AT&T Illinois to Pay Fine to Settle Scheme Allegedly Involving Madigan

AT&T Illinois has agreed to pay a $23 million fine to resolve a federal probe into its illegal efforts to influence former Illinois House Speaker Michael Madigan, who also faces new charges for his role in the scheme.

According to the US Attorney's Office in Chicago, the company admits that it arranged to make payments to an associate of Madigan, who was one of the state’s most powerful political figures at the time, in exchange for Madigan’s help in pushing through legislation favorable to the company, the U.S. attorney’s office in Chicago said in a news release. In what could spell trouble for Madigan, prosecutors also said the company agreed to cooperate with any related investigations.

Madigan’s attorney, Sheldon Zenner, declined to comment when reached by phone.

In a separate release, the U.S. attorney’s office said that Madigan, who was charged in March for his alleged role in a nearly $3 million racketeering bribery scheme, was indicted by a federal grand jury for his role in the AT&T scheme. In a separate indictment unsealed Friday, the company’s former president, Paul La Schiazza, was charged with participating in the conspiracy and other offenses.

Madigan, 80, has had a dramatic fall from power since retiring under pressure last year and ending his run as the longest-serving speaker of a state House of Representatives in modern history. As the Democratic speaker of the solidly Democratic-led Illinois House, Madigan, nicknamed the velvet hammer, wielded immense power. His reward of campaign cash and choice legislative assignments helped let him determine which bills received a hearing and which didn’t.

On Friday, prosecutors announced that in exchange for agreeing to pay the fine, they suspended their criminal case against AT&T, which alleges that it used an interstate facility to promote legislative misconduct. If, after two years, the company “abides by certain conditions, including continuing to cooperate with any investigation related to the misconduct alleged in the information,” the charges will be dropped.