I do wonder if Fitzie would actually get into the Daley kingdom operations.
Posted on 05/29/2009 5:40:05 PM PDT by STARWISE
City pension officials have been hit with subpoenas from a federal grand jury trying to determine how they decided to invest $68 million with a start-up company co-owned by Mayor Daley’s nephew.
The grand jury issued the subpoenas Wednesday, nearly two months after city pension officials refused to comply with similar subpoenas issued by the city of Chicago’s inspector general, David Hoffman.
Hoffman said Friday that he and federal investigators are now jointly investigating the pension fund investments with DV Urban Realty Partners, co-owned by Daley’s nephew Robert Vanecko and one of the mayor’s top African-American allies, Allison S. Davis.
This is the second joint investigation that Hoffman and federal authorities are conducting into Vanecko’s businesses.
The other investigation involves the hidden ownership stake Vanecko and the mayor’s son, Patrick Daley, held in a sewer-cleaning company that won millions of dollars in no-bid contract extensions from City Hall. Vanecko and Patrick Daley have said they sold their investment in the company in late 2004 when Patrick Daley enlisted in the Army and Vanecko went into business with Davis.
Hoffman began investigating Vanecko and Patrick Daley in the wake of Chicago Sun-Times investigations into the mayor’s son and nephew during the past two years.
Davis, 69, and Vanecko, 43, set up their company, hoping to get money from public and private pension plans for real estate investments. But they were rejected by several private and government pension plans until 2006, when the five city pension funds agreed to invest $68 million with Davis and Vanecko.
Davis and Vanecko are guaranteed $8 million in management fees — they’ve been paid $2.7 million so far — under the eight-year deal that expires on Dec. 31, 2014. They can also share in any profits from their real estate investments.
They’ve invested the pension funds in eight Chicago properties, but all of their real estate deals have declined in value, partly because of the economic recession.
Davis and Vanecko are also trying to prevent the loss of $7.9 million in pension funds they invested in a stalled project to build a Dominick’s grocery store and condos at 3030 N. Broadway. They have been feuding with the developers, Michael O’Connor and Jon Zitzman, and are now trying to find people to buy out O’Connor and Zitzman at an auction set for June 5 in the law offices of Patrick Daley Thompson, another mayoral nephew.
City pension officials refused to comply with Hoffman’s subpoenas, arguing he had no authority to demand records from them.
The federal grand jury stepped in, demanding records from the pension plans for Chicago municipal employees, laborers, police officers and firefighters even though the firefighters pension fund refused to invest any money with Davis and Vanecko.
The other two pension funds that in invested with Vanecko and Davis — Chicago teachers and the CTA — haven’t received any subpoenas from Hoffman or the grand jury.
I do wonder if Fitzie would actually get into the Daley kingdom operations.
For the list ... how many terabytes is that
legacy up to now ?
Somebody’s gonna end up sleepin’ wid da fishes in da Chicago River over dis. ;)
I think a lot of folks are sweating in
Chicago ... and it’s not due to the weather.
The cesspool stinks all the time.
New tagline
We’re all waiting for the Johnny Dep movie this summer based on John Dillinger’s escapades.
It was filmed in a town north of here, so we’re all just a twitter to see our dumpy little town ‘Go Hollywood.’
Granted, he was an Indiana Thug...but close enough, LOL!
Hmmm? Damned if I can think of anything!
Oh goody .. I know parts were also filmed
in Chicago. Lots of vintage cars, etc.
No, never.
It IS going to be fun! Heck, I’d watch Johnny read the phone book, LOL!
Too bad there are no Drive In Theaters left. That would be the ultimate venue for viewing that film.
The last time I went to a drive-in was 1979. I think Wisconsin has a few of them left...maybe I’ll drag Husband to one this summer. ;)
L/E might consider:
(a) conspiracy to defraud the IRS, and evade US banking laws,
(b) international money laundering,
(c) conspiracy to commit money laundering, and,
(d) aiding and abetting the preparation of false federal/state income tax returns.
Authorities might examine the company's receipts to verify bogus charitable contributions (kickbacks) and multiple conspiracies, and wire-transfers of funds (as part of a money-laundering conspiracy).
Government audits might show off-the-books bank accounts that were accessed solely by insiders, and that government-funds were used in various illegal schemes that might have integrated:
(1) money laundering,
(2) tax evasion (stolen money is taxable),
(3) violations of US banking and currency laws,
(4) conspiracy to commit wire fraud,
(5) commercial bribery in various financial schemes,
(6) establishing secret offshore bank accounts outside the purview of the IRS and US banking laws,
(7) fraudulent and casual accounting practices,
(8) non-existent financial oversight,
(9) having a hidden financial interest in companies faking business w/ DV Urban Realty Partners,
(10) putting phantom employees on the payroll (money laundering).
The IRS should determine if taxes were paid (stolen money is taxable).
IRS TOLL-FREE 1-800-829-0433----you may remain anonymous when reporting tax fraud.
Report fiduciary negligence; signing off on falsified documents here:
EMAIL askDOJ@usdoj.gov
FBI TIP PAGE http://tips.fbi.gov/ (you may remain anonymous)
EMAIL enforcement@SEC.gov
GOt it...Love the tag line....Now to connect a few more dots.
Hey Dillenger is from my neck of the woods......Come to think of it the RENO brothers buried some cash close to home.....Now where did I put that metal detector?
Gee Liz, you might want to check out:
CHICAGO: CRIME KIND OF TOWN
here:
http://www.freerepublic.com/focus/bloggers/2151323/posts?page=457
Feel free to connect a few dots or add your own.
“Now where did I put that metal detector?”
Husband brought his metal detector out for the young nephews last weekend. He found a coin that was about the size of a silver dollar and he thought, “Mother Lode!”
Turned out to be a kid’s play coin from Chucky Cheese or some such place.
I guess it’s back to working for a living, LOL! :)
ROFLOL I needed that one!
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