Chicago City Wire

Last Friday's announcement that Illinois Speaker of the House Mike Madigan was at the center of a federal criminal investigation came as no shock to Chicago businessman and investor Jeffrey Carter.

Commonwealth Edison reached a deal with the U.S. Attorney’s Office in Chicago after a lengthy investigation into the state’s biggest electric utility and its connections to and deals with political powers.

As part of a deferred prosecution of a single count of bribery, ComEd will pay a $200 million fine and comply with all regulations for three years. If it completes the terms of the agreement, the criminal charge in the U.S. District Court of Northern Illinois will be dismissed.

ComEd admitted to seeking “to influence and reward" someone referred to as “Public Official A” from around 2011 through 2019. Prosecutors indirectly identified “Public Official A” as Madigan, the longest-serving speaker of the House of Representatives in any state in American history. Elected to the Legislature in 1972, Madigan has led the state House for all but two years since 1982.

Carter said this was in keeping with the state’s political traditions.

“No surprise,” he told Chicago City Wire. “Illinois Democrats are the most corrupt in the U.S.”

The U.S. Attorney’s Office elaborated on the investigation.

“The company admitted that it arranged for jobs and vendor subcontracts for Public Official A’s political allies and workers even in instances where those people performed little or no work that they were purportedly hired by ComEd to perform," it said in a statement.

"In addition to the jobs and contracts, ComEd further admitted that it undertook other efforts to influence and reward Public Official A, including by appointing an individual to ComEd’s Board of Directors at the request of Public Official A; retaining a particular law firm at the request of Public Official A; and accepting into the company’s internship program a certain amount of students who resided in the Chicago ward where Public Official A was associated,” the office said.

By doing so, the Illinois General Assembly “considered bills and passed legislation that had a substantial impact on ComEd’s operations and profitability, including legislation that affected the regulatory process used to determine the electricity rates ComEd charged its customers,” according to prosecutors.

While Madigan has not been charged, a court filing released Friday points to his inner circle.

“ComEd arranged for various associates of Public Official A, including Public Official A’s political allies and individuals who performed work for Public Official A, to obtain jobs, vendor subcontracts, and monetary payments associated with those jobs and subcontracts at ComEd, even in instances where certain political allies and workers performed little or no work that they were purportedly hired to perform at ComEd,” it states.

Carter said the legal process should proceed.

“If a grand jury sees evidence, then Madigan should be indicted,” he said. “If you watch MichaelMadigan.com it’s certain there is ‘smoke.’”

The documentary cited by Carter was produced by Austin, Texas-based Emergent Order.

As far as who should take over the case, Carter said the federal government should step in.

“The FBI should investigate with AG (William) Barr overseeing it,” he said.

Carter predicted additional trouble, with reports that Gov. J.B. Pritzker remains under scrutiny for a tax scheme.

“If Madigan falls plenty of others will too including our governor, who clearly gamed the system to cheat on his taxes,” he said.

Carter co-founded the venture capital firm Hyde Park Angels and the financial technology startup company West Loop Ventures.

He writes about politics, government and other ideas and issues that he explores on his blog Points and Figures.