*** The full indictment can be downloaded here. ***
*** The press release issued by Fitzgerald can be downloaded here. ***
*** If you missed Fitzgerald’s press conference, you can watch part of it at NBC5’s website by clicking here. ***
*** UPDATE 9 *** Vrdolyak’s mouthpiece speaks to the Sun-Times…
Responding to the indictment, Vrdolyak’s lawyer, Michael Monico, said: “We do not believe that the charges will withold the scrutiny of a public trial. He did not engage in a scheme with Mr. Levine. He did not pay him any money, and he did not agree to pay him any money. Mr. Vrdolyak is not guilty of these charges.”
*** UPDATE 8 *** From the press release…
If convicted, each count of mail fraud and wire fraud carries a maximum penalty of 20 years in prison and a $250,000 fine, and the bribery count carries a maximum penalty of 10 years in prison and a $250,000 fine. The Court, however, would determine the appropriate sentence to be imposed.
*** UPDATE 7 *** John Kass’ column is already up. It ends like this…
I never thought they’d get him. They don’t call him Fast Eddie for nothing.
*** UPDATE 6 *** ABC7 is carrying the press conference live right now. Go here. NBC5’s live video feed can be found here.
*** UPDATE 5 *** From the indictment…
VRDOLYAK and Levine agreed that VRDOLYAK would solicit Smithfield Properties to purchase the Scholl Property and that Levine, with VRDOLYAK’s knowledge, would misuse, and did misuse, Levine’s position and influence as a [Finch University of Health Sciences/Chicago Medical School] CMS trustee to arrange a sale of the Scholl Property to Smithfield Properties in exchange for a payment that would benefit Levine. VRDOLYAK ultimately entered into an agreement with Smithfield Properties to receive a $1.5 million payment after Smithfield Properties acquired the Scholl Property and repaid certain project costs. VRDOLYAK and Levine agreed that after VRDOLYAK received the $1.5 million payment, VRDOLYAK would deliver a portion of that amount to Levine.
[…]
At different times, VRDOLYAK and Levine discussed disguising VRDOLYAK’s transfer of the money to Levine through various subterfuges: by arranging for VRDOLYAK to make a sham loan to Levine’s wife, by having VRDOLYAK repay a loan that Levine would make with a business associate of VRDOLYAK’s, and by having VRDOLYAK make payments to Levine in cash. During this time period, VRDOLYAK talked with Smithfield Properties about the timing of Smithfield Properties’s payment to VRDOLYAK and VRDOLYAK then shared this information with Levine.
*** UPDATE 4 *** From CBS2…
Vrdolyak is accused of scheming with businessman and Republican insider Stuart Levine to get a kickback for Levine from the 2004 sale of the old Dr. William F. Scholl School of Podiatric Medicine at 1001 N. Dearborn St. for a condo project.
Vrdolyak, 69, was charged with one count of mail fraud, two counts of wire fraud and one count of bribery, according to the U.S. Attorney’s office. He will be arraigned at a later date.
*** UPDATE 3 ***
From Crain’s…
Former Chicago Ald. Edward Vrdolyak (10th) has been indicted on federal fraud and bribery charges, the U.S. Attorney’s office announced early Thursday afternoon.
*** UPDATE 1 *** John Kass explained “Operation Board Games” in a column…
Just as that March 2005 memo downgrading Fitzgerald was making its way to the White House, Fitzgerald’s office in Chicago was proceeding in a fascinating political corruption probe involving alleged kickbacks requiring state approval for the construction of hospitals.
That case would mushroom into Operation Board Games, revealing bipartisan political influence in hundreds of millions of dollars invested through state pension funds. […]
The FBI and federal prosecutors here investigated how hundreds of millions of dollars in public pension investments were made, and the influence exerted by political insiders who brokered ridiculously lucrative pension fund deals.
Fitzgerald characterized the scheme as “pay-to-play on steroids.” The investigation began with hospital construction irregularities, and it led like a trail of bread crumbs to top Republican and Democratic insiders in Illinois.
Those who have pleaded guilty include senior Republican fundraiser Stuart Levine and Democrat Joe Cari, the former finance chairman for the Democratic National Committee. Cari and Levine are cooperating with federal authorities. […]
Individuals A and K have not been indicted. But the Tribune identified them as Big Bob Kjellander (pronounced $hell-ander) and his buddy, Big Bill Cellini, the political boss of Springfield.
*** UPDATE 2 *** The Tribune has a brief story up…
Sources have said recorded conversations included Levine speaking to a number of figures, including former Chicago Ald. Edward Vrdolyak.
A lawyer for Vrdolyak, Michael Monico, said this morning he had not been made aware of any charges. Randall Samborn, a spokesman for the U.S. attorney’s office in Chicago, said the office had no comment.
Vrdolyak has never before been charged criminally, despite frequently coming under investigation during his decades in politics.
I wonder what this might be about? [Emphasis added]…
FOR IMMEDIATE RELEASE
THURSDAY MAY 10, 2007
PRESS CONFERENCE ADVISORY
Patrick J. Fitzgerald, United States Attorney for the Northern District of Illinois, together with Robert D. Grant, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; Thomas P. Brady, Inspector-in-Charge of the U.S. Postal Inspection Service; James Vanderberg, Special Agent-in-Charge of the U.S. Department of Labor Office of Inspector General in Chicago; and Byram Tichenor, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago, will hold a press conference at 1:30 p.m. today, Thursday May 10, 2007, to announce federal criminal charges resulting from Operation Board Games, a public corruption investigation of alleged insider-dealing, influence-peddling and kickbacks involving private interests and public duties.
The press conference will be held in the U.S. Attorney’s Press Conference Room on the 11th floor, north end, of the Dirksen Federal Courthouse, 219 S. Dearborn St., Chicago. The charges and a detailed press release will be available shortly before the start of the press conference. There are no court appearances scheduled for today in connection with this matter.
I’ll open comments when we know what’s going on.