a merit adjustment based on his education level and job performance. At the time, the agency had frozen salary increases for all noncontract employees amid budget constraints.

After learning about Madigan's renewed request, Clifford wrote that he asked Ward why he was getting pressure from the speaker about the man's salary.

"Mr. Ward said that his family had supported Mr. Madigan for many years and worked on his political campaigns," the memo states. "He said that he had discussed his Metra employment with Mr. Madigan at a Madigan political event, where he told Mr. Madigan that he felt underpaid."

Records show that Ward has worked for Madigan campaigns for more than 15 years. He also donated more than $17,000 to campaign funds controlled by Madigan or his daughter, Illinois Attorney General Lisa Madigan.

Madigan has said he withdrew his request shortly after Ward's meeting with Clifford.

Ward could not be reached for comment. Public records show he left Metra and now earns $70,000 annually as a labor relations specialist with the state.

The memo alleges that Clifford jeopardized his job by rejecting Madigan.

"When I asked Mr. O'Halloran about the status of discussions to consider my renewing my employment contract, he told me that he needed to arrange a meeting with Speaker Madigan to assess 'what damage I have done' to Metra and future funding by my refusal to accede to Speaker Madigan's requests."

O'Halloran told the House panel that he knew nothing about the Madigan incident until shortly before he received the memorandum. His timeline is in keeping with Metra's position that Clifford levied the patronage complaint only because he thought his contract would not be renewed.

O'Halloran - who repeatedly denied being named in the memo during a Tribune interview earlier this week - voted to approve the $718,000 severance deal after Clifford threatened to file a whistle-blower lawsuit if he could not reach a financial settlement with the agency. Huggins voted present.

The memo also alleges that, among other things, Huggins tried to circumvent federal bidding laws for a $93 million railroad bridge on the South Side known as the Englewood Flyover. Though Metra met its legal obligation for minority contracts on the project, U.S. Rep. Bobby Rush, D-Chicago, was threatening to block the project because he said it didn't provide enough jobs for the economically depressed neighborhood.

Clifford contends that Huggins responded to the threats by devising a plan to pay a third party $50,000 for services related to the project. After Clifford raised questions, the plan was eventually abandoned, he wrote.

Neither O'Halloran nor Huggins responded to requests for comment Friday. Huggins, who declined an invitation to answer questions from the House committee, issued a statement Friday denying any improper conduct.

"I categorically deny Clifford's allegations, and I am especially concerned with his claims regarding my efforts to resolve the community concerns with minority business and employment participation in the Englewood Flyover project," Huggins said. "Everything I did to help resolve that controversy with members of Congress was done in concert with federal and state transportation officials and legal counsel."

Meanwhile on Friday, the RTA announced it would call another special meeting Wednesday to discuss Clifford's severance deal.

It has invited Clifford to attend this time.

Tribune reporter Ray Long contributed.

rwronski@tribune.com

sstclair@tribune.com

How Madigan builds his patronage army

$
0
0

When House Speaker Michael Madigan accidentally triggered a patronage scandal at the Metra commuter rail agency, it was the result of two extraordinary events.

First his request to boost the Metra salary of a longtime political worker was refused. Then it became public.

The ensuing uproar has cost taxpayers a fortune, prompted a shake-up at Metra and spawned ongoing investigations into political favoritism, insider dealing and a lack of transparency. Yet none of those inquiries is likely to illuminate the extent of Madigan's far-reaching patronage operation or his efforts to sustain his legion of loyalists.

A Tribune investigation sought to do just that, documenting employees at every level of state and local government who work elections for Madigan, donate regularly to his campaign funds, register voters for him or circulate candidate petitions on his behalf.

By that conservative measure, the newspaper found more than 400 current or retired government employees with strong political ties to Madigan. It also found repeated instances in which Madigan took personal action to get them jobs, promotions or raises, just as he did for the Metra employee.

From the ranks of those workers Madigan has built the most potent ground game in Illinois politics, which he uses to influence elections in every corner of the state, from suburban mayor to governor, from county board to Congress.

Political foot soldiers often bounced between city, county and state payrolls - including nearly two dozen who collected pensions from one government job while getting a paycheck at another.

Top political performers advanced in public careers despite questionable qualifications or troubled work histories. And they frequently got better jobs and pay.

One precinct captain went from being a city truck driver to overseeing hundreds of employees in the Cook County Sheriff's Office in less than three years. Another political soldier got a management position with the county despite a federal conviction as a ghost payroller. And a former top vote-getter for Madigan who rose from streetlight repair worker for the city to the No. 2 spot in the Transportation Department is now at the center of the $2 million federal bribery investigation into Chicago's red light camera program.

Madigan declined to be interviewed or answer questions about his practices. Instead, he issued a statement through spokesman Steve Brown:

"The individuals who assist in community projects and campaigns have a strong interest in politics and government, just like the supporters and volunteers of any other public official. They share my belief in fairness for working middle-class families, strong and safe neighborhoods and civic responsibility."

Nowhere are those workers more important than in campaigns for the state House, where Madigan makes and breaks candidates every election - ensuring a Democratic majority that is perpetually beholden to the Southwest Side lawmaker they have chosen as House speaker for three decades.

As Madigan engages the gears of his political machine for the 2014 elections, the Tribune sought to document how a state lawmaker elected by fewer than 30,000 people every two years built a political operation he has used to dominate state government for decades.

That dominance gives the speaker unmatched sway over state spending - a power that is not lost on public officials when they receive a Madigan job inquiry.

A call from the speaker

Nine veteran government officials who oversaw hiring, promotions or raises all told the Tribune similar stories about their conversations with Madigan. Often, he would suggest people for particular job openings. Other times, he would ask how well particular employees were doing in their jobs, or request raises or promotions.

In each case, the officials said Madigan never demanded action, but they felt compelled to follow his suggestions.

Juan Ochoa, former head of the Metropolitan Pier and Exposition Authority, said Madigan called him to request a raise for Sherry Brticevich, the daughter of a former state senator from Madigan's Southwest Side neighborhood. "He made a point to say this was a favor for someone very close to him," Ochoa said.

Ochoa said Brticevich was a hard worker who deserved the raise she received after Madigan's call.

"I didn't feel like he was putting a gun to me but, then again, he is the speaker of the House," Ochoa said. "This was someone who is important to the speaker of the House, who to a great extent controlled our legislation and funding."

Brticevich, daughter of the late state Sen. Frank Savickas, said she applied for the job "just like everybody else" and said she was unaware if Madigan made any calls on her behalf.

A top aide to disgraced former Gov. George Ryan said Madigan routinely called to get jobs for favored political workers. Scott Fawell - who was sentenced to more than six years in federal prison for conspiring with Ryan to use public resources for political gain - said he helped Madigan secure his supporters dozens of jobs over a decade while he served in various top posts under Ryan.

"He'd come down or call periodically, we'd talk a little Sox baseball because we're both huge fans, maybe we'd talk a little politics, and eventually he'd say, 'Hey, I've got a guy I'd like you to look at for a job,'" Fawell told the Tribune.

The other officials in charge of hiring told the newspaper similar stories about dozens of Madigan calls, dating to the early 1990s, in which the speaker asked for raises or jobs for his people. Many of those officials, who worked at various levels of state or local government, spoke on the condition that their names not be used.

Another now-infamous example involves the summer scandal at Metra, where CEO Alex Clifford was ousted from his top post in June after he refused Madigan's repeated requests to increase the pay for one of his longtime political foot soldiers, Patrick Ward.

When Clifford threatened to go public with the Madigan patronage allegations and other complaints about political interference, the Metra board offered him a severance package worth as much as $871,000 that included a requirement he keep silent. The controversy prompted a massive shake-up at Metra, and eventually the departures of six board members. The cost of the episode could surpass $1 million, including Metra payments to law firms and outside consultants. That doesn't count costs of ongoing state investigations.

"One of the most insidious effects of Illinois-style patronage comes into play if people on the receiving end don't accede to the 'request' the governmental power broker is making on behalf of his patronage soldier," said former federal prosecutor Patrick Collins, who won convictions of top officials in the Daley administration during a 2005-2006 investigation of illegal political hiring at City Hall.

"That is where there can be a governmental price to pay for failing to play the game - a form of retribution," Collins said. "That is the underbelly of patronage."

The newspaper found there was no job too small for Madigan to exert his influence.

Former Oak Lawn Mayor David Heilmann told the Tribune he was surprised several years ago when Madigan called him about a part-time village inspector who now makes $12,000 a year moonlighting for the village.

"I remember that we had just laid off a bunch of guys, and Madigan was calling to see if we could put him back on," Heilmann said. "I told him the position had been eliminated but if a spot came open I would pass along his recommendation.

"I will be honest, after I hung up I started hoping I didn't piss him off," Heilmann said. "Let's face it, he is the most powerful man in this state, and a request like that leaves you in a very uncomfortable position."

The former mayor said that during his tenure he got two such calls from Madigan. One was a recommendation for village attorney. The other was for the inspector job for Ronald Crane. In both cases, the village made the hires.

Crane, 49, has an Oak Lawn residence and a history of run-ins with the law, including a 1992 drug conviction, public records show. He was hired by the suburb in 2007, the same year he was hired as a full-time state electrician now making more than $91,000 a year with the Illinois secretary of state's office. Both jobs came less than a year after records show he first became a paid Madigan foot soldier.

Crane didn't return requests for comment. He is among 45 Madigan supporters found by the Tribune who got government jobs about the same time they began working for or donating to Madigan's political organization, according to public records.

Political payments, public payrolls

The Tribune found many cases in which Madigan operatives bounced from government job to government job, agency to agency. One example is David Foley, 50, a longtime top precinct captain who has donated more than $23,000 to Madigan political funds since 1999, when he got one of nearly a dozen different government jobs he has held in 25 years.

Foley lasted only weeks in some jobs, was fired from one and landed in another position that has been repeatedly filled by members of Madigan's political brigade.

Records show he's been an engineer technician at the Cook County Highway Department, county correctional officer, seasonal laborer for the county Forest Preserve District, Chicago cop, administrative assistant to the county recorder of deeds, customer service manager at the county treasurer's office, cemetery hotline director for the state comptroller, executive officer under the county medical examiner, state highway traffic patrol manager and director of verification for the Chicago city clerk, and is now an executive assistant for the secretary of state.

When Foley took the city clerk job, one of the top positions in the office, in January 2012, he succeeded another Madigan precinct captain. That worker, Lawrence McPhillips, left to take another government job making $123,000 for the city.

When Foley left the post last year, he was succeeded by James Gleffe, 31. Gleffe, who records show came from a $65,000 job as a legal adviser to the secretary of state, has been a Madigan paid political soldier since 2010, records show. Gleffe makes more than $99,000 a year, according to the clerk's office.

Foley and Gleffe did not return requests for comment. A spokesman for Secretary of State Jesse White said White was not contacted by Madigan about hiring Crane, Foley or Gleffe.

The post at the clerk's office was also held for a short time between Foley and Gleffe by yet another Madigan operative, Lisamarie Miller, 38. She has worked in the office since 2004, the year before she began donating to Madigan political funds.

The succession of Madigan supporters in the same job is not an isolated phenomenon, and extends to positions on appointed boards.

Consider the Cook County Employee Appeals Board, a once-a-month post that until very recently paid about $35,000 per year. The board, long known as a haven for the politically connected, passes judgment on appeals filed by disciplined county workers.

One seat on the board has been occupied by members of Madigan's army since 2006, when former Cook County Board President Todd Stroger appointed Mary Morrissey to the seat. Morrissey is a longtime paid soldier and donor to Madigan who for years served as the political director in the various campaigns of his daughter Illinois Attorney General Lisa Madigan.

In 2011, Morrissey resigned her post on the board and took a job as deputy chief of staff to the younger Madigan. Taking her place on the board was the retiring deputy recorder of deeds for Cook County, Raymond Nice, who was appointed by County Board President Toni Preckwinkle.

Nice, 58, made about $118,000 per year as deputy recorder of deeds. He is a longtime precinct captain, paid political worker and donor to Madigan. Nice resigned his board appointment after four months because of a prohibition on collecting his county pension while collecting the county paycheck.

The next in line was John Bills, 52, a longtime precinct captain who was forced to resign his Preckwinkle appointment following Tribune disclosures about his role in the $2 million bribery scandal at City Hall.

In his 32-year career with the city, Bills rose from a lamp maintenance worker to become the second in command at the Department of Transportation, with a $138,000 salary. In the decade before he retired in 2011, Bills was largely responsible for overseeing the contract of the city's red light camera vendor, Redflex Traffic Systems Inc.

Mayor Rahm Emanuel last year fired Redflex amid the bribery scandal, now the subject of a federal grand jury investigation. Bills has denied any wrongdoing.

Preckwinkle, who demanded Bills' resignation upon learning of the scandal in 2012, also moved to strip the board members of their annual pay in favor of a $500-per-meeting fee.

She declined to discuss the succession of Madigan operatives who held that particular seat, instead opting to issue a brief statement through her spokeswoman. "No seat on the Employee Appeals Board belongs to anyone," the statement said. "These are my appointments."

Bills isn't the only Madigan soldier whose government career has been touched by controversy.

One Madigan-connected employee, Robert Hough, was recently hired by longtime Madigan ally Dorothy Brown, clerk of the Cook County Circuit Court, despite his 1995 guilty plea in federal court to charges he was a ghost payroller for the city.

Hough, now 52, admitted taking nearly $10,000 in cash and benefits for doing no work on a part-time city job inspecting traffic signs. He left the public payroll after his conviction and became an elevator repair worker.

Records indicate Hough was a member of a different political organization at the time of his federal conviction. But in 1999, as he completed his court-supervised release, he began donating to Madigan. He has given nearly $8,000 to Madigan's 13th Ward Democratic Organization.

In 2012, Hough did political work for Madigan on a suburban state representative race. And he was hired in August of that year by Brown to be a $50,000-a-year supervisor of staffers retrieving court files, according to a Brown spokeswoman.

Hough declined to comment about his support for Madigan. He denied Madigan helped him get his job.

Dorothy Brown declined to answer Tribune questions about whether Madigan played any role in the hiring of more than a dozen clerk's employees with political ties to his organization, including Hough. A spokeswoman for the circuit clerk said Brown did not speak to Madigan about hiring Hough.

One employee who retired from the clerk's office in 2006 acknowledged Madigan helped get him the job.

"If you're writing about this stuff, then you know. That is just the way it is," said Richard Porento, 72, who did campaign work for Madigan. "I got the job through Mike Madigan, and I was grateful."

'Madigan Electric'

Another haven for Madigan loyalists was the former Bureau of Electricity in the city's Streets and Sanitation Department - dubbed "Madigan Electric" by political insiders, according to testimony at the trial of Al Sanchez, the former streets and sanitation chief convicted of illegal political hiring under Daley.

Among the many who rose out of "Madigan Electric" was Ronald Gorney, who began his career as a Madigan precinct captain about the same time as records show he started a city job as a truck driver in the bureau.

Several years later, in 2002, he left that job to become a supervisor in the office of Cook County Sheriff Michael Sheahan. Within three years of that move, Gorney was in charge of more than 200 sheriff employees, including 120 sworn police officers, as deputy chief of the child enforcement division, according to the sheriff's office.

Thomas Dart, who took over the sheriff's office in 2006, said Gorney's name came up in an audit of jobs he ordered soon after he took office.

"He was one of those guys who just didn't fit," Dart said in a recent interview. "It was clear his background and qualifications did not match that kind of job."

Ten months after Dart took office, Gorney resigned his post. In an exit interview, Gorney said he left due to "workplace harassment" and being stripped of all job responsibilities, records show.

Dart, who acknowledged he and Madigan are not political allies, said his office's assessment of Gorney's qualifications had nothing to do with politics. Dart said he has never been contacted by Madigan on personnel matters.

"To me, political ties don't really matter as long as you can do the job," he said. "I imagine there are plenty of Madigan guys in my office, but I couldn't tell you who they are."

Gorney declined to be interviewed for this report.

Many of Madigan's supporters contacted by the Tribune said they were aware Madigan was involved in helping his political soldiers advance in their government careers. But most insisted that wasn't true in their cases.

"I knew guys who asked for things and asked for things and never got them, and maybe some who did," said Henry Sobieck, whose name came up at the Sanchez trial as a member of "Madigan Electric." "I can tell you that I never asked for anything, and I have no idea whether my connection to Madigan helped me or not."

Patronage payouts

Nearly a dozen former and current precinct captains interviewed by the Tribune describe a world where the benefits to a member of Madigan's army may be significant, but so are the costs.

They are expected to regularly walk their neighborhoods, write precinct newsletters, attend block parties and help residents with requests for everything from rat traps to tree trimming. They also help fill Madigan's political coffers by making donations and selling tickets to fundraising dinners.

During the election season, many are tasked to work outside the 13th Ward, encouraging voters they've never met in some far-flung suburb or district to back a candidate Madigan has deemed worthy of his support.

After the election, the captains said, a familiar scene would play out at Madigan's 13th Ward headquarters in a nondescript two-story building at 65th Street and Pulaski Road. There they would appear before Madigan and his ward chieftains - usually Frank Olivo and Marty Quinn, who between them have represented the ward on City Council for the past 20 years.

Numbers in hand, the three would talk with the precinct captains about how well they got the vote out, what they did right and what they didn't. Then they'd have a question: What do you need?

Most jobs with Chicago, Cook County and Illinois state government are supposed to be free of political influence. But the lines on where legitimate job recommendations or inquiries stop and improper favors begin have been a constant source of debate.

In the past three decades, federal court decrees, criminal prosecutions and government reform initiatives have tried to whittle away at the state's patronage culture. Chicago and Cook County alone have paid out tens of millions of dollars in civil settlements to people who lost out on jobs because they didn't have clout.

"Government should be hiring people based on the merits. Period. Because it is our public money and we expect that our money will be spent wisely and that means you hire the best people for the job," said David Hoffman, a former Chicago inspector general and federal prosecutor. "Whether someone is a political worker or an ally is irrelevant to the job."

In the wake of the corruption case that sent ex-Gov. Rod Blagojevich to prison, an ethics commission appointed by Gov. Pat Quinn and led by Collins identified patronage as a major source of malfeasance and mistrust in government. But many of the panel's recommendations to attack patronage and provide more government oversight were ignored by the Madigan-dominated General Assembly.

"Making people care is one of the biggest problems with all of this stuff," Collins said. "Nothing is ever going to change until people understand the costs and harm of this and then care enough to put a stake in the ground."

Tribune reporter Ray Long contributed.

dkidwell@tribune.com jchase@tribune.com arichards@tribune.com

Madigan ally seeks to derail term limit, remap amendments

$
0
0

A longtime ally of House Speaker Michael Madigan is trying to thwart efforts to ask voters whether to impose term limits on lawmakers and curb some of the politics in drawing new legislative district boundaries before the two proposed constitutional amendments have even landed on the ballot.

Election-law attorney Michael Kasper, who once was the speaker's legal counsel, filed a lawsuit a day before proponents of the proposed term-limit amendment submitted more than 591,000 petition signatures to the State Board of Elections on Wednesday to launch the formal process to submit the plan to voters this fall. The proposal was heavily backed by Republican governor candidate Bruce Rauner.

The suit comes as backers of a plan to create a more independent panel to redraw Illinois' 59 state Senate and 118 House boundaries prepare to turn in more than 530,000 petition signatures to the elections board on Thursday. The Yes for Independent Maps drive received support from a variety of Republican and Democratic-aligned groups.

Both proposals need a minimum of almost 300,000 valid signatures from registered voters to meet one eligibility criteria for the Nov. 4 general election ballot.

The two ballot initiatives have something in common: opposition from Speaker Madigan, who also is chairman of the Illinois Democratic Party. Kasper, who sued Tuesday in Cook County Circuit Court, also has served as a top Democratic Party official.

Kasper's clients in the suit range from prominent Chicago African-American businessmen, including Frank Clark, Leon Finney, Elzie Higginbottom and John Hooker, to the chambers of commerce in the city neighborhoods of Chinatown and Little Village, as well as members of the NACCP in Peoria.

The lawsuit comes less than two weeks after an hour-long River North restaurant luncheon of more than 50 representatives of groups providing services to ethnic and racial minorities that featured Kasper and controversial Latino political activist and lobbyist Victor Reyes. The two urged group members to sign onto a taxpayers' lawsuit to challenge the proposed amendments, said sources who asked not to be identified for fear of risking their ability to secure state grant dollars.

The emailed luncheon invitations came from the office of state Rep. Edward Acevedo and asked invitees to join the lawmaker and "Speaker Michael Madigan," though Madigan did not attend. Acevedo is a member of Madigan's House Democratic leadership team.

Acevedo, Kasper and Reyes did not respond to requests for comment. Madigan, who has served as speaker for 29 of the past 31 years, has made little secret of his distaste for the proposed amendments - labeling each as little more than an attempt by out-of-power Republicans to restrict Democrats.

At the heart of the taxpayer lawsuit are previous Illinois Supreme Court rulings involving petition-driven efforts to change the state constitution. The only part of the constitution that can be amended through the petition process must affect the legislature - and the state's highest court has created only a narrow window, ruling that any proposed change must affect the legislature both structurally and procedurally.

The lawsuit contends the term-limit amendment proposal attempts to string together several unrelated issues to try to meet the court's structural and procedural court test.

In addition to limiting legislative service to eight years, the proposed term limit amendment would require a two-thirds vote of the House and Senate to override a governor's veto rather than the current three-fifths vote. It also would increase the size of the House from 118 to 123 members while reducing the Senate from 59 to 41 members. It also would eliminate the two-year terms that senators serve once every decade.

The lawsuit contends the state Supreme Court previously held that term limits, on its own, did not meet the structural and procedural test. It also alleged the increase in votes needed to override a veto was an "impermissible" transfer of power from the legislature to the governor.

As for the soon-to-be-filed remap proposal, the lawsuit notes the plan would prevent anyone serving on a newly constituted 11-member redistricting commission from becoming a lawmaker, statewide elected official or judge for 10 years. The suit contended that the new prohibitions affected qualifications for office and exceeded the scope of petition-driven amendment proposals.

The suit also alleged the redistricting proposal improperly goes beyond the legislative section of the state constitution by reducing the power of the attorney general and the governor by largely taking away their current roles in the remap process. Further, the suit states, the proposal goes too far by denying the General Assembly the right to redraw boundaries.

Supporters of both proposed ballot questions expressed confidence that their proposals would meet the state Supreme Court's previous rulings.

"We have crafted this very carefully to overcome the judicial challenge that caused that term-limits initiative to fail 20 years ago," Rauner said. "This initiative is designed specifically to overcome that because it's comprehensive. It's eight years and out. It's structural change in the House-member ratio to the Senate, and it's also procedural change with the veto (override)."

Michael Kolenc, the campaign manager for the Yes for Independent Maps drive, said the remap plan was constitutional.

"Madigan's blatantly political attempt to question the constitutionality of Independent Maps is nothing more than a distraction from the back-room dealing that happens with redistricting," Kolenc said.

"This is the very type of amendment that the drafters of the Illinois constitution expected should bypass the legislature because the incumbent members of the Illinois General Assembly have no incentive to fix the system that keeps them in office for decades," he said.

In a document sent to luncheon attendees last month, Madigan contended the independent map-drawing proposal would "diminish the number of minority districts" and that "minority groups would lose their opportunity to demand the ability to elect candidates of their own choice."

But advocates of the proposed constitutional amendment note the measure puts in writing critical parts of the federal Voting Rights Act aimed at protecting minority rights in drawing map lines. They also contend that forcing the mapmaking out of political backrooms and into public meetings places important transparency guarantees to minorities.

"They're saying the map (amendment) dilutes Latino concentration and representation. In point of fact, our true blue legislature already did that. There were no gains when there should have been substantial gains," said Sylvia Puente, executive director of the Latino Policy Forum, which endorsed the redistricting amendment proposal more than a year ago.

"From our point of view, the process did not work this last time and we think, the Latino Policy Forum thinks, that Yes for Independent Maps will result in more equitable Latino representation or representation to serve their interests," said Puente, who was not invited to Madigan's lunch.

Puente and others, noting the 33 percent growth in Illinois' Latino population over the past decade, unsuccessfully argued during the last remapping that the state could have as many as 13 districts drawn with a Latino population of 65 percent or better but only ended up with seven such districts. One of them is Madigan's Southwest Side district.

The current map, drawn by Democratic lawmakers and signed by Democratic Gov. Pat Quinn with no Republican input, has led to Madigan and Senate President John Cullerton, D-Chicago, holding super majorities over GOP lawmakers.

rap30@aol.com
Twitter @rap30


Madigan's Metra influence detailed in report

$
0
0
Secret analysis reveals speaker's efforts on behalf of allies

Money flows to Madigan district while state dollars tight

$
0
0
At a time when Republican Gov. Bruce Rauner has frozen state spending and cut the budget, a $35 million state grant got paid in full last month that helps build a 1,500-student school in the district of House Speaker Michael Madigan.

The Madigan Rules

$
0
0

In his rise to the pinnacle of Illinois politics, House Speaker Michael J. Madigan built a reputation for wielding control over every bill, every budget line and every Democratic representative elected to oversee them.

Away from the public eye, the state's ultimate power player enjoyed a similar rise in his private career: rainmaker for one of Chicago's most successful property tax law firms.

In a first-of-its-kind examination, the Tribune found these two careers repeatedly intersect, and in some cases Madigan took public actions that benefited his private clients.

As a public official, he got a private road behind a shopping mall repaved, helped secure state funding for an expanded tollway interchange and intervened for a developer looking for state cash. In each case, Madigan was a private lawyer for businesspeople who stood to benefit.

His list of clients multiplied as Madigan consolidated political muscle over the last two decades. Now, many of his decisions as speaker have the potential to affect someone who has hired Madigan & Getzendanner in hopes of having a tax bill lowered. The Chicago firm represents banks the state regulates, investment houses that have overseen billions of dollars in public pensions, developers who want roads -- all subject to decisions made by a state House in the firm control of their tax lawyer.

It appears Madigan's personal wealth has blossomed along with his two careers, based on the list of investments he provided in ethics statements over the last three decades. But Madigan, like other public officials, is not required to detail the value of those investments. State ethics law requires very little disclosure about how Madigan's public decisions could affect his personal bank accounts.

He declined Tribune requests to detail how much he makes beyond his annual legislative income of more than $95,000. He also declined requests for his appointment calendars, memos and e-mails, citing state public records law that exempts the legislature.

Madigan also refused requests for an interview. In a written statement, he defended his actions and said "my personal code of conduct and compliance with a wide range of government ethics provisions have ensured that I have maintained ethical standards."

That code of conduct -- provided to the Tribune and unpublished until now -- states that Madigan will not offer state benefits to get a client, will not intercede with a state agency for a client and will recuse himself from involvement in a bill "if a client of the law office expresses an interest in legislation such as to create a conflict of interest."

But a Tribune examination of public records and a review of more than 20,000 tax appeals filed by Madigan's firm since 1998 raises questions about where the speaker draws that line.

- Madigan sponsored a $3.5 million state transportation grant to the city of Chicago to rebuild a private road leading to the rear entrances of the Ford City Mall shopping center and Tootsie Roll factory on Chicago's Southwest Side. Both Tootsie Roll Industries Inc. and the mall owner, a company in billionaire Sam Zell's Equity group of companies, were longtime clients of Madigan at the time of the 2003 grant. Zell is also the chairman of Tribune Co., which owns the Chicago Tribune.

- Madigan helped secure $18 million in state money for an expanded Illinois tollway interchange in Hoffman Estates in 2009, a project long sought by suburban officials who formed a coalition of businesspeople in 2001 to help promote the plan. One of the coalition members was a Madigan client, and another hired his firm to appeal its taxes for that same year.

- Madigan called the director of the state's largest pension fund, the Illinois Teachers' Retirement System, in 2005 asking the director to hear a pitch from the developers of a minority-owned firm seeking pension fund money to invest in a Chicago affordable-housing project. The developers hired Madigan's firm to appeal the taxes on property in that project for that same year.

- Madigan pressured the state's multibillion-dollar public pension funds to ban any dealings with financial institutions that make high-risk loans to unqualified homeowners. In 2006, Madigan named four national banks in a letter to the state's pension managers that asked the funds to stop investing and making deposits with any banks that practice predatory lending. All the banks he named were competitors of his firm's banking clients, a fact not disclosed in his letter.

In his written statement, Madigan said there are no conflicts of interest in the Tribune's findings, which he described as "strained attempts to link my legislative actions to clients of the firm who might remotely and incidentally 'benefit' from such action."

By all accounts, the legal work of Madigan & Getzendanner is top-flight. Madigan's partner, Vincent "Bud" Getzendanner, has a reputation as a thorough and effective tax lawyer.

Getzendanner and four other lawyers handle the tax law. Madigan's job is to bring in clients. It's been a formula for success.

An examination of public records shows Madigan & Getzendanner is a dominant player in the lucrative field of property-tax appeal law. Much of the firm's business involves appealing the decisions of the Cook County assessor's office, which sets the value of property for tax purposes.

Most appeals are directed either to the assessor's office or to the county's three-member Board of Review, established as a separate avenue of appeal to contest assessments.

In 2007 alone, the most recent year in which full statistics were available, the small firm filed appeals on Cook County property with a taxable value of nearly $2.1 billion, up nearly sevenfold from 1998.

Some clients interviewed say it's not that simple to separate the expert tax assistance from the political reputation of the man whose name is on the door. "He's the speaker of the House. It can't hurt to hire him," said Jeffrey Rappin, a former vice president and general counsel at The Habitat Co., which has hired Madigan & Getzendanner.

As House speaker since 1983, with the exception of a two-year period when Republicans had control in the mid-1990s, Madigan, 67, keeps tight rein over committee chairmen and other key leaders who control what happens in the House.

His ability to funnel political donations and campaign workers into any corner of the state gives him great influence over rank-and-file Democrats. That influence over lawmakers and other politicians only grew when he became chairman of the Illinois Democratic Party in 1998.

The taciturn Madigan limits his public comments about legislative matters, and in private meetings with the governor and other legislative leaders, he is known to say the least. What he does say often becomes law.

Legislation has little chance without his approval.

"If he's opposed to it, your chances of success are very slim," said former Democratic state Rep. Al Ronan, who served as a committee chairman under Madigan before starting a long career as a lobbyist.

Madigan's reputation as the political grandmaster looms so large, supporters say, he's often suspected of maneuvering behind the scenes when he's not. But in the opaque world of Illinois politics, direct connections are often elusive and state law makes it difficult to sort the public interest from private agendas.

The Tribune found dozens of examples where Madigan & Getzendanner clients received benefits from state government -- contracts, tax credits, road projects, jobs grants, low-income loans.

In most cases it could not be determined whether Madigan played a significant role. It all plays out in a system that thrives on personal relationships and quiet conversations.

Country Club Hills Mayor Dwight Welch, who is seeking Madigan's support for millions of dollars in road improvements surrounding a planned outlet mall being developed by clients of Madigan & Getzendanner, said he has personally met with Madigan several times at the speaker's favorite Springfield restaurant.

"We would sit across the table from Madigan at Saputo's …" Welch said. "Mike is sitting in the same chair, in the same corner, five days of the week. You have to have a relationship with these folks. Politics doesn't get done in writing.

"Nothing gets done until Madigan's people say it's done."

Tribune reporter Ray Long contributed to this report.

dkidwell@tribune.com jchase@tribune.com rgibson@tribune.com

Madigan consolidates power by holding sway in legislative races

$
0
0

Just weeks before the March Democratic primary, a campaign operative for Illinois House Speaker Michael Madigan walked into the headquarters of a candidate for state representative to deliver a message.

"You aren't going to like me," Shaw Decremer declared to those inside Carole Cheney's headquarters, according to several Cheney staffers in the room.

Decremer — a member of Madigan's platoon of campaign soldiers who work for the state when they are not working elections for the boss — said Madigan was putting his political muscle behind another Democrat in the party primary.

He strolled around the office, making snide comments about her low-budget campaign until, according to Cheney and other witnesses, Cheney said she had enough and asked him to leave. Before he did, Decremer asked if she would pose with him for a picture.

"I keep pictures of all the people we beat," he told her.

And on Election Day, she lost.

In elections and in the Legislature, Madigan is at the top of his game this spring.

As it turned out, Cheney was among at least 24 fellow Democrats who lost in part because they were on the wrong side of Madigan's campaign machine in March. It's a scenario that with rare exception has played out the same way for years: Without Madigan, you lose.

Those who win form the backbone of the House majority he commands. The Chicago Democrat's control over legislation — from a multibillion-dollar Medicaid program to mortgage foreclosure laws — has repeatedly benefited clients of his Chicago property tax law firm, the Tribune has disclosed.

Experts say the confluence of Madigan's public and private careers raise concerns about potential conflicts of interest — but those questions are seldom raised in the face of his enormous sway in both the drafting of the state's laws and the elections of its leaders.

"Madigan clearly has so much power he has made himself impregnable," said James Browning, the regional director of state government operations for the government watchdog group Common Cause, which lobbied unsuccessfully for Illinois lawmakers to keep campaign contribution limits in place. "How do you push back when one man has amassed so much control?"

That same dominance was on display in the legislative session that ended early Friday, as bills he pushed passed the House and those he opposed died.

As not only speaker but chairman of the Democratic Party of Illinois, Madigan draws the boundaries of legislative districts. He controls the flow of millions of dollars in political contributions.

And because Madigan controls both a state staff and a campaign war chest, he has a ready reserve of public employees he shifts off the payroll at will to add muscle to the most powerful election force in the state.

Decremer and other Democratic staffers are deployed to answer phone calls, schedule campaign events and scour petitions of competing Democrats to get them kicked off the ballot.

Republicans also have pulled dozens of staffers off the state payroll in election years, but after nearly 30 years as speaker, Madigan is the master at using the levers of government to his political advantage.

Even before the primary, Madigan had already carved Republican incumbents out of their Illinois House districts and redrawn the legislative maps to tip the scales in the Democrats' favor for the second decade in a row. But that wasn't good enough.

In select areas of the state — like the Aurora district where Cheney lost — the long arm of the state's most powerful politician reached out to help nearly three dozen loyal incumbents and a few handpicked newcomers to ensure they won.

And in each and every case, they did.

Public campaign records show Madigan spent more than $550,000. He scored victories in races from heavily Democratic districts in the city, where his candidates will have only nominal Republican opposition in the fall, to competitive areas Downstate where his candidates will be well-positioned to take on targeted Republican lawmakers or seize open seats.

Madigan paid for polling as well as mailings, distributing dozens of glossy fliers in districts from Decatur to Chicago. Many were identical ads except for the candidate's name, praising the Madigan ally for helping seniors or protecting taxpayers. Other ads targeted primary opponents, including Cheney.

"This is the party leader trying to decide the nominees. He's trying to pick who will be in the seat when voters are supposed to decide," Cheney said. "It's the same party. I feel like they are eating their own."

Cheney, a lawyer, was shredded by a Madigan-financed attack that alleged she was an ally of "big banks"— an ad that ignored the speaker's own ties to the banking industry.

"When the foreclosure crisis hit our neighborhoods, Carole Cheney stood with her allies defending the big banks," reads one placard featuring a doctored photo of a beaming Cheney holding a wad of cash next to a cigar-chomping man holding a cocktail.

Cheney told the Tribune she has no idea to what bank ties the ad refers. But she is a partner at the 1,500-lawyer firm Kirkland & Ellis LLP, which counts among its clients Bank of America.

Madigan & Getzendanner, the six-lawyer firm where Madigan is a senior partner, has repeatedly filed property tax appeals for Bank of America. On Monday, the Tribune reported that banks — including those who hired Madigan's firm — were unscathed by housing activists' efforts in Springfield to make them pay more for the damage foreclosures have wrought in neighborhoods around the state.

Madigan refused to answer questions, characterizing Tribune reporting on him as "garbage." His spokesman, Steve Brown, said that as head of the state Democratic Party, Madigan gets involved in certain primary races in order to make sure the best Democrat ends up in the seat in Springfield.

"Largely we make an assessment (about) who would be the strongest general election candidate and try to back that person," Brown said. "The ultimate goal is to elect somebody in the general election."

After polling and fliers, much of Madigan's campaign money went to pay state workers who took leaves from their midlevel jobs to staff key primary races.

During the March primary season, records show, nearly two dozen state staffers went off the state payroll, being paid instead by Madigan's political funds to work for more than 30 candidates. In many of the less competitive races, the staffers worked for less than a day, simply checking to see if a Madigan-backed candidate had any opponents. In nearly half of the races, which were more competitive, the staffers worked for weeks at a time.

Public records show a regular routine of House Democratic employees — from program specialists like Decremer to messengers, photographers and graphics technicians — taking time off during campaign seasons and then coming back on the state payroll when the elections are over.

Asked how Madigan can justify keeping the employees on staff when they are clearly not needed for months at a time, Brown said, "We absolutely will not allow taxpayer dollars to be spent on campaigns, so when people go to work on campaigns, they come off the state payroll."

The state workers aren't needed at their government jobs as much during election cycles because the Legislature meets less frequently during those times, Brown said.

Soon after the primary campaign was done, Decremer and other Madigan staffers were back at work in Springfield.

Decremer is a fixture at major committee meetings and can often be seen in the House chamber conferring with top Madigan lieutenants. He also moves easily through the aisles and to the desks of rank-and-file lawmakers, chatting some up and checking over the shoulders of others.

To pay for the campaign operation, Madigan has become a prolific political fundraiser with marquee events in Chicago and Springfield, including one held on Lake Springfield last month at the height of the Legislature's spring session.

Under state law, campaign fundraisers are prohibited on days the Legislature is in session, an attempt to separate politics from lawmaking. Many people avoid the issue by having their fundraisers earlier in the year when the legislative session is less busy. But Madigan, who controls the legislative calendar, ensures lawmakers are not meeting in the busy month of May when he holds his fundraiser. The only weekday in May that was not a session day this year was Monday, May 7, the day of Madigan's event.

About 1,000 people attended the event, tossing in at least $150 to shake Madigan's hand, mingle with lobbyists and lawmakers and nosh on finger foods, according to political insiders. The event was invitation-only and closed to the news media. A day later, it was back to business at the Capitol.

Madigan controls several massive political war chests, including his own Friends of Michael J. Madigan and the Democratic Majority fund. The multiple political committees give Madigan a way to go beyond restrictions on campaign contributions from legislative and party leaders.

He has doled out tens of thousands of dollars in political help to primary candidates, including state Rep. Maria "Toni" Berrios, daughter of Madigan ally Cook County Assessor Joe Berrios, and state Rep. Derrick Smith, who won despite being arrested on federal bribery charges days before the election. Newcomers like Cheney's opponent, Aurora Ald. Stephanie Kifowit, also got Madigan's money.

Madigan's primary sweep was the first step in his rebound from one of his more difficult election seasons two years ago. He lost several races in the 2010 general election amid a Republican push to power nationwide. Still, he maintained an overwhelming majority in the House and his job as speaker.

In the days leading up to the March 20 primary, streams of volunteers for Madigan-supported candidates made their way from across the city and suburbs to Madigan's political headquarters on the Southwest Side to collect campaign materials. They spread out to targeted districts to knock on doors and hand out literature.

"Everybody did their job," Madigan told supporters gathered on primary night at a Holiday Inn in Bedford Park to celebrate his own election win. "It worked out just as we had planned, and the reason is because everybody did their part."

But some of the Democrats who lost that night questioned the extent of Madigan's involvement. Neighborhood activist Michael Nardello lost to Madigan-backed incumbent Camille Lilly, a rookie lawmaker, in a race to represent parts of Chicago's West Side and near west suburbs. No Republicans were running in the primary.

"In theory, he cannot lose in this race. There will be a Democrat in this seat," Nardello said of Madigan. "So his decision to get involved says something.

"He doesn't just want a Democrat. He wants somebody who will be beholden to him."

jchase@tribune.com dkidwell@tribune.com rlong@tribune.com

Two black women denounce Black Lives Matter protests in unusual confrontation in West Town

$
0
0

Sunday brought some breathing room to a city that had grown tense in the aftermath of protests, looting and general unrest. The mayor lifted the 9 p.m. to 6 a.m. curfew, and the city restored Loop street access and CTA service.

Viewing all 22701 articles
Browse latest View live


Latest Images

<script src="https://jsc.adskeeper.com/r/s/rssing.com.1596347.js" async> </script>