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Monday, April 29, 2024

DOJ: Madigan 'alleged to have conspired with AT&T Illinois’s then-president to corruptly arrange for $22,500 to be paid at the direction of the company to the Madigan ally'

Madigan

Former House Speaker Michael Madigan was indicted on another charge of public corruption, this time through an alleged bribery scheme involving AT&T. | Courtesy Photo

Former House Speaker Michael Madigan was indicted on another charge of public corruption, this time through an alleged bribery scheme involving AT&T. | Courtesy Photo

Former House Speaker Michael Madigan was indicted on another charge of public corruption, this time through an alleged bribery scheme involving AT&T. 

The U.S. Attorney’s Office Northern District of Illinois noted the indictment in a press release. 

“Madigan was originally indicted earlier this year on racketeering and bribery charges for allegedly using his official position to corruptly solicit and receive personal financial rewards for himself and his associates,” the press release reads. “The initial indictment accused Madigan and his close friend – co-defendant MICHAEL F. MCCLAIN – of causing the utility company Commonwealth Edison to make monetary payments to Madigan’s allies as a reward for their loyalty to Madigan, at times in return for performing little or no actual work for the company. The initial indictment also charged Madigan with engaging in multiple schemes to reap the benefits of legal work unlawfully steered to his private law firm.” 

John R. Lausch, Jr., United States Attorney for the Northern District of Illinois, is heading the prosecution effort. 

“The superseding indictment unsealed today includes the prior charges and adds an additional conspiracy count against Madigan and McClain related to an alleged corruption scheme involving AT&T Illinois," the press release further reads. "The new indictment alleges that Madigan and McClain in 2017 conspired with AT&T Illinois’s then-president to corruptly arrange for $22,500 to be paid at the direction of the company to the Madigan ally.  AT&T Illinois allegedly made the payments through an intermediary – a lobbying firm that performed services for AT&T Illinois – to conceal the true nature of the payments, which was to influence and reward Madigan’s efforts as Speaker to assist AT&T Illinois with respect to certain legislation in the Illinois General Assembly. Although the members of the conspiracy formulated a pretextual assignment for Madigan’s ally to disguise why the ally was being paid, the ally performed no actual work for AT&T Illinois and had no role in advancing the legislation, the charges allege.” 

In speaking with Illinois in Focus podcast St. Xavier University’s David Parker said the speed with which the case is developing is impressive. He said that “The law absolutely prohibits these insiders, these politicians, from taking advantage of their positions at the expense of the public.” He noted it is a signal to other politicians.

AT&T admitted its role in the matter and will pay a $23 million fine. The Department of Justice also stated that "AT&T Illinois admitted that in 2017 it arranged for an ally of Madigan to indirectly receive $22,500 in payments from the company. The company paid the money through an intermediary – a lobbying firm that performed services for AT&T Illinois. Although AT&T Illinois employees formulated a pretextual assignment for Madigan’s ally to disguise why the ally was being paid, the ally performed no actual work for AT&T Illinois and the company made no effort to ensure any work was performed. AT&T Illinois acknowledged in the agreement that AT&T Illinois’s then-president used an interstate facility to facilitate Madigan’s indirect receipt of a thing of value, namely the payments made to his ally, in exchange for Madigan’s vote and influence over a bill.” 

Paul La Schiazza, the former president of AT&T Illinois, was accused of orchestrating and approving the payments. La Schiazza was included in the indictment and has pleaded not guilty, the Chicago Tribune reported.

Madigan spent 36 years as House Speaker, the longest in the country’s history. He is accused of using the office for personal gain and had already been under indictment - along with partner Michael McClain - for 22 counts of public corruption in connection to a $150 million bribery scheme with ComEd, according to Chicago City Wire. In a statement, Madigan noted he was “never involved in any criminal activity” in his 50 years in office. “I adamantly deny these accusations and look back proudly on my time as an elected official, serving the people of Illinois,” Madigan added.

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