Illinois’ most powerful politician, House Speaker Michael J. Madigan, has been identified by federal prosecutors as the public official at the heart of the lengthy federal investigation into the alleged ComEd bribery scheme, according to newly filed court documents.
On Friday morning, federal prosecutors in Chicago announced they had charged ComEd, the “largest electric utility in Illinois,” with bribery. They said the company had agreed to a so-called deferred prosecution deal, under which ComEd would pay a $200 million fine.
However, the deal also includes a requirement that the company continue to cooperate with federal investigators for at least three more years, to aid the federal Justice Department in “ongoing investigations of individuals or other entities related to the conduct described in the bribery charge.”
According to a “statement of facts” forming the basis of the deferred prosecution agreement, those investigations center on an individual identified as “Public Official A.”
According to filings, Public Official A serves as the Speaker of the Illinois House of Representatives.
Madigan has served in that role for nearly all of the last four decades in Illinois. Madigan also serves as chairman of the Illinois Democratic Party. His allies are myriad, found throughout Illinois state and local governments, and in Washington, D.C., influencing governance and rules making at all levels in the state, and, by extension, the nation.
The federal court documents filed Friday center on ComEd’s efforts to use patronage hiring and other bribes to steer passage of legislation through the Illinois General Assembly.
The legislation specifically included the controversial Future Energy Jobs Act, which was enacted by the state in 2016 and created special state subsidies for ComEd’s aging nuclear power plants in Illinois.
Those subsidies would be paid through fees paid to the state by power producers who rely on coal, oil and natural gas to produce electricity. By some estimates, those subsidies could ultimately amount to billions of dollars paid by electrical utility customers in the form of higher electricity rates, transferred to ComEd and its parent company, Exelon.
Legal challenges to the so-called Zero Emissions Credit program have been unsuccessful.
In the federal court filings, prosecutors said ComEd’s alleged bribery efforts were focused on placating “Public Official A,” Michael Madigan.
“Public Official A is the Speaker of the Illinois House of Representatives and the longest serving member of the House of Representatives,” the federal Statement of Facts said. “ComEd understood that, as speaker of the House of Representatives, Public Official A was able to exercise control over what measures were called for a vote in the House of Representatives and had substantial influence and control over fellow lawmakers concerning legislation, including legislation that affected ComEd.”
According to the Statement of Facts, ComEd agreed to hire, subcontract or otherwise pay “various associates of” Madigan, “including Public Official A’s political allies and individuals who performed political work for Public Official A.” This included payments made to “certain allies and workers (who) performed little or no work” for ComEd.
The Statement of Facts said the alleged bribery scheme between ComEd and Madigan began in 2011.
The document said payments were made through a third company, identified as “Company 1,” to allow the payments to remain out of the public eye.
According to the Statement of Facts, a top-ranking Madigan associate told ComEd Madigan had “named individuals to be ComEd employees, such as meter readers, as part of an ‘old-fashioned patronage system.’”
A ComEd representative allegedly responded by acknowledging “that such hires could be a ‘chip’ used by ComEd.”
From 2011-2019, ComEd made payments totaling more than $1.3 million to Madigan associates, prosecutors alleged.
“These payments … were intended to influence and reward Public Official A in connection with the advancement and passage of legislation favorable to ComEd in the Illinois General Assembly,” prosecutors said.
According to the Statement of Facts, a Madigan ally warned ComEd in February 2019 against any attempts to “tamper with the arrangement,” saying: “Your money comes from Springfield.”
Further, prosecutors assert ComEd agreed to appoint a Madigan associate to its board of directors, an retained a connected law firm, at Madigan’s request.
According to the federal court filings, ComEd benefited from the scheme, as well, securing Madigan’s support for “legislation that was beneficial to ComEd” and “a continued favorable rate structure for ComEd.”
The federal court documents estimated ComEd gained at least $150 million from the arrangement.