News July/August 2006

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http://illinoisissuesblog.blogspot.com/

Multiple state departments under federal investigation

A federal investigation into state hiring practices covers more than a dozen state agencies, and “credible witnesses” are willing to talk.

In late June, Democratic Gov. Rod Blagojevich’s legal counsel, William Quinlan, issued a state memo ordering at least 15 agencies to gather comprehensive personnel lists and related computer records for a federal investigation into hiring fraud, according to the Chicago Tribune. The memo confirmed the investigation extended beyond the original three agencies the governor’s office acknowledged had received federal subpoenas.

A day later, a federal prosecutor’s letter revealed a number of “credible witnesses” are willing to talk. The letter was written by U.S. Attorney Patrick Fitzgerald, who had recently wrapped up former Gov. George Ryan’s racketeering and mail fraud conviction. Fitzgerald’s June 20 letter was meant for Illinois Attorney General Lisa Madigan, whom he thanked for turning over her own state hiring investigation to the feds to prevent interference.

Fitzgerald also thanked Madigan’s office for conceding that the “very serious allegations of endemic hiring fraud be thoroughly and expeditiously investigated and, if appropriate, prosecuted.”

The letter stated the federal grand jury investigation began more than a year ago, followed by a second investigation late last summer. Specifically, multiple state agencies and departments have been under scrutiny for allegedly rigging state hiring practices to help politically sponsored applicants get jobs. Most of the positions are supposed to be protected from political influence under the 1990 Illinois Supreme Court decision in Rutan et al v. Republican Party of Illinois et al. (Scroll down to my May 22 blog.)

At the same time, the Chicago Tribune exposed a scathing report written in September 2003 by the governor’s own inspector general, Zaldwaynaka “Z.” Scott, whose position was created by an ethics law signed by the governor that year.The report alleged the man in charge of the governor’s patronage office, Joe Cini, was the driving force behind politically sponsored applicants and campaign contributors getting jobs through the Illinois Department of Employment Security. “This effort reflects not merely an ignorance of the law, but complete and utter contempt for the law,” Scott wrote in the report, according to the Tribune.

In response, Blagojevich’s office issued a prepared statement saying there were some “bad apples who violated the rules,” but the administration formed a hiring system that helped “ferret out this wrongdoing.”

Bethany Carson
Illinois Issues, July 6, 2006

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People

U.S. attorney reveals details from case
against Ryan
Government's evidentiary proffer for United States of America v. Lawrence Warner and George H. Ryan, Sr. (.pdf)

Illinois Issues, January 11, 2004

Read our analysis: George Ryan's political career

Illinois Issues, December 17, 2003

Case summary of Operation Saferoad
(updated December 17, 2003)
http://www.usdoj.gov/usao/iln/osr/osrcasesummary.pdf

Press release, the Ryan indictment
http://www.usdoj.gov/usao/iln/pr/2003/pr121703_01.pdf