Sunday, June 7, 2009

Birds of a Feather...



Representative Luis Gutierrez has a habit of surrounding himself with some shady characters. Alderman Isaac Carothers was indited on corruption charges for taking bribes from developer Calvin Boender. Previously Luis Gutierrez pushed through zoning changes just for Mr. Boender, shortly afterwards receiving a $200,000 loan from him, as well as a $41,000 donation. As the saying goes, birds of a feather flock together, so I would not be surprised if Representative Gutierrez is eventually indited for corruption.

Chicago alderman indicted: Carothers took money from developer to help get project launched, prosecutors say



Isaac Carothers was paid to grease zoning changes, prosecutors say

By Jeff Coen, Todd Lighty and Dan Mihalopoulos Tribune reporters
May 29, 2009

A local developer who needed zoning changes to clear the way for a lucrative project on one of the city's largest pieces of undeveloped land took the age-old Chicago approach: bribing an alderman, authorities say.

Ald. Isaac Carothers (29th), a longtime ally of Mayor Richard Daley, was indicted Thursday on charges he accepted $40,000 in home improvements in 2004, as well as meals and tickets to a White Sox playoff game for supporting the zoning changes. Also charged was developer Calvin Boender, who transformed a 50-acre former rail yard -- much of it in Carothers' West Side ward -- into a residential and commercial project known as Galewood Yards.

Carothers is the second alderman in two years to be charged criminally for taking payoffs from developers. Former Ald. Arenda Troutman (20th) pleaded guilty last fall to demanding bribes from builders, making her the 27th Chicago alderman convicted of wrongdoing since 1972.

Carothers, chairman of the City Council's Police and Fire Committee, is accused of essentially committing the same crime as his father. Former Ald. William Carothers (28th) was sentenced to 3 years in federal prison in 1983 for extorting remodeling work for his ward office.

The case against Isaac Carothers again highlights how the singular control that aldermen hold over zoning decisions in the city has regularly invited deep-pocketed developers to get their way by illegal means. The Tribune's "Neighborhoods for Sale" series last year documented how politicians have raked in millions of dollars in campaign contributions from developers who benefited from zoning changes.

The Tribune chronicled how Boender overrode the opposition of city planners to Galewood Yards after enlisting the support of Carothers and U.S. Rep. Luis Gutierrez (D-Chicago). Gutierrez, who had just received a $200,000 loan from Boender for his own real estate investments, personally lobbied Daley.

Gutierrez wrote Daley a letter on U.S. House stationery backing the plan and vouching for Boender's character, but he has insisted his support for Galewood Yards and the loan from the developer were unrelated. Gutierrez has not been charged with wrongdoing, and a spokesman for the congressman said Thursday that federal investigators have never contacted Gutierrez about Galewood Yards or Boender.
U.S. Atty. Patrick Fitzgerald said the investigation, led by the FBI and IRS, continues.
Boender and his associates have donated about $55,000 to Carothers and $41,000 to Gutierrez, according to campaign contribution records.
Authorities alleged that the zoning changes enabled Boender to pocket an additional $3 million in profits from the sale of part of Galewood Yards.
The indictment also alleged that Carothers asked Boender to make campaign contributions to a relative who was running for Congress in 2004 and that Boender enlisted two donors to make contributions of $2,000 each on his behalf -- and then reimbursed them to evade federal donation limits. Carothers' aunt, Anita Rivkin-Carothers, ran unsuccessfully in 2004 against incumbent U.S. Rep. Danny Davis (D-Ill.).
Records show that Rivkin-Carothers' campaign received $4,000 from Boender and his wife as well as another $4,000 from a partner in the Galewood Yards deal, Robert Finnigan, and his wife.
Rivkin-Carothers, now a circuit judge in Cook County domestic violence court, and Finnigan did not return calls.
Carothers, charged with four counts of wire and mail fraud and one count each of accepting a bribe and filing a false federal income tax return, issued a statement Thursday declining comment because he had not seen the charges. His lawyer, Lawrence Beaumont, said Carothers would plead not guilty and looked forward to trial.
Boender was charged with four counts of wire and mail fraud, two counts of obstruction of justice, two misdemeanor counts of violating federal campaign finance laws and one count of paying a bribe. He could not be reached for comment Thursday.
In a statement, the mayor expressed surprise at Carothers' indictment, calling him "a hardworking, dedicated public servant."
Carothers has been an alderman since 1999. In supporting Boender's plan at a public meeting in 2006, he said it would be "one of the greatest projects you've seen in Chicago in a long time."
On Thursday, however, a sign in front of the new gated community -- now known as The Enclave at Galewood Crossings -- advertised an auction next month for dozens of unsold homes.
Tribune reporters Robert Becker and Hal Dardick contributed to this report. jcoen@tribune.com

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