The [Monday] Papers
"The owner of a sewer-inspection and cleaning business admitted Friday that he lied to federal agents when they asked him why he failed to tell City Hall that his company's investors included the son and a nephew of then-Mayor Richard M. Daley," the Sun-Times reported over the weekend.
"At first, when he spoke with investigators on March 10, 2008, Tony Duffy blamed his own 'carelessness and negligence' for omitting the names of Patrick R. Daley and Robert G. Vanecko from the ownership documents that Municipal Sewer Services was required to file with City Hall to get millions of dollars worth of city business.
"But that was a lie, according to Duffy. He now says he didn't know at first about Daley and Vanecko's involvement. He says that, when he found out, he went to Joseph M. McInerney, a principal in Cardinal Growth, a Chicago venture capital firm that also invested in the sewer company, and that McInerney 'directed' him not to change the ownership-disclosure filing, to 'keep it the same,' according to court records and sources familiar with the case.
"McInerney is a friend of Patrick Daley."
Let's go back in time before we move the story forward, shall we?
From the Sun-Times in December 2007:
Mayor Daley 's son Patrick had a hidden interest in a sewer -inspection company whose business with the City of Chicago rose sharply while he was an owner, a Chicago Sun-Times investigation has found," the paper reported in December 2007.
The story goes on to note:
Beside allowing Municipal Sewer Services to take over the contracts, City Hall twice extended the deals, by a total of 23 months, rather than seeking new competitive bids. That gave the company an additional $4 million of work.
Heard would not discuss details of the deals involving the mayor's son and nephew, referring questions to them and the other investors in Municipal Sewer Services.
Moving forward . . .
"Duffy says the sewer company might have faced 'greater scrutiny' if he'd disclosed that his partners included the mayor's son and nephew, according to his plea agreement, entered before Senior U.S. District Court Milton Shadur."
Greater than it's gotten so far?
"Cardinal Growth had invested in Concourse Communications, a company the city of Chicago hired in September 2005 to install Wi-Fi Internet service at O'Hare and Midway airports. After the system was installed, Concourse Communications was sold - a deal that made $708,999 for Patrick Daley, who had helped find investors for the company."
Gee, I wonder how he did that.
"The U.S. Small Business Administration took control of Cardinal Growth last summer, saying the venture capital firm owed taxpayers $21.4 million. Bobb and McInerney were ousted from Cardinal Growth, which had borrowed more than $50 million from the SBA over a decade - money they used to invest in companies including Municipal Sewer Services, which went out of business four years ago amid the investigation by the FBI and the city inspector general's office."
Now back in time again . . .
"An emotional Mayor Daley said Tuesday it was a 'lapse in judgment' for his son to have held a hidden interest in a sewer inspection company that did business with the city - a deal that Daley 's corruption-fighting inspector general has begun investigating," the Sun-Times reported after the connection was revealed.
"Daley changed the subject to the CTA's financial crisis. Asked a few minutes later if he knew whether his son or nephew were involved in any other city contracts, the mayor said, 'I don't know.'"
He didn't ask? He didn't say, "Patrick, what else are you involved in? Is there anything else I need to know?"
Or maybe he didn't have to ask.
Daley also refused to answer questions the Sun-Times put in writing.
And then came this, a day later:
Inspector General David Hoffman's decision to investigate mayoral son Patrick Daley 's hidden interest in a sewer inspection company that did business with the city is almost certain to widen the rift between Mayor Daley and his corruption-fighting inspector general.
The Sun-Times also noted in that same story:
"The mayor did respond to questions about the blistering report issued earlier this week by a federal hiring monitor.
Gee, don't you miss the good ol' days?
"Now, Hennessy & Roach, a law firm that the powerful Southwest Side alderman's committee paid more than $1.4 million over a three-year period to fight injury claims from city workers, is giving back: It's hosting a political fund-raiser Thursday for the powerful alderman . . . "
Well, maybe they just think Burke is a fine public servant who may need the money to stave off a challenge.
". . . who already has the richest campaign war chest of any politician in Illinois."
"Burke had a total of more than $8.6 million in his three political campaign funds at the start of this year, records show. By comparison, Mayor Rahm Emanuel had $1.2 million, the Illinois Democratic Party had a little more than $1 million, and Gov. Pat Quinn had about $720,000."
And no challenger on the horizon.
So Hennessey & Roach is clearly just saying thanks.
"Hennessy's law firm has been doing work for the City Council Finance Committee for at least two decades.
"Through the committee, Burke has complete control over how to handle worker compensation cases filed by city employees. He has City Hall's corps of staff lawyers - from the corporation counsel's office - fight most of the claims. In some cases, he hires outside law firms - like Hennessy & Roach - to defend the city.
"Burke hired Hennessy's law firm to defend the city in 776 worker compensation cases between 1992 and 2006, the Chicago Sun-Times has reported. In all, City Hall paid Hennessy & Roach more than $1.4 million between between 2004 and 2006.
"The firm and its lawyers have given Burke more than $30,000 in campaign contributions in the past 12 years."
Here's my favorite part:
"The event has a professional sports theme - and a decided South Side bias. Top contributors - those who give $1,500 or more - are proclaimed 'Sox fans.' Those who give $500: 'Bears fans.' For $150: 'Bulls fans.' Not going? 'Cubs fans.'"
It's my favorite part not because of the Cubs diss, but because the Chicago Fire are missing. I guess nobody wanted anyone joking about kickbacks.
I'll have a lot more on this tomorrow; go read the whole thing now though, it's a terrific - if outrageous - story.
Proposed New Sin Taxes
Bulls All-Star Report
Jimmy Kimmel Shout-Out
The Beachwood Tip Line: Light it up.
Posted on February 26, 2012
© 2006 - 2017, The Beachwood Media Company