Thursday, March 20, 2008

Chicago corruption update: Convicted fraudster eligible to bid on city business in three years

Businessman James Duff and his associates gained an a huge chunk of City of Chicago business by passing off companies as minority or women owned. He's now serving a prison sentence for racketeering and fraud. He's expected to be released in 2014, but he'll be eligible to bid on city business in 2011.

That's Chicago at its "best."

From the Chicago Tribune's Clout Street Blog:

Mayor Richard Daley's administration has banned the head of Windy City Maintenance and two others convicted of contract fraud from doing business with the city for three years, despite a recommendation from the inspector general that they never be allowed to do work for City Hall again.

James Duff, who cheated the city and insurance companies out of millions of dollars, should be subject to the stiffest penalty outlined in policies drawn up in 2005 following a series of contracting scandals, Inspector General David Hoffman said Wednesday.

Duff, a member of a mob-connected family with strong ties to the mayor, became the face of contracting fraud in Daley's administration after creating phony minority-owned and woman-owned businesses to get city work.

A federal prosecutor once called Duff "the epitome of greed" and a city official previously gave assurances that City Hall had no interest in ever again doing business with Duff-related companies.


UPDATE March 21: Scroll down up two posts, but the City relented to the predictable uproar--Duff is now banned for life from doing business with the City of Chicago.

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