CORRUPTION IN CHICAGO IS NOT A MIRAGE

Last week I attended an event held by the Better Government Association (BGA).  Former Chicago Inspector General David Hoffman moderated a panel comprised of Pam Zekman (WBBM-TV), Chris Fusco (Sun Times) and Dane Placko (Fox).  Each reporter related a story of their favorite undercover investigation. Zekman’s reminding the crowd about the sting at the Mirage Bar made me think, “Could that kind of corruption still happen in Chicago today?”  Is “government by envelope,” really a thing of the past?

Background

In 1978 then Sun-Times reporter Pam Zekman persuaded the newspaper to buy a local bar that reporters would operate undercover in conjunction with the BGA.  The purpose was to discover, first-hand, the corruption that goes on when city inspectors, policemen, revenue clerks, liquor license employees, etc. “help” a new business open.  The Sun-Times ultimately published a 25 part series about the operation.  A book was written (I read the book documenting the sting last week written by Zekman and fellow reporter Zay Smith) and “60 Minutes” aired a story.  The coverage of the sting was not limited even to America, media around the world wrote about what happened.

In response to the level of corruption that was exposed, then Mayor Michael Bilandic initiated reforms of the inspection process.  Time Magazine wrote, “Whether [corruption at this level] will continue to go on so brazenly in Chicago after the Sun-Times series remains to be seen.”

BACK TO PRESENT TIMES

Time Magazine wondered if bribery would continue so brazenly.  Thirty-three years later, we know it still does. Joseph Ferguson, Inspector General for Chicago, has a website that lists five press releases about corruption exposed by the IGO in the past year.  Under “Operation Crooked Code,” twenty-one people have been convicted.  Fifteen of them are either current or former City of Chicago employees.

When Hoffman asked Zekman if she thought there would be any change  in the “Chicago Way” under the new Emanuel administration, she sadly replied, ”No.”

 Sadly, greed almost always wins out over scruples. If Chicago gets a casino, the only people holding the royal flushes will be the influential friends of someone in government who will get the management contract-- and nobody should be surprised if their decks are holding six Aces.

IGO PRESS RELEASES

Expediter Who Cooperated in Federal Corruption Probe of City Building Permits Sentenced to Three Years Probation

A former Chicago woman who provided extraordinary cooperation in Operation Crooked Code, a federal public corruption investigation of the City of Chicago building permit process, avoided prison and was sentenced today to three years’ probation. The defendant, Catherine Romasanta, testified in four federal trials about how she paid bribes to city inspectors on behalf of contractors, developers and property owners to expedite the permit process.

City Inspector Sentenced to Three Years in Prison for Bribery in Probe of Crooked Permits

A City of Chicago building inspector was sentenced today to three years in federal prison after being convicted at trial in September on bribery charges for accepting two $1,000 cash bribes from a cooperating contractor and demanding two $2,000 cash bribes from developers to approve inspections at residential and commercial construction sites, federal law enforcement officials and the city’s Inspector General announced today. The defendant, Jose Hernandez, was sentenced for soliciting or obtaining cash bribes totaling approximately $30,000 from contractors, developers and homeowners since at least 2005.

Contractor Sentenced For Bribery Under Operation Crooked Code

A former general contractor was sentenced to 5 years of probation today in federal court. Padraig Gravin pled guilty to bribery charges on March 2, 2010 for trying to pay a $500 bribe to a City official. The bribe was meant to secure a favorable inspection related to the issuance of a Certificate of Occupancy for a building located at 

2827 West Congress Parkway

.

In addition, the Court imposed six months of house arrest and a $5,000 fine.

Gravin’s plea agreement detailed that in October 2007, he gave a $500 payment to a permit expediter. This money was to be used to bribe for a City inspector in order to receive a favorable inspection for a Certificate of Occupancy at the 

2827 West Congress Parkway

 property. Gravin was unaware that the expediter was already cooperating with law enforcement. After taking the money at a Chicago area gas station, the expediter gave Gravin the Certificate of Occupancy, which was estimated to be worth $455,000.

A joint City of Chicago Office of Inspector General (IGO), Federal Bureau of Investigation (FBI), and United States Postal Inspection Service (USPIS) investigation revealed that Gravin attempted to bribe City inspectors on at least six other occasions. As part of his plea agreement, Gravin said that he had paid $69,200 in bribes for City inspectors.

The sentencing is part of an ongoing federal corruption investigation, code-named Operation Crooked Code involving extensive cooperation between the IGO, USPIS, FBI, and the U.S. Attorney’s Office. To date, there have been twenty one individuals convicted under Operation Crooked Code, fifteen of whom are current or former City employees.

“In collaboration with our federal law enforcement partners, the IGO will continue to be vigilant in working to put end to this sort of subversion of the City’s inspections process,” Inspector General Joseph Ferguson said in response to today’s sentencing.

 City Employee Sentenced to 21 Months in Federal Prison for Bribery

A City of Chicago employee was sentenced to 21 months in prison today for bribery. Tom Ziroli, a 64 year old former Ventilation Inspector with the Department of Buildings, was also sentenced to two years of supervised release, a $15,000 fine, an additional $100 special assessment, and will be required to pay back $500 in government money used during the investigation. Ziroli was convicted in March of bribery, following a joint investigation by the Inspector General’s Office (IGO), Federal Bureau of Investigation (FBI), and United States Postal Inspection Service (USPIS).

City Zoning Investigator Sentenced to 31 Months for Bribery

The City of Chicago Office of Inspector General (IGO) and the United States Attorney’s Office announced that a City of Chicago Zoning Investigator was sentenced to 31 months in prison today to be followed by two years of supervised release as a result of his conviction for accepting a $500 bribe in exchange for providing a favorable zoning inspection report.