AT&T Illinois to pay $23M fine over scheme involving state's former House speaker
Former Illinois House Speaker Michael Madigan was indicted on bribery, racketeering charges earlier this year
AT&T Illinois has agreed to pay a $23 million fine and its former president has been indicted on federal charges over a scheme involving former Illinois House Speaker Michael Madigan, who was arrested on racketeering and bribery charges earlier this year.
The Department of Justice announced Friday that AT&T Illinois will pay the fine to resolve a federal criminal investigation into the firm's "efforts to unlawfully influence" Madigan, noting that the utility company "admitted that in 2017 it arranged for an ally of Madigan to receive $22,500 from the company" via a lobbying firm.
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The same day, the U.S. Attorney's Office for the Northern District of Illinois unsealed a five-count indictment of former AT&T Illinois President Paul La Schiazza, 65, on allegations that he conspired with Madigan and a friend of Madigan's, Michael McClain, to "corruptly arrange" for the payment to be made.
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When contacted for comment, an AT&T Illinois spokesperson told FOX Business in an emailed statement, "We hold ourselves and our contractors to the highest ethical standards. We are committed to ensuring that this never happens again."
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As part of a deferred prosecution agreement, AT&T has agreed to continue cooperating with ongoing investigations surrounding the scandal.
Madigan, 80, and McClain, 74, were charged in March in a 22-count indictment accusing the former House speaker of using his position to illegally solicit funds from businesses for himself and others via a criminal enterprise for nearly a decade with his friend as a co-conspirator.
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The DOJ stacked an additional conspiracy charge each against Madigan and McClain as part of Friday's flurry of announcements surrounding the case.