Judge OKs 2-year delay in AT&T case; company’s ex-president pleads not guilty to Madigan-related charges

A federal judge Friday agreed to let the feds delay their prosecution of AT&T Illinois for two years, apparently following the lead set in 2020 by another judge when prosecutors first leveled a bribery charge against ComEd.

Both utilities have now faced charges as a result of the yearslong investigation that led to this year’s racketeering case against former Illinois House Speaker Michael Madigan. And both have now entered into deferred-prosecution agreements with the office of U.S. Attorney John Lausch.

AT&T Illinois, like ComEd, agreed to cooperate with prosecutors. And Assistant U.S. Attorney Amarjeet Bhachu on Friday told U.S. District Judge Jorge Alonso he expected that cooperation to be helpful in the prosecution of Madigan and former AT&T Illinois President Paul La Schiazza.

Though AT&T Illinois admitted wrongdoing in its deal with the feds, an attorney for the company pleaded not guilty as part of Friday’s proceedings.

Two years ago, U.S. District Judge John Kness insisted on a similar formal plea from ComEd. During Friday’s AT&T Illinois hearing, Alonso said he’d been given a transcript of a hearing in a “similar case” that was handled by Kness.

Alonso said he agreed that a plea was necessary from AT&T Illinois.

The hearing came one week after federal prosecutors expanded their case against Madigan and his longtime confidant, Michael McClain, to include an alleged illegal attempt by AT&T Illinois to sway Madigan, a once-powerful Southwest Side Democrat.

Madigan and McClain now face an additional conspiracy charge, and La Schiazza faces a separate five-count conspiracy indictment. La Schiazza pleaded not guilty through his lawyer during his own arraignment Friday. An arraignment for Madigan and McClain has been set for Nov. 1. Both have previously pleaded not guilty and publicly denied wrongdoing.

Meanwhile, AT&T Illinois aims to resolve its own criminal charge through its deal with the feds. If the utility holds up its end of the bargain, including payment of a $23 million fine, prosecutors are expected to drop the criminal charge filed against it. Alonso set a status hearing in the case for Oct. 14, 2024.

Prosecutors alleged last week that Madigan and McClain worked with La Schiazza to have $22,500 paid to former state Rep. Edward Acevedo in an attempt to influence Madigan as crucial legislation was considered in Springfield.

Acevedo has not been charged in the scheme. He pleaded guilty late last year to tax evasion and is now serving a six-month prison sentence.