After federal prosecutors revealed what they called a scheme by electrical utility ComEd to bribe Illinois House Speaker Michael Madigan for passage of legislation that funneled billions of dollars their way, ComEd now faces two lawsuits, demanding they be made to pay back to their Illinois customers at least some of the money they allegedly received as a result of the alleged bribery scheme.
On July 27, attorneys with the firms of Romanucci & Blandin, and DiCello Levitt Gutzler, both of Chicago, filed suit in Cook County Circuit Court, seeking a class action lawsuit on behalf of potentially millions of ComEd customers throughout the company’s Illinois territory.
That was followed on July 28 by a class action lawsuit filed in federal court by attorneys Kent Maynard Jr. and Michael I. Leonard, of Chicago, accusing ComEd and its parent company, Exelon, of violating federal racketeering laws for their roles in the alleged bribery scheme.
Stephan Blandin
| Romanucci & Blandin
Both lawsuits accuse ComEd of paying the bribes in the form of jobs and favors to Madigan political allies and members of Madigan’s sprawling political organization, to obtain legislation that forced ComEd’s Illinois customers to pay hundreds of millions of dollars, if not billions, more than they otherwise would have to ComEd in the past decade.
“The corruption of ComEd has cost consumers and businesses in Illinois far too much for far too long,” said attorney Stephan Blandin, of Romanucci & Blandin, in a press release. “While it’s important that ComEd came clean about bribery and agreed pay the government, there are 4 million families and businesses across the state that now deserve to be compensated for their overpayment for electricity for years and years.”
On July 17, federal prosecutors in Chicago unveiled charges against ComEd, accusing them of bribery.
They said the company had agreed to pay $200 million and cooperate as federal prosecutors continued to investigate the alleged pay-for-play bribery scheme.
While the federal documents laying out the known facts of the scheme, to date, did not directly name Madigan, the complaint referred to “Public Official A,” and identified him as the Speaker of the Illinois House of Representatives. Madigan has served as House Speaker in Springfield for nearly all of the past four decades.
Madigan also serves as chairman of the Illinois Democratic Party.
The federal charges center on ComEd’s efforts to use patronage hiring and other bribes to gain Madigan’s crucial aid in steering legislation through the Illinois General Assembly.
Essentially, ComEd agreed to hire Madigan friends and allies to placate “Public Official A.” This included payments made to “certain allies and workers (who) performed little or no work for ComEd.”
According to prosecutors, the scheme dates back to at least 2011, and resulted in two key pieces of legislation that resulted in higher rates charged to Illinois rate payers.
And while ComEd agreed to pay $200 million to the federal government under its so-called deferred prosecution deal, the lawsuits demand ComEd now be made to pay back perhaps hundreds of millions more to their Illinois customers.
The trial lawyers bringing the lawsuits also could stand to take in a large chunk of any judgment or settlement in fees, as well. Typically, a quarter to a third of any settlement is designated to pay the plaintiffs’ lawyers who lead the lawsuit.
The Cook County lawsuit demands unspecified “restitution” and “compensatory damages” for ComEd customers. However, the complaint notes ComEd itself estimated its alleged improper gains amounted to at least $150 million.
The federal racketeering lawsuit demands tripled actual damages for ComEd customers.
The Cook County class action filed by the Romanucci and DiCello firms does not directly name Madigan in the complaint.
According to Illinois State Board of Elections campaign contribution records, the Romanucci firm has directly contributed at least $64,000 to the Friends of Michael J. Madigan campaign committee since 2017, with additional contributions to other campaign funds run by Madigan and a host of other Democratic candidates and campaign funds.
However, the federal class action filed by Maynard and Leonard names the powerful Speaker, calling him a “racketeer” who conspired with ComEd to further the alleged scheme.
“Madigan and his fellow-racketeers have used their power as public officials to line their own pockets by infiltrating and corrupting both public and private enterprises subject to his power and selling secret and unlawful indulgences to the highest bidder,” the federal complaint asserts.
The federal complaint was filed on behalf of named plaintiff Lawrence Gress. Gress has also partnered with Maynard on a class action racketeering lawsuit against red light camera operator Safespeed and a host of other Illinois elected and appointed officials.
They are accused of running an alleged bribery scheme that ultimately allegedly bilked motorists out of millions of dollars in allegedly improper red light camera tickets. At the center of that alleged conspiracy was once powerful Democratic former State Sen. Martin Sandoval. Sandoval was forced to resign when he admitted to corruption charges.
That legal action against SafeSpeed and others remains pending.
Madigan has not been charged as a result of the federal investigation, and remains Speaker of the Illinois House, even as a growing number of lawmakers have called for his resignation, should the allegations against him prove to be "true." Democratic Gov. JB Pritzker also has indicated he believes Madigan should resign, if the allegations prove true.