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AT&T Illinois to pay $23M to settle federal probe involving Mike Madigan

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Published  October 14, 2022 9:18am CDT
Michael Madigan
FOX 32 Chicago

Mike Madigan hit with more charges, AT&T Illinois to pay $23M to settle federal probe

A federal grand jury on Friday indicted former Illinois House Speaker Michael Madigan on a new conspiracy charge, adding to the bribery and racketeering counts he already faces.

CHICAGO - A federal grand jury on Friday indicted former Illinois House Speaker Michael Madigan on a new conspiracy charge, adding to the bribery and racketeering counts he already faces.

"Mike Madigan is the ninth recent or sitting legislator to face federal charges just in the last four years," said Republican state Rep. Tom Demmer of Dixon.

The feds also filed five charges against the former president of AT&T Illinois for conspiring to deliver a $22,500 payoff. The cash allegedly went to a close ally of Madigan.

AT&T Illinois was charged with one count of using an interstate facility to promote unlawful activity and agreed to pay $23 million. The charge will be dropped after two years, in exchange for the company's cooperation.

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Republicans say not enough is being done to fight such corruption.

"In many other states, even a single indictment would lead to significant change. But here in Illinois, the status quo and the power that protects the status quo continue to bury their heads in the sand, instead of aggressively confronting and changing the culture," Demmer said.

The newest corruption allegations mirror in many ways the much larger and more brazen scheme carried out by top executives of electric utility giant ComEd. That company has admitted to paying a million dollars in bribes to members of then-Speaker Madigan's inner circle, in exchange for big rate increases that hit consumers.

The feds now claim that Paul La Schiazza, then-president of AT&T Illinois, sought to grease the passage of certain legislation AT&T wanted by arranging a $22,500 payoff to a close associate of then-Speaker Madigan.

State Rep. Terra Costa Howard is a west suburban Democrat who helped to force Madigan out as speaker.

"I wish I could say I’m surprised. I guess the answer is I’m really more disappointed. Once again, people who the public have trusted to do what's right failed us," Costa Howard said.

A spokesman for AT&T Illinois wrote, "We hold ourselves … to the highest ethical standards. We are committed to ensuring that this never happens again."