Gratitude
is a fleeting commodity, quickly forgotten by the
beneficiary. But, for the benefactor, the
animosity fostered by ingratitude does not so
rapidly dissipate.
For
two disgruntled Chicago politicians, gratitude --
or the lack thereof -- is fueling a legal and
political situation that could have a significant
impact on the 2006 Illinois governor's race and on
the 2007 Chicago mayoral contest.
Politician
Number One is disgraced former city treasurer
Miriam Santos, who was indicted by the U.S.
attorney in 1999 on five counts of attempted
extortion, five counts of mail fraud and two
counts of wire fraud and who was convicted on six
counts. She appealed, had the conviction
overturned after spending 112 days in jail, got
her job back, was re-indicted, and pleaded guilty
to one count of felony mail fraud. Now she's
trying to rehabilitate herself by persuading the
U.S. Department of Justice to agree to vacate her
guilty plea.
Santos
was once the favored protege of Rich Daley. When
Daley was the state's attorney, he named her in
1983 as the deputy director of the child support
enforcement division. In 1989, when county
Treasurer Cecil Partee succeeded Daley as state's
attorney after Daley was elected mayor, Daley
appointed Santos as treasurer. Showing only
fleeting gratitude, Santos soon embarked on her
own course, and she was never reticent to
embarrass the mayor. And, in the eyes of the Daley
clan and their allies, who prize loyalty above all
else, Santos became the "Irritating
Ingrate."
According
to sources close to Santos, she believes that the
mayor and members of the Daley Administration
"conspired" to bring about her political
demise, and she is readying a barrage of lawsuits
against the city and county seeking monetary
damages, to be filed if her guilty plea is
vacated. A vindicated Santos could have a major
impact in the 2007 mayoral race, especially if she
runs for mayor as the "reform"
candidate.
Here,
in a nutshell, is the Santos legal rehabilitation
-- or "I didn't technically do it" --
theory: During her 1998 campaign for Illinois
attorney general, Santos, on tape, demanded that
Fuji Securities, a broker which held city
investments, "belly up" with a
contribution; she also terminated city deposits in
other banks and investments. This, it was alleged,
was because lobbyists for those entities would not
contribute to her fund.
But
what if those "lobbyists" weren't
properly registered with the city Board of Ethics
under the city's lobbyist registration ordinance?
If they lobbied her to deposit funds with their
clients, but weren't registered as lobbyists, then
they violated the law. If they weren't registered
lobbyists and Santos cut off their clients, then
they can't claim that it was because they make a
contribution. If they were acting illegally,
Santos would have had a fiduciary duty to report
that fact to the ethics board and to cease doing
business with those firms.
On
the eve of her 1999 trial, after the prosecution
tendered its witness list, Santos' attorneys on
March 18 sent a general subpoena to the ethics
board to secure information, particularly the
lobbyist registration list. The city Corporation
Counsel's Office filed a motion to quash the
subpoena, which was sustained. At trial,
therefore, Santos could not attempt to impeach the
witnesses by proving so-called "bad
acts." Santos believes that the Daley
Administration was engaged in an "active
civil rights conspiracy" against her,
designed to violate her due process and witness
confrontation rights, as guaranteed by the U.S.
Constitution. Specifically, she cites "Brady
violations," which involves the suppression
of mitigating and exculpatory evidence, and "Giglio
violations," which involves the suppression
of witness impeachment information. Since the
trial court denied Santos the right to bring the
lobbyist registration ordinance before the jury,
Santos maintains that she was denied the right to
secure evidence concerning its violation by
witnesses. She believes that her initial
conviction was in error and that her subsequent
guilty plea was grounded on false belief and
should be voided once the court allows that
evidence to be presented.
Santos
has obtained state "whistle blower"
status, and she claims that she is owed a credit
of more than $375,000 for divulging information on
illegal lobbying. She claims that Paul Stepan, who
lobbied her in the early 1990s on behalf of a
client to get a loan from the city pension fund
and the police and fire pension fund, wasn't
registered. The fine for failure to register is
$500 per day. All city lobbyist records prior to
May 12, 1998, have been destroyed, as have all
county lobbyist records prior to Jan. 1, 1998.
That makes proof almost impossible.
In
addition to her criminal trial, Santos also was
sued in a civil action by the U.S. Securities and
Exchange Commission for alleged bribery. But if
the lobbyists weren't registered, then Santos
can't be liable for breaching a fiduciary duty. On
Sept. 23, 2004, the SEC filed a motion was filed
to dismiss Santos as a party defendant in that
action.
Now
Santos must get the plea agreement vacated on the
basis of what she believes to be the newly found
exculpatory information in the post-trial review.
If that occurs, the Daley Administration, already
mired in the "Hired Truck" scandal, will
find itself trying to explain why it vilified
Miriam Santos.
Politician
Number Two is veteran Northwest Side political
operative Dominic Longo, who deems Governor Rod
Blagojevich to be the "Incorrigible
Ingrate." Longo is threatening to file a
defamation lawsuit against the governor if he does
not publicly apologize for his years-old statement
that Longo would not be hired by the state or the
governor's office because of his "character
and work record."
Longo's
name surfaced during the 2002 governor's race. The
Republican nominee, Jim Ryan, claimed that
Blagojevich had "used convicted criminals to
get political work done" and directly
referred to Longo, who was convicted of vote fraud
in 1984. Blagojevich, who was trying to position
himself as the reform candidate, then disavowed
any ongoing association with Longo and pledged not
to hire him.
Longo,
who runs his own itinerant political organization
called the Coalition for Better Government, can
deploy scores of precinct workers, nearly all of
whom are city or county workers, to political
"hot spots" where politicians need aid.
Among the past beneficiaries of Longo's flying
precinct squad were Alderman Dick Mell (33rd),
Daley, former state representative Bob Bugielski
and Blagojevich. Longo also has been close to
Alderman Bill Banks (36th)
In
fact, concerning Blagojevich, Longo was present at
the creation. In 1992 Mell decided that
Blagojevich -- who Longo reportedly said was
"a rinky-dink lawyer" who was married to
Mell's daughter -- should be a state
representative. Mell asked Longo to run the
precinct operation in the 43rd Ward section of the
33rd District. Blagojevich upset incumbent Myron
Kulas in the Democratic primary by a vote of
11,771-6,968. Longo won his ward for Blagojevich,
helping him launch his political career.
By
1994, with then-U.S. Representative Dan
Rostenkowski enmeshed in an ethics investigation,
plans were being hatched to elevate Blagojevich to
the U.S. House. According to Longo, Mell
instructed him to negotiate a deal with Banks
whereby John Fritchey, who is Banks' brother's
son-in-law, would get Blagojevich's state House
seat in 1996 if Banks would "cut" the
1994 candidacy of county Commissioner Marco Domico
(a Democrat from Banks' 36th Ward) and let the
Republican, Elmwood Park Mayor Pete Silvestri,
win. The payback, according to Longo, was that
Silvestri and Republican state Representative Skip
Saviano would help Blagojevich win the
congressional seat in 1996.
In
1996 Longo ran the 38th Ward for Blagojevich,
delivering a huge majority, and Silvestri and
Saviano did nothing to assist Republican Mike
Flanagan, who had upset Rostenkowski in 1994. So
Longo helped Blago go to Washington.
And
in 2002, when Longo was involved in Bugielski's
House race, he also pushed hard for Blagojevich on
the Northwest Side. He claimed that he was
"involved in initial meetings to plan"
the governor's race. Blagojevich won the
Democratic nomination for governor by just 25,469
votes statewide. So Longo helped Blago go to
Springfield.
At
a February press conference, Longo asserted that
he "introduced" now-top Blagojevich fund
raiser Chris Kelly to Blagojevich and said that
the governor is "ungrateful, disloyal and
disrespectful to (those) who helped elect
him" and that he is "arrogant and driven
by political power."
To
prove a defamation action, Longo will have to show
that the governor's statements were uttered with a
"reckless disregard of truth or
falsity," that Longo suffered monetary
damages, and, since Longo is a public figure, that
the governor's words rose to the level of
"actual malice."
Longo
has been on various city payrolls since 1972. He
has been an assistant director of facility
management at the Chicago Park District, an
assistant commissioner of general services for the
city, and the O'Hare Airport manager for the city
Department of Aviation. In all those posts, he had
the ability to persuade large numbers of patronage
employees to undertake precinct work for his
favored politicians.
Longo
retired from his Chicago job in 2003, but he
quickly latched onto a $59,000-a-year post as an
aide to Metropolitan Water Reclamation District
Commissioner M. Frank Avila. When he attains age
55, he will start drawing his city and park
district pensions. So Longo's "actual
damages" will be limited to speculative
embarrassment and mental "pain and
suffering," since he hasn't suffered any lost
wages or substantial diminution of income.
So
why is Longo pursuing his lawsuit? Quite simply:
vengeance. The governor has "taken care"
of many of his prior supporters, giving them state
jobs or contracts, but Longo has been ostracized.
As a civil tort action, defamation is difficult to
prove. But as a political stratagem, a defamation
action engenders a trove of publicity and opens
the door to civil discovery -- meaning document
production and depositions, which could
potentially elicit some damaging information.
The
Springfield consensus is that being sued by a
so-called "vote fraud felon" will
elevate the governor's stature. But there are a
lot of other Longo-like Democratic workers who
also deem the governor to be an ingrate, and the
lawsuit will reinforce that image. Plus, the
governor himself will be deposed, and lots of
documents on state hiring practices will have to
be produced. This lawsuit, if filed, will not be
politically helpful to the governor.