McHenry County Blog

Before reading this press release from the U.S. Attorney’s Office on a second inner city Democratic Party State Rep. under Federal indictment, reflect upon the 2006 date for which he is charged with using ill-gotten money to pay for campaign expenses.

And that doesn’t count the seemingly pending indictment of ex-U.S. Congressman Jesse Jackson, Jr.

The crime is similar to the one that got Algonquin’s Tyvek Towers developer indicted just before Thanksgiving.

There are many indictments coming down from the Chicago U.S. Attorney’s Office which have crimes that date back that to 2006. Patrick Fitzgerald seems to have left a lot of unfiled cases when he retired this summer.

LASHAWN FORD, ILLINOIS STATE REP., INDICTED ON FEDERAL BANK FRAUD CHARGES RELATED TO REAL ESTATE INVESTMENTS

CHICAGO — LaShawn K. Ford, an Illinois State Representative who also invested in real estate in Chicago, was indicted today on federal bank fraud and related charges for allegedly

• fraudulently obtaining a $500,000 increase and
• a two-year extension on a line of credit

from the failed ShoreBank and obtaining multiple advances by making false statements about his intended use of the funds.

Ford, 40, of Chicago, who operated Ford Desired Real Estate, Inc., and also invested personally in real estate, purportedly obtained bank funds to rehabilitate specific investment properties in the city, but instead used the funds to pay unrelated expenses, including,

• car loans,
• credit cards,
• other mortgages held at ShoreBank,
• payments to a casino in Hammond, Ind., and
• for his 2006 campaign for Illinois State Representative,

the indictment alleges. The charges do not involve Ford’s position as a state legislator after he was first elected in 2006. Ford represents Illinois’ 8th House District, which includes portions of Chicago’s west side and several western suburbs in Cook County.

Ford was charged with eight counts of bank fraud and nine counts of submitting false information to the bank in a 17-count indictment returned today by a federal grand jury. Chicago-based ShoreBank failed in August 2010 and now operates as Urban Partnership Bank.

Ford will be arraigned on a later date to be determined in U.S. District Court in Chicago.

The indictment was announced by Gary S. Shapiro, Acting United States Attorney for the Northern District of Illinois, and William C. Monroe, Acting Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.

According to the indictment, Ford had multiple loans with ShoreBank, including a $1 million line of credit, which he was permitted to use solely to purchase and rehabilitate investment properties. On May 22, 2006, he obtained a $500,000 increase — to $1.5 million, and a two-year extension of the credit line, allegedly by submitting false tax return documents that inflated his personal and business income.

On seven different occasions between April 2006 and March 2007, Ford applied for and obtained a total of $373,500 in advances from the credit line, allegedly by making false statements that he intended to use the funds to rehabilitate six different investment properties on the city’s west side.

In each instance, however, Ford allegedly knew that he intended to use the funds, in part, for expenses unrelated to the specific rehabilitation projects.

The indictment seeks forfeiture of approximately $832,000.

Each count of bank fraud and making false statements to a financial institution carries a maximum penalty of 30 years in prison and a $1 million fine, and restitution is mandatory. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.

The government is being represented by Assistant U.S. Attorneys Greg Deis and William Ridgway.

The investigation falls under the umbrella of the Financial Fraud Enforcement Task Force, which includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes. For more information on the task force, visit: www.StopFraud.gov.

An indictment contains only charges and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.

Here is a press release explaining the successful conclusion–from a taxpayer’s point of view–of a suit to stop taxeating local governments from promoting their tax increase referendums.  Although it did not originate in McHenry County, it will affect school districts, for example, when they seek tax hikes.

C.O.S.T. & DISTRICT 225 SETTLE CAMPAIGN DISCLOSURE COMPLAINT

Citizens Organized to Save the Tax-cap opposed a 2006 $94 million bond referendum proposed by Glenbrook H. S. Dist 225. At the November 7, 2006, general election, out of 31,338 votes cast, the Referendum Question was approved by a margin of 216 votes.

COST filed a complaint with the Illinois State Board of Elections charging that Dist 225 had spent public funds for campaign mailers, and should register as a political committee and file disclosure of all election spending.

The ISBE dismissed COST’s Complaint. COST successfully appealed to the Illinois Appellate Court.

In May 2009, the Illinois Appellate Court reversed the Board of Elections and unanimously ruled against the District, stating:

“Nothing in the statute (Election Code) suggests that it serves to absolutely exempt government entities from the disclosure requirements contained in the remainder of the Election Code.”

[Glenbrook High School] District 225 petitioned to the Illinois Supreme Court to overturn the Appellate Court, and the District was denied leave to appeal to the Illinois Supreme Court.

COST’s Complaint was then remanded to the ISBE for Public Hearing on the charges.

As the Complaint sought transparency and disclosure of Dist 225’s referendum election spending of public funds and public resources, the parties have reached a settlement which contains that disclosure and provides that the District will publish that disclosure.

Settlement of the Complaint by District 225 and COST was approved by the State Board of Elections today.

Lawrence T. Miller, Chairman of COST said,

“Our objective in filing the Complaint, and in the appeal to the Illinois Appellate Court, was to establish that all districts using taxpayers’ money and resources for electioneering ought to be required to file spending reports just as any other group in an election campaign would.

“We think it is wrong for a government entity to spend taxpayers’ money to pass a referendum that half of those very same taxpayers opposed.”

“The School District discloses in this Settlement Agreement that they spent over $60,000 in district funds, property, and employees’ time in connection with the 2006 referendum. That’s nearly three times what the Political Committee (V.O.T.E.) supporting the Referendum spent,” said Miller.

The Settlement Proposal appears on the ISBE agenda for its August 24, 2012 meeting. The Settlement agreement, without exhibits, appears at pages 110 to 123 of the ISBE agenda.

http://www.elections.state.il.us/DocDisplay.aspx?Doc=Downloads/AboutTheBoard/PDF/08_24_12Agenda.pdf

= = = = =

You can read the settlement here.

The Board of Education members at the time were Donna Rose Torf, Skip Shein, Wayne B. Berzon, Robert A. Boron, Steve G. Hammer, William Jeffrey and Elias Metsakis.

The COST complaint alleges “that since at least September of 2006 and through the November 7, 2006, election, the District carried out a planned campaign prepared by William Blair Co.”

McHenry County Republicans ended up with about $2,000 more at the end of March than they had at the beginning of the year, ending March with $7,188.71.

The annual Lincoln Day Dinner was the major fund raiser and also amount to most of the expenses.

Contributions came from the following individuals:

• $175 – Mary Alger, Crystal Lake
• $275 – Scott Breeden. Crystal Lake
• $175 – Michael Chmiel, Crystal Lake
• $175 – Michael Feeterer, Crystal Lake
• $175 – Shawn Green, Union
• $175 – James Heisler, Crystal Lake
• $175 – HR Green Company, Cedar Rapids, IA
• $750 – Innovative Component Sales, Huntley
• $175 – John Jung, Woodstock
• $175 – Kathy Keefe, Woodstock
• $200 – Diane Klemm, Crystal Lake
• $175 – Rosemary Kurtz, Crystal Lake
• $175 – Dale Lewis, Woodstock
• $175 – Liberty Outdoor, Crystal Lake
• $200 – Pam Palmer, Union
• $175 – Metropolitan Health Care, Chicago
• $250 – Peter Baker & Son, Lake Bluff
• $175 – Pint Size Productions, Crystal Lake
• $175 – Tom Schermerhorn, Woodstock
• $175 – Robert Stephenson, Barrington Hills
• $750 – Trotter & Associates, St Charles
• $175 – Marty Waitzman, Algonquin
• $175 – Webb Marketing, McHenry
• $175 – Tom Wilbeck, Lakewood

There were also contributions from individuals of less than $150 that amounted to $3,375.

Campaign funds made contributions of $6,160. All but $985 were disclosed, as you can see below:

• $700 – Citizens for Karen McConnaughay, St Charles
• $900 – Citizens for Kent Gaffney, Fox River Grove
• $175 – Citizens for LeFew, Harvard
• $750 – Citizens for Mark Beaubien, Barrington
• $750 – Citizens to Elect Andy Zinke, Crystal Lake
• $175 – Citizens to Elect Dan Duffy, Barrington
• $1,000 – Citizens to Re Elect Bob Miller, Cary
• $175 – Cliff Surges for State Senate, Gilberts
• $200 – Joe Walsh For Congress, Lake Zurich
• $175 – Jourdan Committee to Preserve and Project Good Government, McHenry
• $175 – Skinner Campaign Fund, Crystal Lake

Here are the expenditures:

• $6,731.62 – Lincoln Day Dinner. D’Andrea’s Banquets, Crystal Lake
• $1,005 – Election Night Party, D’Andrea’s Banquets, Crystal Lake
• $1,800 – Salary, Geri Davis, McHenry
• $1,476 – Rent, Madison Corporate Group
• $742.74 – Printing, CL Graphics 124 S Virginia
• $452.76 – Lincoln Day Flowers, Lockers Flowers, McHenry
• $428.33 – Withholdings, United States Department of Treasury
• $390 – Storage Unit Rental, Liberty Outdoor, Crystal Lake
• $350 – Accounting fees, Giloa Yapelli, Crystal Lake
• $192.50 – AT&T, Louisville, KY

$239.78 was not specifically listed.

Cliff Surges didn’t raise much money during the last three months of 2011–$5,650.

But he didn’t spend much either–$7,419.13.

Nowhere near what his opponent Karen McConnaughay spent.

Have to wonder why the only publicized poll, from We Ask America, shows McConnaughay ahead by 20-16%.  (Now that I think about it, maybe it’s because of the gender bonus that I have observed women having since I first ran for office in 1966.)

Here’s where all but $92.48, too small to require publication, went:

• $3,376.66 – MarketAblility Inc., Algonquin, printing
• $2,700 – Joseph Kotz, Chicago, web site
• $644.45 – Drew Veeneman, Elgin, media production
• $180 – Jon Zahm, Batavia, Batavia
• $166.54 – Piryx, Inc., San Francisco, computer services

Surges also contributed $250 to State Rep. Tim Schmitz’ campaign fund.

The end of year financial disclosures filed by Congressmen Don Manzullo and Adam Kinzinger are not as easy to find as I would have wished, but having found them, I conclude that the two are evenly matched as far as available funds go.

Manzullo reports $522,864 at the end of December, while Kinzinger had $651,089.

That gives Kinzinger a $128,000 lead, but they both appear to have enough money to make significant TV buys in the Downstate markets that cover their ring-around-the-collar counties congressional district that Illinois Democrats drew.

Manzullo raised $160,000 during the three months, while Kinzinger took in $201,000.

Kinzinger spent more than Manzullo.  The totals were $201,000 for Kinzinger to Manzullo’s $118,000.

State Senate candidate Karen McConnaughay started the last quarter of 2011 with $42,302.89

Including in-kind contributions, she raised $76,124 during the last three months of last year.

She had $71,578.75 to conduct the last three months of the campaign.

Today, we’ll see how her campaign spent $42,944.14 during the same time period.

• $26,778.08 – John Pastuovic Communications, Inc., Elmhurst, mailing and printing
• $2,500 – Cor Strategies, Palatine, consulting
• $2,500 – Prairie State Strategies, Chicago, consulting
• $1,500 – Susan Secondi, St. Charles, consulting
• $1,450 – Susan Russell, South Elgin, consulting and gasoline
• $969.69 – ADLEXX, Springfield, promotional items
• $927.97 – Elgin Country Club, Elgin, fund raising food
• $891.57 – AT&T, cell phone
• $590.78 – UPS Store, box rental, printing & postage
• $500 – John Fogarty, Chicago, legal fees
• $425.57 – Statehouse Inn, Springfield, lodging for candidate and staff
• $421.96 – Conn’s Catering, Springfield, fund raising food
• $400 – Illinois Lincoln Series, Riverside, donation
• $381.33 – Richard Walker’s Pancake House, Crystal Lake, reception food
• $359.37 – Sam’s Club, Batavia, printer and promotional materials
• $204.33 – Catch 35, Chicago, meals

An additional $1,333.49 was spent for purposes that were small enough not to need reporting.

And, $250 was given to the Grafton Township Republican Party.

$23,094.14 taken in, $47,435.87 in checks written out.

That’s the summary of State Senator Pam Althoff’s campaign disclosure form. The details are below.

First money coming in.

From entities which are not Political Action Committee, Althoff got $16,910 that was itemized and $471 thaat wasn’t. The public contributions from individuals and companies follow:

• $5,500 – American Naprapathic Assoc, Lyons
• $2,000 – Altria Client Services Inc. Richmond, VA
• $1,000 – American Kennel Club PAC, New York, NY
• $1,000 – Comcast Corporation, Philadelphia, PA
• $1,000 – Illinois Laborers Legislative Committee, Springfield
• $1,000 – Wal-Mart Stores Inc, Bentonville, Ar
• $500 – American Chemistry Council, Washington, DC
• $500 – Daiichi Sankyo Inc, Parsippany, NJ
• $500 – GlaxoSmithKline, Philadelphia, PA
• $500 – NRA-Political Victory Fund (misfiled)
• $500 – Pfizer Inc, New York, NY
• $500 – Sprint Nextel, Phoenix, AZ
• $250 – American Council Of Engineering Companies PAC, Springfield (categorized incorrectly)
• $250 – Pepisco Inc, Wilmington, De
• $200 – Michael McClainm, Quincy
• $160 – Friends of Toi Hutchinson, Steger (misfiled)
• $50 – Pamela Althoff

While there incorrectly categorized PAC money above, below is where such contributions are supposed to be entered:

• $2,500 – Chicago Auto Trade PAC of Chicago Auto Trade Assn., Oakbrook
• $546 – Committee to Elect Michael W. Tryon
• $500 – IL League of Financial Institutions Political Education Com, Springfield
• $500 – Illinois Construction Industry PAC, Springfield
• $500 – Illinois Merchants Political Action Committee Team, Chicago
• $500 – Illinois Road Builders (PAC), Itasca
• $500 – Liberty Mutual PAC, Boston, MA

Althoff spent $20,700 in her campaign fund on other politicians.

A whooping $20,000 was transferred to the Republican State Senate Campaign. That’s probably a requirement for being on the Senate Republican Leadership Team.

Matching Mike Tryon’s contribution, $500 went to Citizens for Joe Gottemoller. Gottemoller is running for the McHenry County Board.

All but $3,074.96 of expenditures which were not itemized follow in alphabetical order:

• $183.04 – 10 Uluer Havacilik Turism Goreme 10 Nevehir, TK 22082, dining
• $198.80 – Clix Photographs & Savables, gift Christine Radogno
• $166.67 – Countryside Flowers, Crystal Lake, donation, memorial flowers
• $185.33 – Crystal Lake Chamber of Commerce, dues and expo booth
• $586 – Cathy Danca, Lake in the Hills, mileage, gifts and flowers
• $1,325 – Friends of NRA, McHenry, event sponsor
• $163.50 – Geri’s Party with Hallmark, staff gifts
• $250 – Hg Steakhouse, Springfield, Springfield staff party
• $1,230.47 – Alan Hill, labor and mileage for petitions
• $242.32 – Hyperstitch Inc., Marengo, promotional items
• $219 – Jameson’s, Crystal Lake, dining, staff gifts
• $3,651.05 – Joan M. Etten LLC, Park Ridge, fundraising services retainer & costs
• $261.54 – Kiawah Island Resort, Kiawah Island, SC, dining
• $303.76 – Kiawah Island Resort, NCSL
• $7,500 – Liberty Outdoor Advertising, Crystal Lake, billboard advertising
• $447.50 – Lincoln tower Aprtments, Springfield, apartment rent
• $228.25 – Lockers Flowers, McHenry, donations & memorial flowers
• $450 – McHenry Area Chamber of Commerce, advertising
• %425 – National Conference of State Legislators, Denver, CO, conference registrationgislators, Denver, CO, reservations
• $250 – Nunda Township Repulican Central Committee, event sponsor
• $155.52 – P & M Silk Screen, Springfield, Senate logo clothes
• $198.68 – Promotions Inc., McHenry, replacement check
• $993.15 – Ritz Carlton, Carolina, PR, travel advance
• $750 – Cheryl Sakris, Springfield, gift
• $394.30 – Sam’s Club, Parade Candy
• $489.26 – Starbucks Coffee Company, Crystal Lake, staff gifts
• $173.79 – Target, Crystal Lake, gift baskets
• $647.40 – United Air Lines, NCSL & travel
• $715.44 – Woodstock Veterinary Clinic, travel expense
• $274.32 – World Market, Crystal Lake, gifts for staff, gift baskets

A press release from State Rep. Kent Gaffney:

Gaffney Files With More Money

Fox River Grove, IL – State Representative Kent Gaffney (R-Lake Barrington) has filed with $36,336 cash on hand going into the final two months of the Republican Primary.

His opponents filed with significantly less –

• McSweeney at $27,779 (with over $20,000 in outstanding bills) cash on hand and
• Danielle Rowe with $8,532 cash on hand.

McSweeney spent much of his money to mount outrageous petition challenges against both of his rivals.

The total receipts by the end of the year for his petition challenges amount to over $18,000, over $13,000 in lawyer fees alone.

Many Republican leaders within the district and around the State have expressed outrage at the bully tactics the McSweeney campaign has implemented through these petition challenges.

“That money could have been used to open an office and have a conversation with the voters but Mr. McSweeney chose to hire trial layers to manufacture baseless allegations and try and clear the field.” Kent said.

“I am proud that my campaign is focused on talking to voters in the district about my ideas on how to get the state’s finances in order and how to improve the business climate in Illinois.”

So far Representative Gaffney has announced endorsements of nearly 40 elected officials from all four counties in the new 52nd House District, which includes portions of Cook, Kane, Lake and McHenry counties.

Yesterday, McHenry County Blog covered receipts for Dave McSweeney, candidate for State Rep.  McSweeney is running against incumbent St. Rep. Kent Gaffney, who has $36,000 in the bank and Danielle Rowe.

Today, we’ll look at expenses, $129,061, which includes some unpaid bills for mailings.

I’ll group them as well as I can.

Mailings and/or Printing

• $40,340 – Majority Strategies, Ponte Vedra Beach, FL, mailings (aqn additional $12,790.02 is still owed to Majority Strategies)
• $5,741.85 – Greatideas! Palatine, mailings
• $1,351.28 – K & M Printing, Schaumburg, printing

Campaign Management, Consulting

• $23,000 – Jim Thacker, campaign management
• $6,775.74 – Drew Veeneman, Elgin, mileage and consulting
• $6,500 – Charles L. Johnston, Boaz, AL, consulting
• $1,000 – Jason Leviskas, Jason, Rockford, consulting
• $750 – Sheila Morgan, Chicago, consulting

Petition Challenges

• $12,000 – Richard Means, Oak Park, legal retainer & petition investigation
• $3,535 – I-Trace, LTD, Rolling Meadows, investigation
• $1,180 – Jill Hupp, Crystal Lake Notary work
• $506 – Rebecca Kramer, Streamwood, notary work
• $312.20 – Statehouse Inn, Springfield, lodging – staff
• $220 – Anthony Luczkiw, Rolling Meadow, petition observer and auto expense reimbursement
• $220 – Andrew Podgorski, Rockford, petition observer and mileage reimbursement
• $220 – Steve Scarabelli, Rockford. help with petition challenges and mileage reimbursement

Record Keeping

• $4,075- CBC Tax & Accounting, Rolling Meadow, Accounting fees, Banking

Polling

• $2,300 – Baselice, Austin, TX 78759, survey

Computer Assistance

• $1,050 – Completecampaigns.com, Washington, DC, computer services, Votermanagement

Miscellaneous

• $159 – Teacon 2011 Hosted by WIND AM. Chicago, tickets

So, to summarize, of the revealed (over 92% of the total) expenditures, here’s the breakdown of what was spent where:

• Mailings and printing – $60,223.15
• Campaign management – $38,025.74
• Petition challenges – $18,193.20
• Record keeping – $4,075
• Polling – $2,300
• Computer assistance – $1,050
• Misc. – $159

Danielle Rowe’s campaign certainly is not about raising money.

She had $8,532.99 available at the beginning of the new year.

She took in only $790 during the last three months of 2011.

That’s the cash.

She got in-kind assistance, mainly for defending her petitions, amounting to $5,043.29.

Providing the non-cash assistance were the following

• Illinois Liberty PAC
• $2,070 for legal services from Laura Jacksack
• $1,500 for consulting
• J&D’s Bar and Grill for fund raising food and space -$300
• Photo’s by Kasia – $600
• Misc. expenses paid by the candidate – $398.29

What was revealed of the under $4,000 spent in the last three months of last year follows:

• $2,000 – Pauliegroup LLC, Northbrook, consulting
• $572.83 – M3 Graphics, Schaumburg, printing
• $327.40 – Rental Max LLC, Lake Zurich, podium/stage and sound System
• $239.32 – Home Depot, Lake Zurich for props and supplies for campaign announcement
• $209.02 – Radio Shack, Lake Zurich, equipment
• $195 – Tg Signs & Graphics, Wauconda, banners and lawn signs

The only reportable cash campaign contribution came from former State Rep. Bob Bergman of Palatine. there was an additional $590 in smaller contributions.