Former AT& T Illinois president pleads not guilty in alleged scheme to sway House Speaker Michael Madigan while company confirms cooperation deal HEAD TOPICS

Former AT& T Illinois president pleads not guilty in alleged scheme to sway House Speaker Michael Madigan while company confirms cooperation deal

10/21/2022 10:54:00 PM

Former AT& T Illinois president pleads not guilty in alleged scheme to sway House Speaker Michael Madigan while company confirms cooperation deal

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Chicago Breaking News

Former AT&T Illinois president pleads not guilty in alleged scheme to sway House Speaker Michael Madigan, while company confirms cooperation deal The former president of AT&T Illinois pleaded not guilty Friday to charges alleging he orchestrated a scheme to funnel payments to an associate of then-Illinois House Speaker Michael Madigan. 1 of 84The former president of AT&T Illinois pleaded not guilty Friday to federal charges alleging he orchestrated and approved a scheme to funnel payments to an associate of then-Illinois House Speaker Michael Madigan in exchange for the speaker’s help passing legislation important to the company. La Schiazza, who has homes in Rhode Island and Florida, pleaded not guilty through his attorney during a telephone hearing before U.S. Magistrate Judge Jeffrey Cummings. He will remain free on a recognizance bond while his case is pending.Hours later, lawyers for AT&T Illinois appeared at the Dirksen U.S. Courthouse to confirm before a judge the company has entered into a deferred prosecution agreement with the U.S. attorney’s office, admitting its role in the scheme and agreeing to pay a $23 million and cooperate in the investigation. In exchange, prosecutors will drop criminal charges filed against the company in two years. Read more:
Chicago Breaking News » Ex-AT&T President Pleads Not Guilty to Charges He Tried to Illegally Influence Michael Madigan Barilla's claim to make 'Italy's #1 Brand of Pasta' is false advertising, lawsuit alleges Vote for Trump in 2024? Pence says ‘there might be somebody else I prefer.’ White House won't comment on new Jan. 6 committee Trump subpoena

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A series of recent wildfires ignited or spread this past week as warm, dry, and windy conditions—a rarity for the rainy Pacific Northwest. Read more >> Ex-AT&T President Pleads Not Guilty to Charges He Tried to Illegally Influence Michael MadiganPaul La Schiazza, 65, entered the plea through his attorneys during a brief hearing Friday morning, one week after federal prosecutors unsealed an indictment charging him with one count of conspiracy and other crimes. Barilla's claim to make 'Italy's #1 Brand of Pasta' is false advertising, lawsuit allegesSuit alleges the Illinois food company is misrepresenting where some of its products are made. Pressing It’s the world’s largest pasta producer and headquartered in Italy. Just because they have plants worldwide doesn’t mean it isn’t Italy’s 1 pasta producer. Vote for Trump in 2024? Pence says ‘there might be somebody else I prefer.’Former Vice President Mike Pence indicated Wednesday that he might not be inclined to vote for former President Donald Trump in 2024 should he launch another White House bid. Guy's a regular profile in courage, isn't he? Might not be inclined to support the man who was perfectly willing to send him to the gallows to remain in office. 😏 White House won't comment on new Jan. 6 committee Trump subpoenaWhite House press secretary Karine Jean-Pierre would not comment Friday on the new subpoena calling for former President Donald Trump to testify before the House's January 6 Select Committee. Nancy Pelosi discusses reproductive health care during Downers Grove visitHouse Speaker Nancy Pelosi and U.S. Rep. Sean Casten held a roundtable discussion Friday morning on the state of reproductive freedom and women's health care in Illinois. Illinois's a lib-tard state, they're 'open' to any women who wants an abortion so what's SpeakerPelosi arguing about? Oct 21, 2022 at 2:46 pm Expand Image 1 of 84 Former Illinois Speaker Michael Madigan departs from his lawyers' office, March 9, 2022, after making his first virtual court appearance for his indictment.charging him with one count of conspiracy, one count of corruptly giving something of value to reward a public official, and three counts of using a facility in interstate commerce to promote unlawful activity.Barilla's claim to make"Italy's #1 Brand of Pasta" is false advertising, lawsuit alleges By Khristopher J.Asked by a student at Georgetown University if he would vote for Trump if he is the nominee in 2024, Pence replied, “There might be somebody else I prefer,” an apparent nod to his own presidential ambitions. (Brian Cassella / Chicago Tribune) The former president of AT&T Illinois pleaded not guilty Friday to federal charges alleging he orchestrated and approved a scheme to funnel payments to an associate of then-Illinois House Speaker Michael Madigan in exchange for the speaker’s help passing legislation important to the company. Paul La Schiazza, 65, was charged in an indictment returned by a federal grand jury last week with conspiracy, federal program bribery, and using a facility in interstate commerce to promote unlawful activity. According to prosecutors, AT&T Illinois admitted that in 2017 it arranged for a Madigan ally to receive $22,500 in payments from the company, which would be paid out through an intermediary — a lobbying firm that performed services for AT&T Illinois. The most serious counts carry up to 20 years in prison if convicted. Specifically, the complaint accuses Barilla of false advertising, unjust enrichment and other violations. Advertisement La Schiazza, who has homes in Rhode Island and Florida, pleaded not guilty through his attorney during a telephone hearing before U. A Chicago grand jury last week also added a new conspiracy charge against Madigan, 80, and his close friend and associate, 75-year-old Michael McClain, related to an alleged corruption scheme.S., on Nov. Magistrate Judge Jeffrey Cummings. If convicted, La Schiazza faces up to five years in prison on the conspiracy charge, up to 10 years on the bribery charge and as many as 20 years on each of the using a facility in interstate commerce to promote unlawful activity charges.  Barilla was founded in Italy in 1877. He will remain free on a recognizance bond while his case is pending. Asked by the judge if he’s currently employed, La Schiazza replied, “No your honor, I am not. 8.” Advertisement Hours later, lawyers for AT&T Illinois appeared at the Dirksen U. Prost and Sinatro paid $2 last year for boxes of Barilla at a local grocery store, according to the lawsuit.S. In , Pence disputed Trump’s claim that he simply could have refused to certify Electoral College count showing that Joe Biden had won the 2020 election. Courthouse to confirm before a judge the company has entered into a deferred prosecution agreement with the U.S.   Texas Pete case The Barilla case is just one among a growing list of lawsuits in recent years in which customers are challenging the veracity of marketing claims of where food products are made. attorney’s office, admitting its role in the scheme and agreeing to pay a $23 million and cooperate in the investigation. In exchange, prosecutors will drop criminal charges filed against the company in two years. Then-president of AT&T Illinois Paul La Schiazza in Chicago in 2014. 1h ago Georgia man, 80, arrested at U. (E. Jason Wambsgans / Chicago Tribune) During the brief hearing before U.S. District Judge Jorge Alonso, Assistant U.S. Capitol Police officers spotted the white van parked illegally near the U. Attorney Amarjeet Bhachu said the agreement was reached voluntarily and in good faith and that AT&T Illinois’ cooperation “will assist in the prosecution of other individuals,” including Madigan and La Schiazza. Meanwhile, AT&T released a statement last week saying the company holds itself and its contractors “to the highest ethical standards” and is “committed to ensuring that this never happens again.” The investigation of AT&T Illinois, which was reported by the Tribune earlier this year, expanded upon the far-reaching allegations brought against the ex-speaker in a similar bribes-for-favors scandal involving Commonwealth Edison. Last week, federal prosecutors unsealed a superseding indictment against Madigan and his longtime confidant, Michael McClain, adding allegations they participated in the AT&T scheme. The new conspiracy allegations allege for the first time that a direct vote the speaker made on legislation was tainted by a scheme to influence him. Payne told officers that he had weapons in the van and a search turned up two handguns and a shotgun, along with a pipe and containers, Capitol Police said. Arraignments for Madigan and McClain have not yet been scheduled. Their attorneys have declined to comment. In February, AT&T disclosed in a regulatory filing that federal prosecutors had notified them they were considering filing criminal charges against its Illinois subsidiary, formally known as Illinois Bell Telephone Co. LLC, involving “a single, nine-month consulting contract in 2017″ worth $22,500. State records show the company that year had hired a stable of Madigan-connected lobbyists working for the Illinois subsidiary as AT&T was fighting for a controversial bill to end landline service for its 1. 2 million customers. Advertisement reported that investigators were specifically looking at thousands of dollars in payments allegedly passed to former state Rep. Edward Acevedo, a onetime member of Madigan’s leadership team who’d recently left the General Assembly. The payments to Acevedo were made via a lobbying contract between AT&T and Thomas Cullen, a former Madigan staffer and longtime political strategist aligned with the speaker, two sources told the newspaper. Acevedo was a registered lobbyist at the time, state records show, but not for AT&T. Neither Acevedo nor Cullen has been charged with any wrongdoing in the alleged scheme. Thomas Anthony Durkin, Cullen’s attorney, had no comment on the matter Friday. Acevedo’s lawyer, Gabrielle Sansonetti, also had no comment. According to a statement of facts agreed to by AT&T, in 2015, Madigan’s office had blocked the controversial landline legislation. After that defeat, an executive circulated a “lessons learned” memo that contained one section headed, “Speaker Madigan. ” The memo stated that AT&T had not been as “helpful” as ComEd when “requests” were made from the speaker’s camp, according to the statement. Advertisement The scheme to reward Acevedo, referred to in the court papers as “FR-1,” began in February 2017, after the company learned through McClain that the speaker was looking to kick Acevedo some money, according to the statement. In an email exchange that March, AT&T Illinois’ director of legislative affairs asked two of the company’s executives if they were “100% certain” they would get credit “from the powers that be” if the payments were made to Madigan’s associate. “I would hope that as long as we explain the approach to McClain and (the associate) gets the money then the ultimate objective is reached,” one of the executives wrote back, according to the statement. The legislative affairs director responded, “I don’t think (La Schiazza) wants this based on hope. We need to confirm prior to executing this strategy,” the statement said. In April 2017, La Schiazza approved a deal to secretly funnel $2,500 a month to Acevedo through a lobbying company already doing business with AT&T Illinois, according to the statement. The lobbying company was not named in the court filings. At McClain’s direction, AT&T employees then met with Acevedo to discuss a “pretextual” reason for the payments: to “prepare a report on the political dynamics of the General Assembly’s and Chicago City Council’s Latino Caucuses,” according to the statement of facts. Advertisement Acevedo never did any real work for AT&T Illinois, however. In fact, according to AT&T’s admissions in court, he balked at first at the payments, saying they were too low. But Acevedo agreed to the deal after McClain stepped in and said the amount was “sufficient.” From June 2017 to January 2018, Acevedo was paid a total of $22,500 in monthly installments. According to AT&T’s admission, the former representative “did not complete the purported assignment” on Latino politics, and “no efforts were undertaken” by AT&T to ensure work was being done in exchange for the money. Meanwhile, after a protracted fight, the landline bill passed during the final hours of the spring 2017 legislative session — with Madigan’s direct assistance, according to legislative records and the statement of facts agreed to by AT&T. On June 29, 2017, Madigan permitted the bill to be brought to a vote and cast his ballot in favor of the legislation, records show. Two days later, after Republican Gov. Bruce Rauner vetoed the legislation, Madigan and the Democrat-led General Assembly overrode him, with Madigan again voting for the override. The new allegations involving AT&T further punctuate a stunning downfall for Madigan, the longest serving leader of any legislative chamber in the nation who held an ironclad grip on the state legislature as well as the Democratic Party and its political spoils. He was dethroned as speaker in early 2021 as the investigation swirled around him, and soon after resigned the House seat he’d held since 1971. Madigan, 80, and McClain, 75, were charged in March alleging they conspired to participate in an array of bribery and extortion schemes from 2011 to 2019 that allegedly leveraged Madigan’s elected office and political power for personal gain Advertisement .