Federal prosecutors implicated Illinois House Speaker Michael Madigan on Friday in a brazen, Chicago-style bribery scheme involving ComEd that allegedly went on for years and involved payments to Madigan associates exceeding $1.3 million.
Though the stunning, lengthy details were revealed in documents that charged only ComEd — and not Madigan — with bribery, they said ComEd has agreed to “fully and truthfully cooperate” with federal prosecutors. The company has agreed to pay a $200 million fine and acknowledged that it sought Madigan’s help for legislation that could be worth more than $150 million to the utility company.
Madigan is not identified by name in the documents, rather as “Public Official A.” But there is no doubt it is him, as the documents identify that person as Illinois’ house speaker. No one in the country has held that title as long as Madigan.
U.S. Attorney John Lausch’s office has announced a news conference with the FBI and IRS Criminal Investigation division for early Friday afternoon to discuss what could be one of the most significant prosecutions in Illinois history.
The documents filed Friday are full of colorful, Chicago-style quotes. At one point, a Madigan associate warns, “I would say to you don’t put anything in writing . . . all it can do is hurt ya.” At another, that person says, “We had to hire these guys because (Madigan) came to us. It’s just that simple.” A consultant allegedly said payments were made “to keep (Madigan) happy, I think it’s worth it, because you’d hear otherwise.”
The Madigan associate at one point allegedly explained that, for decades, Madigan had named people to become ComEd employees such as meter readers as part of an “old-fashioned patronage system.”
The criminal charge against ComEd follows more than a year of intrigue regarding the feds’ public corruption investigations and whether their work would ever touch Madigan, one of the most powerful Democrats in Illinois for decades. He’s wielded as much power as, and often more than, its governors.
Madigan, 78, is known in Springfield as “The Velvet Hammer” for his quiet, but iron-fisted control over his chamber. So legendary is his political acumen and legislative prowess that fellow legislators, lobbyists and insiders toss about the maxim, “Never bet against the speaker.”
The powerful Southwest Side Democrat — and the allegations against him — harken back to the days of the late Mayor Richard J. Daley, whom Madigan considers his personal mentor.
Madigan has held the reins in the state House for much of the past 37 years, serving as speaker for all but two years since 1983.
He was first elected to the House in 1971. His longevity eclipsed the 33-year record set by South Carolina’s Solomon Blatt, who served from 1937-1946 and 1951-1973, according to the Illinois Campaign for Political Reform.
The explosive news comes just two days after Madigan dismissed Republican calls for him to push ethics reform legislation.
During a break from presiding over a party meeting in Springfield in his role as chairman of the Illinois Democratic Party, Madigan told reporters that Republicans should start in Washington, not Springfield.
“I would suggest that the Illinois Republicans who want to pursue ethics reform go out to Washington, follow up on President Trump’s promise to drain the swamp,” Madigan said. “They can begin with Trump, the Attorney General [William Barr], [Former National Security Advisor] Michael Flynn, Roger Stone and others.”
The state GOP wasted little time in responding to the development and worked to tie Madigan’s troubles to Gov. J.B. Pritzker.
Illinois GOP Chairman Tim Schneider said in a statement: “The people of Illinois now live in a state where both the Speaker of the House and the Governor are under criminal investigation. Even for a state with a history of corruption, this is unprecedented. Crimes of bribery and tax fraud cannot be tolerated from our elected officials.
“As we learn more about the bribery investigation into Speaker Madigan and the property tax fraud investigation into Gov. Pritzker, our hearts go out to the people of Illinois who are once again left yearning for elected leaders who work for them, not for themselves. The Democratic culture of corruption in Illinois must come to an end.”
The statement is referring to an article published online by the Sun-Times Friday that reported federal prosecutors have requested records from the Cook County assessor’s office regarding the $330,000 property tax break that Pritzker got on a Gold Coast mansion. The story does not say Pritzker himself is under criminal investigation.
As for ComEd, the criminal bribery charge against the utility is expected to be resolved through what is known as a deferred-prosecution agreement. The agreement lasts for three years and could be used by the feds to make sure ComEd cooperates in any ongoing investigation.
In a filing with the Securities and Exchange Commission, ComEd noted that: “The amount of the payment reflects credits for ComEd’s substantial remediation and cooperation efforts as provided for under the U.S. Sentencing Guidelines. The payment will not be recovered in rates or charged to customers, and ComEd will not seek or accept reimbursement or indemnification from any source other than Exelon.”
Exelon CEO Christopher M. Crane said in a statement: “We are committed to maintaining the highest standards of integrity and ethical behavior. In the past, some of ComEd’s lobbying practices and interactions with public officials did not live up to that commitment. When we learned about the inappropriate conduct, we acted swiftly to investigate.
“We concluded from the investigation that a small number of senior ComEd employees and outside contractors orchestrated this misconduct, and they no longer work for the company. Since then, we have taken robust action to aggressively identify and address deficiencies, including enhancing our compliance governance and our lobbying policies to prevent this type of conduct. We apologize for the past conduct that didn’t live up to our own values, and we will ensure this cannot happen again.”
The regulatory filing noted that the SEC investigation involving Exelon and ComEd is continuing.
Check back for more details on this developing story.
