Madigan taps campaign fund for corruption defense as critics say more reforms are necessary

[March 12, 2022]  By Brett Rowland | The Center Square

(The Center Square) – Former Illinois House Speaker Michael Madigan's campaign fund used to be a political tool, but it has morphed into a lifeline for the once-powerful politician accused of using his elected position and political operation as a criminal enterprise for personal gain.

Madigan, who pleaded not guilty Wednesday to 22 counts of corruption, including racketeering and bribery, is the chairman and treasurer of Friends of Michael J Madigan. The candidate committee had $10.5 million cash on hand as of Dec. 31, 2021. That's more money than nearly every active candidate campaign committee in the state, with the exception of Friends of Don Harmon for State Senate ($12.58 million) and JB for Governor ($104.7 million). Gov. J.B. Pritzker, the billionaire heir to the Hyatt Hotel fortune, has largely self-funded his campaigns.

Friends of Michael J. Madigan spent $2 million with law firm Katten Muchin Rosenman LLP the day after Madigan resigned from the state legislature on Feb. 18, 2021 and five attorneys from that firm have filed appearances in federal court to represent Madigan.

Using campaign funds to defend against corruption charges is nothing new in Illinois. Former Gov. Rod Blagojevich, who was convicted of corruption in 2010, drained his campaign fund to pay for his attorneys, according to media reports. Blagojevich spent eight years in prison before former President Donald Trump commuted his sentence in 2020.

Kent Redfield, emeritus professor of political science at University of Illinois Springfield, said using campaign funds for criminal defense purposes has been the subject of previous court cases.

"Case law suggests you can use money you've raised to pay for a defense against corruption charges that rise out of holding public office," said Redfield, who has studied and written about campaign finance in Illinois.

Friends of Michael J. Madigan's biggest campaign contributors over the years are Chicagoland Operators Joint Labor-Management PAC ($3,232,900), Engineers Political Education Committee ($2,818,300), LiUNA Chicago Laborers District Council ($2,770,300), IBEW Illinois PAC ($2,025,615.05) and Laborers Political League Education Fund ($1,738,200), according to campaign finance records from Illinois Sunshine. None of those organizations responded to a request for comment regarding how the fund's remaining balance should be spent.

However, Redfield said the labor groups found a strong advocate in Madigan, especially when former Gov. Bruce Rauner was working to curb the power of labor in the state in an effort to reduce the state's financial problems.

"They don't want their money back," Redfield said. "They are thrilled that Madigan beat back Rauner's attacks."

Friends of Michael J. Madigan, which was created in 1982, is grandfathered in under the state's previous personal use policies. That means nearly $1.5 million of the remaining balance – $1,488,892.85 – are eligible for conversion to personal use, Illinois State Board of Elections Public Information Officer Matt Dietrich said. That figure is the total available in the account as of June 30, 1998. If Madigan were to tap that money for personal use, he would have to pay income taxes on that money, according to state election law.

Madigan's options for spending the remaining $10.5 million in the Friends of Michael J. Madigan fund could be limited going forward in part based on the corruption charges he faces. Prosecutors have alleged Madigan used his power for personal gain. Some Democrats have distanced themselves from the former speaker.

"I'm not sure who would want his money at this point," Redfield said.

Federal prosecutors did not mention Friends of Michael J. Madigan in the 106-page indictment filed against Madigan last week. Madigan has denied wrongdoing."I was never involved in any criminal activity," Madigan said in a statement last week. "The government is attempting to criminalize a routine constituent service: job recommendations. That is not illegal, and these other charges are equally unfounded."

The opposite happened with former Gov. George Ryan, who was convicted of corruption in 2006. A year before Ryan was charged, prosecutors indicted Ryan's campaign fund and two former top aides on charges of racketeering and mail fraud. Prosecutors said at the time that about $170,000 in illegal donations ended up with the campaign committee, mostly in exchange for illegally issued driver licenses, according to a New York Times report.

Although state lawmakers recently passed new ethics legislation aimed at helping to curb corruption in the state, advocates and experts say more can be done.

In 2021, lawmakers passed legislation that bans lawmakers from becoming lobbyists in the first six months after they leave office, increases financial transparency from elected officials and gives the Legislative Inspector General independent authority in investigations within government after a complaint has been filed.

Lawmakers made legislative changes after Ryan's conviction and again after Blagojevich's conviction, but Redfield said they still have room for additional changes.

"This is about hardening the target," he said. "They need to make it more difficult to be corrupt."

That includes strengthening the revolving-door prohibition on lawmakers becoming lobbyists, requiring more transparency on lobbying contracts and more disclosure details on statements of economic interest

"We can make if more difficult and riskier to be corrupt, but ultimately it's changing the culture," Redfield said. "We need public officials who don't want to be corrupt, who don't abuse their power because it would be wrong."

Redfield said that while corruption seems to be part of the DNA of Illinois politics, he's hopeful that it can change.

Alisa Kaplan, executive director of Reform for Illinois, said corruption has been harmful in Illinois.

"I think there's a perception in Illinois that it is hopeless, that Illinois is somehow different," she said. "But that's not right. And that's not productive."

Kaplan said lawmakers have made some progress in tightening ethics standards in recent years, but have other options to consider. Even Chicago, she said, has closed loopholes and made changes to ethics and lobbying practices. She said more can be done, including making efforts to reduce conflicts of interest.

Kaplan said changes to the state's campaign finance laws could also help, including public financing of campaigns. Getting there could be a challenge.

"Elected officials are often reluctant to change the rules of the system that got them elected," she said.

Brett Rowland has worked as a reporter in newsrooms in Illinois and Wisconsin. He most recently served as news editor of the Northwest Herald in Crystal Lake, Illinois. He previously held the same position at the Daily Chronicle in DeKalb.