Nonprofit groups paid for Daley family’s extensive foreign airfare since 2006
Nonprofit groups have paid for the Daley family's extensive foreign airfare since at least 2006, raising questions as to what motives were behind the groups' gifts
A student loan charity under IRS investigation, which has paid Mayor Daley’s wife more than $150,000 since 2006 in “consultant fees,” and other local nonprofit groups have paid for the Daley family’s frequent foreign getaways since at least 2006.
The student loan charity, Educap, is currently under investigation by the IRS and Congress for abusing its tax-exempt status by providing its employees and their friends with extravagant perks and millions of dollars in compensation by charging excessively high interest rates on “charitable” student loans.
According to CBS News Chicago, Educap’s $31 million luxury jet, that costs hundreds of thousands of dollars per hour to operate, was also used to fly CIA Director Leon Panetta, former FBI Director William Sessions, former Democrat Sen. Tom Daschle of South Dakota and convicted former Republican Sen. Ted Stevens of Alaska.
CBS Reports:
Investigators say for five years, [Educap CEO Catherine] Reynolds jetted friends, family and luminaries to faraway and exotic destinations that sometimes had little to do with the charity’s mission … And records show Reynolds took Chicago’s Daley and his wife on 58 flights including ones to Turkey, Asia and Sweden.
Other groups that have paid for the Daley’s foreign airfare are the Chicagoland Chamber of Commerce, the Rockefeller Foundation, the Jewish United Fund and the not-for-profit Sister Cities program.
Aligning with similar “fringe benefits” given to Treasury Secretary Tim Geithner from special interest groups, this report of the Daley family’s extensive foreign airfare paid for by nonprofit groups raises significant questions about the taxable revenue the benefits represent, as well as the possibility of potential pay-for-play political favors the benefits may have been payment for.
Former Daley aide’s corruption and patronage trial began today
The corruption and patronage trial of former Daley aide and Chicago Streets and Sanitation Commissioner Al Sanchez began today.
Sanchez is accused of abusing his connection with the Daley-supporting Hispanic Democratic Organization and his position as Streets and Sanitation commissioner to award Mayor Daley’s allies with promotions and city jobs.
Chicago Breaking News reports:
While he was city Streets and Sanitation commissioner, Al Sanchez sat atop a powerful political organization that traded hundreds of city jobs for campaign work, stripping the legitimacy from Chicago’s hiring system, federal prosecutors said today.
In opening remarks to a federal jury at Sanchez’s trial, a prosecutor said auditoriums full of applicants seeking city jobs waited for interviews that didn’t matter because of the corruption.
“It was a sham from top to bottom,” said Assistant U.S. Atty. Steven Grimes. “Mr. Sanchez used city jobs as currency.”
As Chicago politics’ excessive patronage and widespread corruption continue to embarrass Chicago on a national level, Cook County needs government reform more than ever.
Support Commissioner Peraica and his efforts to reform Cook County and dirty Chicago politics.
Daley chooses former campaign contributor for first $79 million phase of massive O’Hare expansion
Moving forward with his massive O’Hare Modernization Program, Mayor Daley chose former campaign contributor and insider Matthew Walsh last week to complete the majority of the boondoggle’s $79 million first phase.
Daley’s latest contract with Walsh Construction brings their share of the O’Hare Modernization Program to $372 million.
The program, which will do little in terms of actual airport improvement or airline efficiency, continues to receive opposition from major airlines and area residents and moves forward despite the city’s $50 million budget deficit.
The only discernible benefit the program provides is long and lucrative service contracts to Chicago’s most corrupt and politically-connected criminals (remember Tony Rezko?)
The Chicago Sun-Times reports:
A clout-heavy company with two generations of ties to the Daley family has been chosen to build the third and final runway in Phase One of Mayor Daley’s massive O’Hare Airport expansion project.
The $79 million contract was awarded Friday to a joint venture of Walsh Construction and T.J. Lambrecht Construction. That brings Walsh’s share of the O’Hare expansion gravy train to nine contracts valued at $372.6 million.
Matthew Walsh’s father grew up with Mayor Daley’s father, former Mayor Richard J. Daley. Before Richard M. Daley stopped accepting campaign contribution from city contractors in the wake of the Hired Truck scandal, the Walsh family had been among the mayor’s most reliable contributors.
Impeached governor lands six-figure book deal
Blagojevich apparently has an agent now, who is reporting that the now-impeached governor signed a six-figure book deal Monday and will be releasing a tell-all book on the “dark side” of Chicago politics and “the discussions, the considerations and the factors involved” in selecting an appointee for the U.S. Senate.
The Chicago Tribune reports: “First he was charged with trying to sell a U.S. Senate seat; now ousted Gov. Rod Blagojevich is trying to sell a book about it.”
Michael Viner, president of Phoenix Books, said he was “fascinated” by Blagojevich’s story and the behind-the-scenes dirt the former politician could deliver.
“It’s not been written yet, but conceptually, [it will focus on] the horse-trading that is done and considered throughout politicians’ reigns, the choices they make and why they make them, and the influence of lobbying groups and other politicians have and how it affects how business is done,” Viner said. “It’s more than a story about one man.”
Viner said he was “shocked” Blagojevich would be willing to take on such a project while facing the likelihood of a criminal trial, “but he believes in it that strongly.”
The book, with a working title of “The Governor,” is scheduled to be released in October.
The twice-elected Chicago democrat was impeached and removed from office by Illinois state legislature on Jan. 29 for abusing the powers of the governor’s office. The decision to impeach and remove the former governor from office was triggered by Blagojevich’s Dec. 9 arrest on federal corruption charges including trying to sell Illinois’ vacant U.S. Senate seat.
Fritchey defends taking campaign cash from Blago fundraiser
As one of the most vocal critics of the various pay-to-play and similar corruption allegations against the former Gov. Blagojevich administration, State Rep. John Fritchey is now defending his receipt of nearly $5,000 from one of Blagojevich’s top fundraising families.
This adds an all-too-familiar, Burris-esque flavor to the upcoming 5th District congressional campaign and Chicago democratic politics in its entirety.
The Chicago Tribune reports:
Milan Petrovic, who was listed as Gov. Rod Blagojevich’s top campaign fundraiser at a political corruption trial last year, recently gave $2,400 to the congressional fund of state Rep. John Fritchey (D-Chicago), according to federal campaign finance reports filed today.
Fritchey also reported receiving another $2,400 from Petrovic’s wife, Anne.
Citing his longstanding criticism of Blagojevich, Fritchey has touted himself as the most experienced reformer in Tuesday’s special primary in the 5th Congressional District. Voters will pick from among a dozen Democrats, with the winner likely to succeed Rahm Emanuel in representing the North and Northwest Sides in Congress. Emanuel left to become President Barack Obama’s White House chief of staff.
Last week, Clout Street reported Fritchey got a campaign donation from another Blagojevich ally, state Sen. James DeLeo (D-Chicago).
Feigenholtz campaign sign in Rahm Emanuel’s front yard
While White House Chief of Staff Rahm Emanuel has not publicly endorsed any 5th District candidates, a sign for candidate Sara Fiegenholtz is displayed at his Chicago residence.
The Chicago Tribune reports that President Obama’s new chief of staff Rahm Emanuel hasn’t endorsed anybody in the race to succeed him in the 5th Congressional District - the sign in his yard might be very telling:
…a campaign sign for candidate Sara Feigenholtz appeared on the lawn of his Lakeview neighborhood home today.
Emanuel spokeswoman Sarah Feinberg said she was unaware of Emanuel’s, or his wife’s, public endorsement of Feigenholtz and would have to investigate the issue further.
Emanuel has declined to comment on the race altogether.
Both Emanuel and his wife, Amy Rule, are registered to vote at the address where the Feigenholtz sign is currently displayed. It is their primary residence, with county records showing they claim a homeowner’s exemption on their property tax bill.
Dominick wins Cicero Town President 2-1, Accused of Voter Intimidation
Incumbent Cicero Town President Larry Dominick won re-election yesterday with 64 percent of the vote.
Incumbent Cicero Town President Larry Dominick easily won re-election Tuesday with 64 percent of the vote, a 2-1 margin, according to unofficial Cook County results.
Dominick was challenged by Cicero Police Officer Roberto Garcia, who says Dominick has become an “iron-fisted” leader that won re-election using similar tactics Cicero leaders have used for years, going back to the days of Al Capone.
According to the Chicago Tribune, Cook County Clerk David Orr called in sheriff’s police to remove armed guards Dominick hired to stand inside Cicero polling locations.
“It’s voter intimidation when off-duty armed police officers show up in polling places,” Orr spokeswoman Courtney Greve said. “They had no authorization to be in the polling places. We have a crew of sheriff’s officers on call. They had to come to remove the off-duty officers hired by Dominick’s campaign.”
After Dominick’s overwhelming victory, Garcia replied “I think it’s just the intimidation factor. People believe that someone knows how they vote. They fear the inspectors will come to their house the next day.”
And some voters agreed that the armed guards at polling places intimidated them.
Cicero poll worker and witness Veronica Soto commented “One of the people actually came in here and told our maintenance worker that they went inside the polling place, and she was very upset because they told her that she needed to vote for a certain individual which was Larry Dominick.”
Sen. Dick Durbin calls for Burris’ resignation
While meeting with Sen. Roland Burris for nearly an hour this morning, Senate Majority Whip Dick Durbin suggested that the Blagojevich-appointed Senator should consider resigning. To this, Burris answered “I will not resign.”
Durbin is the latest in a long list of politicians, colleagues, newspapers and professional organizations now calling for Burris’ resignation.
According to Durbin, he also advised Burris not to run for re-election in 2010, as he would not support the campaign. During the meeting, Durbin abandoned any pretense of support for Burris following his evolving explanation of contact with then-Governor Blagojevich and his attempt to raise money for the now-impeached governor.
According to the Chicago Sun-Times, Burris is now also facing inquiries from the Senate Ethics Committee and the Sangamon County state’s attorney.
Burris, voting on the Senate floor today, left the meeting through a side door and was trapped by reporters while waiting for an elevator. Burris would not make any comment about his discussion with Sen. Durbin, exept to say that it was “a good meeting.”
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