Monday, July 29, 2013

First up - Nepotism ain't dead yet!

All roads lead back to the Daleys and Madigans with intertwining relationships in Chicago. 

The legacy of the Roger J. Kileys and how it pays to be part of the Irish anointed clan getting fat off taxpayer monies is noteworthy.

In Chicago, inheritance of the family business is key to insuring a constant flow of taxpayer dollars by working the "friends and family" system. The Kileys are no different than hundreds of patronage workers who engage in a secret plot to loot the public coffers. Stories have been written by ace news reporters, the reading public may get indignant for fifteen minutes, but public disclosure has done little to curtail these activities or return monies to the people unjustly gained via sole source, over billed back room deals.

We suggest you study intro Accounting with particular emphasis on one-column bookkeeping as only assets are garnered without suffering any liabilities.

So, for all you novices out there looking obtain residual income and steady employment, here is a primer on how to amass personal funds in a manner more reliable than investing in stocks or bonds.

According to Wikipedia, here is the story of Grandpa Roger Kiley.

"Roger Joseph Kiley (October 23, 1900 – September 6, 1974) was a United States federal judge.
Born in Chicago, Illinois, Kiley received an LL.B. from Notre Dame Law School in 1923. He was a College athletic coach from 1922 to 1932. Professional football player, Chicago Cardinals (no dates). He was in private practice in Chicago, Illinois from 1933 to 1940. He was a member of the Chicago Board of Alderman, Illinois from 1933 to 1940. He was a judge on the Superior Court of Cook County, Illinois in 1940. He was a judge on the Appellate Court of Illinois, First District, Chicago, Illinois from 1941 to 1961.
Kiley was a federal judge on the United States Court of Appeals for the Seventh Circuit. Kiley was nominated by President John F. Kennedy on June 20, 1961, to a seat vacated by William Lynn Parkinson. He was confirmed by the United States Senate on June 27, 1961, and received his commission on June 30, 1961. He assumed senior status on January 1, 1974. Kiley served in that capacity until September 6, 1974, due to his death."

Remember, you need to keep focused on the winning formula: Notre Dame, Chicago politics, JFK, Irish heritage and a sponsor!

Next up, Roger J. Kiley, Jr., quite the chip off the old block.

According to John Kass' article dated June 1, 1995
"Mayor Richard Daley is scheduled to announce on Thursday that former Cook County Judge Roger J. Kiley Jr. will succeed Gery Chico as his chief of staff, according to City Hall aides. The announcement follows weeks of reports about internal squabbling among senior City Hall staff over the post. Kiley, an ex-Marine, will sell his Oak Park home and move to Chicago after he assumes the job, sources said...Kiley is a member of a longtime political family and has been a friend of the mayor for more than 25 years. He is a senior partner at Mayer, Brown & Platt.
Kiley's understanding of politics is considered especially important at this time, with Daley taking on the responsibility of running the school system and losing trusted aide Timothy Degnan, who is retiring as intergovernmental affairs director.
Kiley, 58, has worked at Mayer, Brown & Platt since 1989. He has also worked as an outside general counsel to the Metropolitan Pier and Exposition Authority and during the 1970s, was a law partner of Illinois House Democratic Leader Michael Madigan of Chicago. He was a judge for 13 years, resigning from the Chancery Division in 1989.

Fast forward to a 2005 Sun Times article by Steve Warmbir & Tim Novak re George Ryan. 

Mayor Daley's former chief of staff is now a partner at the law firm of Mayer Brown Rowe & Maw, the exclusive lobbyist for McCormick Place and Navy Pier.
While Fawell was running McCormick Place, he asked Kiley to hire Ron Swanson as a lobbyist, fulfilling a request from Ryan, prosecutors say. Swanson allegedly did little or no work under the deal that cost taxpayers $5,000 a month."

Here is the sole source contract and renewal gifted to Kiley by Renee C. Benjamin, General Counsel, MPEA that cost taxpayers $230,000. As a quasi State-City agency receiving direct funds from the Illinois Legislature annually to offset the operating deficits incurred by the management run by political hacks, why would MPEA need a lobbyist with an annual deficits of $287.8 Million for July, 2005-June, 2006? The answer is simply because they could pay outside legal fees without detection or taxpayer accountability!

We will come back to the MPEA connection below.

Next up, 3rd generation Roger J. Kiley, III, 31 years old at that time.

Kiley was honored by Loyola in 2010. Here is an excerpt from their writeup "Roger J. Kiley, Jr. earned his J.D. at Loyola’s School of Law in 1966, after earning his B.A. at the University of Notre Dame in 1958.  Judge Kiley is currently practicing law as a sole practitioner following his 2009 retirement from Mayer Brown, LLC where he was a partner for 18 years."

Kiley Jr left Mayer Brown and moved into Shefsky's offices at 111 E. Wacker Suite 2800, Chicago. This is no coincidence. He was insuring the family legacy for the next generation.

In a June 28, 2010 press release, Mayor Daley appointed Kiley Jr as an interim board member at MPEA to replace the board removed by the legislature for mismanagement of the Authority and signed into law by Governor Quinn in January, 2010.

Corruption Busters' ongoing investigation of fraud and mismanagement at MPEA reveals that simultaneous with this timeframe, Renee Benjamin hands Shefsky a sole source, no cap billing contract for a litigation matter resulting in over $300,000 of billings at $295 per hour with most of those hours billed, coincidentally by Roger Kiley III. So the family business continues to thrive. Daddy sure was watching the store!

On the surface, the negotiated rate for outside legal fees would appear to be reasonable. But, here is the rub. Legal services are never provided using just one lawyer. In most cases, the effective billing rate per hour is three times $295 or $885. MPEA employed a full time General Counsel at $195,000 per annum, an assistance general counsel at about $145,000 and a Senior Attorney at $110,000 plus other legal staff. The math is simple; Renee Benjamin's effective hourly rate is $93.75 and the senior attorney's rate is $52.88. Both went to law school and should be capable of litigating a contract dispute! This is certainly a breach of taxpayer trust and waste of funds for personal gain.

Looks like Board Member Kiley has the fiscal opportunity to sign off on his kid's invoices to MPEA! Where are the internal audit controls to safeguard taxpayer assets? Jim Reilly, MPEA CEO (formerly Trustee) should be watching the store more closely but he was appointed Trustee via the Illinois Legislature (read this Madigan) tossing out the previous board!

Corruption Busters has completed a forensic audit of the Shefsky invoices and has determined a pattern of milking the billings for personal gain. Failure to provide a cap on reasonable services by the General Counsel, Renee Benjamin resulted in gross over-payment of unnecessary professional services that should have been provided by her and her in-house counsel.

MPEA is now bankrupt with a 2012 fiscal deficit of $999 Million. Perhaps it is time to have a court appointed trustee oversee the daily operations?

We call for an investigation by the Illinois Attorney General, Governor of Illinois and Mayor of Chicago to audit these billings for gross overcharges with the intent of recovering taxpayer dollars.

There are 13 million citizens in Illinois who would also like to get in on the action. It certain pays in spades to be a member of the Kiley  clan!

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