Patrick Fitzgerald: Intrepid Crime Fighter? Or, Politically-Driven Leaker? The Exterminator’s Catch & Release Program (Part 9)
Hugo Floriani, Investigative Reporter
Is the result of U.S. Attorney Patrick Fitzgerald’s ten-year, crime-fighting crusade in Illinois the near extermination of corruption? Or, has it been more about trapping a few big bugs and spraying a catch-and-release treatment on them?
In a March 17, 2011 Chicago Tribune article by John Kass entitled “If Fitzgerald goes to Washington, will political cockroaches like Blagojevich multiply?” Kass bemoans the future of Chicago if Patrick Fitzgerald is eventually appointed Director of the FBI. Kass wrote, “If the best exterminator leaves town, what will happen to all those political cockroaches?” (Answer: Dear John, They’ll continue as if nothing’s changed, cause nothing has.)
Kass is among the Chicago media types who've succumbed to Fitz idolization driven, in part, by the eventual conviction of Dead Meat at the hands of the Exterminator. And so Fitz stands watch alone today, in his hands-on-hips-Superman-stance, along that thin line that separates law-and-order from Illinois’ Pay-to-Play.
So, OMG! If the Exterminator moves to Washington, D.C., what will stop the proliferation of other political cockroaches, like Dead Meat? Kass asks. (It’s hard to tell when Kass is being serious versus flippant, since his writing style aims to tease, not confront. It’s both a literary niche, and a survival technique. If you really don’t want to, you don’t have to take him seriously.)
If you were reading Kass’ piece on Mars, you’d think the Exterminator had pretty much wiped out corruption in the Land of Lincoln, Crook County, and the City that Capone built.
Such is the power of the myth of the Intrepid Crime Fighter. Question is: How does it match with reality? In the ten years the Exterminator has prowled the Windy City, spraying for cockroaches, has there been any substantive reduction in their numbers and impact? Well, lets’ do a body count and see.
The Chicago Sun Times, which doesn’t have quite the simpatico relationship with Fitz that the Trib has, recently catalogued the cockroaches trapped in Operation Board Games. Here’s a short list:
- Stuart P. Levine, Pleaded guilty in October 2006 (that’s like 5 years ago) of masterminding extortion schemes and skimming “millions from construction deals the school [Chicago Medical School] gave to Jacob Kiferbaum.” Stu awaits sentencing.
- Jacob Kiferbaum, Pleaded guilty November 2007 (a mere 4 years ago) of participating in Levine’s schemes. Jake awaits sentencing
- John Glennon, Pleaded guilty November 2007 of covering up for Levine and Kiferbaum. John awaits sentencing. (Is there a trend here?)
- Steven Loren, Pleaded guilty September 2007 “in the attempted extortion of an investment firm that sought business from the teacher-pension fund.” Steve awaits sentencing.
- Tony Rezko, Convicted June 2008. Volunteered to be incarcerated. Disappeared down the Federal Rabbit Hole and hasn’t yet surfaced. Tony has told associates that he expects his friend Barack to eventually pardon him. Anyone want to bet against that?
- Ali Ata, Pleaded guilty April 2008 to not reporting $1.2 million in income from a Rezko deal, for lying to the FBI, and, as a bonus, admitted he got a well-paying state job at the Illinois Finance Authority from Rezko. Ali awaits sentencing.
- Abdelhamid Chaib, Pleaded guilty July 2010 of interfering “with the administration of internal revenue laws” in a Rezko business transaction. A.C. was sentenced to three years of probation and ordered to pay a $50K fine.
- John Harris, Pleaded guilty October 2009 of helping Dead Meat try to sell Barack’s Senate seat. Another John awaits sentencing.
- Alonzo “Lon” Monk, Pleaded guilty October 2009 of mail fraud and scheming with Dead Meat to “get rich off state deals and split the money with Rezko and Kelly.” Lon awaits sentencing. What a surprise!
- Anita Mahajan, Sentenced to four years of probation in August 2011 and, as the Trib reported, “ordered to pay $200,000 in fines and restitution Monday after pleading guilty to billing the state for drug tests her company never performed.” She over-billed the state $2.1 million. “Anita Mahajan, 60, the wife of a major Blagojevich fundraiser, dabbed at her eyes with a tissue and apologized as she stood before Judge James Obbish to plead guilty to a reduced count of theft of $99,900.” You’d cry, too, if you got off so light for stealing two-mil from Illinois taxpayers.
One more not mentioned by the Sun Times…
- Joseph Cari, Pleads guilty in September 2005 of involvement in an extortion scheme that aimed to steer state pension business to companies in exchange for campaign contributions to a public official described in court docs as “Public official A [as in Dead Meat].” In August 2011, Joe – a close friend of Joe Biden – was sentenced to three years of…wait for it…wait for it…yes, pro-ba-tion. Oh, the state pension fund was for school teachers.
Rezko’s sentencing is pending. Anyone want to bet against him being sentenced to time served (Where?) and three years of probation?
It’s all part of the Exterminator’s Catch & Release Program for the Cockroaches.
Hat tip: Chicago news humorist John Kass. He’s such a kidder.
Patrick Fitzgerald: Intrepid Crime Fighter? Or, Politically-Driven Leaker? A Fitz Question for the Chicago Media (Part 8)
Hugo Floriani, Investigative Reporter
When faced with an opportunity to display their professional inquisitive prowess, reporters from the Chicago dailies generally like to wind-up and lob softball questions to Fitz.
So, maybe they’d welcome a little help framing their queries. Here’s a couple for them…
First a little background: Jack Lavin is Governor Pat Quinn’s Chief of Staff these days. Once upon a time, he served as Blagojevich's director of the Department of Commerce and Economic Opportunity. Tony Rezko recommended him to Dead Meat for the job. Before that, he was Chief Financial Officer of Rezko Enterprises. That means he handled Tony’s money. Countin’ it. Movin’ it. That sort of thing. (Smile for the camera, Jack.)
He’s given some of his own money – a little over $20 grand – to Democrat politicians (much of it to Obama, but also $2K to Jesse Jackson Junior, and $2K to Sen. Barbara Boxer), all through the Big Bundler hisownself, Tony. Hey, not a thing wrong with that.
Given Jack’s past starring role in Rezko Enterprises, maybe some enterprising Chicago reporter might ask Fitz this question:
“Is there any evidence to suggest that, while he was Rezko’s chief bean counter, Jack Lavin moved a $3,000,000 line item from the Panda Restaurant operated by Tony over into his Papa John’s Pizza books in order to help get a loan from GE Capital?”
And then, as a follow-up:
“Well, if you can’t answer that question, or won’t, then who kept Rezko’s second set of books for his Papa John’s Pizza store? And why have we never heard about that?”
Hat tip: C. Mc.
Patrick Fitzgerald: Intrepid Crime Fighter? Or, Politically-Driven Leaker? The Silent Mole & A Complicit Newspaper (Part 5)
Hugo Floriani, Investigative Reporter
Was Bernard Barton, Jr. relocated to Chicago on a mission to help bring down Tony Rezko and, thereby, shield a young, articulate, African-American politician from his potentially incriminating associations with Rezko? Too conspiratorial, you say? Maybe. Maybe not.
Let’s review the highlights of the Silent Mole, starting with an admission from the Complicit Newspaper.
The Chicago Tribune identified Thomas as a Mole in this May 4, 2007, article written by David Jackson.
John Thomas bought and sold downtown office buildings and helped other property developers secure multimillion-dollar mortgage loans.
But the high-living dealmaker had a double life.
Thomas, who was convicted of federal business fraud in New York in 2004, has been serving as an undercover government mole in Chicago for at least a year as part of an ongoing federal investigation into fraud in the financing of large-scale commercial real estate deals, the Tribune has learned.
Records made public so far do not identify the targets of the federal probe and the FBI and US Attorney’s Office declined to comment for this article.
That same May, a concerned citizen spoke on the phone with a well-known Chicago Tribune reporter. The concerned citizen was trying to chase down information as to when the Tribune learned that John Thomas was an FBI mole while working in Rezko’s office. “Thomas” was Barton’s new name in Chicago after being relocated from New York, where he faced prosecution and eventual sentencing for fraud. (The complete story of Burton-Thomas is well documented and won’t be rehashed here.)
The concerned citizen asked the reporter why the Trib had sat on the Mole’s story since, at least, 2006. That timeframe was implicitly provided by the Trib reporter when stating that Patrick Fitzgerald warned the paper, a year earlier in May 2006, that outing the Mole would cause problems for the investigation and could prove dangerous for Burton-Thomas.
Then, in a moment of indiscretion, the reporter added that Fitzgerald told the Trib in May 2006 that identifying the mole could also “influence the election.”
Now, the Illinois gubernatorial election came in November 2006, and the national election came two years after that. To which election was the reporter referring? It wasn’t explicitly stated, but the obvious inference pointed to the Presidential election in 2008. In either case, it’s a curious statement coming from the USAO, as it was conveyed by the reporter.
There are other elements of the Burton-Thomas story equally curious.
Way back on February 22, 2002, then Tribune staff reporter Thomas A. Corfman, who followed the Mole over the years like a bloodhound, wrote this in an article:
Developer Donald Trump has picked prominent Chicago real estate firm U.S. Equities Realty to handle leasing for his proposed mixed-use skyscraper on the riverfront site of the Chicago Sun Times..
The selection was announced as questions surfaced in real estate circles about alleged criminal activity by two members of a small brokerage firm that, with Trump's blessing, last fall did some marketing of the 1.3 million square feet of office space in the massive tower.
John Thomas, a partner in Chicago-based Carnegie Realty Partners, and a Carnegie employee, Louis Giordano of New York, were arrested last year in connection with an alleged fraud scheme that took place over five years in New York.
According to an affidavit by an FBI agent, the wide-ranging scheme involved credit card fraud, forgery and allegations that the defendants, while running several billboard leasing companies, defrauded restaurants such as Hard Rock Cafe and Planet Hollywood, and entertainment companies such as Motown Records and Arista Records.
Thomas allegedly took upfront lease payments for billboards in Manhattan's Times Square and along Broadway, even though he has no contracts to hang the advertising from the buildings, according to the affidavit, which was filed in U.S. District Court in Chicago in order to obtain a warrant for Thomas' arrest.
Thomas and Giordano are free on bond, according to court records. The U.S. attorney for the Eastern District of New York would not comment on the case.
They have not yet been indicted, although a formal charge is expected, said attorney Eugene E. Murphy Jr., who represents Thomas [and also represented Buddy Wilkins when Buddy appeared before the Rezko Grand Jury as a witness against Rezko, and he later represented Tony Rezko while at the Byran Cave law firm.]. "I look forward to defending this case," said Murphy, a partner with Chicago-based law firm Horwood Marcus & Berk. Giordano and his New York attorney could not be reached for comment.
Back when the Mole was entangled with the Eastern District of New York, Patrick Fitzgerald was an Assistant U.S. Attorney in the adjacent Southern District. The two would later rendezvous in Chicago.
So, in February 2002, shortly after Burton-Thomas was relocated to Chicago from the Big Apple, his nefarious past was outed by a Trib reporter, but lacked any hint of his cooperation with the feds, nor reference to his real name.
(So who alerted Corfman to Thomas’s past, since he was arrested in NY under another Burton? And, if Rezko new of Burton-Thomas’ past, what sense did it make to trust him to work in his office?)
Four years later, Corfman reported again on Burton-Thomas. His article appearing on November 1, 2006 at ChicagoRealEstateDail.com:
John Thomas, who has done more flips than an acrobat, has tied up another downtown office tower.
A venture managed by the controversial real estate entrepreneur has agreed to buy 20 S. Clark St., an office tower overlooking Chase Plaza in the Central Loop, says Mr. Thomas, who earlier this year formed Chicago-based Morgan Street Properties LLC for his investment activities.
The price is about $54 million, sources say…
In the last two years, Mr. Thomas has bought and quickly resold several other office buildings, including 250 S. Wacker Drive, 105 W. Adams St. and 11 S. LaSalle St. Last year, a Thomas venture bought 318 W. Adams St., a small West Loop office building that is being marketed as office condominiums…
He says he is also negotiating with developer Daniel Mahru, his partner on the 105 W. Adams and 11 S. LaSalle deals., to partner with him on 20 S. Clark.
Daniel Mahru was, as you probably know, a business partner of Tony Rezko. Eventually, Burton-Thomas went to work in that same office. The Mole was in his designated hole.
Now, jump ahead to February 2008. Sun-Times staff reporter David Roeder elaborated on the Mole’s activity:
But sources said that, for more than two years when he was giving information to agents, Thomas provided a fly-on-the-wall look inside Rezko's real estate operations and his desperate attempts to keep his projects afloat.
Sources said Thomas also logged frequent visits to Rezko from Gov. Blagojevich and U.S. Sen. Barack Obama (D-Ill.).Blagojevich and Obama were among the many politicians for whom Rezko raised campaign cash. Neither has been charged with any wrongdoing.
Thomas had good reason to help. He hopes to get probation for his own felony fraud conviction in a New York case. And he said he wants to redeem himself in the eyes of business associates and his family.
Sources said Thomas helped investigators build a record of repeat visits to the old offices of Rezko and former business partner Daniel Mahru's Rezmar Corp., at 853 N. Elston, by Blagojevich and Obama during 2004 and 2005…
Sources said the government had him wear a hidden wire to record conversations with a Chicago alderman -- but that he did not record Blagojevich or Obama.
Why no recording of Blago and Obama? Maybe because Blago had notoriously loose lips and might say something that implicated the Protected One, Obama.
One month later, in March 2008, presidential candidate Barack Obama was subjected to an underhand, slow-pitch softball interview by the editorial board of the Sun Times. The transcript of the interview (no longer available on line) includes this exchange:
Q: In November 2006, you and your campaign exchanged with us written interrogatories. So a lot of the quotes I will give you just come out of those. The campaign said that you probably had lunch with Rezko once or twice a year. You sort of added four or five times, something like that.
John Thomas is an FBI mole. He recently told us that he saw you coming and going from Rezko’s office a lot. And three other sources told us that you and Rezko spoke on the phone daily. Is that true?
A: (Obama) No. That’s not accurate…
John Thomas aka Bernard Barton
Okay, maybe the Mole misremembered. A bad memory might explain why he was never called by the USAO as a witness in the Rezko trial. Or, perhaps, there was another reason.
On June 21, U.S. District Judge Elaine Bucklo sentenced John Thomas to three years probation. His court records are sealed. His mission accomplished. And the extent of his subsequent success in Chicago commercial real estate is displayed on his face today.
U.S. Attorney Patrick Fitzgerald: Untouchable Crime Fighter? Or, Politically-Driven Leaker? (Part 1)
By: Hugo Floriani, Investigative Reporter
Is the United States Attorney for the Northeastern District of Illinois an intrepid crime fighter, as he’s typically portrayed by most of the Chicago and national media? Or, is the legend of a modern day Untouchable Elliott Ness largely a media-created myth?
The ABC News video below is from the June press conference following the conviction of former Illinois Governor Rod Blagojevich. It has about it a seriously surreal aspect.
At about 5:40 in the recording, Fitzgerald reports what everyone in the room already knows, and one reporter in the room knows better than all the others. “There was a leak to a newspaper article that indicated that Mr. Blagojevich was being recorded on,” he says.
Later in the press conference, reporters begin asking Fitzgerald – whose national reputation as a dogged plugger of leaks was built during his relentless pursuit of the person who revealed Valerie Plame’s identity as a Central Intelligence Agency employee – about the leak in the Blago investigation. You’ll recall that Fitzgerald’s hunt for the Plame-leaker began in 2003, and ended in March 2007 with the conviction of Scooter Libby, after costing the taxpayers $2.58 million. (Hold that thought. We’ll briefly revisit that saga in a later installment. It’ll help us answer the lede question.)
In the June 2011 press conference, the reporter sitting in the front row, slightly to Fitzgerald’s left, holding a tape recorder toward the podium is Chicago Tribune reporter John Chase. He’s the slightly balding man, wearing a striped blue shirt and glasses. He carefully follows the questions other reporters ask about the “leak” that alerted Blagojevich that his conversations were being recorded by the FBI. It’s reasonable he’d be interested, since he wrote the article to which Fitzgerald referred. Sitting right there with a front row seat as they talk about him. How ‘bout that.
Here’s a transcript of the intercepted phone conversation where Blago learns about Chase’s Tribune article in advance of its publication.
DATE: 12/04/2008
TIME: 10:29 P.M.
ACTIVITY: Rod Blagojevich home line incoming call.
SESSION: 1394
SPEAKERS: BLAGOJEVICH: Rod Blagojevich
P. BLAGOJEVICH: Patti BlagojevichGUERRERO: Lucio Guerrero
* * * * *
1 P. BLAGOJEVICH Hello.
Late in the press conference, the prosecutor who jailed New York Times’ reporter Judith Miller for 85 days for failing to reveal a source, displays a rather blasé attitude toward having a key element of his investigation leaked to the media. Chase isn’t going to jail like Judith. What’s up with that?
At about 16:14 in the video, Fitzgerald states, “I didn’t do it.” The “it” refers to leaking the information to the Chicago Tribune. Who said he did?
That’s probably a truthful statement. Of course, the US Attorney for the Northeastern District of Illinois would never phone a Chicago reporter and leak sensitive information. He’d have someone on his staff do it.
The question is – Why?
While you ponder that thought, here’s another.
In the press conference, Fitzgerald makes a plea for persons with knowledge of corruption to come forward and report that information to his office. He repeated that theme recently when, on September 12, while speaking before City Club of Chicago, according to the Sun Times, he said,
“The one thing I find frustrating is that people view corruption as a law enforcement problem. If I had a dollar for everyone who has come up to me after we’ve convicted someone and said, ‘Yes, we knew he or she was doing that all the time but we wondered when someone was going to get around to doing something about it. And I bite my lip, but I wanted to smack them upside the head.”
He said the person who needs to do something about corruption is “you. It is my view that sometimes we say, ‘that’s the way it is in Illinois or that’s the way it is in Chicago.’ If you’re finding yourself saying that, what you’re really saying is, ‘That’s the way I will allow it to be.’
“You either speak up and do something about it or you’re part of the problem. That’s the only way to look at it.”
So, here’s another question:
If you’re a citizen with first-hand knowledge of corruption, why in the world would you take that information to a U.S. Attorney’s office that has a leak, particularly when the guy in charge doesn’t seem all that concerned about leaks? Doing so could cause you unintended pain, if it got leaked to the wrong person, or persons.
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Links
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