Showing posts with label corruption. Show all posts
Showing posts with label corruption. Show all posts

Tuesday, June 10, 2014

Rep. Derrick Smith convicted on corruption charges

Chicago Democratic Rep. Derrick Smith was convicted of accepting a bribe in exchange for official duties.

Smith was caught on tape as part of a federal sting negotiating a $7,000 bribe in exchange for writing a letter of recommendation for a day care center he believed was seeking a $50,000 state grant. The day care center was not actually seeking the grant — instead federal prosecutors used an informant who had been a campaign worker for Smith to broker the deal and deliver the bribe money. Perhaps some of the most damning evidence against Smith was an audio recording of him counting the cash.

Smith was found guilty on one count of bribery and one count of extortion. Both are felonies.

Smith’s lawyers argued that he was not seeking to commit a crime and would not have taken a bribe if the federal informant had not continued to push him in that direction. According to court documents, the informant discussed the bribe with Smith for three months before moving forward with it. “We gave it a good fight,” Smith told reporters after the verdict was handed down. “It’s God’s will. God knows the truth about it all. The jurors just didn’t see what God saw.” Prosecutors say they received information that Smith would be willing to take bribes and argue that it would have been negligent for them not to investigate the claims.

After Smith was arrested in 2012, the House voted to expel him. But he was re-elected and returned to his seat in 2013. Smith, who was defeated in the Democratic primary this year, automatically loses his seat due to the convictions.

Tuesday, August 13, 2013

Feds to bring more oversight to Metra

By Jamey Dunn

The federal government will provide more oversight for Chicago’s commuter rail service as the number of board members dwindles.

The action from the Federal Railroad Administration is just another development in the ongoing fallout from allegations of political influence being asserted over hiring decisions and contract terms at the agency. Alex Clifford, the former chief executive officer of METRA, has said that lawmakers, including House Speaker Michael Madigan, tried to wield clout over the agency. His claims come as the Regional Transit Authority has launched an audit of Clifford’s severance settlement, which could leave him with more than $700,000. Legislative Inspector General Thomas Homer is investigating Clifford’s allegations, and Madigan has said publicly that he did nothing wrong. 

After the resignations of four Metra board members — including former chair Brad O’Halloran — the board lacks enough members to name a new chair. U.S. Sen. Richard Durbin wrote a letter asking Federal Railroad Administrator Joseph Szabo to intervene while Metra’s “current leadership issues are being resolved.” Durbin wrote in the letter sent to Szabo earlier this month: “I know the professional, non-political staff at Metra is dedicated to running this railroad in the safest way possible, however the lack of permanent leadership at the board and management levels creates a situation where accountability is hard to find and priorities like safety could become neglected.” In response, the Federal Railroad Administration will increase the number of train inspections and increase oversight of Metra’s testing and inspection program. The administration also plans to communicate directly with top Metra officials, reach out to labor leaders and attend meetings between labor and management. “Safety is our first priority,” Szabo said in a written statement. “Historically, Metra has had an exemplary safety record, in large measure due to the dedicated career personnel who oversee and perform the daily operations. Our goal is to ensure that legacy of safety does not erode during this period of transition.”

According to a statement from Metra, the agency plans to welcome the additional federal involvement. “Safety is our number one priority at Metra, and while we believe we are operating as safely as possible, we appreciate the efforts of Sen. Durbin and the FRA to provide additional oversight.”

Gov. Pat Quinn has also called for increased state involvement at Metra and RTA. He said he plans to bring together a group of experts to work up changes that would be ready to present to lawmakers when they return to the Statehouse for the fall veto session in October. “I think we need to have a little bit more direct action on behalf of the public,” he said. “Right now, the role of our department [of transportation] and our state is basically to just hand the money over to RTA and Metra. I think we need far more oversight under law of these entities.”

Thursday, August 08, 2013

Former Public Health chief of staff charged with corruption

By Jamey Dunn

An indictment released today alleges that the former chief of staff for the Illinois Department of Public Health accepted bribes and kickbacks for directing grants and contracts to certain providers.

Quinshaunta Golden is accused of taking $433,000 in kickbacks from state grant and contract funds. Golden, who is the niece of U.S. Rep. Danny Davis, is charged with bribery, theft and fraud. Golden was chief of staff to from 2003 to 2008, serving for most of that time under Department of Public Health Director Eric Whitaker. The indictment does not indicate that Whitaker knew of Golden’s alleged misdeeds. “At this point the evidence has taken us to Quinn Golden, and the evidence has not taken us farther,” Jim Lewis, U.S. attorney for the Central District of Illinois, said at a Springfield news conference. Golden is also accused of witness tampering/obstruction of justice because prosecutors say she tried the influence a witness in an attempt to cover up the alleged crimes.

Today’s indictment stems from an investigation that has led to charges against 12 other people, including former Chicago Democratic state Rep. Constance Howard. She pleaded guilty in July to one count of wire fraud. Howard is accused of spending money from a scholarship fund on personal and campaign costs. She faces a sentencing date in November. Prosecutors have said they will seek a six-month prison sentence and six months home confinement for Howard. “Charges filed against these 13 defendants collectively allege the misuse of more than $16 million in taxpayers’ money intended to provide a wide range of health care, student assistance, job training programs and services to disadvantaged citizens. These include programs to promote wellness and improve health care; to prepare for major health and natural disaster emergencies; to provide health care advocacy programs and student job training assistance; to provide skill training and apprenticeships; and to provide statewide HIV prevention plans and HIV/AIDS facilities to assist African-Americans,” stated a news release from Lewis’ office.

The IDPH did not respond for a request for comment, and Golden could not be reached. Her first court appearance is scheduled for August 23. Lewis said that the investigation continues. However, he said that the charges do not indicate that the corruption touched all the programs at the IDPH. He said that so far, the focus has been on about $16 million in grants and contracts. “That’s a fraction of the money that was used [by the department]. My assumption is that a lot of the money for job training went to job training, that a lot of the money for education went to education; a lot of the money for health went to health. What we’re saying is that certain individuals, either grantees or contractors or an individual in the department, would occasionally steer some of the money into their private pocket.”

However, Lewis said he did not want to downplay the severity of the charges. “Public corruption makes my blood boil. It strikes at the heart of who we are as a people, how we govern ourselves. And do we live up to the contract, the agreement, that we have with each other?” Lewis called on state workers and the public to blow the whistle if they suspect corruption. He said anyone who suspects wrongdoing can call his office at (217) 492-4450. “I encourage everybody, if you see something that’s wrong, say something. Say it to the authorities, and let’s see if there’s something there.”

Tuesday, December 04, 2012

Indicted lawmaker unlikely to face House reprimand in the near future

By Jamey Dunn

There seems to be little appetite in the Illinois House to take any disciplinary action against indicted Chicago Democratic Rep. La Shawn Ford.

Ford is accused of lying to the now-defunct ShoreBank, which was located in Chicago. A federal indictment alleges that Ford, a real estate developer, told the bank that a $500,000 line of credit was for his business but instead used the money on personal expenses, including mortgage payments, campaign costs and gambling debts. Ford, who says he is innocent, faces 17 criminal counts.

But unlike former Rep. Derrick Smith, who is accused of taking a bribe in exchange for helping a business get a state grant, it appears that the charges against Ford are not directly related to his duties as a lawmaker. That may make all the difference in terms of whether Ford will face disciplinary action in the House. “We’re going to digest that and not going to do anything at the moment,” House Minority Tom Cross said of Ford’s indictment. “We’re kind of curious to see what the Democrats are going to do at the moment. We’re evaluating it right now, and we’ll take a look at it. I think there’s a distinction between Ford and Smith in that Smith’s involved his office; we’re not sure Ford’s does.”

The House voted in August to remove Smith from office. However, Smith won the general election for his former seat and plans to return to the House in January when the new legislature is sworn in.

When asked what his thoughts were on the indictment and whether Ford should be disciplined, Steve Brown, spokesman for House Speaker Michael Madigan, said, “I have no thoughts.”

Ford said he plans to stay in his position in the House and declined to discuss the indictment today. “I’ve had a great day in the legislature today,” he said. But Ford did respond in a statement on his website shortly after the indictment was made public. “This has happened quickly; I became aware of this issue not long ago. I believe I am innocent of the charges brought against me today. An indictment is an accusation, not a conviction that the law was broken. I believe I did not break the law, and I look forward to the truth being told and justice being served. My family and I are grateful for all of the support we have received during this time.”

Wednesday, November 14, 2012

Former Dixon comptroller enters guilty plea


Rita Crundwell pleaded guilty in federal court today to embezzling more than $53 million from the city of Dixon when she served as its comptroller.

Prosecutors say that since the 1990s,  Crundwell has been funneling money sent from the state to the city into a phony bank account and then using it to fund a lavish lifestyle that included trips, multiple residences, and a horse breeding business. Crundwell pleaded guilty to one charge of wire fraud, and prosecutors reportedly expect that she will receive 15 years and 8 months to 19 years and 7 months in prison, but the defense is seeking 12 years and 7 months to 15 years and 8 months. She will remain free until her sentencing, which is scheduled for February 14.

Crundwell still faces 60 fraud charges in Lee County.

“Rita since the day of her arrest has worked with the government to accomplish the sale of her assets, including her beloved horses, all with the goal of hoping to recoup the losses for the city of Dixon,” Paul Gaziano, Crundwell’s attorney, told reporters in Rockford after she entered her plea. “I think the people of the city of Dixon ought to know that.”

Acting U.S. Attorney Gary Shapiro told reporters that Crundwell’s actions constituted “one of the most significant abuses of public trust I’ve ever seen in Illinois.”

The city of Dixon, which has a population of 15,511 according to the U.S. census, has already begun selling  Crundwell’s property to try to recover some of embezzled funds. However, Dixon Mayor Jim Burke said that many of her possessions are not available for sale until the federal case is resolved.

“We were very pleased that she had this guilty plea,” he said. “Lord only knows how long it would have gone on.”

He said the trade-off for residents is that Crundwell will likely get a reduced sentence for her cooperation. However, he said that more sales — such as an online auction of her jewelry, which has an estimated value of more than $500,000 — would proceed and bring some of the stolen revenues back to the town, “which will put people around here in a better mood, I’m sure.”

For a comprehensive look at this case of embezzlement, which has made national headlines, see the current edition of Illinois Issues.

Friday, August 17, 2012

House expels Smith, but he could return

By Jamey Dunn

The Illinois House expelled Derrick Smith today, but the embattled former representative could return to the ranks of the body if voters choose to vote him in this November.

The vote to expel Smith, who allegedly took a bribe in exchange for an official act, came as no surprise. The House disciplinary committee that recommended expulsion voted unanimously that Smith was at fault, and all but one member recommended expelling him. Smith was not present at the disciplinary hearing or during today’s vote. One hundred members voted in favor of kicking Smith out, while six voted against it. Three lawmakers voted “present.” The vote took effect immediately, and Smith’s name was removed from the House roll. It is the first time House members have expelled one of their own since 1905.

Smith was arrested in March and is accused of taking a $7,000 bribe in exchange for writing a letter of recommendation for a daycare center he believed was seeking a state grant. Smith was the subject of a federal sting, and the daycare was not actually seeking the grant. “Using one’s office for personal gain not for the public good is an affront to the core reputation of every legislator. To act in this way is to me a stunning violation of the oath of office each of us has promised to uphold. I can think of no greater breach of the public trust,” said Rep. Barbara Flynn Currie, who served on the committee that recommended expelling Smith. Several House members said that if Smith had gone under oath and denied that he had taken a bribe, today’s vote likely would have not occurred. Since the disciplinary committee had little evidence to work with other than the criminal complaint against Smith, Currie said it would have been difficult to refute the claims Smith could have made.

Elmhurst Republican Rep. Dennis Reboletti said that House members should take the information in the criminal complaint at “face value” because Smith never denied any of the allegations against him. “When you get down to the heart of the matter, Rep. Smith chose not to testify in front of us. He chose not to deny that those conversations [regarding the alleged bribe] in that affidavit ... ever took place. He had three opportunities in front of our special investigative committee to do so,” said Reboletti, who served on a preliminary committee that decided whether there was enough evidence to proceed with disciplinary action against Smith. Smith was allowed to plead the Fifth Amendment, which protects against self-incrimination, and choose not to testify in front of any of the House members. However, unlike in criminal court, House members were able to take his choice not to testify into consideration when decided whether to expel him from the chamber.

Those opposed to booting Smith did not defend his alleged actions, but they urged the lawmakers to wait until there was more evidence. They said that Smith had likely opted not to testify under oath because his lawyer advised him not to. Rep. Mary Flowers, a Chicago Democrat, called the proceedings “a dog and pony show.” She said that expelling somebody over unproven allegations sets a dangerous precedent. Flowers also noted that today’s vote means that lawmakers may have few options to get rid of Smith if he is elected to the House in November.

If Smith wins his bid in the general election, the House cannot expel him again over the same offense. He won his primary election race in the 10th House District with 77 percent of the vote. “He’s still on the ballot. And it is ‘we the people’, the people of his district that will have the say. They will be the ones to say if Mr. Smith will come back to this House or not,” she said. “There’s nothing that we will do here today that will stop him from coming back. And then what?”

Rep. Jim Durkin, who helped argue the case against Smith in front of the disciplinary committee, said that since Smith is the subject of an ongoing investigation, there is a possibility that he might face other criminal charges in the future. Durkin, a Republican from Western Springs, said if that were to happen, Smith could be expelled over another charge. “My hunch is that this case is not completely done,” he said. “If that is not the case [and he wins the election,] then Rep. Smith will be sworn in and seated next January because we can’t remove him for the charges for which we removed him today. However, Durkin said that the charge against Smith is so serious that it was necessary to take action and not wait until after the election.

Smith told reporters at a Chicago news conference that he was “sad” about today's vote. But he said there is a silver lining. "I am happy because through this ordeal, I have been able to learn who my friends are," Smith said. He said he plans to remain on the ballot. Many Democrats, including Smith’s former political ally Secretary of State Jesse White, have thrown support behind his opponent, third-party candidate Lance Tyson.

Wednesday, July 11, 2012

Quinn signs law ending legislative scholarships

By Jamey Dunn 

Gov. Pat Quinn signed a bill today eliminating legislative scholarships, as federal investigators appear to be pushing forward on a probe of the scandal-ridden program.

“It’s a very good day for Illinois. It’s a very good day for reform. It’s a good day for the taxpayers of our state. It’s a good day for education and for students who work hard and do their very best in order to try and get a scholarship that they deserve,” Quinn said at a bill signing event in Chicago today.

The program, which lets all members of the General Assembly hand out tuition waivers for state universities to students in their districts, has been under fire for years. Reports have surfaced of lawmakers giving the waivers to children of the politically connected or to students living outside of their districts. “I can understand if it happens once, might be a mistake. Twice? May be a mistake. But we are beginning to see a pattern, a trend, and that’s a problem,” said Rep. Fred Crespo, a sponsor of House Bill 3810. Because of allegations of corruption in the program, many lawmakers have opted not to give out the scholarships. Others call on independent panels to award them.

Lawmakers will no longer be able to hand out the waivers starting September 1. Students who have already been chosen to get the waivers for the upcoming school year will still receive them.

The newest development in the ongoing story of potential abuses of the program came yesterday when the Chicago Sun-Times reported that then-U.S. Attorney Patrick Fitzgerald’s office issued a subpoena in June to Sen. Annazette Collins for records related to her awarding of scholarships over her more than a decade-long stint in the General Assembly. The Sun-Times reported in March that Collins had awarded scholarships to students who used her home as their place of residence for the applications, while other documentation showed their residences as being outside of Collins’ district. Collins has denied any wrongdoing through her lawyer. Collins lost her primary election bid last February.

“Everyone has to follow the rules. So if there have been any rules that have been broken, they have to pay the consequences,” Quinn said today when asked about Collins. Prosecutors have also sought information about the scholarship program from the State Board of Education.

“Legislative scholarships are a perfect example of a program created with the best of intentions and then sadly hijacked by a small band of craven lawmakers with the worst of intentions,” said Andy Shaw, president and chief operating officer of the Better Government Association. “This is not about depriving needy students of educational opportunities. This is about depriving greedy lawmakers of unethical patronage opportunities.”

Crespo, a Hoffman Estates Democrat, said that while the program is often called a scholarship program, the cost is actually passed on to the universities. “We call this the legislative scholarship. It is not a scholarship. It’s a tuition waiver. A scholarship means that there is money or funding behind it. There was never any funding for this,” he said at today’s bill signing. Crespo said the program cost universities $13.5 million last year. “What does that mean for the state colleges? They need to cover that cost somehow. Consequently, I’m pretty sure the tuition for some of the paying students had to cover this privilege for state legislators.”

However, supporters of the program say it is an equitable and inexpensive way to make sure that financial assistance is spread throughout the state. “This is not a significant cost to the universities,” said Rep. Jim Sacia, who has local superintendents choose the students who receive waivers in his district. “What a shame that some of our colleagues have abused this system. This is one of the finest opportunities for young people out there. It gives kids the opportunity to go [to college] who don’t have the financial wherewithal,” Sacia, a Pecatonica Republican, said when the House voted to end the program. 

 But Shaw said the message sent by ending the program is more substantial than the savings. “This involves a very small amount of money in the scheme of things, less than $15 million a year, but it sends a very big symbolic message that better government is indeed possible in the state of Illinois.”

The new law also calls for a task force to scrutinize all waivers handed out by universities, which totaled $414 million last year. Such waivers are handed out for a variety of reasons, such as to graduate students who work in exchange for some or all of their tuition costs. Critics say that such waivers are handed out with little oversight and come at the expense of paying students. Those opposed to eliminating legislative waivers said the program should have gone through the same vetting under the task force as other waivers will face. “It’s almost [putting] the cart before the horse that we have this commission to take a look at scholarship waivers and at the same time abolish this program. Why not wait until we get findings that will determine the legitimacy of this program?” said Maywood Democratic Sen. Kimberly Lightford.

Tuesday, March 27, 2012

Rep. Smith a no-show for first investigative committee hearing

By Jamey Dunn

An Illinois House committee tasked with investigating a lawmaker who was arrested on bribery charges kicked off proceedings today.

The House Special Investigative Committee will consider the charge that Smith misused his office by accepting a bribe for services rendered from his position as a legislator. Investigators contend that he accepted a $7,000 bribe in exchange for writing a letter on his legislative letterhead recommending a daycare center for a construction grant. Smith was the subject of a federal sting. The daycare center was not actually seeking a grant, but prosecutors say Smith believed he was accepting a bribe for the letter.

Smith did not show up for the hearing today. He has not been present for legislative session in Springfield since he was arrested March 13. He has also not spoken to the press or responded to requests for comment from Illinois Issues or other media outlets.

Smith won his primary election race in the 10th House District with 77 percent of the vote. However, it is likely that Democratic leaders hope to pressure him to leave the ticket so they can choose a replacement candidate.

David Ellis, counsel for the investigative committee, said that he called Smith last Wednesday when the committee was created. He said he emailed Smith to let him know when and where the hearing would take place. Ellis said Smith told him he was aware of the hearing.

“Rep. Smith has not been convicted of a crime. He has been arrested on the basis of a sworn criminal complaint. He is innocent until proven guilty beyond a reasonable doubt following a full criminal trial,” said Rep. Elaine Nekritz, chair of the investigative committee. However, she added, “There are very serious allegations to be investigated by this committee.” Nekritz, a Northbrook Democrat, noted that the committee is not tasked with disciplining Smith. Instead, members must decide whether disciplinary actions are warranted. She said that there has not been a similar ethics charge in the chamber in recent history. “In anyone’s memory, there’s been no proceeding like this in the House, especially with the concurrent criminal investigation and charge out there.” But the proceedings are already drawing some comparisons to the impeachment and removal from office of former Gov. Rod Blagojevich. 

Rep. Dennis Reboletti, an Elmhurst Republican, said the committee is a “hybrid” between a grand jury, which decides whether there is enough evidence to move forward with a case, and a preliminary hearing. Reboletti, a former state’s attorney, said that if the committee decides there is no reason to move forward with a disciplinary tribunal, Smith would be exonerated of the alleged breach of ethics. “Like a preliminary hearing,” Reboletti said, “Rep. Smith is allowed to attend and testify on his behalf, be represented by council and … cross examine any witnesses that appear before this committee.” Nekritz said Smith would have to testify under oath if he appears before the committee. The committee’s vote will have no effect on the criminal case against Smith.

Committee members voted unanimously to consult with U.S. Attorney Patrick Fitzgerald to ensure that their efforts would not interfere with the federal investigation. Nekritz said they would also ask if  federal investigators would provide any evidence or witnesses to the committee. But Nekritz said such a move is unlikely. “We’re anticipating, frankly, that we have access to nothing, but we’ll see what they say.”

Nekrtiz said the committee would meet again when it receives a response from Fitzgerald. She estimated that the next meeting would be held on the week of April 8 and would likely take place in Chicago.

Tuesday, March 20, 2012

Corruption study on states yields surprising results

By Jamey Dunn

A watchdog project took a comprehensive look at the potential for corruption in state government, and the results were somewhat unexpected.

The State Integrity Project spent months looking into several areas of state government in all 50 states. The investigation — a joint project between the Center fro Public Integrity, Global Integrity and Public Radio International — issued a report card and ranked the states this week on their potential for government corruption. And for once, Illinois was not at the bottom of the class.

No states received an “A” from the group and eight states earned a failing grade. Illinois, along with 18 other states, received a C. A passing grade is little surprising for a state that has seen its two previous governors sent to federal prison for corruption convictions. And New Jersey, the state with the highest grade, has also been associated with corruption in recent years. New Jersey and five other states received a “B.” California, which ranked with Illinois in the top three states for corruption convictions in a recent report from the University of Illinois Chicago and the University of Illinois’ Institute of Government and Public Affairs, also received a “B.”

Illinois scored well in the areas of internal auditing, public access to information and its procurement process. The state's procurement procedures and its public information laws were revamped in the wake of former Gov. Rod Blagojevich’s impeachment and removal from office.

The state earned "Ds" for civil service management and legislative accountability and its only "F" for its redistricting process. A push grew before the 2010 census to revamp the way the state draws its legislative districts every 10 years. But reform efforts fizzled, and lawmakers redrew the maps last year in the same highly partisan and relatively secretive way that they have for decades.

The study warns that changes made in Illinois may do little to address the breadth of the state’s legacy of corruption. “But in some ways, they are like nips and tucks — cosmetic facelifts that conceal a host of ethical loopholes. Despite wide knowledge of its crooked history, Illinois remains a state where lobbyists do not have to disclose their fees, where legislators cannot be sanctioned for conflicts of interest, and where the judges who make it on the bench are those with the best political connections,” wrote Amanda Vinicky, Statehouse bureau chief for WUIS Public Radio and an Illinois researcher on the project.

David Morrison, deputy director of the Illinois Campaign for Political Reform, said Illinois and other states with reputations for corruption likely got passing grades in the study because their legislatures have approved anticorruption laws in reaction to scandal. "If nobody killed anybody, you wouldn’t need laws to outlaw murder. But that doesn’t mean you are protected from being murdered," he said. Morrison said that the State Integrity Project is an important measure but that it only looked at certain aspects of what plays into state level corruption. He said that the culture is also important, and in that area and others, Illinois still has work to do.

James Nowlan, a senior fellow at the Institute of Government and Public Affairs, said that culture extends beyond politicians to the state’s citizens. “Many in the public tell their children that politics is a dirty business,” he said. Nowlan said the idea that corruption is just a way of life in Illinois can be used to justify it when it occurs. “I think Illinois needs to work on the cultural underpinnings that seem to tolerate corruption.”

Nowlan said that not just Illinoisans but people across the country might be surprised that Illinois ranked in the top 10 states in an investigation that weighs protection against corruption. When Illinois usually gets a high ranking in such a study, it is similar to the one it got in a recent poll Nowlan conducted. He said that Illinois was perceived as the third most corrupt state in a recent nationwide poll he did to gauge public opinion of corruption across the country. “Illinois sticks out like a sore thumb in the Midwest as perceived to be a corrupt state.” However, most of Illinois’ neighboring states that were perceived to be far less corrupt in Nowlan’s survey ranked equal to or lower than Illinois on the State integrity Project’s scale.

Tuesday, March 13, 2012

Representative arrested for bribery eligible to run in next week's primary

By Jamey Dunn

State Rep. Derrick Smith was arrested today on bribery charges but could remain a candidate in next Tuesday’s primary election.

Prosecutors allege that Smith accepted a $7,000 bribe in the form of a campaign contribution to write a letter of support for a day-care center that he thought was vying for a $50,000 Early Childhood Construction Grant from the Illinois Capital Development Board.

But the day care owner was fictional, and the day care was not seeking the grant. Smith was the subject of a federal sting.

According to the criminal compliant, an employee who cooperated with prosecutors said that shortly after Smith was appointed to the General Assembly last March, he floated the idea of using a state grant to pay the employee for work on his failed campaign for Cook County commissioner. The employee is referred to as CS-1 (short for Cooperating Source) in the complaint. “Almost immediately following his appointment as state representative in March 2011, Smith agreed to present CS-1 as a contractor so that CS-1 could apply for and receive a state grant. Smith told CS-1 that the grant funds would be used to pay CS-1 for [his] campaign work. Smith told CS-1 that Smith, in turn, would take a ‘fee’ for approving the grant.” The employee said he turned down the proposal.

He went on to work with the feds to broker a phony deal between Smith and the day care. According to the complaint, the Federal Bureau of Investigation paid the employee $4,000 for his cooperation and also helped cover moving costs.

Between December of last year and March of this year, prosecutors say and Smith and the employee worked out a deal to sell a recommendation letter for campaign contributions as prosecutors recorded their phone calls and in-person conversations. The complaint said that Smith provided an official letter of support on March 2, 2012. The complaint said that Smith wanted the $7,000 in cash, quoting him as saying, “‘I don’t want no trace of it.’” Smith agreed to give the employee $2,000 for brokering the deal and to cancel the debt owed him for campaign work.

According to the complaint, the two met last Saturday afternoon, and the employee gave Smith $7,000 cash provided by prosecutors. Smith allegedly gave the employee $1,000 cash and promised another $1,000 in the form of a check.

 If convicted on bribery charges, Smith faces up to 10 years in prison and a $250,000 fine.

Smith is running in next Tuesday’s primary in the10th legislative district. He faces Tom Swiss, a former director of the Cook County Republican Party who is now running as a Democrat. Swiss has called for Smith to resign. Smith was not available for comment at his district office.

 However, there is nothing in the law to force a resignation or stop Smith from running on Tuesday. “[He’s] innocent until proven guilty,” said Ken Menzel, deputy general council for the State Board of Elections. Menzel said that Smith would only be ineligible from holding his position if he is convicted. “Unless he withdraws as a candidate, he’s still in the game.”

However, Menzel added, “This kind of news a week before the election is the kind of thing that generally loses you the election.”

There is no Republican opponent slated for the general election, but the party could change that. The Republican central committee could pick a candidate after the primary, and that person would then have until June 4 to gather the required 500 signatures.