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Saturday, April 27, 2024

Burke convicted; Ex-Chicago Finance chair used power to boost law firm, stack courts, control government

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Former Chicago Ald. Ed Burke | Youtube screenshot

Former Chicago Alderman Ed Burke, who wielded immense power and influence over governments, courts and other institutions in Chicago and beyond, has become the most recent Chicago politician convicted of illegal political corruption, after a federal jury found him guilty on numerous racketeering, bribery and extortion charges over his leverage of political power to boost business for his law firm and help his connected friends.

Burke's convictions came on Thursday, Dec. 21, at the conclusion of a six-week trial that opened in mid-November in Chicago federal court.

Burke has not yet been sentenced. A racketeering charge could result in a sentence of up to 20 years in prison.

Burke was indicted by federal prosecutors in 2019, accused of using his position as the powerful chairman of the city's Finance Committee to steer business to his property tax law appeal law firm, Klafter & Burke.

Specifically, Burke was indicted on racketeering and bribery charges in connection with the attempted extortion of the developers of the Old Main Post Office project and the attempted shakedown of the owner of a Burger King restaurant on Chicago's southwest side.

According to the indictments, Burke threatened to bottle up tax incentives sought by the Post Office developer in the Finance Committee he chaired, unless the developer agreed to sign a $45,000 contingency agreement with his law firm. 

He was also charged for using his aldermanic office and political power to shakedown and squeeze business owners seeking city permits and tax incentives to move business projects in the city.

Among other charges, federal prosecutors said the evidence showed Burke also threatened to oppose the Field Museum's request for an admission fee increase "because the museum failed to respond to Burke's inquiry about obtaining an internship at the museum for a child of Burke's friend."

The charges, however, particularly centered on Burke's alleged use of his power to build a long client list for the Klafter & Burke firm.

The firm represents businesses and other property owners in property tax appeals, often winning reductions in property tax bills for those willing to pay the firm. 

Reduced tax bills for such connected property owners often result in higher tax bills for others, who must make up the difference paid to local governments in Chicago and Cook County.

That business model was not unique among Illinois politicians. Two prominent Chicago Democrats, including now-indicted former House Speaker Michael Madigan and State Sen. Robert Martwick, serve as partners in different property tax appeals law firms. 

Madigan's indictment did not involve his law firm's property tax appeal business.

Martwick has not been accused of wrongdoing.

In addition to serving as the chairman of the Chicago City Council's Finance Committee for five decades, Burke also led several influential Democratic political action organizations, which raked in millions of dollars in donations.

In that role, Burke exerted an outsized influence on Democratic Party politics in Chicago and Springfield, guiding the appointment of party leadership and selecting candidates for offices of all kinds, including judges, while stacking local governments with patronage employees loyal to his organization.

Federal courts had for decades exercised oversight of government hiring practices in Chicago, Cook County and Springfield, in the name of rooting out such unconstitutional patronage. However, that oversight largely came to an end in 2022, after the U.S. Seventh Circuit Court of Appeals sided with Democrat Gov. JB Pritzker's request to terminate the court decrees under which the watchdog oversight had been authorized.

The office of the U.S. Attorney for the Northern District of Illinois announced the verdict against Burke without additional comments.

The verdict, however, spawned reaction from across the political spectrum, with current and former aldermen largely defending their former colleague, while political rivals hailed the verdict as a strong signal that corruption should not be tolerated in Illinois politics any longer and to urge political reforms.

In a prepared statement, Ald. Raymond Lopez said: "... We, as flawed humans God has created, sometimes fall short, and when that trust is questioned, it makes it harder for anyone in office to be viewed without skepticism."

Lopez, like other City Council members, noted Burke "always advocated for his residents and, powered by his extraordinary knowledge of Chicago history, was able to find ways to improve our city's shortcomings."

He said his "thoughts are with" Burke and his family "during this difficult time."

He said he would urge the City Council to enact an ordinance forbidding Chicago aldermen from holding outside employment while serving on the Council.

Cook County Assessor Fritz Kaegi, a Democrat, took aim at Burke's law firm's property tax appeals work: "A free and fair assessment system is one in which everyone is treated the same, regardless of who you know. This verdict should bring an end to the nexus of corruption that develops when officeholders traffic in the work of property tax appeals."

He urged "state and county officials" to "adopt laws and regulations ... to prevent further acts of racketeering and bribery."

Some of the strongest comments against Burke came from former Chicago Mayor Lori Lightfoot, who attested to Burke's web of political influence - including using his power within the Democratic Party, which dominates Chicago, Cook County and Illinois government, to stack the courts with politically loyal judges.

"With this jury's verdict, Ed Burke should rightfully be remembered as a man who elevated personal ambition and greed over doing the people's work," Lightfoot said in her statement. "Along the way, Burke had had many, many enables: the pernicious practice of aldermanic prerogative which, despite efforts to eliminate it, persists to this day, especially in zoning and development decisions.

"The other elected officials who, over the years, looked the other way as Burke systematically monetized the Finance Committee for his own personal benefit. 

"And the party who gave Burke control over judicial nominations, so that decades of jurists became beholden to him."

Burke's wife, Anne Burke, served for decades as a justice on the Illinois First District Appellate Court and as a justice on the Illinois Supreme Court. She ultimately served as chief justice of the Illinois Supreme Court from 2019 to 2022, when she retired.

Anne Burke has not been accused of wrongdoing.

The Illinois Supreme Court signed off on Anne Burke's selection of then-First District Appellate Justice Joy V. Cunningham to replace Burke on the court. Cunningham is currently running as a Democrat to secure a 10-year term on the state's high court.

Illinois Republican Chairman Don Tracy said Burke's conviction stands as the latest example of long running corruption among the Democrats who run Illinois.

“Years of machine electioneering, pay to play politics, insider dealings, and catering to special interests have driven working families out of Chicago and Illinois, increased the tax burden and regulations on those of us who have stayed to fight for a better state, and hugely benefited the powerful few," Tracy said. 

"As the latest prominent Illinois Democrat to be convicted of official corruption, Alderman Burke will finally be held accountable much like Democrats Senator (Martin) Sandoval, State Senator (Terry) Link, Governor (Rod) Blagojevich, Congressman Jesse Jackson Jr., and the 38 other Chicago aldermen convicted in the last 50 years as we await Speaker Madigan’s corruption trial.”

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