Corruption scandals still haunt Chicago

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By Mike Robinson ASSOCIATED PRESS

CHICAGO - When former Illinois Gov. George Ryan got snared in a racketeering and fraud investigation several years ago, some thought Chicago might get a break from the corruption that has plagued this city for as long as anyone can remember.

Federal corruption hunters were still patrolling the city and the new governor, Rod R. Blagojevich, was promising a swift end to the boodling and graft.

But last week's conviction of political fundraiser Antoin "Tony" Rezko, a top Blagojevich aide who poured $1.6 million into his campaign, made it appear little has changed.

Witnesses at Rezko's trial said Mr. Blagojevich discussed a job for a campaign donor with a $25,000 contribution lying on the table and dangled state contracts to entice a fundraiser to help bankroll future campaigns. Mr. Blagojevich has denied wrongdoing.

Federal prosecutors are delving into the governor's hiring practices and campaign funds. They admit they don't know what it will take to stem the tide of corruption, but they're not letting up in the effort.

"If morals don't get to them, I hope the fear of going to jail does," U.S. Attorney Patrick J. Fitzgerald said after the Rezko verdict.

Chicago's tradition of corruption goes back to the 1890s when the so-called Gray Wolves of the City Council stuffed their pockets with bribes. One alderman was celebrated as the Prince of the Boodlers.

"Chicago ain't ready for reform," old-time saloonkeeper Alderman Mathias "Paddy" Bauler once cackled.

Sometimes it seems it still isn't.

In Chicago's city government, dozens of officials and others have been sent to prison in recent years in a federal investigation of payoffs and patronage.

Agents discovered that hundreds of thousands of dollars worth of city-owned asphalt was sold illegally to contractors. And truckers were paid with taxpayer dollars to haul away the stolen asphalt.

Investigators have found that far from being applauded for rooting out corruption, many people were angry at them for interfering with business.

"It's sort of this sense of wink, wink, nod, nod, it keeps the trains running on time, it's the grease that makes the machine work," said former federal prosecutor Patrick M. Collins, who spearheaded investigations focusing not only on Ryan but on hiring fraud and payoffs at City Hall.

Last week, Rezko, 52, was convicted of scheming to use his clout with Mr. Blagojevich to squeeze more than $7 million in bribes and kickbacks from firms that wanted to do business with the state.

Witnesses said he developed the clout through his fundraising prowess and used it to pack powerful state boards with members who would vote as they were told.

The two-month trial drew the national spotlight because Rezko also was a key fundraiser for Democratic presidential candidate Barack Obama. He figures Rezko raised $250,000 for his Senate and state legislative campaigns but nothing for his presidential race.

Mr. Obama, Illinois senator, was barely mentioned at the trial and none of the evidence suggested he had done anything wrong.

Mr. Blagojevich fared far worse.

Witnesses said he repeatedly tied campaign money to state payroll jobs and contracts.

Mr. Blagojevich's office has said he knew nothing of the shadowy doings that emerged in testimony. But lawmakers in Springfield are already talking about impeachment, and a freewheeling Democratic primary for governor is expected in two years.