Patrick Fitzgerald: Prosecutor details alleged hiring schemes at Mayor Daley’s City Hall.

SHARE Patrick Fitzgerald: Prosecutor details alleged hiring schemes at Mayor Daley’s City Hall.
SHARE Patrick Fitzgerald: Prosecutor details alleged hiring schemes at Mayor Daley’s City Hall.

In papers filed in federal court, U.S. Attorney Patrick Fitzgerald outlines alleged political hiring schemes at Mayor Daley’s City Hall.

Read the uncut, complete juicy details of the case against Daley’s former patronage chief, Robert Sorich, now facing federal fraud charges.

It’s long, but worth reading….

UNITED STATES DISTRICT COURT

NORTHERN DISTRICT OF ILLINOIS

EASTERN DIVISION

UNITED STATES OF AMERICA )

)

v. ) No. 05 CR 644

)

ROBERT SORICH, et al. ) Judge Coar

GOVERNMENTS EVIDENTIARY PROFFER SUPPORTING THE

ADMISSIBILITY OF CO-SCHEMER AND AGENT STATEMENTS

PATRICK J. FITZGERALD

United States Attorney

By: PHILIP A. GUENTERT

PATRICK M. COLLINS

BARRY A. MILLER

JULIE B. RUDER

Assistant U.S. Attorneys

219 South Dearborn Street, Room 500

Chicago, Illinois 60604

(312) 353-5300

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TABLE OF CONTENTS

I. Overview of the Charged Scheme . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2

II. The Law Governing the Admissibility of Co-Schemer and Agents Statements . . . . . . . 4

A. The Santiago Proffer Is the Approved Method of Proffering Co-Schemer

Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

B. Co-Schemer Statements Are Admissible as Nonhearsay Despite the

Absence of a Formal Conspiracy Charge, and Regardless of the Criminal

Intent of Each Co-Schemer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

C. The Supreme Courts Crawford Decision Has Not Changed the Admissibility

of Co-Schemer Statements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

D. The Proper Standard for Admissibility Is Preponderance of the Evidence . . . . . . 8

E. Principles for Determining Membership in and Existence of the Criminal

Scheme . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

1. The court may consider the proffered statements themselves

2. Both direct and circumstantial evidence can be considered

3. Requirements for determining if a person has joined the

venture

F. Statements Made in Furtherance of the Scheme . . . . . . . . . . . . . . . . . . . . . . . . . 11

1. Statements made to execute the scheme

2. Statements regarding the schemes activities

3. Statements to recruit co-schemers

4. Statements regarding the activities of other co-schemers designed to inform

or reassure the listener

5. Statements relating to the progress and past accomplishments of the scheme

6. Statements to conceal the criminal objectives of the scheme

G. Alternative Bases for Admissibility of Statements . . . . . . . . . . . . . . . . . . . . . . . 15

1. Agency admissions pursuant to Rule 801(d)(2)(D)

2. Defendants own statements

3. Non-hearsay statements including false statements

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III. The Governments Proffer Regarding the Existence of a Scheme and

Basis of Agency Admissions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

A. Background Concerning the Typical Hiring and Promotion Process

for City Operating Departments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

1. The formal hiring process

2. Summary of the scheme to rig the hiring and promotion process

B. Department of Sewers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23

1. IGAs role in hiring at Sewers

2. The interview process at Sewers

3. 2002 House Drain Inspector

4. Falcons false certifications concerning whether IGAs selections were based

on political considerations

5. Concealment of IGAs role in fixing Sewers jobs in 2004

C. Department of Streets & Sanitation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

1. Streets & Sanitation management personnel

2. IGAs role in hiring at Streets & Sanitation

3. The interview process in Streets & Sanitation

(a) Rigged interviews in the Bureau of Electricity

(b) Rigged interviews in the Bureau of Forestry

4. Examples of rigged sequences in Streets & Sanitation

(a) 2001 General Foreman of Motor Truck Drivers

(b) 2001 Program Director

(c) 2001 Tree Trimmer II

(d) 2004 Motor Truck Drivers

(e) 2004 Laborer

(f) 2004 Equipment Dispatchers

(i) The hiring process

(ii) Sullivans subsequent concern about an investigation

(g) 2005 Motor Truck Driver

5. Certification of the Shakman referral lists

D. Department of Water . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55

1. IGAs role in hiring at the Water Department

2. The interview process at Water

3. Examples of rigged sequences in Water

(a) 2001 Foreman of Water Pipe

(b) 2001 Career Service Motor Truck Drivers

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4. Certification of the Shakman referral lists

E. Department of Buildings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59

1. The 2004 Building Inspectors hiring sequence

(a) Sorich gave Buildings Candidate As name to the personnel director

(b) The first set of interviews

(c) Buildings Candidates A and B file new applications before the

second set of interviews

(d) The second set of interviews

(e) Kozicki inflates Building Candidate As score

(f) The reaction to the hiring

F. IGAs Role in Hiring in Other Departments . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65

1. Department of General Services

2. Department of Transportation

3. Department of Aviation

G. Campaign Coordinators Sought Jobs and Promotions from IGA . . . . . . . . . . . . 71

1. Donald Tomczak

2. Former Sewers Commissioner

3. Michael Harjung

4. Daniel Katalinic

5. CDOT manager

H. Additional Attempts to Conceal the Fraud . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84

1. Sorichs maintenance of a secret jobs list in the 1990s

2. Sorichs 1997 attempt to destroy IGA computer files

3. Renewed use of the database

4. Sorich ordered the political hiring files destroyed

5. Sullivans statements to investigators

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The UNITED STATES OF AMERICA, by its attorney, PATRICK J. FITZGERALD, United

States Attorney for the Northern District of Illinois, respectfully submits this written proffer,

pursuant to the provisions of Federal Rule of Evidence 801, including Federal Rules of Evidence

801(d)(2)(D) and 801(d)(2)(E), and United States v. Santiago, 582 F.2d 1128 (7th Cir. 1987), of the

governments evidence supporting the admission of co-schemers and agents statements at trial.

This proffer sets forth a summary of the evidence that the government will offer at trial relating to

a scheme among defendants Robert Sorich, Timothy McCarthy, John Sullivan, and Patrick Slattery,

who acted together and with others to commit offenses against the United States, namely mail fraud

and (in the case of John Sullivan) making false statements. This proffer also summarizes the

defendants and their co-schemers statements that furthered the defendants criminal scheme.

This proffer sets forth the agency principles under which the statements of these additional

actors are admissible pursuant to Rule 801(d)(2)(D) and 801(d)(2)(E) as statements of co-schemers

and agents. The legal principles governing admissibility of co-conspirator statements apply to the

joint mail fraud scheme in this case, even though the scheme was not formally charged as a

conspiracy. See, e.g., United States v. Godinez, 110 F.3d 448, 454 (7th Cir. 1997)(government need

not charge conspiracy in order for a co-conspirator statement to be admitted); Santiago, 582 F.2d

at 1130 (establishing law concerning Santiago proffers in a one-count case with no conspiracy

charge).

This proffer begins by briefly discussing the scheme charged in this case. It then discusses

the law governing the admissibility of co-schemer statements under Federal Rule of Evidence

801(d)(2)(E), and the agency provisions of Rule 801(d)(2)(D). Next, this proffer summarizes some

of the evidence supporting the admission of co-schemers statements and agents statements.

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The government is not detailing all of its evidence showing the existence of the scheme

charged in the mail fraud and false statement charges in the superseding indictment, all of the

statements that were made in furtherance of the scheme, or all statements made by agents within the

scope of the agency. Instead, this proffer outlines the law governing the admissibility of such

statements, provides background to the Court for evaluating the admissibility of these statements,

and highlights examples of its evidence. In this manner, the government will establish to the Court

the existence of the evidence available to complete the necessary foundation at trial and the roles

of various witnesses, as well as the bases for admission.

I. OVERVIEW OF THE CHARGED SCHEME.

On September 22, 2005, a federal grand jury returned a five-count indictment against

defendants Robert Sorich, Timothy McCarthy, John Sullivan, Patrick Slattery, and Daniel Katalinic.

The indictment charged that defendants used fraudulent processes to award City of Chicago (City?)

jobs and promotions on bases other than merit. The fraudulent scheme emanated from the Office

of Intergovernmental Affairs (IGA?), a division of the Mayors Office.

Following a guilty plea by Katalinic, the government returned an eight-count superseding

indictment on February 23, 2006 against Sorich, McCarthy, Sullivan, and Slattery. The superseding

indictment included six counts of mail fraud, and two counts of false statements by Sullivan.

The superseding indictment charges that defendants were full-time salaried employees at the

City. Each of the defendants had a role in administering the hiring and promotion process at the

City, and each owed a duty of honest services to the City and the people of the City in performing

that duty, as well as various duties under state and local law:

! Robert Sorich was Assistant to the Director of IGA, and worked in the Office from

1993 to 2005. In addition to his public employment, the superseding indictment

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alleges that Sorich had a role in coordinating political campaign activities, and that

he assigned field workers to work on behalf of certain candidates in conjunction with

the Mayors political organization.

! Timothy McCarthy worked in the Citys Department of Aviation since at least 1994,

and served as Assistant Commissioner for personnel in that Department from 1996

until 2001. In 2001, he was assigned to IGA. There, he assisted Sorich, taking over

many of Sorichs duties with respect to hiring and promotion.

! John Sullivan began working at the City no later than 1994. From 1999 through

2005, Sullivan was Managing Deputy Commissioner in the Department of Streets

& Sanitation. In his capacity as Managing Deputy Commissioner, Sullivan

supervised employees who administered the hiring and promotion process for Streets

& Sanitation.

! Patrick Slattery began working at the City no later than 1988. In about March 2000,

Slattery became the Director of Staff Services in Streets & Sanitation. In the

position of Director of Staff Services, Slattery, working with other Streets &

Sanitation employees, helped supervise the interview process for hiring and

promotions in Streets & Sanitation.

The superseding indictment charges that the defendants operated a scheme to subvert the

Citys formal hiring process by having employment decisions for many City jobs dictated by and

from IGA. To operate this scheme, defendants caused the falsification of City hiring and promotion

records, in order to conceal the fact that IGA controlled the candidate screening, interview, and

selection processes for these particular positions. As detailed below in Section III, the superseding

indictment identifies several categories of co-schemers, including:

! personnel officials, who manipulated the process to ensure that persons preselected

by IGA would be interviewed for positions, falsified rating sheets, and/or falsely

certified that political considerations played no role in the decision-making process;

! supervisors, who participated in sham interview panels and falsified rating sheets to

ensure the IGA picks would be selected;

! certain campaign coordinators, who ran political organizations that operated at the

direction of IGA, and lobbied IGA for City jobs for their political workers;

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1/Accord, e.g.,United States v. Haynie, 179 F.3d 1048, 1050 (7th Cir.1999); United States v.

Rodriguez, 975 F.2d 404, 406 (7th Cir. 1992); Hassan, 1998 U.S. Dist. LEXIS 17538, at **5-6.

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! and other City officials and employees who participated in, or benefitted from,

fraudulent aspects of the scheme.

II. THE LAW GOVERNING THE ADMISSIBILITY OF

CO-SCHEMER AND AGENTS STATEMENTS.

Rule 801(d)(2)(E) of the Federal Rules of Evidence provides that a statement? is not

hearsay if it is offered against a party? and is a statement by a coconspirator of a party during the

course and in furtherance of the conspiracy.? The admission of a co-conspirator statement against

a defendant is proper where the government establishes by a preponderance of evidence that: (1)

a conspiracy or scheme existed; (2) the defendant and the declarant were members of that particular

conspiracy or scheme; and (3) the statement was made during the course and in furtherance of the

conspiracy or scheme. See, e.g., Bourjaily v. United States, 483 U.S. 171, 175 (1987); United States

v. Westmoreland, 312 F.3d 302, 309 (7th Cir. 2002); United States v. Hassan, No. 98 CR 0613, 1998

U.S. Dist. LEXIS 17538 (Oct. 29, 1998)(Coar, J.).

A. The Santiago Proffer Is the Approved Method of Proffering Co-Schemer Statements.

In this Circuit, the preferred way for the government to makes its preliminary factual

showing as to the admissibility of such statements is by filing a pretrial written proffer of the

government’s evidence. See, e.g., United States v. Hoover, 246 F.3d 1054, 1060 (7th Cir. 2001);

United States v. Irorere, 228 F.3d 816, 824 (7th Cir. 2000).1/ In making its preliminary factual determinations,

the court must consider the statements themselves as evidence of a joint scheme and

whether the statements the government seeks to admit were made in furtherance of that scheme.

United States v. Brookins, 52 F.3d 615, 623 (7th Cir. 1995); United States v. Maholias, 985 F.2d 869,

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2/See also, e.g., United States v. Cox, 923 F.2d 519, 526 (7th Cir. 1991)(conspiracy charge not

a condition for admitting statements under Rule 801(d)(2)(E)). Accord, United States v. Reynolds,

919 F.2d 435, 439 (7th Cir. 1990); United States v. Kelley, 864 F.2d 569, 573 (7th Cir. 1989); United

States v. LeFevour, 798 F.2d 977, 983 (7th Cir. 1986).

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877 (7th Cir. 1993). Indeed, the court may consider all non-privileged evidence. United States v.

Lindemann, 85 F.3d 1232, 1238 (7th Cir. 1996).

B. Co-Schemer Statements Are Admissible as Nonhearsay Despite the Absence of a

Formal Conspiracy Charge, and Regardless of the Criminal Intent of Each Co-Schemer.

Statements may be admitted under Rule 801(d)(2)(E) notwithstanding the lack of any formal

conspiracy charge. See, e.g., Godinez, 110 F.3d at 454; Santiago, 582 F.2d at 1130.2/ In addition,

there is no requirement that each member of the venture share a criminal intent for the co-schemer

rule to apply to statements that members made in furtherance of the scheme. These two rules are

based on the very nature of the co-conspirator doctrine:

The distinction should be noted between conspiracy? as a crime and the coconspirator

exception to the hearsay rule. Conspiracy as a crime comprehends more

than mere joint enterprise. It also includes other elements, such as a meeting of the

minds, criminal intent and, where required by statute, an overt act. . . . The coconspirator

exception to the hearsay rule, on the other hand, is merely a rule of

evidence founded, to some extent, on concepts of agency law. It may be applied in

both civil and criminal cases. . . . Its rationale is the common sense appreciation that

a person who has authorized another to speak or to act to some joint end will be held

responsible for what is later said or done by his agent, whether in his presence or not.

* * *

The substantive criminal law of conspiracy, though it obviously overlaps in many

areas, simply has no application to this evidentiary principle. Thus, once the existence

of a joint venture for an illegal purpose, or for a legal purpose using illegal

means, and a statement made in the course of and in furtherance of that venture have

been demonstrated by a preponderance of the evidence, it makes no difference

whether the declarant or any other partner in crime? could actually be tried,

convicted and punished for the crime of conspiracy.

United States v. Gil, 604 F.2d 546, 549-550 (7th Cir. 1979)(citations omitted)(emphasis added).

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3/See also Hitchman Coal & Coke Co. v. Mitchell, 245 U.S. 229, 249 (1917)(explaining origin

of the co-conspirator rule in the law of partnership)(the act or declaration of one, in furtherance

of the common object, is the act of all, and is admissible as primary and original evidence against

them.?).

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This distinction was also explored in United States v. Coe, 718 F.2d 830 (7th Cir. 1983). In

Coe, the court explained that a so-called co-conspirator statements admissibility does not depend

on the substantive law of conspiracy:

Conspiracy as an evidentiary rule differs from conspiracy as a crime. The crime of

conspiracy comprehends much more than just a joint venture or concerted action,

whereas the evidentiary rule of conspiracy is founded on concepts of agency law. . . .

Recognizing this, some courts refer to the coconspirator exception as the joint

venture? or concert of action? exception. . . . A charge of criminal conspiracy is

not a prerequisite for the invocation of this evidentiary rule. . . . Indeed, it may be

invoked in civil as well as criminal cases. . . .

The proposition that the government did have to establish by a preponderance of

independent evidence was that [the individuals] . . . were engaged in a joint venture–

that there was a combination between them . . . .?

Coe, 718 F.2d at 835 (citations omitted).3/

C. The Supreme Courts Crawford Decision Has Not Changed the Admissibility

of Co-Schemer Statements.

The Supreme Courts decision in Crawford v. Washington, 541 U.S. 36 (2004), changed

much of the law concerning out-of-court testimonial statements, but it did not affect the admissibility

of co-schemer statements. In Crawford, the prosecution introduced a tape-recorded statement made

before trial by the defendants wife to law enforcement. Id. at 38. At trial, however, the wife was

unavailable as a witness due to the states spousal privilege law, and thus the defendant did not have

an opportunity to cross-examine her. Id. at 40. The Court ruled that admission of the statement

violated the Confrontation Clause, holding that where the government offers an unavailable

declarants hearsay that is testimonial? in nature, the Confrontation Clause requires actual

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4/The rule in Crawford also does not apply where: (1) a statement, though testimonial in

nature, is not offered for the truth of the matter asserted, 541 U.S. at 59 n.9; (2) the declarant testifies

at trial and is subject to cross-examination regarding the prior statement, id. at 59 n.9; (3) the

statement is non-testimonial, id. at 60; or (4) the declarant is unavailable to testify and the defendant

had a prior opportunity for cross-examination, id. at 59. Another exception to the confrontation

requirement applies where the defendant procured the declarants unavailability, that is, forfeiture

by wrong-doing,? see id. at 62; Fed. R. Evid. 804(b)(6).

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confrontation, that is, cross-examination, regardless of how reliable the statement may be. Id. at 51-

52. As examples of testimonial? statements, the Court listed prior testimony at a preliminary

hearing, before a grand jury, or at a former trial, and to police interrogations. Id. at 68.

The rule in Crawford does not apply, however, to statements that are not hearsay.4/ Thus,

the Seventh Circuit has squarely held that Crawford does not apply to and did not change the law

relating to co-schemer statements. In United States v. Jenkins, 419 F.3d 614 (7th Cir.), cert.

denied, 126 S. Ct. 782 (2005), the court noted:

As to the Confrontation Clause argument, Crawford does not apply. The recordings

featured the statements of co-conspirators. These statements, by definition, are not

hearsay. Crawford did not change the rules as to the admissibility of co-conspirator

statements.

419 F.3d at 618. Accord, United States v. Bailey, No. 05 CR 8, 2005 U.S. Dist. LEXIS 28070 at *5

(N.D. Ill. Nov. 14, 2005)(Shadur, J.)(following Jenkins). Because co-schemer statements are not

testimonial? hearsay statements, Crawford is not implicated, and those statements may be admitted

without offending the Sixth Amendment.

D. The Proper Standard for Admissibility Is Preponderance of the Evidence.

A district courts preliminary determination of admissibility for purposes of Rule

801(d)(2)(E) is distinct from the standard required in determining on appeal whether sufficient

evidence exists to uphold a jury verdict. The standard to be applied in the context of admissibility

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5/Even though the government need not prove the crime of conspiracy for the co-conspirator

doctrine to apply, criminal conspiracy cases are helpful in stating the types of evidence that are

sufficient to show conspiracy. If the government meets the higher standard for criminal conspiracy,

a fortiorari, the evidentiary standard is met.

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under Rule 801(d)(2)(E) is a preponderance-of-the-evidence standard. Lindemann, 85 F.3d at 1238

(citing Bourjaily, 438 U.S. at 175-76); Hassan, 1998 U.S. Dist. LEXIS 17538 at *7 (quoting

Godinez, 110 F.3d at 454).

E. Principles for Determining Membership in and Existence of the Criminal Scheme.

1. The court may consider the proffered statements themselves.

A district court may consider the proffered statements themselves in determining the

existence of a scheme, and a defendants participation in it. Bourjaily, 483 U.S. at 180; United

States v. de Ortiz, 907 F.2d 629, 633 (7th Cir. 1990); United States v. Kapp, 02 CR 418-1, 2003 U.S.

Dist. LEXIS 3989 (N.D. Ill. March 17, 2003)(Manning, J.). However, the government typically

must present some evidence, independent of the statements. Lindemann, 85 F.3d at 1238.

2. Both direct and circumstantial evidence can be considered.

Once the scheme is established, the evidence may be either direct or circumstantial. Irorere,

228 F.3d at 823; United States v. Patterson, 213 F. Supp. 2d 900, 910-11 (N.D. Ill. 2002)(Bucklo,

J.), affd, 348 F.3d 218, 225-26 (7th Cir. 2003).5/ Indeed, [b]ecause of the secretive character of

conspiracies, direct evidence is elusive, and hence the existence and the defendants participation

can usually be established only by circumstantial evidence.? United States v. Redwine, 715 F.2d

315, 319 (7th Cir. 1983). See also Lindemann, 85 F.3d at 1238 (secretive nature of conspiracies one

reason for conspirator exception to hearsay rule).

In this case, the evidence is both direct and circumstantial. The defendants conducted their

schemes through campaign coordinators, personnel directors, interviewers, and other City

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6/See also United States v. Liefer, 778 F.2d 1236, 1247 n.9 (7th Cir. 1985); United States v.

Towers, 775 F.2d 184, 189 (7th Cir. 1985); United States v. Morrow, 971 F. Supp. 1254, 1256-57

(N.D. Ill. 1997)(Alesia, J.).

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employees. Many of those individuals will testify about conversations with defendants and other

co-schemers. In addition, defendants acted to conceal their activities by forging documents, and by

destroying records. The circumstances surrounding those activities are circumstantial evidence of

the defendants intent.

3. Requirements for determining if a person has joined the scheme.

A defendant joins a criminal scheme if he agrees with another person to one or more of the

common objectives of the scheme; it is immaterial whether the defendant knows, has met or has

agreed with every co-schemer. United States v. Boucher, 796 F.2d 972, 975 (7th Cir. 1986); United

States v. Balistrieri, 779 F.2d 1191, 1225 (7th Cir. 1985); see also Rodriguez, 975 F.2d at 411

(defendant must have intended to join and associate himself with the conspiracys criminal design

and purpose). The government need not prove, however, that a defendant knew each and every

detail of the scheme or played more than a minor role in the scheme. United States v. Sims, 808 F.

Supp. 620, 623 (N.D. Ill. 1992)(Alesia, J.). As the Supreme Court has said:

A conspiracy may exist even if a conspirator does not agree to commit or facilitate

each and every part of the substantive offense. . . . The partners in the criminal plan

must agree to pursue the same criminal objective and may divide up the work, yet

each is responsible for the acts of each other. . . . If conspirators have a plan which

calls for some conspirators to perpetrate the crime and others to provide support, the

supporters are as guilty as the perpetrators.

Salinas v. United States, 522 U.S. 52, 63-4 (1997)(citations omitted).6/

In this case, defendants Robert Sorich and Tim McCarthy acted jointly in directing the

overall fraud scheme from IGA. Slattery and Sullivan participated in the criminal scheme within

the Department Streets & Sanitation only.

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7/ A defendant, even if not an agreeing? member of a conspiracy, may nonetheless be found

guilty of conspiracy if he knew of the conspiracys existence at the time of his acts, and his acts

knowingly aided and abetted the business of the conspiracy, see United States v. Scroggins, 939 F.2d

416, 421 (7th Cir. 1991); Sims, 808 F. Supp. at 623 n.1, even if the defendant was not charged with

aiding and abetting, see United States v. Kasvin, 757 F.2d 887, 890-91 (7th Cir.1985).

8/Similarly, efforts by an alleged co-schemer to conceal a scheme may support an inference

that he joined the scheme while it was still in operation. See Redwine; 715 F.2d at 321; United

States v. Robertson, 659 F.2d 652, 657 (5th Cir. 1981).

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A defendant may be found to have participated in a scheme even if he joined or terminated

his relationship with others at a different time than another defendant or co-schemer. United States

v. Ramirez, 796 F.2d 212, 215 (7th Cir. 1986); United States v. Noble, 754 F.2d 1324, 1329 (7th

Cir.1985).7/ A district court may consider the conduct, knowledge, and statements of the defendant

and others in establishing participation in a scheme. A single act or conversation, for example, can

suffice to connect the defendant to the scheme if that act leads to the reasonable inference of intent

to participate in an unlawful enterprise. See, e.g., Sims, 808 F. Supp. at 623.8/ Statements made

during the course of and in furtherance of a scheme, even in its embryonic stages, are admissible

against those who arrive late to join a going concern. United States v. Potts, 840 F.2d 368, 372 (7th

Cir. 1987). A schemer who has become inactive in the scheme nevertheless is liable for his coschemers

further statements unless he openly disavows the scheme or reports it to the police.

United States v. Feldman, 825 F.2d 124, 129 (7th Cir. 1987). See also United States v. Andrus, 775

F.2d 825, 850 (7th Cir. 1985).

F. Statements Made in Furtherance of the Scheme.

In determining whether a statement was made in furtherance? of the scheme, courts look

for a reasonable basis upon which to conclude that the statement furthered the schemes goals.

United States v. Johnson, 200 F.3d 529, 533 (7th Cir. 2000). Under the reasonable-basis standard,

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a statement may be susceptible to alternative interpretations and still be in furtherance? of the

scheme; the statement need not have been exclusively, or even primarily, made to further the scheme

in order to be admissible under the co-schemer exception. See, e.g., Johnson, 200 F.3d at 533 (citing

United States v. Stephenson, 53 F.3d 836, 845 (7th Cir. 1995)).

The Seventh Circuit has found a wide range of statements to satisfy the in furtherance?

requirement. See, e.g., United States v. Cozzo, No. 02 CR 400, 2004 U.S. Dist. LEXIS 7391 (N.D.

Ill. April 16, 2004)(Zagel, J.)(collecting cases). In general, a statement that is part of the

information flow between conspirators intended to help each perform his role? is admissible under

Rule 801(d)(2)(E). United States v. Santos, 20 F.3d 280, 286 (7th Cir. 1994), quoting United States

v. Johnson, 927 F.2d 999, 1001 (7th Cir. 1991); accord, United States v. Gajo, 290 F.3d 922, 929 (7th

Cir. 2002). These include statements made: (1) to identify other members of the scheme and their

roles, United States v. Roldan-Zapata, 916 F.2d 795, 803 (2d Cir. 1990); United States v. Magee,

821 F.2d 234, 244 (5th Cir. 1987); (2) to recruit potential co-schemers, United States v. Curry, 187

F.3d 762, 766 (7th Cir. 1999); (3) to control damage to an ongoing scheme, United States v. Van

Daal Wyk, 840 F.2d 494, 499 (7th Cir. 1988); Kapp, 2003 U.S. Dist. LEXIS 3989, at *3; (4) to keep

co-schemers advised as to the progress of the scheme, Potts, 840 F.2d at 371; Kapp, 2003 U.S. Dist.

LEXIS 3989, at *3; (5) to conceal the criminal objectives of the scheme, United States v. Kaden, 819

F.2d 813, 820 (7th Cir. 1987); (6) to plan or to review a co-schemers exploits, United States v. Molt,

772 F.2d 366, 368-69 (7th Cir. 1985); or (7) as an assurance that a co-schemer can be trusted to

perform his role. United States v. Pallais, 921 F.2d 684, 688 (7th Cir. 1990); Van Daal Wyck, 840

F.2d at 499. The Seventh Circuit has also said that [s]tatements made to keep coconspirators

informed about the progress of the conspiracy, to recruit others, or to control damage to the

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9/United States v. Sinclair, 109 F.3d 1527, 1534 (10th Cir. 1997); accord, United States v.

Shores, 33 F.3d 438, 444 (4th Cir. 1994).

10/United States v. Monus, 128 F.3d 376, 392 (6th Cir. 1997); United States v. Simmons, 923

F.2d 934, 945 (2d Cir. 1991); United States v. Smith, 833 F.2d 213, 219 (10th Cir. 1987).

12

conspiracy are made in furtherance of the conspiracy.? Stephenson, 53 F.3d at 845. Accord, United

States v. Curtis, 37 F.3d 301, 307 (7th Cir. 1994); United States v. McCarroll, No. 95 CR 48, 1996

U.S. Dist. LEXIS 2540 (N.D. Ill. Jan. 22, 1996)(Coar, J.).

1. Statements made to execute the scheme.

Statements made by co-schemers to conduct the business of the scheme and to accomplish

its goals are classic examples of statements made to conduct and further? a scheme. Cox, 923 F.2d

at 527. Statements such as these, which are intended to promote the conspiratorial objectives,?

should be admitted pursuant to Rule 801(D)(2)(E).9/ Statements that prompt the listener to act in a

manner that facilitates the carrying out of the scheme are also made in furtherance? of the

scheme.10/ Whether a particular statement tends to advance the objectives of the scheme or to induce

the listeners assistance is determined by an examination of the context in which it is made.

Garlington v. OLeary, 879 F.2d 277, 284 (7th Cir. 1989).

2. Statements regarding the schemes activities.

Statements describing the purpose, method, or criminality of the conspiracy,? are made in

furtherance of the scheme because co-schemers make such statements to guide each other toward

achievement of the objectives of the scheme. United States v. Ashman, 979 F.2d 469, 489 (7th Cir.

1992). Similarly, statements that are part of the information flow between co-schemers made in

order to help each co-schemer perform his role are in furtherance? of the scheme. See, e.g.,

Godinez, 110 F.3d at 454; Garlington, 879 F.2d at 283-84; Van Daal Wyk, 840 F.2d at 499.

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11/See also, e.g., United States v. Doerr, 886 F.2d 944, 951 (7th Cir. 1989); Garlington, 879

F.2d at 283.

13

Statements to assure that a co-schemer can be trusted to perform his role also satisfy the in

furtherance? requirement. See, e.g., United States v. Romo, 914 F.2d 889, 897 (7th Cir. 1990); de

Ortiz, 907 F.2d at 635-36 (7th Cir. 1990).

3. Statements to recruit co-schemers.

Statements made to recruit potential members of the scheme are made in furtherance? of

the scheme. Curry, 187 F.3d at 766; Godinez, 110 F.3d at 454.11/

4. Statements regarding the activities of other

co-schemers designed to inform or reassure the listener.

Statements made by schemers to other individuals who participate in, or interact with, the

scheme contribute to the scheme. See Van Daal Wyk, 840 F.2d at 499 (wholesaler instructed his

courier not to deliver any additional quantities of cocaine to the defendant, a dealer).

The exchange of information is the lifeblood of a conspiracy, as it is of any

cooperative activity, legal or illegal. Even commenting on a failed operation is in

furtherance of the conspiracy, because people learn from their mistakes. Even

identification of a coconspirator by an informative nickname. . . is in furtherance of

the conspiracy, because it helps to establish, communicate, and thus confirm the lines

of command in the organization. Such statements are “part of the information flow

between conspirators intended to help each perform his role,” and no more is

required to make them admissible.

Pallais, 921 F.2d at 688. The same logic dictates that discussions concerning a schemes successes

are admissible as statements in furtherance of the scheme. See id.; Van Daal Wyk, 840 F.2d at 499.

Statements intended to reassure the listener regarding the progress or stability of the scheme

also further the scheme. United States v. Sophie, 900 F.2d 1064, 1073 (7th Cir. 1990) (description

of past drug deals). Likewise, statements made to reassure and calm the listener may further the

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14

scheme, see Garlington, 879 F.2d at 284 ; United States v. Molinaro, 877 F.2d 1341, 1343-44 (7th

Cir. 1989)(upholding admission of statements designed to iron out disputed details of the conspiracy

and to control the damage apparently done to the conspiracy).

5. Statements relating to the progress and past accomplishments of the scheme.

Statements made by co-schemers concerning past exploits by members of the scheme are in

furtherance of the scheme when made to assist in managing and updating other members of the

scheme. Potts, 840 F.2d at 371; Molt, 772 F.2d at 368-69. Similarly, statements regarding a coschemers

failure to fully accomplish the objective of the scheme are admissible as updates on the

status of the conspiracy? and how that status affected the future of the scheme. United States v.

Doyle, 771 F.2d 250, 256 (7th Cir. 1985).

6. Statements to conceal the criminal objectives of the scheme.

Finally, statements made to conceal the criminal objectives of the scheme are made in

furtherance? of the scheme where, as here, ongoing concealment is one of its purposes. See, e.g.,

United States v. Maloney, 71 F.3d 645, 660 (7th Cir. 1995); Kaden, 819 F.2d at 820; United States

v. Bouzanis, No. 00 CR 1065, 2003 U.S. Dist. LEXIS 16218, at *21 n.5 (N.D. Ill. Sept. 15,

2003)(Lefkow, J.). Avoiding detection by law enforcement officials clearly furthers the aims of

a conspiracy.? United States v. Troop, 890 F.2d 1393, 1404 (7th Cir. 1989). Statements made to

control damage to an ongoing scheme have also been found to have been made in furtherance of the

scheme. See Stephenson, 53 F.3d at 845; Van Daal Wyk, 840 F.2d at 499.

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12/This is different than the substantive principals applicable to criminal liability for an entity.

For purposes of corporate criminal liability, it is not necessary to show that the particular act was

itself authorized or directed by the entity, see Seventh Circuit Federal Jury Instr. Section 5.03, but

is necessary to show that the agent was motivated, at least in part, by an intent to benefit the

corporation. See, e.g., United States v. One Parcel Of Land Located At 7326 Highway 45 North,

Three Lakes, Wisconsin, 965 F.2d 311, 316 (7th Cir. 1992); United States v. Automated Med. Labs.,

770 F.2d 399, 407 (4th Cir. 1985).

13/A strict agency analysis is not contemplated by the terms of Rule 801(d)(2)(D). Wilkinson

v. Carnival Cruise Lines, Inc., 920 F.2d 1560, 1565-66 (11th Cir. 1991). The Rule broadened the

traditional view so that it is no longer necessary to show that an employee or agency declarant

possesses speaking authority? tested by the usual statements of agency law before a statement

can be admitted against the principal. Wilkinson, 920 F.2d at 1565. Cf. Aliotta v. National R.R.

Pass. Corp., 315 F.3d 756, 762-63 (7th Cir. 2003)(discussing admissibility of agents statements).

15

G. Alternative Bases for Admissibility of Statements.

The government believes that the statements of co-schemers set forth in this proffer should

be admitted as non-hearsay under the co-schemer doctrine. There are alternative bases, however,

for admission of many of the statements. These bases do not require a Rule 801(d)(2)(E) analysis.

1. Agency admissions pursuant to Rule 801(d)(2)(D).

Many of the participants in the scheme were acting as agents for the defendants. Federal

Rule of Evidence 801(d)(2)(D) sets forth the evidentiary foundation for admission of statements by

agents against their principals including criminal defendants. See Feldman, 825 F.2d at 127-29.12/

Rule 801(d)(2)(D) provides that a statement is not hearsay if it is offered against a party and is a

statement by the partys agent or servant concerning a matter within the scope of the agency or

employment, made during the existence of the relationship.?13/ Thus, out-of-court statements by

agents of a defendant may come into evidence as non-hearsay admissions against the defendant

principal when the principal is an individual who directs the conduct of the entity and is otherwise

directing and supervising the conduct of his employee subordinates. See Wilkinson, 920 F.2d at

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14/ With respect to statements made by certain cooperating witnesses, among others, another

basis for admission is Rule 801(d)(2)(C), which provides for the admission of authorized?

statements within the context of an existing agency relationship. See Feldman, 825 F.2d at 127.

15/ Rule 801(d)(2)(A) provides in pertinent part that a statement? is not hearsay if [t]he

statement is offered against a party and is . . . the partys own statement, in either an individual or

a representative capacity.?

16/ Other sections of Rule 801(d)(2) provide alternative bases of admissibility that may apply.

Rule 801(d)(2)(B), for example, provides for the admissibility of adopted? statements.

16

1565; United States v. Ramsey, 785 F.2d 184, 191 (7th Cir. 1986)(statements by executive assistants?

were admissible against defendant corporation under Rule 801(d)(2)(d)). Thus, for purposes

of admission under Rule 801(d)(2)(D), a statement made by an agent is admissible against the principal,

provided that the agents statement was made within the scope of the agency.14/

In this case, as noted below, the defendants worked through a number of agents to effectuate

their criminal scheme. To the extent these agents statements are being offered for the truth of the

matters asserted, their statements should be admitted pursuant to Rule 801(d)(2)(D).

2. Defendants own statements.

A defendant’s own admissions are admissible against him pursuant to Fed. R. Evid.

801(d)(2)(A), without reliance on the co-schemer-statement rule.15/ Maholias, 985 F.2d at 877. A

defendants own admissions, moreover, are relevant to establishing the factual predicates for the

admission of co-schemer statements against him. See, e.g., Godinez, 110 F.3d at 455; Potts, 840

F.2d at 371-72.16/

3. Non-hearsay statements including false statements.

The co-schemer statement analysis also is not triggered when the relevant verbal declaration

is not a statement? within the meaning of Federal Rule of Evidence 801(a) and when it is not

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17/ See, e.g., United States v. Herrera-Medina, 853 F.2d 564, 565-66 (7th Cir. 1988); Van

Daal Wyk, 840 F.2d at 497-98; Tuchow, 768 F.2d at 867-69. In some cases, statements by an alleged

co-schemer will include a combination of declarations offered for the truth of the matters asserted

and declarations offered for other non-hearsay purposes.

17

hearsay. This rule defines statement? as an oral or written assertion? or nonverbal conduct of

a person, if it is intended by the person as an assertion.?

Thus, a statement that is incapable of verification, such as an order or a mere suggestion, is

not hearsay and does not invoke a Rule 801(d)(2)(E) analysis. See, e.g., United States v. Tuchow,

768 F.2d 855, 868 n.18 (7th Cir. 1985). Accordingly, statements by alleged co-schemers may be

admitted into evidence without establishing the Bourjaily factual predicates, but with corresponding

limiting instructions, when such statements are offered simply to show, for example, the existence,

illegality, or nature and scope of the charged scheme.17/ In addition, when words are being introduced

as a verbal act, or as background for an alleged statement, they are not admitted for the truth

of the matter asserted. For that reason, they are not hearsay, and may be admitted. See, e.g., United

States v. Robinzine, 80 F.3d246, 252 (7th Cir. 1996).

In this case, the government will seek to introduce certain false statements of the defendants

and their co-schemers as evidence of their fraud. Because these statements are not being offered for

the truth of the matters asserted, they are non-hearsay and hence admissible in light of their

relevance. See, e.g., Santos, 20 F.3d at 285 (false statement properly admitted since it was not admitted

for truth of matter asserted); United States v. Hoag, 823 F.2d 1123, 1127 (7th Cir. 1987)

(Statements introduced solely for the purpose of proving that they were made as a predicate for

other proof they were false are not hearsay.?).

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18/This summary is based on information contained in investigative reports, grand jury transcripts

and documents obtained during the investigation. Defendants have been provided relevant

investigative reports, as well as grand jury transcripts of likely government witnesses. In addition,

defendants have been given electronic copies of many documents, and have been given access to

(along with an index of) other documents collected by the government during its investigation.

19/ As indicated in some of the summarized testimony in this proffer, components of the

charged scheme predate the defendants participation. Based on the allegations of the superseding

(continued…)

18

III. THE GOVERNMENT’S PROFFER REGARDING THE EXISTENCE

OF A SCHEME AND BASIS OF AGENCY ADMISSIONS

As set forth in the superseding indictment, the charged scheme was accomplished through

the statements and actions of the charged defendants and uncharged co-schemers spanning over at

least a dozen years. As alleged principally in Count One, Sorich and McCarthy worked with and

directed other City officials to corrupt the Citys personnel process by directing the awarding of

certain jobs and promotions in non-policymaking positions to candidates pre-selected by IGA

through sham and rigged interviews coordinated by personnel directors and conducted by

interviewers. In addition, defendants and co-schemers concealed and otherwise protected the joint

criminal activity from public exposure and possible criminal prosecution.

The government submits the following summary of evidence:18/

A. Background Concerning the Typical Hiring and Promotion Process

for City Operating Departments.

1. The formal hiring process.

Between no later 1993 and continuing through 2005, there was a formal hiring and promotion

process for certain positions in the Citys operating departments, including its Departments of

Sewers, Streets & Sanitation, Water, Buildings, Aviation, General Services, and Transportation (the

Operating Departments?).19/ These positions were also covered by the consent decree in United

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19/(…continued)

indictment, this proffer will focus on the charged defendants participation which, as a general

matter, began in or about 1993.

19

States v. Shakman, No. 69 C 2145, a court order that, among other things, prohibited the City from

conditioning, basing, or knowingly prejudicing or affecting any term or aspect of government

employment, including hiring, upon or because of any political reason or factor. To enforce the

decree, the Court entered Principles for Plan of Compliance in May 1984, and the City issued

Detailed Hiring Provisions for Compliance on Oct. 31, 1984 (Detailed Hiring Provisions?). The

latter provided that the City would, among other things, prohibit political influences and

considerations at every stage of the selection and hiring processes for non-policymaking positions.

After the Operating Departments determined their hiring and promotion needs, personnel

staff at the Operating Departments prepared A forms,? which sought approval from the Citys

Office of Budget Management for hires or promotions. The A forms? identified positions for

which the departments intended to hire or promote people, including the number of jobs that the

departments wanted to fill for a particular hiring or promotion sequence. An Operating Department

needed to have the Budget Directors signature on the A form? before filling a vacancy.

For certain union positions, after the A form? was signed, the Operating Departments posted

the jobs, permitting interested candidates to bid on the positions. Candidates bid on job postings by

submitting bid applications, either to the Operating Departments or to Main Personnel. The standard

City application required an applicant to identify his or her relevant educational and employment

experience, among other information. After the bids were in, Main Personnel prepared lists for the

Operating Departments, known as bid lists,? identifying the people who submitted applications for

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20/For example, for the position of House Drain Inspector described below, each candidate

was rated on the following: (A) quality and relevance of previous job experience in the inspection

or construction and repair of drains and sewers; (B) previous satisfactory performance in positions

involving similar duties in the Department; and (C) interpersonal skills (sufficient to deal with

general public regarding city code drain/sewer requirements and complaints filed). For the position

of General Foreman of Motor Truck Drivers, each candidate was rated from one to five on the

following criteria: (A) experience in operation, scheduling and five years supervisory experience;

(B) written communication skill; and (C) valid CDL.

20

the particular sequence. Analysts in Main Personnel determined whether candidates met minimum

qualifications for the jobs, such as being a member of a certain union.

For certain positions, when an A form? was approved, under the Shakman Detailed Hiring

Provisions, Main Personnel was to screen? the applications of the minimally qualified candidates,

to select which of those candidates would get interviews. (While department personnel officers were

permitted to sit on a screening panel, at least an equal number of screeners were to be from Main

Personnel.) The screeners were required to fill out forms rating the candidates. For some positions,

where there were too many applicants to screen candidates, the interview list was determined by

lottery. After completion of the screening process (or lottery), Main Personnel sent the Operating

Departments lists of candidates to be interviewed for the positions. These lists were known as

Shakman referral lists,? referral lists,? or Shakman lists.?

It was then each Operating Departments responsibility to schedule interviews for the

positions, and to notify interview candidates of the dates and times of the interviews.

Representatives from the Operating Departments conducted interviews and scored candidates on

various criteria, depending on the job. Scores were given on written ratings sheets, on a scale from

one to five. The criteria varied for each job sequence.20/ According to the Municipal Code of the

City of Chicago and various collective bargaining agreements between the City and unions, the most

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21/Section 2-74-090(B) of the Municipal Code provides:

No person shall make any false statement, certificate, mark, rating or report

with regard to any test, certification or appointment made under any provision of this

ordinance or in any manner commit or attempt to commit any fraud, prevent the

impartial execution of this ordinance and any rules issued thereunder.

21

qualified applicants (who met eligibility requirements) were to receive positions (with the exception

of certain union positions to be filled by seniority).

After interviews were conducted and ratings sheets were completed, officials with the

Operating Departments signed the Shakman referral lists,? identifying, based on the ratings sheets,

who had been selected for the jobs. At the bottom of each Shakman referral list were spaces for the

Commissioner and Assistant Commissioner to sign, certifying that:

I understand that political considerations may, in no manner, enter into decisions to

hire employees for the City of Chicago. I understand that any person who willfully

violates this may be subject to both administrative and legal action. I verify that, to

the best of my knowledge, political considerations did not enter into the hiring

decisions documented on this form.

The Shakman referral lists were then sent to Main Personnel, along with the ratings forms and other

hiring and promotion paperwork.21/ In the written City procedures, IGA was not designated any role

in the hiring and promotion process for non-policymaking positions.

2. Summary of the scheme to rig the hiring and promotion process.

In fact, however, as set forth herein, the Citys hiring process for certain jobs in certain

departments covered by the Shakman decree was controlled by IGA, including defendants Sorich

and McCarthy, during the relevant time periods. The government has not alleged that IGA

controlled the award of all Shakman-covered positions, but rather that IGAs control focused on

certain Operating Departments and certain positions. Campaign coordinators, union leaders, and

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22/Contrary to the Detailed Hiring Provisions, screening was frequently conducted by the

department personnel officers (or their assistants), without the participation of Main Personnel. (On

some occasions, Main Personnel officers received the IGA names from the department personnel

officers, and conducted the screening for them).

22

other politically connected people nominated job candidates to Sorich and McCarthy. After

participating in the decision to predetermine the winners for these particular jobs, Sorich and/or

McCarthy communicated with personnel directors and other employees of the Operating Departments

and then provided the personnel directors with lists of preselected candidates that IGA wanted

the Operating Departments to place in those positions.

After receiving names from Sorich or McCarthy, the personnel directors screened for those

candidates, causing them to be chosen from among other eligible candidates so that IGAs

candidates would be certain to be included on referral lists for interviews.22/ Interviewers from the

Operating Departments then conducted sham interviews. As described in detail below, in some

hiring sequences, personnel directors identified IGAs preselected winners to the interview panelists,

so that interview panelists would give the IGA picks the highest numerical ratings on interview

rating forms, without regard to the candidates relative qualifications. In other hiring sequences,

interviewers just left the numerical ratings blank on the interview rating forms, and the personnel

director filled in the scores later, after getting the winners names from IGA. In yet other hiring

sequences, the interviewers or their managers obtained the names directly from IGA. However the

names were delivered to the Operating Departments, the highest scores were assigned to favored

candidates on the basis of their IGA designations, without regard to the Operating Departments

evaluation of the candidates relative qualifications.

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23/Falcon has been provided with an immunity letter by the U.S. Attorneys Office, promising

that so long as she provides truthful information and testimony, she will not be prosecuted. In

addition to other witnesses indicated in this proffer, the U.S. Attorneys Office has provided

immunity letters to some additional witnesses, as identified in discovery.

23

Personnel directors reported back to IGA, including Sorich and McCarthy, regarding the job

winners. They also reported back to Sorich and McCarthy if an IGA selection were rejected for any

reason (such as failing a drug test).

B. Department of Sewers.

Until January 2003, the City operated an independent Department of Sewers, which

maintained the Citys underground sewer system. (In January 2003, the Department of Sewers

merged with the Water Department to form the Department of Water Management.) During the

relevant time frame, the Department of Sewers employed workers such as Bricklayers, House Drain

Inspectors, Mason Inspectors, Laborers, and Motor Truck Drivers, among others.

From approximately December 1994 to January 2003, Mary Jo Falcon was the personnel

director for the Department of Sewers.23/ She continued as personnel director for the Department

of Water Management until her resignation in 2005. As personnel director, Falcon administered the

hiring and promotion of employees within the department.

1. IGAs role in hiring at Sewers.

Around the time Falcon started at Sewers in December 1994, she spoke with the person who

was the Sewers personnel director from approximately 1991 to 1994 (the former Sewers personnel

director?). The former Sewers personnel director told Falcon that Falcon worked for IGA, not the

Sewers Commissioner. The former Sewers personnel director explained that as personnel director,

Falcon helped IGA select employees by controlling the ratings that job candidates were given when

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24/Falcon executed the predetermined selections from Sorich and McCarthy for hirings and

promotions in the following Department of Sewers positions: Sewer Bricklayer, Foreman of Sewer

Bricklayers, House Drain Inspector, Supervising House Drain Inspector, Motor Truck Driver,

Foreman of Motor Truck Drivers, Mason Inspector, Chief Mason Inspector, Foreman of Hoisting

Engineers, Assistant Foreman of Sewer Cleaning, Foreman of Sewer Cleaning, Stores Laborer,

Sewer Laborer, and Sewer Laborer Subforeman.

24

they were interviewed by the department. By giving the highest scores to the people that IGA

wanted to hire or promote, the department ensured that IGA selected the winners. The former

Sewers personnel director told Falcon to conceal the fact that IGA controlled the process. The

former Sewers personnel director told Falcon not to put Robert Sorichs name on anything, and to

deny everything deny, deny, deny.?

For many years, Sorich was the IGA official from whom Falcon took direction on hiring and

promotion matters. In approximately 2001, Tim McCarthy became an additional contact person for

Falcon at IGA. Falcon then dealt with both Sorich and McCarthy through 2005. From December

1994, when she became Director of Personnel, until 2005, for each of an average of approximately

five hiring sequences each year, Falcon met with Sorich or, beginning in 2001, McCarthy, at IGA

offices to receive instructions on whom to hire or promote.24/ Sorich gave Falcon names by reading

the names from index cards, for the first years that Falcon met with Sorich, and later, from typed or

written lists. Falcon observed that the cards and lists had the job candidates names and their

political clout, such as the their political ward. Sorich ranked the names, saying words to the effect

of, No. 1 [priority] is [name],? No. 2 [priority] is [name].? Sorich did not discuss job candidates

skills or qualifications when giving Falcon the list of names. Falcon wrote Sorichs names down

to ensure selection of these candidates through the ensuing hiring process. Based on her interactions

with Sorich and McCarthy and on what the former Sewers personnel director had told her, Falcon

Case 1:05-cr-00644 Document 113 Filed 04/10/2006 Page 28 of 98

25

understood that her direction was to ensure that the Sorich and McCarthy priorities? were to get

the positions.

Between December 1994 and 2005, whenever there was a hiring that permitted the

Department of Sewers to screen applications, after having met with Sorich (or, after 2001,

McCarthy), Falcon went to Main Personnel and selected the names that IGA had provided, so that

those people received interviews. During that time period, there were occasions when one or more

of the names Sorich had provided was not on the Main Personnel list at the screening stage. On

those occasions, Falcon told Sorich, and Sorich said words to the effect of, Give me a couple of

days,? or Hold off.? A few days after each such occasion, the name was on file at Main Personnel.

Falcon gave Sorich lists of the people who were getting interviews, but did not put Sorichs name

on the cover letter because the former Sewers personnel director had told her not to put Sorichs

name on anything.

During meetings in Sorichs office, Sorich commented to Falcon on several occasions over

the years Youll get rid of that, right?,? referring to the list that Falcon was writing down. Falcon

said that she would, and she did. In approximately 2005, McCarthy also asked Falcon a similar

question about whether she would destroy the list she was writing of names he was providing; she

said that she would, and she did.

2. The interview process at Sewers.

Before each interview for rigged sequences, Falcon told at least one interview panelist

(whom she trusted to be aware of the scheme) that IGA had already selected the winners. On at least

one occasion, Sorich asked Falcon if a panelist was going to be a problem. Falcon understood

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25/In approximately 1995, Individual A, a supervisor at IGA, told the Sewer Operations

official that he wanted a certain bricklayer promoted to mason inspector. The Sewer Operations

official told Individual A that he had suspended that employee several times for showing up late and

leaving early, and told Individual A his negative views about the employee. Individual A had the

employee promoted anyway. The employee was a member of the Hispanic Democratic

Organization (HDO?), a large political organization, with whom Individual A was an active

participant.

26

Sorich to be asking if the panelist could be trusted to give high ratings to the people preselected by

IGA.

One of the people that Falcon told about the rigged interview process, in order to further the

scheme and ensure that IGAs selections were implemented, was a former Deputy Commissioner

of Sewer Operations (the Sewer Operations official?). During that ten-year time period, for most

hiring and promotions in Sewer Operations, before interviews, the former Sewers personnel director,

and later Falcon, told the Sewer Operations official which job candidates got the blessing? from

IGA, meaning that they were preselected to get the job. Falcon communicated the blessed? names

to the Sewer Operations official by putting asterisks next to the names of the preselected candidates

on a list of interviewees. The Sewer Operations official ensured that the IGA selections got the

highest ratings on the ratings forms. On occasion, when an interviewer in Sewer Operations gave

the wrong candidate a winning score, Falcon called the Sewer Operations official and informed him

that a blank ratings form was going to be sent back for the interviewer to sign. The interviewer

signed the blank form in the Sewer Operations officials office.25/

Between December 1994 and 2004, after interviews were conducted for positions where IGA

had given Falcon the winners names, the panelists forwarded the ratings sheets to Falcon. Falcon

made sure the IGA picks got the highest scores. Where panelists left the scores blank, Falcon filled

them in, giving the highest scores to IGAs selections. Sometimes the panelists filled in the scores.

Case 1:05-cr-00644 Document 113 Filed 04/10/2006 Page 30 of 98

26/Harjung and Coveliers also had a relationship involving Cayla Trucking, a company in the

Citys Hired Truck Program. In 1998, Harjung asked Coveliers to participate in forming and

(continued…)

27

Usually, because at least one panelist knew who was picked ahead of time, the high scores were

given to the IGA selection. When an IGA selection did not get a high enough score to get the job,

Falcon had the panelist sign a new form with a new higher score. Sometimes Falcon had to lower

another applicants score to make sure an IGA pick got the job.

Occasionally, the commissioner or an interview panelist told Falcon that one of IGAs picks

was a particularly poor choice. Falcon reported such problems to Sorich. Sometimes Sorich told

Falcon to move down the list, meaning choose the next person on the list Sorich had provided. At

the conclusion of the scoring process, Falcon told Sorich, and later McCarthy, who the winners

were.

3. 2002 House Drain Inspector.

In 2002, the Department of Sewers was seeking to hire up to ten individuals for the position

of House Drain Inspector. A House Drain Inspector evaluates and approves new-construction plans

to ensure house sewer lines are properly connected to the Citys sewer system, repairs clogged sewer

lines, and performs related tasks. Falcon received a list of seven priority names from Sorich for that

position, in 2002, several of which were known to Falcon to be from political groups.

One of the preselected candidates, Richard Coveliers, was part of Michael Harjungs political

group. As discussed in more detail in Section G, below, Michael Harjung was a former Sewers

employee who ran a political organization for the Mayors campaign office. With respect to the

House Drain Inspector position, in 2002, Harjung lobbied Sorich on behalf of Coveliers, who was

a City employee who actively participated in Harjungs political organization.26/ Sorich indicated

Case 1:05-cr-00644 Document 113 Filed 04/10/2006 Page 31 of 98

26/(…continued)

running Cayla, and informed Coveliers that Cayla would have a steady stream of business because

Harjung had agreed to make bribe payments to Donald Tomczak, the First Deputy Commissioner

in the Department of Water. Coveliers agreed, and thereafter acted as a hidden owner and operator

of Cayla. Coveliers hid his participation in Cayla, because he was a City employee and prohibited

from having an interest in a company doing City business. Based on these activities, Coveliers was

indicted for mail fraud and false statements in United States v. Donald Tomczak, et al., 04 CR 921-

10 (Der-Yeghiayan, J.). He pled guilty and is awaiting sentencing. Harjung is finalizing a deferredprosecution

agreement with the U.S. Attorneys Office.

28

that he would attempt to assist Coveliers. Later, Sorich told Harjung that Coveliers would get the

promotion two days before the winners were announced. Harjung told Coveliers that he should be

okay,? and told Coveliers that he had been in contact with Sorich about the job. Coveliers received

the House Drain Inspector position, along with nine others.

One of the other winners was a current House Drain Inspector (the current House Drain

Inspector?). Beginning in November 1994, and continuing through approximately September 2002,

the current House Drain Inspector was a City employee and member of HDO. The current House

Drain Inspector joined HDO before he was a City employee, in hopes that his political work would

assist him in getting a job with the City. After approximately two years of doing political work for

HDO, in fall 1996, the current House Drain Inspector spoke to Individual A about getting City

employment. Approximately one month later, the current House Drain Inspector received a position

as a Career Service Laborer in the Sewers Department. In approximately December 2000, the

current House Drain Inspector spoke with Sorich in Sorichs office about advancing to another City

job. The current House Drain Inspector and Sorich spoke about possible positions. In

approximately December 2001, the current House Drain Inspector and Sorich both attended an

HDO-sponsored breakfast meeting. Sorich took the current House Drain Inspector aside, and told

him that House Drain Inspector positions were opening up in the Sewers Department, and he should

Case 1:05-cr-00644 Document 113 Filed 04/10/2006 Page 32 of 98

27/Falcon once asked Sorich to get a seasonal laborer job in the Department of Transportation

for the brother of a friend of hers. Falcon told Sorich that this person had helped a few times,

meaning helped on political campaigns. The person Falcon sponsored got the job.

29

apply for the job. The current House Drain Inspectors name was one of the names Sorich gave to

Falcon, and he was hired for the position.

According to the current Supervisor of House Drain Inspectors, several of the selected

candidates were poor choices and did not know what they were doing. A third preselected House

Drain Inspector who was awarded the position after being prioritized? by Sorich failed to show

up at a work site where he was assigned to check a sewer connection, which resulted in sewage

backing up into a private residence. The third preselected House Drain Inspector told the Supervisor

that he had no idea what had happened, and admitted that he had never gone to check the work site.

The third preselected House Drain Inspector also told the Supervisor that he got the job due to his

political work.

4. Falcons false certifications concerning whether

IGAs selections were based on political considerations.

After the ratings sheets were completed, Falcon signed Shakman referral lists, identifying

who had been selected for the job. Falcon signed these certifications, knowing that they were false.

Falcon knew from her discussions with Sewers Commissioners, Sorich, and McCarthy, among

others, that political considerations dictated IGAs selections of job winners in the Department of

Sewers.27/ Moreover, Falcon herself had performed political work for a political organization, and

based on statements by the head of her political organization and others, knew that she received her

own job through political work.

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28/Federal investigators went public with an investigation concerning the Citys Hired Truck

Program with the January 2004 arrest of the Programs director, Angelo Torres, on a criminal

complaint, United States v. Angelo Torres, 04 CR 86. Thereafter, the United States charged City

officials and private truck company owners and operators (including Coveliers and Harjung, as

described above) with various offenses relating to corruption in the Program. 2004 press inquiries

regarding the hiring of certain Building Inspectors are described in Section E, infra.

30

5. Concealment of IGAs role in fixing Sewers jobs in 2004.

Beginning around 2004, after publicity surrounding the Hired Truck Program and hiring

problems in the Buildings Department, Falcon noticed that McCarthy started to say things like,

Pick whoever you think is best,? when giving her the list of names.28/ This was the first time an

IGA representative ever gave an instruction to Falcon indicating that the best? candidate should

be selected for the job. Between 2004 and 2005, therefore, Falcon felt more free to hire or promote

based on qualifications instead of the IGA preselections.

C. Department of Streets & Sanitation.

One of the Citys largest operating departments is its Department of Streets & Sanitation.

Streets & Sanitations approximately 4,500 employees were divided into six operating bureaus:

Sanitation, Street Operations, Electricity, Forestry, Rodent Control, and Traffic Services. Each of

the bureaus had its own operational hierarchy, consisting of a Deputy Commissioner, various

General and Assistant Superintendents, General Foremen, Foremen, and workers, among other titles.

1. Streets & Sanitation management personnel.

From 1999 to 2005, there was a Commissioner of the department (the Commissioner? or

the Streets & Sanitation Commissioner?), and defendant John Sullivan was the Managing Deputy

Commissioner. Between 2000 and 2003, Daniel Katalinic was Deputy Commissioner of the Street

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29/Katalinic was charged with one count of mail fraud in this case, and pled guilty pursuant

to a written plea agreement on November 15, 2005.

30/Bertucci was charged with obstruction of justice in connection with a federal investigation

relating to Bertuccis role in the attempted removal of two City-owned trees. United States v.

Bertucci, 05 CR 802 (Gottschall, J.). Bertucci pled guilty under a written plea agreement and is

awaiting sentencing.

31/Drumgould has been provided with an immunity letter by the U.S. Attorneys Office.

32/Bartello has been provided with an immunity letter by the U.S. Attorneys Office.

31

Operations Bureau.29/ Within the Forestry Bureau, there was a General Superintendent who worked

at the Bureau from 1996 through 2004 (the Forestry General Superintendent?), and a Deputy

Commissioner during the same period of time (the Forestry Deputy Commissioner?). Bruno

Bertucci worked in Forestry between 1974 and 2004, most recently as an Assistant General

Superintendent.30/ There was an Assistant Commissioner in the administrative services bureau from

1998 to present who was responsible for handling union grievances in the department, among other

responsibilities (the Administrative Assistant Commissioner?).

Streets & Sanitation had its own personnel office, which coordinated hiring and promotions

for the department. From 1998 through May 2004, Jack Drumgould was the Assistant

Commissioner in charge of personnel for Streets & Sanitation.31/ Working with Drumgould,

defendant Patrick Slattery was the Director of Staff Services for the department, from 2000 through

May 2004. In May 2004, following Drumgoulds retirement, Slattery became Acting Assistant

Commissioner in charge of personnel. Mike Bartello took over as Assistant Commissioner in mid-

July 2004, with Slattery remaining as Director of Staff Services through early 2005.32/

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33/Sorichs secretary has corroborated that beginning in 2000, Drumgould was usually

accompanied by Slattery when he met with Sorich.

32

2. IGAs role in hiring at Streets & Sanitation.

Between 1998 and 2004, before hiring for Shakman-covered sequences, Sorich, Slattery

(beginning in 2000), and Drumgould met to discuss who would receive the positions for particular

sequences. During this time period, Drumgould typically spoke with Sorich on the phone several

times per week, and met with Sorich in person at least every few weeks often much more

frequently to discuss sequences. When Slattery joined Streets & Sanitation in 2000, Slattery

accompanied Drumgould to the Sorich meetings.33/ During the phone calls and in-person meetings,

Sorich told Drumgould and Slattery the names of the job applicants who should be interviewed and

receive job positions at Streets & Sanitation. Beginning in approximately 2001, Slattery and

Drumgould had similar meetings with McCarthy.

Drumgould observed that IGAs job selections for Streets & Sanitation were based primarily

on job applicants political affiliation or union sponsorship. For certain positions, seniority was

taken into account. Neither Sorich nor McCarthy ever indicated that their selections took a

candidates qualifications or experience into account. To the contrary, based on the negotiations

Drumgould witnessed between IGA and Streets & Sanitation officials, and other factors, IGA was

balancing job requests from campaign coordinators (i.e., heads of political organizations who took

direction from the Mayors campaign office, as discussed in more detail in Section G, below),

aldermen with political groups, and union representatives. In balancing the job requests, IGA made

selections irrespective of the interview process. When drug or attendance problems caused Streets

& Sanitation to refuse a preselected candidate, Sorich and McCarthy asked for those records so they

could explain why the candidate wasnt hired to the candidates political sponsor.

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34/As discussed below, the secretary has confirmed that she maintained lists of job applicants

and their political sponsors, and that she would sometimes copy lists for persons meeting with

Sorich, in a way that would block out any references to political sponsors.

33

One time when Drumgould went to see Sorich, in approximately 2002 or 2003, Sorich gave

Drumgould a document listing approximately ten job candidates whom he wanted to be selected for

Streets & Sanitation positions. Next to each job winners name was his political clout, such as a

number referring to a ward. Sorich took the list away from Drumgould. In Drumgoulds presence,

Sorich called his secretary, and asked her to make a copy of the left side of the document only.

When Drumgould received the document from the secretary, the political affiliation column had

been removed.34/

Between 1998 and 2004, Sullivan called Drumgould once or twice a month and asked him

to transmit names of certain candidates to Sorich for consideration in upcoming Shakman-covered

jobs for some positions in Streets & Sanitation. Based on Drumgoulds observations, Sullivan was

very involved in the hiring process, and often selected the interview panelists.

Sometimes there was tension between Sorich and McCarthy, on one side, and the

Commissioner and Sullivan, on the other side, over certain Shakman-covered job positions. For

example, for a job that had 50 openings, the Commissioner instructed Drumgould to tell Sorich that

the Commissioner should be able to choose half of the winning candidates. When Drumgould gave

this message to Sorich, Sorich told Drumgould that the Commissioner could choose only ten

winners. The dispute typically continued until some combination of the Commissioner, Sullivan,

Sorich, and McCarthy met to resolve the matter. Drumgould never had any decision-making

authority over who should win, and based on Drumgoulds observations, the selections were not

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35/This tension arose repeatedly over hirings and promotions for Motor Truck Drivers and

Laborers, including sequences in 2004.

36/When the Commissioner and Sullivan did provide names to IGA, or filled spots that IGA

had not controlled, the selections were likewise influenced by politics and guaranteed through rigged

interviews. One example was the mother of a leading member of HDO, who was given a timekeeping

position by Drumgould, at the direction of the Commissioner, in September 2001, and was

transferred to another position on the Commissioners direction in 2002, in order to avoid a

budgetary layoff.

37/Two such color-coded lists were recovered from IGA and Streets & Sanitation offices

during the governments searches of City offices. One list dealt with the 2004 hiring of Motor Truck

Drivers, and another dealt with the hiring of Laborers in 2003. The Laborers list has handwriting

that has been identified by witnesses as Sullivans. The IGA list has post-it notes in handwriting

that has been identified as McCarthys.

34

made on the basis of merit.35/ For the rigged Shakman-covered positions, IGA had the final say in

who was hired. While the Commissioner and Sullivan frequently provided their input and

negotiated with IGA for control over more jobs, the final decisions were IGAs.36/

On occasions between 1998 and 2004 when there was conflict between IGA and the

Commissioner and Sullivan, Sullivan prepared a color-coded list of the job applicants, identifying

each by political affiliation, union sponsorship, seniority, or other criteria.37/ Sullivan provided

copies of these lists to Drumgould, the Commissioner, and Sorich, to keep track of the political and

other groups who succeeded in persuading IGA to direct the hiring of their favored candidates and

as an aid to lobby Sorich for additional candidates. Various Streets & Sanitation personnel, in

addition to Drumgould, saw such lists in Sullivans office from time to time.

Some union representatives told Drumgould that they, too, met with Sorich about jobs and

gave him lists of names of people that they wanted to be hired or promoted. For example, a

representative from a local electricians union told Drumgould that he met with Sorich and

McCarthy. Some union representatives told Drumgould that the unions gave money to political

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35

candidates, and that they sent union members to do political work at IGAs direction. Union

members likewise received job positions through the rigged interview process, at IGAs direction.

3. The interview process in Streets & Sanitation.

Between 1998 and 2004, for interviews for certain Shakman-covered positions with many

vacancies and applicants (such as Motor Truck Driver or Laborer), Drumgould and Slattery

participated in efforts to rig the interview process to ensure selection of IGAs picks. Streets &

Sanitation customarily used two different sets of interviewers. First, candidates sat with a twoperson

panel comprised of Streets & Sanitation supervisors. These supervisors were instructed to

ask general questions concerning the candidates willingness and ability to do the job. They did not

give any numerical ratings to the candidates. Second, candidates were directed into a room with

another two-person panel, typically comprised of Drumgould and beginning in 2000 Slattery.

Slattery filled out a ratings form for each candidate, writing down the candidates names and social

security numbers. Drumgould gave the candidates an overview of the job and its benefits. Neither

Slattery nor Drumgould filled out any numerical ratings at the time of the interview.

Later sometimes months later after finding out who IGA wanted for the jobs, Slattery and

Drumgould sat down with the ratings forms and filled in the numerical scores to obtain the IGAdirected

results. They intentionally gave the highest ratings to the people on the IGA lists, without

regard to those candidates interview performance or qualifications. They intentionally gave lower

ratings to the people that IGA had not selected. The purposes of filling in the ratings forms in this

manner were to create a paper record that made it appear that the interview process was legitimate

and fair, and otherwise to comply with the requirements of Main Personnel. Slattery and Drumgould

agreed up front what the scale would be (for example, winners get 5.0, losers get 4.5), then they

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38/Between 2000 and 2005, Electricity hired for positions such as Traffic Signal Repairman

(2001 and 2004), Lineman (2001 and 2004), Load Dispatcher (2001), Carpenter (2001), Laborer

(2000 and 2004), Foreman of Street Light Repairman (2000 and 2004), Foreman of Linemen (2004),

General Foreman of Lineman (2004), and various administrative positions.

36

mechanically filled out all the forms in a short period of time. There was no analysis of the hiring

criteria listed on the ratings forms, or how the candidate actually should be rated on such criteria.

For interviews involving fewer applicants (e.g., supervisory positions like General Foreman

of Motor Truck Drivers), Streets & Sanitation usually used fewer interviewers. Sometimes Slattery

and/or Drumgould participated in these interviews. On these occasions, Slattery and Drumgould

instructed the other panelists not to fill in the numerical ratings on the ratings forms. Other times,

supervisors at the bureaus conducted the interviews on their own, without participation by

Drumgould or Slattery. In those situations, Slattery and Drumgould relied on the bureau personnel

liaisons or the bureau deputy commissioners to instruct the panelists not to fill in the numerical

ratings on the ratings forms. Drumgould then provided the names of the winners to the bureau

personnel liaisons and/or bureau deputy commissioners, and they filled out the numerical ratings on

the forms consistent with Drumgoulds instructions (which were from IGA), and returned the forms

to the personnel office.

(a) Rigged interviews in the Bureau of Electricity.

One of the operating bureaus within Streets & Sanitation is the Bureau of Electricity. Since

July 1998, there has been a personnel liaison in the Bureau of Electricity who worked with

Drumgould and Slattery on hirings and promotions for the Bureau (the Electricity liaison?). When

Electricity had vacancies,38/ the Electricity liaison worked with the Streets & Sanitation personnel

office to get Budget approval, post the bids, and get paperwork in order. The Electricity liaison set

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39/Tree Trimmer I was an entry-level position. There was no difference in job responsibilities

(continued…)

37

up the interviews, which were conducted by Electricity personnel. For some Electricity positions,

applicants were required to take written tests.

Interviewers for Electricity positions did not complete the numerical ratings on the ratings

sheets. Based on his observations about how the process worked once he started working at

Electricity in 1998, and on conversations he had with former Deputy Commissioner of Electricity,

the Electricity liaison instructed some Electricity interviewers either directly, or implicitly, not to

give ratings; other interviewers already knew not to give ratings. When an interviewer did give

ratings, the Electricity liaison either discarded the form, or asked the interviewer to sign a new form

with no ratings.

After the interviews, Drumgould informed the Electricity liaison of the names of the IGA

selections for Electricity positions, and the Electricity liaison filled out the numerical ratings on the

ratings forms to give IGAs picks the highest scores. Ratings forms were always completed after

the interviews, based on the list of names that the Electricity liaison received from Drumgould,

rather than any evaluation of the candidates as part of the interview process. To the extent that

interview candidates had to complete written tests as part of the interview process, their performance

on the tests was not factored into the numerical ratings, and was not considered in determining who

received the job or promotion. Written tests frequently were not even scored.

(b) Rigged interviews in the Bureau of Forestry.

The process concerning interviews and ratings sheets worked substantially the same way

with other Streets & Sanitation bureaus, including Forestry. Other than supervisory positions, the

primary job titles within Forestry were truck drivers, Tree Trimmer I, and Tree Trimmer II.39/

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39/(…continued)

between a Tree Trimmer I and a Tree Trimmer II. Tree Trimmer IIs got paid more, and the position

existed as an incentive to Tree Trimmer Is.

38

According to City records, between 2000 and 2005, the City hired and promoted approximately 38

people, during a variety of hiring sequences, to Tree Trimmer I or Tree Trimmer II positions. For

Tree Trimmer I interviews, the Bureau administered a series of practical tests, such as identification

of tools and throwing a rope. At each testing station, a Forestry employee gave a numerical rating

to the job candidate, based on the candidates performance on the practical test. The grades (scored

on different forms than the interview rating sheet) then went with the candidate into an interview.

Beginning no later than 1996, and continuing through 2004, based on instructions from the

Forestry General Superintendent and the Forestry Deputy Commissioner, during interviews for Tree

Trimmer I, Tree Trimmer II, and other Forestry positions, interview panelists in Forestry did not

assign numerical ratings on the ratings sheets. They just signed their names on the ratings forms and

left the numerical ratings blank. Based on direction from the Forestry General Superintendent and

the Forestry Deputy Commissioner, interview panelists were informed that the numerical ratings for

both the practical tests and the interviews were unnecessary and irrelevant, because IGA picked the

winners.

Between 1998 and 2004, the Forestry General Superintendent and/or the Forestry Deputy

Commissioner typically received a telephone call from Drumgould after the interviews were

conducted, or saw Drumgould in person in his office. Drumgould gave them the names of some of

the people who had been interviewed and said words to the effect of, Heres the winners,? or

Heres the list from downstairs.? When Drumgould gave the names to the Forestry Deputy

Commissioner, he passed the names on to the Forestry General Superintendent. On one occasion

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39

between 2000 and 2003, the Forestry Deputy Commissioner received the winners names directly

from John Sullivan. Based on discussions with Drumgould and their own experiences at the City,

the Forestry General Superintendent and the Forestry Deputy Commissioner understood that the

names provided by Drumgould and Sullivan were the names of the people to hire. The winners

names were not based in any way on how candidates performed on the practical tests, or in the

interviews.

Between 1996 and 2004, when no one asked the Forestry General Superintendent for the

interview ratings forms for Shakman-covered hiring sequences in Forestry, the Forestry General

Superintendent just threw them away. When he was asked for the ratings forms, he made sure that

the numerical ratings were filled out on the forms by doing it himself or by having someone else in

Forestry fill in the ratings, giving the highest scores to the people whose names had been provided

by Drumgould.

4. Examples of rigged sequences in Streets & Sanitation.

(a) 2001 General Foreman of Motor Truck Drivers.

General Foreman was the highest Shakman-covered union position within Streets &

Sanitation. In February 2001, approximately 36 City workers bid on the General Foreman of Motor

Truck Drivers job, including six titled Foremen of Motor Truck Drivers.

In approximately March 2001, a General Superintendent in Streets & Sanitations Bureau

of Sanitation (the Sanitation General Superintendent?) was alone with John Sullivan in his office,

and they were discussing the General Foreman position. Sullivan told the Sanitation General

Superintendent that a certain truck driver (the preselected General Foreman of MTDs?) would get

the job. Sullivan also stated that the union, particularly the Local 726 representative, was pushing

for the preselected General Foreman of MTDs.

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40/Before the interviews, the preselected General Foreman of MTDs told workers in his

aldermans office that he had applied for the General Foreman position. A Local 726 union leader

told preselected General Foreman of MTDs, after he received the job, that the leader had okayed?

him for the position.

40

On Saturday, March 13, 2001, 36 job candidates came in and interviewed for the one

position. That day, before any interviews occurred, the Sanitation General Superintendent met with

Drumgould and Slattery at the interview location. In Slatterys presence, Drumgould told the

Sanitation General Superintendent not to fill in any numerical ratings on the ratings form; instead,

Drumgould said the Sanitation General Superintendent should just sign his name on a ratings form

for each applicant, leaving the numerical ratings blank. Drumgould said words to the effect of, We

are going to try to get this done fast. Well ask a couple of questions. Just sign the bottom.?

Slattery, the Sanitation General Superintendent, and Drumgould asked basic questions of the

candidates but did not conduct detailed interviews, because based on the direction given through

Drumgould the candidates answers did not matter.

The ratings forms sat in Drumgoulds office until Sorich told Drumgould who should be the

winner. After the interviews, Slattery and Drumgould went to Sorichs office, and Sorich told them

that the preselected General Foreman of MTDs should receive the General Foreman position. Based

on Sorichs direction, Drumgould then filled out the numerical ratings on the interview ratings

sheets for all the candidates, giving the preselected General Foreman of MTDs the highest score.

The preselected General Foreman of MTDs, who had worked politics for a particular Ward

Democratic Organization since 1975, was given the job despite the fact that he did not have the

required amount of supervisory experience.40/ As of March 2001, the preselected General Foreman

of MTDs had been a Foreman of Motor Truck Drivers for approximately two years and five months;

he had no other supervisory experience. One of the categories on the evaluation form was whether

Case 1:05-cr-00644 Document 113 Filed 04/10/2006 Page 44 of 98

41

the candidate had five years or more of supervisory experience. The preselected General Foreman

of MTDs was the only candidate who received the highest numerical rating, a 5,? for having five

years or more supervisory experience despite the fact that he was the only Foreman of Motor

Truck Drivers candidate who did not have the requisite amount of supervisory experience. The

other Foremen of Motor Truck Drivers interviewing for the position had between six and 23 years

of supervisory experience.

(b) 2001 Program Director.

Also in early 2001, there was a hiring sequence for Program Director. This was a non-union,

Shakman-covered position. Sullivan told Drumgould that he wanted Drumgould and Slattery to be

the interviewers for this position, and to give the job to a certain person (the preselected Program

Director?). Drumgould had observed that the preselected Program Director was a close friend of

Sullivans. On February 28, 2001, Drumgould and Slattery interviewed two people for the job, and

gave the preselected Program Director the highest scores. The high scores were based solely on

Sullivans directive to hire the preselected Program Director, not on the candidates performance

in the interview.

(c) 2001 Tree Trimmer II.

In March 2001, two Tree Trimmer Is were promoted to the position of Tree Trimmer II.

One of the winners told the Forestry General Superintendent, the Forestry Deputy Commissioner,

and Bruno Bertucci, among others, that he did political work with the Commissioner and was a

member of HDO. A union representative told Drumgould that he had talked to Sorich about

promoting the other winner.

The job notice for the Tree Trimmer II position required three years of experience as a Tree

Trimmer I. One of the winners had 1 year, 10 months of experience; the other winner had 2 years,

Case 1:05-cr-00644 Document 113 Filed 04/10/2006 Page 45 of 98

42

5 months of experience. Other Tree Trimmer Is who applied for the promotion had between three

and 11 years experience.

Sorich gave these two names to Drumgould, instructing that they be promoted to the

position. Based on Sorichs direction, Drumgould provided the names to the Forestry General

Superintendent in Forestry, so that the preselected candidates would get the highest scores on the

interview ratings forms. The ratings forms for this promotion sequence contain signatures of the

people who conducted the interviews, including Bruno Bertucci, but no numerical ratings at all.

(d) 2004 Motor Truck Drivers.

In February 2004, Streets & Sanitation posted a notice for Career Service Motor Truck

Drivers, a Shakman-covered position. As discussed in more detail in Section I below, campaign

coordinator and former Streets & Sanitation official Daniel Katalinic met with Sorich in early 2004,

and gave him lists of political workers in Katalinics political organization who were seeking the

Motor Truck Driver position. Sorich told Katalinic to give the names to McCarthy also, and he did.

At least three of the people on Katalinics list (Katalinic MTD 1,? Katalinic MTD 2,? and

Katalinic MTD 3?) were already City employees. Katalinic MTD 1 had joined Katalinics

organization around 2001 or 2002, after his supervisor (who was also in the Katalinic organization)

told him that it would be good to join Katalinics group because it might help Katalinic MTD 1

along at the City. Likewise, Katalinic MTD 2 joined Katalinics organization around 2002, after his

father-in-law (who was also in the Katalinic organization) told him that Katalinic had a lot of pull

within the City and that participating in political work would help his career at the City.

Katalinic MTD 3 joined Katalinics organization through Bruno Bertucci. Bertucci started

working with Katalinics organization in the 2002 elections, and brought his own small group of

volunteers into Katalinics group. Between 2002 and 2004, Katalinic (after receiving marching

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41/Such forms simply ask the candidate whether he or she is willing and able to perform

certain characteristics of the job, and the candidate marks boxes yes? or no.?

42/One of Katalinics written letters to McCarthy and Sorich before the interviews specifically

stated that Katalinic MTD 2 was in Iraq.

43

orders from Sorich and others affiliated with the Mayors campaign office, as described above) told

Bertucci where to go and what candidates to support. For approximately the same time period, to

get political volunteers City jobs or promotions, Bertucci went to Katalinic and, on occasion, to

Sorich. For example, in 2004, Bertucci spoke directly to both Katalinic and Sorich about Katalinic

MTD 3. When Bertucci met with Sorich, Bertucci said that Katalinic MTD 3 was with him and that

she is one of mine,? referring to Katalinic MTD 3’s political work.

The interviews for Career Service Motor Truck Driver were conducted on March 27, 2004.

All of the panelists except Drumgould and Slattery filled out willing and able? forms41/ that had no

numerical ratings. Slattery and Drumgould had the sheets with the numerical ratings, but they did

not give any scores at the time of the interviews.

Drumgould retired from the City in May 2004. During the approximately six weeks between

the interviews and Drumgoulds retirement, Slattery and Drumgould participated in discussions with

IGA and with Sullivan concerning who would be hired. McCarthy raised a question about whether

one of Katalinics candidates, Katalinic MTD 2, was in Iraq at the time of the bid period and the

interviews. Sullivan told Drumgould that he called Katalinic MTD 2’s mother, and that the mother

said that the candidate was in Chicago during those time periods. Drumgould then called IGA to

pass on the information from Sullivan. In fact, according to Katalinic MTD 2, he had been in Iraq

at the time of the bid period and the interviews.42/ He was never interviewed and never took a drug

test for the Motor Truck Driver job.

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43/Michael Bartello began work as Assistant Commissioner on or about July 15, 2004.

Shortly after he started work, he saw Drumgould and Slattery in the Streets & Sanitation personnel

office filling out hiring and promotion paperwork.

44

In approximately late July 2004 about two months after Drumgould retired Slattery

called Drumgould and asked him to come back to the office to help him fill out the numerical ratings

on the Motor Truck Driver interview sheets. Slattery told Drumgould that he was being pestered

about completing ratings forms from past interviews. Slattery and Drumgould filled out the

interview sheets, giving all the IGA selections 5.0, and everyone else 4.5.43/ These ratings were

based solely on IGAs selections; Slattery and Drumgould did not ever evaluate the candidates or

determine their qualifications for the Motor Truck Driver position.

Most of the people that Katalinic recommended to IGA, including Katalinic MTDs 1, 2, and

3, received the position. Katalinic MTDs 1 and 2 both thanked Katalinic for helping them get the

job. Katalinic told Katalinic MTD 2 that it took a lot of work to get him the job.

In approximately August 2004, shortly after receiving the promotion, Katalinic MTD 3 had

an accident. She drove a City truck under a viaduct that was too low for the truck to clear. She was

injured in the accident and received a 20-day suspension. On September 15, 2004, in a recorded

telephone call intercepted by a Court-authorized wiretap, Katalinic spoke with a member of his

political organization, who said that Katalinic MTD 3 whacked the viaduct? about a month ago,

and was issued a 20-day discipline.

In mid-2005, after law enforcement searched various City offices, Bartello found a colorcoded

document in a file cabinet in the office he was sharing with Slattery. Slattery previously

shared the same office with Drumgould. The document contained names of candidates for the

position of Career Service Motor Truck Driver, color-coded by political affiliation. For example,

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44/Drumgould also identified the document as the type Sullivan created and used to keep track

of political hiring during the hiring process in the period before Drumgould left in 2004.

45

Katalinic MTDs 1, 2, and 3’s names (along with others) were highlighted in purple, and the key

designated purple as the color for Katalinics organization. Slattery was present at the time, and said

words to the effect of, Oh, shit.?44/

(e) 2004 Laborer.

In March 2004, Streets & Sanitation accepted bids for promotions of hand laborers to

seasonal laborers, and seasonal laborers to career-service laborers. Laborers perform manual labor

involving hand sweeping and transporting of heavy objects, among other duties. Approximately 450

people were interviewed for approximately 150 positions in April 2004. The interviews for this

position worked the same way as interviews for the 2004 Motor Truck Driver positions:

interviewers from the operating departments did not give numerical ratings; candidates were

interviewed a second time by Drumgould and Slattery, who had the rating forms. The department

promoted approximately 150 people following the interviews.

Beginning in June 2004, the Administrative Assistant Commissioner investigated a classaction

grievance submitted to the City by the Laborers Local Union #1001, which challenged the

Streets & Sanitation hiring and promotion process for the laborers. At the time the grievance was

filed in early June 2004, Drumgould had retired as Assistant Commissioner in charge of personnel;

Slattery was the acting personnel director for Streets & Sanitation.

Among other things, the grievance questioned the criteria that Streets & Sanitation used in

deciding whom to promote. The union requested that the City provide copies of all the ratings forms

that were used in making the selections. The Administrative Assistant Commissioner asked Slattery

to give her copies of all the relevant hiring and promotion paperwork, including the ratings forms.

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46

Slattery did not immediately provide the documents. The Administrative Assistant Commissioner

repeatedly asked Slattery for the documents. The union filed an unfair labor practice charge with

the Illinois Labor Relations Board in July 2004, based on the Citys failure to provide the

documents.

After the Administrative Assistant Commissioners third request to Slattery, still in July

2004, Slattery came into her office and closed the door. Slattery told the Administrative Assistant

Commissioner that the documents were not ready. She asked what he meant. Slattery told the

Administrative Assistant Commissioner that the documents were in the process of being completed.

Slattery told the Administrative Assistant Commissioner that he brought Drumgould back to Streets

& Sanitation to help complete the paperwork. Slattery said words to the effect of, He started the

process, we need him to finish it.? (On the same occasion, Slattery and Drumgould filled in the

Motor Truck Driver ratings forms, as discussed above.) The Administrative Assistant

Commissioner asked Slattery how he selected the winning candidates. Slattery did not respond. The

Administrative Assistant Commissioner said words to the effect of, Please tell me you had a

legitimate business reason for selecting them.? Slattery did not respond. The Administrative

Assistant Commissioner asked Slattery, What did you base your hiring decisions on, attendance,

performance, anything?? Slattery replied, No.?

The Administrative Assistant Commissioner told Slattery that based on his information, she

needed to settle the union grievance, because if he could not explain the ratings, she could not

defend the City. The Administrative Assistant Commissioner told Slattery that he needed to give

her the hiring documents immediately so that she could turn them over to the union. The

Administrative Assistant Commissioner told the Commissioner that there were problems with the

grievance; the Commissioner responded with words to the effect of, Do what youve got to do.?

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45/After sending her August 2004 letter, the Administrative Assistant Commissioner received

a telephone call from a union representative, stating that she had not answered the unions questions.

The Administrative Assistant Commissioner told the union representative to put his questions in

writing, and that City representatives would be available to answer the unions questions. In late

October 2004, the union sent another letter, wanting to know the details of how numerical ratings

were assigned, and why certain people were promoted over others. The Administrative Assistant

Commissioner did not know the answers to the unions questions, because Slattery never explained

(continued…)

47

Slattery subsequently provided the Administrative Assistant Commissioner a box of hiring

documentation, consisting of completed ratings sheets and other hiring and promotion paperwork.

After receiving the documents from Slattery, the Administrative Assistant Commissioner made them

available to the union for inspection and copying. The union later sent her letters questioning the

hiring process. In an August 2004 letter, the union asked for an explanation of how the numerical

ratings were selected, and the bases for the Citys promotion decisions. The Administrative

Assistant Commissioner responded, among other things, that the numerical ratings were based on

the interviewers subjective findings concerning the performance of the applicants during the

interview process and the contents of their respective bid applications.? Slattery reviewed and

approved the letter before the Administrative Assistant Commissioner sent it, telling her that the

letter was accurate. The Administrative Assistant Commissioner copied the Commissioner,

Sullivan, Bartello, and Slattery on the letter. None of them contacted her to indicate that the letter

was incorrect.

After Mike Bartello became Assistant Commissioner in charge of personnel in July, Bartello

learned that the Administrative Assistant Commissioner had been asking Slattery for documents

relating to the laborer promotions, and that the union had filed a grievance. Slattery told Bartello

words to the effect of, I dont know why shes [the Administrative Assistant Commissioners]

sticking her nose into it,? and I dont trust her.?45/

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45/(…continued)

his actions. The Administrative Assistant Commissioner showed Slattery the list of the unions

questions and told him that she was going to schedule a meeting with the union, and he would have

to answer the unions questions. Slattery just shrugged his shoulders. In 2005, the union reached

a negotiated settlement with the City on other issues, and the meeting was never held.

48

(f) 2004 Equipment Dispatchers.

(i) The hiring process.

In February and March 2004, Streets & Sanitation accepted bids for the position of

Equipment Dispatcher. After the bidding period, but before the interviews took place, the Sanitation

General Superintendent was alone with John Sullivan in Sullivans office. Sullivan asked the

Sanitation General Superintendent to be an interview panelist. Sullivan showed the Sanitation

General Superintendent a handwritten list of names and said words to the effect of, These are the

guys who are going to get it.? There were five names on the list. Three were part of Katalinics

political organization, and Katalinic was pushing for them, and some other dispatchers in his

organization, to get the jobs through IGA. For instance, in a March 2004 letter to Sorich, Katalinic

specifically requested the three men for the Equipment Dispatcher position, along with several

others in his political organization. In addition, the Sanitation General Superintendent overheard

Katalinic say that he was pushing for these three to get the job.

In July 2004, after the Sanitation General Superintendent saw the list in Sullivans office,

one of the people whose name had been on Sullivans list (and on Katalinics list) died. Before the

interviews took place, but after the candidate died, Michael Bartello met with Sullivan in Sullivans

office. Sullivan told Bartello the names of the five people that he wanted to be selected for the

Equipment Dispatcher job. The names were the same as the names Sullivan had given to the

Sanitation General Superintendent, except Sullivan replaced the deceased candidate with another

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46/According to the bid applications, the candidates that Sullivan identified to the Sanitation

General Superintendent and Bartello were, in fact, acting Equipment Dispatchers. The one with the

most seniority, however, was a candidate who had been acting Equipment Dispatcher for 14 years,

but was not originally slated for the position. He was added to the list only after another of the

candidates whod been an acting Equipment Dispatcher for nine years passed away. The other

winning candidates had between six and 11 years experience.

49

candidate. When Sullivan told Bartello the names, Bartello wrote them down. Sullivan told Bartello

that the Department would hold interviews for the Equipment Dispatcher job on a Saturday, and

there would be interview panels who would question the candidates. Sullivan explained that even

though the panels would do the interviews, the ratings forms should be filled out by Bartello or

Bartellos staff. Sullivan said that he did not trust the panelists to score the candidates to get the

desired results. Sullivan said that Bartello should be responsible for the ratings forms. Based on

the conversation, Bartello understood that he was to fill out the numerical ratings himself, even

though he would not be sitting on the interview panels.

Bartello told Sullivan that he was uncomfortable with this process. Bartello said that he

could not rate people he did not know. Sullivan told Bartello again that this was the process, and

that he was responsible for the ratings forms.

After meeting with Sullivan, Bartello spoke with Slattery about his concerns about the

process, and told him that it did not seem right to fill out the ratings forms in the way Sullivan

described. Slattery told Bartello that this is the way they have been doing it in Streets & Sanitation,

and that this was the best way to do it.? Slattery told Bartello that he and Drumgould had signed

off on the ratings forms for Career Service Motor Truck Driver positions. As to the Equipment

Dispatcher sequence, Slattery told Bartello that all of the candidates selected were acting Equipment

Dispatchers.46/

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50

The Equipment Dispatcher interviews were held at a City building at 39th and Ashland on

August 6 and 7, 2004. The Sanitation General Superintendent sat on an interview panel with another

Streets & Sanitation official. They took turns writing comments for each job candidate on

evaluation forms; there were no spaces for the interviewers to give numerical ratings. Bartello did

not sit on any of the interview panels.

On August 7, 2004, in a recorded call intercepted pursuant to a Court-authorized wiretap,

Katalinic spoke by telephone with one of the candidates about the Equipment Dispatcher interviews.

The candidate said he did his interview yesterday? (i.e., August 6, 2004), and it lasted two minutes.

The candidate said the interviews were just formalities. Katalinic and the candidate discussed who

conducted the interviews. On August 9, 2004, Katalinic spoke by telephone with the acting Deputy

Commissioner of Street Operations. Katalinic asked the acting Deputy Commissioner to make sure

he gave John Sullivan a call about the Equipment Dispatcher positions. Katalinic said he heard there

were a lot of guys fighting for the jobs, and over 150 people were interviewed on Saturday, August

7, 2004. The acting Deputy Commissioner said that people he has not heard from in 15 or 20 years

were calling him about the position. Katalinic told the acting Deputy Commissioner that when he

spoke with Sullivan, he needed to make sure to mention certain members of Katalinics political

organization. Katalinic had a similar telephone call with a Streets & Sanitation Assistant General

Superintendent the same day, telling him to go in to Sullivan and give him the names of certain

dispatchers who were in Katalinics political organization.

About a week after the interviews, Sullivan told Bartello that he heard the Equipment

Dispatcher interviews went very well. Bartello repeated his concerns to Sullivan, and told him that

it wasnt right for Bartello to fill out ratings sheets for people he didnt know. In a recorded

September 8, 2004 call between Bartello and Katalinic, Bartello told Katalinic that Sullivan talked

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47/Bartello did not do any independent check of the candidates experience or qualifications,

other than to verify from the records that they had been acting dispatchers, which he had learned

from Sullivan. Other than Sullivans telling Bartello that these candidates had been acting

dispatchers, he didnt know anything else about their qualifications for the position. Bartello did

have forms that had been filled out by the interviewers with some impressions of the candidates, but

he did not review those in detail. In the Comments? section on the ratings sheets, Bartello wrote

some comments based on the information Sullivan had provided. He did this so that if any of the

candidates who were not selected filed grievances with the union, the City would be able to argue

that the jobs were filled based on seniority, even though that was not the basis of the selections.

51

to Bartello about the Equipment Dispatcher position yesterday? (i.e., September 7, 2004), and told

Bartello to get that ready.? Bartello told Katalinic that the department planned to appoint one of

Katalinics candidates to dispatcher, and that Sullivan briefed Bartello on making that candidate the

Chief Equipment Dispatcher. Katalinic said he would go to the guys downstairs? regarding the

candidates promotion.

On September 9, 2004, Bartello filled out numerical ratings forms for each of the Equipment

Dispatcher job candidates. Based on his conversation with Sullivan, and at Sullivans direction,

Bartello gave the highest score, a 5.0, to the five names Sullivan had provided. Bartello gave lower

scores to the remaining candidates.47/

(ii) Sullivans subsequent concern about an investigation.

On May 3, 2005, federal agents searched the offices of Streets & Sanitation, including the

office shared by Bartello and Slattery. During the search, agents recovered a handwritten list of five

names Sullivan had previously provided to the Sanitation General Superintendent, corresponding

to the pre-selected winners for the Equipment Dispatcher position. This list, dated July 15 [2004],

included the name of the candidate who had died before the interviews were conducted.

After the federal agents searches, a Streets & Sanitation personnel employee told Bartello

the 2004 Equipment Dispatcher personnel file was missing from her office. Bartello told Sullivan

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52

that the file was missing. Bartello once again told Sullivan that he was uncomfortable with the

hiring and promotion process. Sullivan said words to the effect of, Somebody has to make these

decisions.?

Bartello and Sullivan then had a series of conversations about the federal investigation of

hiring in Streets & Sanitation. During a phone call, Bartello took contemporaneous notes of

Sullivans statements. In one conversation, Bartello told Sullivan that he was planning to meet with

his attorney. Sullivan asked Bartello if he wanted to go over things before he met with his attorney.

Bartello said no. When Bartello came back to the office after meeting with his attorney, Sullivan

asked him how it went. Bartello said he didnt want to discuss it.

The next week, Sullivan called Bartello at work. Sullivan asked Bartello if his attorney

thought that the Equipment Dispatcher hiring sequence was illegal. Sullivan stated that he would

take the heat for the Equipment Dispatcher hiring because he had been the person to go to the

Commissioner with the recommendations. Sullivan said that the reason the personnel office signed

the ratings forms was because of problems in the past with a particular Streets & Sanitation

employee picking his friends or people from his political organization for promotions. Sullivan also

said words to the effect of, if goofy Danny [Katalinic] was running around saying he got the

Equipment Dispatcher job for someone for $500, then f— him.?

A few days later, Bartello received another phone call from Sullivan. Sullivan told Bartello

that, in the past, certain Streets & Sanitation employees had been giving their friends the highest

interview ratings, suggesting that that was the reason why Streets & Sanitation had its personnel

directors fill out the ratings forms. Sullivan told Bartello that the panel system was not flawed, and

that he should continue to use the panel system for hiring and promotions.

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53

Slattery and Bartello then met with Sullivan in Sullivans office. Sullivan said that he and

the Commissioner had met with officials of the Citys Corporation Counsel. In the wake of the

federal raid, the Corporation Counsel wanted to know about the Streets & Sanitation hiring process.

Sullivan asked Bartello to prepare an outline of hiring procedures, and suggested that Bartello start

with the mass hiring process. Based on this and his previous conversations with Sullivan, Bartello

understood Sullivans direction to be to create an outline of how the process was supposed to work,

and not how it actually worked. Slattery and Bartello worked with some of the assistants in the

Streets & Sanitation personnel office to create hiring outlines for various positions, including

Laborer, Hand Laborer, Career Service Motor Truck Driver, and Equipment Dispatcher. The

outlines they created and provided Sullivan to give to the Corporation Counsel were accurate as to

how the process was supposed to work, but not accurate as to how the process actually worked.

In June 2005, Sullivan told Bartello that he heard the federal government had some kind of

color-coded list. Sullivan asked Bartello whether it was Sullivan or Drumgould who wrote on the

color-coded list. Bartello said he didnt know.

In July 2005, Sullivan called Bartello into his office. Bartello thought they were going to

discuss the Streets & Sanitation personnel budget. Sullivan said, Let me buy you a cup of coffee,?

and stood up. Bartello said that he was not going to talk about the investigation. Sullivan said that

Bartello was right, and sat down. Sullivan told Bartello that he was going to see his attorney to

make sure he had the right perception of the hiring process. Sullivan said words to the effect of,

Didnt you come in here and ask me and [the Commissioner] who were interested in regarding the

Equipment Dispatchers?? Bartello said words to the effect of, No, you told me we were going to

make all the actors,? i.e., make all the acting Equipment Dispatchers into titled Equipment

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48/Drumgould, Slattery, and Bartello had various assistants who performed this task between

1998 and 2005.

54

Dispatchers. Bartello believed Sullivan was trying to coach Bartello on what to say to investigators,

in order to minimize damage to the scheme.

(g) 2005 Motor Truck Driver.

In January 2005, bids were posted for vacancies for Career Service Motor Truck Drivers and

Foreman of Motor Truck Drivers positions. Between January and May 2005, Sullivan asked

Bartello when the interviews were going to be, and stated words to the effect of, no one has given

me the names yet.? Bartello told Sullivan that he (Bartello) would not fill out the rating forms.

Sullivan said something to the effect that Bartellos completing the rating forms would be the best

way. The interviews did not take place.

5. Certification of the Shakman referral lists.

After the ratings sheets were completed for each job position, a staff member in Streets &

Sanitation personnel filled out the Shakman certification, identifying who had been selected for the

job.48/ Based on campaign coordinators like Katalinic, their own activities, conversations with

Sorich and McCarthy, and their observations during their time at the City, Drumgould and Bartello

knew when they signed the Shakman referral forms, or caused them to be signed, that contrary to

the certification on the bottom of the forms political considerations had, in fact, entered into the

hiring and promotion decisions. By filling out the ratings forms the way Drumgould, Slattery, the

Electricity liaison, the Forestry General Superintendent, the Forestry Deputy Commissioner, and

others did, they attempted to create an appearance of propriety in the interview process, and to

conceal the violations of the Shakman Order.

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49/Tomczak was indicted on charges of racketeering, mail fraud, bribery, obstruction of

justice, and filing false tax returns in United States v. Donald Tomczak, et al., 04 CR 921 (Der-

Yeghiayan, J.). He pled guilty pursuant to a written plea agreement and is awaiting sentencing.

50/Sorichs predecessor at IGA was the first person to tell Bergthold about IGAs role in

hirings and promotions at the City, while Bergthold was working in personnel at Streets &

Sanitation. Sorichs predecessor at IGA gave Bergthold lists of names, saying words to the effect

of, Heres the list of guys you should look at.? He often prioritized the names. When Bergthold

transferred to Water, the departments Commissioner told her to continue meeting with IGA.

Sorichs predecessor at IGA introduced Bergthold to Sorich, and told her that Sorich would be

taking over for him.

55

D. Department of Water.

The Department of Water (now part of the Department of Water Management) employed

approximately 2,000 employees and delivered potable water from pumping stations to City residents

and businesses, as well as to certain suburban communities. The Department of Water hired and

promoted people for Shakman-covered positions like Laborer, Caulker, Foreman, Hoisting Engineer,

and Operating Engineer, among others.

From approximately 1992 to 2003, Phyllis Bergthold was the departments head of

personnel. She had previously worked in personnel for the Department of Streets & Sanitation.

From approximately 1989 through 2003, Donald Tomczak was the First Deputy Commissioner for

Water.49/

1. IGAs role in hiring at the Water Department.

Between 1993 and 2003, Phyllis Bergthold routinely met with Sorich about vacancies in the

Water Department. At those meetings, Sorich identified for Bergthold the names of those who

should be awarded the vacancies. This typically occurred before the applicants were interviewed.50/

Sorich did not tell Bergthold why the names he had given her were to be chosen.

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56

Between 1993 and 2003, after Bergthold met with Sorich at IGA to receive the list of

selected applicants, and typically before any interviews had been conducted, she went to Tomczaks

office and gave him the names of the applicants selected by IGA. Bergthold told Tomczak that these

were the people whom IGA wanted selected for the available positions. Tomczak then would

oversee the interview process to ensure that the IGA-selected candidates won the positions.

On several occasions between the early 1990s and 2003, based on his own observations and

conversations with other Water Department supervisors, Tomczak believed IGA had selected to win

certain candidates who were unqualified or less competent than other candidates for the position.

Tomczak told Sorich his views of the relative incompetence of candidates selected by IGA. Sorichs

typical response was for Tomczak to do the best he could with the candidate. Tomczak took that

to mean that he had to hire the candidate anyway. As one example, IGA directed Tomczak to accept

a transfer employee from the Department of Transportation who had serious drinking problems.

Sorich told Tomczak words to the effect of, Do the best you can with him.? Sorich never asked

Tomczak for input about the job-related qualifications of candidates, including candidates for

supervisory positions.

Even when Tomczak was unhappy with IGAs selected candidate, he did not order that

candidates score to be lowered or reject IGAs selection. Instead, Tomczak scheduled another

meeting with Sorich or Individual A. On one or more occasions, Tomczak said words to the effect

of, you cant do this to me, it will look like I dont have control or Im not in charge, the other guys

worked harder politically.? However, IGA, via Sorich or Individual A, always made the final

determination as to who obtained the position.

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57

2. The interview process at Water.

Between 1992 and 2003, for rigged Shakman-covered hiring sequences, after receiving the

list from Bergthold, Tomczak provided the IGA-dictated results to an interview coordinator that

Tomczak selected. Several Water Department officials served as interview coordinators for

Tomczak. The interview coordinators in turn selected interviewers and conducted the interview

process to achieve the IGA-dictated results, generally irrespective of the employment-related merits

of the individual candidates. To achieve these results, the interview scoring sheets were falsified

and manipulated in such a way as to guarantee that the person preselected by IGA would win the

promotion.

Water Department interviewers systematically rigged the interviews for these sequences.

For example, two of the interviewers (the Water District Foreman? and the Water Assistant

Commissioner?) each worked for the City for 33 years, with most of their time in the Water

Department. The Water District Foreman and the Water Assistant Commissioner served as

interviewers on panels for Water Department jobs between the early 1990s and 2003 (the Water

District Foreman) or 2004 (the Water Assistant Commissioner), and all of them were rigged. During

that time period, Tomczaks top aide (who later served as Sewers Commissioner from 1998 to 2000;

the former Sewers Commissioner?), and later another Water official (the Water official?),

instructed the Water District Foreman and the Water Assistant Commissioner not to fill in the

numerical ratings on the forms. Later, after interviews were conducted, the Water official met with

the Water District Foreman and the Water Assistant Commissioner and told them the final scores

to give each interviewee. The Water Assistant Commissioner occasionally told Tomczak and the

Water official that the interview and hiring system was a sham and wrong; they responded by saying

that the Water Assistant Commissioner should just follow the rules.

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Between approximately 1993 and 2003, after the applicants were interviewed, Bergthold

received a package of application materials, which included the ratings sheets. Bergthold and her

staff checked the scores tallied by the interviewers for mathematical errors, and then gave the list

of selected applicants to the Water Commissioner for approval.

3. Examples of rigged sequences in Water.

(a) 2001 Foreman of Water Pipe.

In May 2001, the Department of Water interviewed candidates for the position of District

Foreman of Water Pipe Construction. The Water General Superintendent was one of the

interviewers for the position. At the time he retired from the City, the Water General Superintendent

was a political worker, and had his own small group of workers who assisted him.

The Water General Superintendent conducted interviews in the Water Department between

approximately 1992 and 2004. When he began interviewing applicants, the Water General

Superintendent was instructed not to score the applicants during the job interviews, and not to fill

out the rating forms. Accordingly he did not do so for the District Foreman position.

One of the people selected for the District Foreman position was a member of Tomczaks

political organization, as discussed further in Section G, below. Before the candidate was selected,

Tomczak had requested the candidates promotion from Sorich, along with another member of

Tomczaks political organization. The candidates interview rating form was signed by a Water

employee, who was instructed what scores to provide by the interview coordinator, irrespective of

how candidates performed in the job interviews.

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51/Kozicki has been provided with a immunity letter by the U.S. Attorneys Office.

59

(b) 2001 Career Service Motor Truck Drivers.

A similar process resulted in the award of a Motor Truck Driver position in 2001 to another

member of Tomczaks political organization. Another Water Assistant Commissioner knew the

candidate through family connections, and she (the candidate) was a part of his political

organization. Both the Water Assistant Commissioner and Tomczak lobbied Sorich on behalf of the

Motor Truck Driver candidate. The interview panelist who signed the candidates ratings sheet was

instructed to give her a winning score, irrespective of her performance in the interview.

4. Certification of the Shakman referral lists.

After the ratings sheets were completed for each job position, a staff member in the Water

Department personnel office filled out the Shakman certification, identifying who had been selected

for the job. Based on her conversations with Sorich, and her observations during her time at the

City, Bergthold knew when she signed the Shakman referral forms, or caused them to be signed, that

contrary to the certification on the bottom of the forms political considerations had, in fact,

entered into the hiring and promotion decisions.

E. Department of Buildings.

The Department of Buildings is responsible for the enforcement of the Chicago Building

Code governing the construction, rehabilitation, and maintenance of approximately 450,000

structures located in the City. The Departments primary function is to guarantee that all structures

located within the City are built correctly to insure the life, health, and safety of its citizens.

Beginning in 2003, Chris Kozicki was the Managing Deputy Commissioner for the Buildings

Department, and handled the departments day-to-day operations.51/

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52/Sorich summoned the Buildings personnel director to his office when she first took her

position, and subsequently routinely gave her names of persons for vacancies in the Building Department.

The personnel director routinely ensured that those names were given interviews through the

screening process.

60

1. The 2004 Building Inspectors hiring sequence.

In 2004, Sorich gave the name of a patently unqualified candidate for Building Inspector to

the head of personnel at the Buildings Department; the candidate (Buildings Candidate A?) was

too young to have the requisite experience. Buildings Candidate A was subsequently given an

interview in June 2004. Though the senior interviewer, Kozicki, was advised of pressure to hire

Buildings Candidate A by McCarthy, a top IGA official, and the Buildings Department

Commissioner, the interviewers inadvertently did not rate him high enough to be selected in an

initial interview.

In the interim, the candidate took a brief course (which still did not leave him qualified for

the position). McCarthy called back Kozicki and told him that the top IGA official had authorized

that the candidate now be hired. Without conducting a new interview, Kozicki filled out a new

rating form, giving Buildings Candidate A a high-enough score to be hired. His papers were

processed, and he was hired.

(a) Sorich gave Buildings Candidate As name to the personnel director.

In 2004, the Buildings Department received budget approval to hire Building Inspectors.

At a meeting, Sorich gave the Buildings personnel director names of potential hires for the Building

Inspector position, including Buildings Candidate A.52/ Buildings Candidate A was the 19-year-old

son of an official with Carpenters Union Local 13 (the Carpenters Official?).

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(b) The first set of interviews.

The personnel director requested a list of eligible candidates from Main Personnel. After

receiving a referral list, the personnel director gave it to Kozicki, on the instruction of the Buildings

Department Commissioner, because Kozicki would be doing the interviews. The personnel director

gave Kozicki a copy of the referral list, along with a blank interview ratings form.

There were two sets of interviews and selections for Building Inspectors in 2004. Before the

first set of interviews, the Carpenters Official told Kozicki that his son, Buildings Candidate A, and

another candidate (Buildings Candidate B?), the 23-year-old son of another official with the

Carpenters Union Local 13, were applying for Building Inspector positions. Kozicki told the

Carpenters Official that he should talk to the Buildings Department Commissioner and to a top IGA

official about the applications.

Before the first set of interviews were conducted, the Carpenters Official told Kozicki that

Buildings Candidates A and B did not make the qualified list of applicants. In fact, Main Personnel

had determined that Buildings Candidates A and B did not have the requisite experience to be

deemed minimally qualified for the position of Building Inspector. Kozicki spoke to Tim McCarthy

at IGA. McCarthy also told Kozicki that Buildings Candidates A and B did not make the qualified

list for Building Inspectors and that the top IGA official had told the Carpenters Official that

Buildings Candidates A and B could appeal to Main Personnel to get on the qualified list.

Kozicki received a list of names to be interviewed for the first set of Building Inspector

interviews and hires in 2004 from the personnel director. Buildings Candidates A and B were not

on this list, because they still had not been designated as qualified. After the interviews, which

occurred in March 2004, but before completing the rating sheets scoring the applicants, Kozicki

received a call from McCarthy. McCarthy named several applicants and asked Kozicki how those

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53/Buildings Candidate C was one of the names McCarthy mentioned to Kozicki after the

interviews. Buildings Candidate C was not hired. Kozicki later saw John Sullivan at a meeting in

City Hall. Sullivan told Kozicki that the Streets & Sanitation Commissioner was upset that

Buildings Candidate C was not hired. Sullivan said that Buildings Candidate C was one of [the

Commissioners] people,? which Kozicki understood to mean that she was a member of HDO.

62

applicants performed in the interviews. The Buildings Department hired six Inspectors from the first

set of interviews in 2004.53/

(c) Buildings Candidates A and B file new applications

before the second set of interviews.

The Buildings Department then prepared to hire a second round of Inspectors. Before the

second set of interviews for Building Inspectors in 2004, Main Personnel received new applications

from Buildings Candidates A and B, and the applications were re-scored. The new applications

showed that Buildings Candidates A and B met the minimum requirements for eligibility, and Main

Personnel placed Buildings Candidates A and B on the Building Inspector eligibility list. Both the

Carpenters Official and Tim McCarthy then told Kozicki, in separate conversations, that Buildings

Candidates A and B were now on the qualified list.

The Carpenters Official told Kozicki that he had talked to the Buildings Department

Commissioner and to the top IGA official about hiring Buildings Candidates A and B. Around the

same time, Kozicki talked to the Buildings Department Commissioner, who told Kozicki that he

would like to hire Buildings Candidates A and B. The Commissioner said that he hired Buildings

Candidate Bs brother in another City Department and that he knew the candidates families, and

they were good people. The Commissioner said that if Buildings Candidates A and B did a bad job,

the manager could talk to their fathers. The Commissioner also said that hiring Buildings

Candidates A and B would help in maintaining good relations with the Carpenters Union Local 13.

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Kozicki instructed an employee at the Buildings Department to screen the qualified list to

identify the applicants to be interviewed for the second set of interviews and hirings. Kozicki told

the screener to make sure that Buildings Candidates A and B made the list of people to be

interviewed, because IGA and the Buildings Commissioner wanted them to be hired. Buildings

Candidates A and B were included on the interview list.

(d) The second set of interviews.

A department Building Inspector (the interviewing Inspector?) and Kozicki conducted the

second set of Inspector interviews, which occurred in June 2004. Before the interviews, Kozicki

told the interviewing Inspector that the Mayors Office (meaning IGA) and the Buildings

Commissioner wanted to hire Buildings Candidate A. After the interviews, the interviewing

Inspector and Kozicki discussed the merits of the applicants. They completed the rating sheets for

the applicants separately; they did not discuss the specific scores they intended to give the

applicants, and Kozicki did not see the scores that the interviewing Inspector gave the applicants.

After the interviews, Kozicki received a call from the top IGA official, who asked Kozicki

how Buildings Candidate A did in the interview. Kozicki told that Buildings Candidate A did fine,

but that he looked young. The top IGA official said that the Carpenters Official was busting my

balls? to hire Buildings Candidate A. The top IGA official said that he told the Carpenters Official

that he was willing to hire Buildings Candidate A in the Department of General Services, but the

Carpenters Official insisted on a Building Inspector job for Buildings Candidate A.

When Kozicki filled out the rating sheets, he understood that the department was hiring

seven additional Inspectors from this round of interviews (in addition to the six that had already been

hired earlier in 2004). Kozicki scored Buildings Candidate A in a seventh-place tie with other

applicants. He gave Buildings Candidate A a score of 3.0. Kozicki believed that the interviewing

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Inspector would score Buildings Candidate A high enough to place him alone in seventh place (thus

giving him the job). Because Buildings Candidate A looked so young and was a union officials

son, Kozicki was uncomfortable being the rating official to give him the winning grade.

Unbeknownst to Kozicki, the interviewing Inspector scored Buildings Candidate A in twelfth place.

After the interviews, McCarthy called Kozicki. McCarthy told Kozicki that the top IGA

official was blocking the hire of Buildings Candidate A because he wanted Buildings Candidate A

to take a home-inspection course. Kozicki told the personnel director that the department would hire

only six additional Inspectors, and asked her to complete the paperwork. The personnel director

completed the referral list for the hiring of the six Inspectors, and had the Buildings Commissioner

sign it. The personnel director then sent the referral list to Main Personnel.

(e) Kozicki inflates Buildings Candidate As score.

Near the end of August 2004, McCarthy told Kozicki that Buildings Candidate A finished

his home-inspection course. McCarthy told Kozicki that the top IGA official had cleared Buildings

Candidate A to be hired. Kozicki told the personnel director to complete the paperwork for

Buildings Candidate A. But there was a problem with Buildings Candidate As score. The

personnel director told Kozicki that Kozickis score and the interviewing Inspectors score for

Buildings Candidate A did not put Buildings Candidate A in seventh place. Kozicki decided to redo

his rating sheet for Buildings Candidate A and give him a score of 4.0. He did not re-evaluate

Buildings Candidate As merits, but instead simply increased his score in order to place him in the

position to be hired.

After watching Kozicki fill out the new ratings form, giving Buildings Candidate A a higher

rating, the personnel director submitted that changed form to Main Personnel, along with the other

ratings forms and a completed referral list.

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54/Vetrano has received an immunity letter from the U.S. Attorneys Office.

65

(f) The reaction to the hiring.

Buildings Candidate A was hired. Shortly after he started work, the Chicago Sun-Times ran

a story that identified Buildings Candidate A as an inexperienced Building Inspector whose father

was the Carpenters Official. Buildings Candidate A was only 19 years old and did not in fact have

the requisite experience to be a Building Inspector. Both Buildings Candidates A and B had falsified

information on their applications, and resigned from their positions. Kozicki told reporters that he

did not know that Buildings Candidate A was the Carpenters Officials son. This was not true.

F. IGAs Role in Hiring in Other Departments.

The superseding indictment charges that IGAs scheme extended to other departments. The

government anticipates presenting evidence at trial concerning IGAs role in hiring in additional

departments, including the following:

1. Department of General Services.

The Department of General Services is responsible for maintenance of City buildings such

as garages, libraries, and office buildings. General Services employs people in a variety of positions,

including electricians, engineers, plumbers, carpenters, watchmen, motor truck drivers, clerks, and

administrative assistants. From 1992 to 1998, Jack Drumgould was the departments Assistant

Commissioner in charge of personnel. From 1998 to May 2004, Joseph Vetrano had that position.54/

While Drumgould was at General Services, hirings and promotions in the department were

rigged to implement IGAs selections for Shakman-covered jobs. The rigged process in General

Services worked substantially the same way as it did during Drumgoulds tenure at Streets &

Sanitation, as described above. Between 1993 and 1998, Drumgould met with Sorich in Sorichs

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55/Two of those employees have corroborated that they received the names from Vetrano and

(continued…)

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office, and Sorich gave Drumgould lists of people who should receive interviews and jobs for

Shakman-covered General Services positions. Drumgould then rigged and coordinated the rigging

of the interviews and ratings sheets to ensure that Sorichs selections received the highest ratings,

and got the jobs. While at General Services, Drumgould participated in approximately 20-25 such

hiring sequences per year, each of which was rigged.

The fraudulent process continued during Vetranos time at General Services. Within a

couple of months after he started working at General Services in 1998, Vetrano received a telephone

call from Sorich to come over and see him at IGA. Sorich told Vetrano that he understood General

Services was hiring. Sorich verbally gave Vetrano a list of names, and he wrote them down. Sorich

did not say where the names came from. Vetrano understood that Sorich wanted him to give

interviews to and hire the people on his list.

After the first meeting, Vetrano met with Sorich at least several times per year to get the

names of people that IGA wanted to be interviewed and hired. At these meetings, Sorich continued

to give Vetrano names of people when certain job positions at General Services became open.

Sorich sometimes prioritized the names by saying things like, take a look at the top two first.?

After McCarthy joined IGA in 2001, and until Vetrano left General Services in 2004, McCarthy provided

Vetrano names of the people that IGA wanted to be interviewed and hired with approximately

the same frequency that Sorich had. Just as Drumgould had done, Vetrano then gave Sorichs or

McCarthys lists of names to employees within the General

Services personnel group who went to Main Personnel to screen interview candidates. Vetrano

instructed the screeners to pick the names identified by Sorich or McCarthy.55/

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55/(…continued)

screened for them, ensuring that the names appeared on the referral lists.

56/For instance, in approximately 1994, the trades manager had a cousin who was applying

to be a painter at General Services. The trades manager told Drumgould that he knew Sorich and

had told Sorich that he wanted the cousin to be hired. When Drumgould met with Sorich to discuss

who would be hired for the painter position, Sorich told Drumgould that the trades manager

requested the cousin be hired.

67

Next, interviews were conducted. Between 1998 and 2004, Vetrano sat in on some of the

General Services interviews for trades and engineering positions. Due to the fact that Sorich or

McCarthy had told him who was to be hired, he did not try to determine who was best for the job.

Vetrano assigned numerical ratings to job candidates on written ratings forms, giving the highest

ratings to the people whose names had been provided to him by Sorich or McCarthy. He told

interview panelists words to the effect of, look at these candidates here.? Vetranos practice, and

the general practice in the Department, was to stagger the losing candidates scores, to give the

appearance that there were real and significant differences among the candidates. He did this to

create an appearance of legitimacy and to facilitate any defense of union grievances based on

allegations of unfairness in the hiring process.

During this period, there was a manager in charge of the trades and engineering section,

which included a large number of General Services employees (the trades manager?). While

Drumgould was in charge of personnel at General Services, Drumgould and the trades manager

discussed IGAs role in hiring and promotions.56/ While Vetrano was in charge of personnel, he saw

the trades manager with Sorich on occasion. Many times, before the interview process for General

Services sequences, the trades manager indicated to Vetrano that he had already spoken to Sorich

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57/For example, on at least one occasion, when Vetrano started to tell the trades manager the

names that had been pre-selected by IGA, the trades manager told Vetrano that he had already

talked to Robert.?

68

about personnel selections.57/ Vetrano observed that when he conducted interviews, the trades

manager always gave the highest ratings to IGAs selections.

2. Department of Transportation.

The Chicago Department of Transportation (CDOT?) is responsible for City street, alley

and sidewalk reconstruction, bridge maintenance, public-way inspections and permits, traffic

services, and planter and median maintenance. One CDOT official worked for the City for 32 years,

including working in the Streets & Sanitation personnel office before 1989, as a General Supervisor

of Administration in CDOT from 1989 until 1997, and as a Deputy Commissioner from 1997 until

his retirement in January 2004 (the CDOT manager?).

The CDOT manager was on many interview panels for applicants for City positions while

he was General Supervisor of CDOT, between 1989 and 1997. Frequently, he received the names

from the personnel director (there were three during this period) which candidates were preselected.

For example, one personnel director gave the CDOT manager a list of names and told him, We are

interested in these people.? On some occasions, he received the names from a supervisor. On at

least one occasion, he received the names directly from Sorich.

Based on his experience at the City, the CDOT manager understood he was supposed to rate

those people the highest in the interview process. In each case, he understood the names came from

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58/The CDOT manager understood how this system worked before he began interviewing at

CDOT because he had learned about it at Streets & Sanitation. As an assistant to Phyllis Bergthold,

and in his prior time in the Streets & Sanitation personnel office, the CDOT manager knew that

Bergthold met with the Mayors Office and that she gave lists of names to screeners and

interviewers, and that those people were always selected (absent failing a drug test, etc.). The

CDOT manager himself had taken names given him by Bergthold and screened for them at Main

Personnel.

69

IGA.58/ If it was a larger group of vacancies, the names were sometimes provided in writing. The

interviewers then rated the candidates according to the list, regardless of the candidates merit.

The CDOT manager was less involved in hiring after he became Deputy Commissioner, but

did supervise the hiring of approximately 15 to 20 Inspectors during his time as Deputy

Commissioner, between 1997 and 2004. Several came from other political organizations and were

hired at Sorichs direction. During the hiring process, personnel directors and Sorich gave the

CDOT manager the names of the Inspectors to hire. After getting the names, the personnel director

or the CDOT manager passed the names on to the line managers doing the interviews, telling them

that these were the people to hire. The interviewers gave the preselected candidates the highest

scores.

3. Department of Aviation.

The Department of Aviation is responsible for the management, planning, design, operation

and maintenance of OHare and Midway Airports. Defendant Timothy McCarthy was the Assistant

Commissioner for personnel from 1996 until May 2001, when he transferred to IGA. From May

2001 through April 2004, Michael Bartello was Aviations Assistant Commissioner of Personnel.

IGA had some positions in Aviation (usually lower-level positions) where its picks were

routinely selected. IGA routinely attempted to affect the hiring process, by causing its selections

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59/Some deputy commissioners would always hire the names from IGA; others would

sometimes reject the IGA names. Those deputy commissioners would either tell Cummings the

reason for the rejection, or say they would contact IGA directly to discuss it.

60/Other personnel officers who screened for names while McCarthy was at Aviation also

confirm that they obtained names from McCarthy.

70

to obtain interviews, by selecting the winners of many jobs, and by influencing the selection of other

positions.

Between 1993 and 1996, McCarthy was the assistant to the personnel director, for at least

part of that time. McCarthys supervisor at the time met with Sorich at IGA approximately once a

week. At these meetings, Sorich provided names of the people IGA wanted to be interviewed and

hired for the Aviation jobs. McCarthys supervisor provided the names to IGA personnel staff to

screen, and also provided the names to the deputy commissioner in Aviation from the hiring

bureau.59/

When McCarthy took over as the personnel director, assuming the title of Assistant

Commissioner in 1996, he routinely met and spoke with Sorich, according to Sorichs secretary.

McCarthy provided names of IGAs preselected winners for Aviation positions to Aviation

interview panelists. For example, a relative of McCarthy worked under McCarthy in the Aviation

personnel office. The relative obtained names from McCarthy before screening for certain Aviation

vacancies, such as aviation security officers. McCarthy never said how he obtained the names or

where they were from, but the relative included the names on the referral list for interviews, if they

were on the eligibility list.60/ When the relative asked McCarthy where the names came from,

McCarthy said What are you, a cop??

Between 2001 and 2004, when Bartello was Assistant Commissioner, the process continued

to work the same way. Bartello discussed hiring and promotion matters with McCarthy, after

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McCarthy had moved to IGA, including hiring and promotions for Shakman-covered positions.

Bartello also occasionally talked to Sorich. McCarthy gave Bartello names of people to be

interviewed and hired for rigged sequences in Aviation. McCarthy said words to the effect of, Let

me know how [the candidate] did on the interview,? or when mentioning a particular candidate,

This is a priority for us.?

Bartello gave the names he received from McCarthy to interviewers, so that the persons

doing the interviews would know those names were favored by IGA. On some occasions Bartello

gave the names before the interviews, and on some occasions after the interviews were conducted

but before the rating sheets were filled out. Bartello understood that when he passed on the names,

the IGA picks would typically be selected for the positions, as long as they were minimally

qualified. After the interviews, Bartello contacted McCarthy to let him know how the interviews

went. If the IGA picks were not selected for certain positions, Bartello obtained the reason from the

interviewer, and reported back to McCarthy.

G. Campaign Coordinators Sought Jobs and Promotions from IGA.

As described above, many of IGAs directives to personnel directors to hire and promote

certain candidates were based on recommendations from various campaign coordinators who

assisted the Mayors campaign organization, as well as union leaders, aldermen, and others. Acting

through Sorich, McCarthy and other high ranking IGA officials, IGA ultimately determined who

should be selected for the jobs and promotions, and then passed the winners names to the personnel

directors (and sometimes also other officials of the Operating Departments).

The campaign coordinators who met with Sorich and McCarthy and who were awarded

Shakman-covered jobs and promotions on behalf of their political workers included Donald

Tomczak, the former Sewers Commissioner, Michael Harjung, Daniel Katalinic, and the CDOT

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72

manager, in addition to leaders of HDO. In the course of their meetings, particularly in recent years,

Sorich and McCarthy took actions that showed that they understood that IGAs control of the hiring

process was improper, and that it was to be concealed.

1. Donald Tomczak.

As described in Section D above, Tomczak actively sought Shakman-covered jobs and

promotions for individuals associated with his political organization. From the early 1990’s through

late 2003, Tomczak ran a one of the largest City-employee based political organizations. His

organization had 100 to 250 active participants at various points in time, consisting mostly of

employees of the Water Department. The principal purpose of the political organization was to

perform field-related political work (e.g., knocking on doors in the community to promote certain

candidates, putting up campaign signs, etc.) for candidates selected by top political operatives of the

political organization supporting the Mayor of Chicago, including Sorich, and other IGA officials.

Typically, at the beginning of an election cycle (which occurred at least once every two years), an

IGA official typically Individual A, and, later, Sorich contacted Tomczak and told him the

particular campaign that IGA (on behalf of the Mayors political organization) wanted Tomczaks

organization to support. Tomczak then convened an organization meeting of his political

organization, on City time, at which time he instructed his coordinators in his organization, all of

whom were City employees, what to do.

Between the early 1990’s and 2003, on multiple occasions each year, Tomczak sought IGA

assistance in an attempt to obtain City promotions for Shakman-covered positions for, among others,

certain members of his political organization. Upon the announcement of the bidding process for

a particular Shakman-covered position, Tomczak contacted IGA and scheduled a meeting, typically

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61/In preparation for meetings with IGA officials, Tomczak asked the former Sewers

Commissioner to create an index card on behalf of the particular candidate. The former Sewers

Commissioner kept the index cards in a stack until the day of the IGA meeting. Tomczak instructed

him to write Don T? on the top-left corner of the index card, so that Individual A and Sorich knew

the requests source. The former Sewers Commissioner kept a separate list or photocopied the index

cards to track which employees names had been submitted to IGA, and the outcome of the request.

73

with Sorich. Tomczak requested the meeting with Sorich so he could ask Sorich for a promotion

to the posted position for employees active in Tomczaks political organization, during a process

Tomczak described as going forward? on a candidate. During the going forward? process,

Tomczak presented his candidates names on index cards, which he then described to Sorich. In his

presentation to Sorich, Tomczak focused on the political work of the particular individual so as to

justify promotion requests. Sorich did not ask about the governmental qualifications of these

employees, though Tomczak did occasionally make reference, to the extent Tomczak knew of their

governmental work. From 1989 through 1998, Tomczak was often accompanied to the going

forward? meetings with Sorich and an IGA supervisor by The former Sewers Commissioner, who

reported directly to Tomczak during this time period.61/

During Tomczaks meetings with IGA between the early 1990’s and 2003, Tomczak gave

Sorich and the IGA supervisor the index cards that listed the name of the employee, his or her

current salary and title, the salary and title desired, and the political sponsor of the employee.

Occasionally, when Tomczak met with Sorich, Sorich said he would discuss the matter with

Individual A. Tomczak did not receive the cards back from Individual A or Sorich. During the

meetings, Tomczak told Individual A or Sorich specific details about an employees political work,

such as if someone helped in a certain precinct, or if someone ran a particular precinct. When

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62/Between approximately 1989 and 1998, the former Sewers Commissioner was present at

IGA meetings when Tomczak told Individual A and/or Sorich words to the effect of, This ones

really important to me,? regarding a certain employee for whom he was lobbying. Individual A once

responded with words to the effect of, Don, Ive got eight other guys saying this ones really

important.?

63/When Bergthold met Sorich to receive the list of applicants selected by IGA for available

positions, Sorich sometimes said that Tomczak would not be happy because all his people were not

on IGAs list of selections.

74

Tomczak made his promotion requests, Individual A often said that he had to look at the mix.?62/

Through communication with Phyllis Bergthold after she received the IGA list, Tomczak learned

which of his campaign volunteers got made? by IGA.

Based on his discussions with Sorich and Individual A, and his observations of other campaign

coordinators, Tomczak understood he was competing against other political organizations and

individuals with clout. Over the years, IGA granted approximately one-third of Tomczaks

promotion and raise requests due to competition from other campaign coordinators.63/

2. The former Sewers Commissioner.

After working with Tomczak in the Water Department, the former Sewers Commissioner

was promoted to be the Commissioner of Sewers Department and served as Commissioner between

1998 and 2000. In that position, and in consultation with Tomczak and others, the former Sewers

Commissioner formed his own political organization, which was comprised of approximately 30 to

50 Sewer Department employees. His organization worked in various elections and on various

campaigns at the direction of Individual A. During the time he was Commissioner, the former

Sewers Commissioner met with Individual A or Sorich at IGA on about ten occasions.

As he had learned through working with Tomczak, the former Sewers Commissioner

prepared index cards and sometimes a typed list to give to Individual A or Sorich. The index cards

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64/The former Sewers Commissioners experience at Sewers was similar to that of his

predecessor. While the predecessor was Commissioner, from 1987 to 1998, IGA representatives

gave her names of people to be hired and promoted for certain Shakman-covered positions in

Sewers. The predecessor got the names from Sorichs predecessor in IGA, Individual A, and from

approximately 1993 to 1998, Sorich.

75

or typed list contained the names of politically active employees for whom the former Sewers

Commissioner was going forward on? for a promotion or a raise. In 2000, shortly before the

former Sewers Commissioner left Sewers, an alderman called the former Sewers Commissioner with

the name of a Sewers employee whom he wanted promoted. The alderman followed up with the

former Sewers Commissioner again after he left Sewers. The former Sewers Commissioner then

called Individual A about the aldermans person. Individual A told the former Sewers

Commissioner words to the effect of, tell [the alderman] if he wants someone promoted, it has to

go through me,? meaning Individual A.

In meetings with Sorich, the former Sewers Commissioner noticed that Sorich kept index

cards in boxes. The boxes were organized by positions, and the index cards had the names of the

individual employees and their political sponsors on them. Sorich wrote notes on the index cards

regarding the employees that the former Sewers Commissioner presented to him. After the former

Sewers Commissioner presented the names to Sorich, Sorich typically said he would get back to him

after talking to Individual A. Sorich sometimes told the former Sewers Commissioner to lessen his

expectations for job vacancies because he had to satisfy other political organizations with job

requests. For example, during one of the meetings, Sorich said words to the effect of, I received

recommendations from three other political organizations that we havent helped in a while, so we

have to help them.?64/

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65/Harjung lost his City job in 1997, after the Inspector General (IG?) accused him of falsifying

time sheets, and doing political work on City time. Shortly before the IG notified Harjung of

the investigation, Sorich called Harjung at a political headquarters and told him to be careful about

doing political work on City time. The next day, Sorich called Harjung and asked him to do political

work. Later, Harjung communicated with Sorich and Individual A about the IG investigation, and

was told that he had to resign. Approximately eight months later, Individual A called Harjung and

told him that he had a job interview at the CTA, at which time he obtained his CTA job.

(Documents obtained from the City confirm that Individual A assisted in placing Harjung in his

CTA position.)

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3. Michael Harjung.

Michael Harjung worked for the Department of Sewers from approximately 1978 to 1992,

and then at the Department of Water until 1997. After 1997, when Harjung resigned from his City

job under pressure of a City Inspector General investigation, Harjung obtained a position at the

Chicago Transit Authority. He worked for the CTA through 2004, at which time he retired.65/

In the early 1990s, Harjung organized a political organization to perform volunteer work for

the Mayors political organization. Harjung received his political assignments from Individual A

and, later, a former IGA official who continued to do work for the Mayors campaign. After being

introduced to Sorichs predecessor at IGA, Harjung went to IGA to ask for jobs and promotions for

himself and for people in Harjungs political organization. Beginning in approximately 1993,

Harjung submitted his job requests to Sorich and later to McCarthy. However, even after

McCarthys arrival at IGA in 2001, Harjung continued to submit requests and notifications to Sorich

as well.

During the period beginning in or about 1993 and continuing through periods in 2004,

Harjung met with Sorich approximately five to ten times per year at Sorichs IGA office. At the tail

end of the period, Harjung began meeting with McCarthy. The meetings customarily occurred at

the time a hiring sequence was posted, before elections, and after elections. Harjung wrote the

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66/As to the Hoisting Engineer Foreman position, in or about 2000, a Sewers employee who

was an active member of Harjungs political organization sought a promotion to the position. The

candidate asked Harjung for help getting the promotion to this position, and asked Harjung to put

in a good word for him. Harjung went to Sorich and pushed hard for the candidate, telling Sorich

(continued…)

77

names of the candidates for whom he was lobbying on index cards, prioritized the names, and gave

the original cards to Sorich and kept a duplicate for himself. When Harjung went to Sorich and

McCarthy to lobby for jobs and promotions for particular candidates, he told them the type and

amount of political work the candidate had done. Sorich and McCarthy never asked Harjung

whether his volunteer was a good City employee or about his governmental work experience. Given

his own employment position, Harjung rarely had personal knowledge of the governmental

performance of the candidates he was promoting to Sorich and McCarthy.

When Harjungs volunteers were called for an interview for the posted position, it was

Harjungs practice to call Sorich to thank him. Sometimes Sorich or McCarthy called Harjung to

let him know that one of Harjungs volunteers had placed the wrong telephone number on his

application. Harjung often heard directly from Sorich or McCarthy when his preferred job candidate

received the job or promotion.

In the later stages, McCarthy did not want to meet Harjung in McCarthys IGA office.

Rather, on at least two occasions, in 2004, Harjung met McCarthy in the City Hall lobby, and they

went outside and talked about the personnel matters on the street.

Over the years, through the meetings with Sorich and McCarthy, Harjung successfully

obtained dozens of jobs and promotions for politically active employees, including positions for

House Drain Inspector (described above), Hoisting Engineer Foreman, Assistant to the

Commissioner, Motor Truck Driver (temporary and career service), and Laborer, among others.66/

Case 1:05-cr-00644 Document 113 Filed 04/10/2006 Page 81 of 98

66/(…continued)

that this appointment was particularly important to Harjung given the candidates importance to

Harjungs political organization. After the interview, but before the results came out, Sorich notified

Harjung that he believed the candidate would get the position. Harjung then told the candidate that

it looks good.? In November 2000, the candidate received the promotion, and thanked Harjung.

Harjung, in turn, thanked Sorich.

67/Beginning in September 1998, the Chicago Tribune published negative articles about

people running CBG, and its influence on City operations.

78

4. Daniel Katalinic.

As noted above, a prominent campaign coordinator based in Streets & Sanitation was Dan

Katalinic. Katalinic worked at Streets & Sanitation from 1978 through his retirement in June 2003.

From 2000 until his retirement, Katalinic was the Deputy Commissioner for the Street Operations

Bureau. In approximately 1999, Sorich told Katalinic that he should put together a political group

of his own. At that time, there were coordinators in the City who had their own political groups

mostly of predominantly African-American members, and HDO had mostly Hispanic members.

Sorich told Katalinic that in addition to the African-American and Hispanic groups, the Mayors

Office needed a group of white political workers to replace a political organization called the

Coalition for Better Government (CBG?). Sorich said that there was too much heat? on the CBG,

and the Mayors Office could no longer use them.67/

Katalinic agreed to put a group together. He asked people in Streets & Sanitation and other

City departments to do political work for his organization. Around that time, in approximately 1999

or 2000, John Sullivan convened a meeting at Streets & Sanitation, calling in various bureau and

department supervisors to a conference room at City Hall. The meeting was held during the

workday, and was attended by approximately ten to fifteen Streets & Sanitation supervisory

officials. Sullivan spoke during the meeting and announced that Katalinic was forming a political

Case 1:05-cr-00644 Document 113 Filed 04/10/2006 Page 82 of 98

68/A member of the Katalinic organization provided investigators with a typed list of the

members of Katalinics organization, as of 2004. The list was broken down by coordinators,

precinct captains, and helpers. There were approximately 200 people on the list, most of them

Streets & Sanitation employees.

69/Katalinic also sought Sorichs assistance in finding a meeting hall for Katalinics political

(continued…)

79

group to help the Mayor. Sullivan asked the attendees to join the group, and to encourage others to

do so as well.

Katalinic supplied political workers for Sorich and the Mayors campaign organization from

1999 through 2004. By 2004, his political group had grown to over 200 people, mostly employees

at Streets & Sanitation. Based on advice from Sorich and others, Katalinic created a group hierarchy

in which he assigned certain workers as coordinators, and others as precinct captains, so that the

organization would run more efficiently.68/

Before elections, Sorich and other current and former IGA personnel usually held a meeting

for Katalinic and other campaign coordinators at Plumbers Hall in Chicago. At these meetings,

Sorich and others provided direction on which candidates the Mayors Office wanted the political

organizations to support, and where the groups should go to campaign.

After receiving direction from IGA, Katalinic gathered his own political workers to give

them their marching orders. Katalinic asked Sorich to attend these meetings from time to time, because

he wanted his workers to see that he had ties to Sorich. Due to Sorichs influential position

at IGA, Katalinic believed that if his workers saw him with Sorich, they would be more likely to

work hard at the political work, because they would think Katalinic could help them with City jobs.

Sorich did attend Katalinics meetings between 1999 and 2004, and typically said words to the effect

of, Thank you for coming, helping, and spending this time away from your families.?69/ During

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69/(…continued)

organization. In a September 17, 2004 recorded telephone call, Katalinic left a voice mail message

for Sorich, requesting that Sorich set up use of the Union Hall on Halsted for a 5:00 p.m. meeting.

70/Katalinic provided investigators with written lists of political recommendations to Sorich

and McCarthy that he printed from his home computer. In addition, investigators recovered

additional such lists from the City computer that Katalinic had used while he was Deputy

Commissioner.

80

those years, at the direction of Sorich and others, Katalinic sent his political workers to assist in

elections for U.S. Congress, governor, state representative, and local positions.

Katalinic continued to communicate with Sorich about being the head of a political

organization for the Mayors Office through 2004. For example, in a September 15, 2004 telephone

call (recorded pursuant to a Court-authorized wiretap), Katalinic described to an associate a

conversation he had with Sorich. Katalinic, who had retired in mid-2003, had told Sorich that he

was thinking of moving to the suburbs. According to Katalinic, Sorich replied, How does it look

that youre running a big [political] organization for me and youre moving to DuPage County??

Katalinic ultimately decided to continue to reside in the City.

Beginning around 2000, Katalinic met with Sorich in his office approximately three times

a year, and gave him lists of his political workers who were seeking job promotions and other

assistance at the City.70/ Katalinic typically met with Sorich after bids were posted for Shakmanprotected

sequences, but before interviews were held for the positions. Sorich told Katalinic to

organize the names on the lists in order of priority, and he did so. He prioritized the names based

on how much political work they did for the political organization, and how dependable they were

when Katalinic asked for their political assistance.

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71/Between 2000 and 2004, the Project Administrator also had discussions with his direct

supervisor, defendant John Sullivan, about the Project Administrators work in Katalinics political

group.

72/In September 2004, Katalinic sought Sorichs help in securing a County job for the son of

a person who was in Katalinics political organization. In a September 14, 2004 telephone call,

Katalinic told the person that hed given a copy of the sons resume to Sorich. Katalinic said that

Sorich said he was going to try.

81

Around 1999 or 2000, Sorich told Katalinic that he would deal only with Katalinic on job

recommendations for Katalinics political organization, and that he did not want to meet about

personnel matters with others in Katalinics political group. The coordinators in Katalinics group

therefore did not directly ask Sorich for jobs, but went through Katalinic. A Project Administrator

in Streets & Sanitation worked as one of the coordinators in Katalinics political organization from

approximately 2000 through 2004. During that time, the Project Administrator reported to Katalinic

about how volunteers performed their political work. Between 2000 and 2004, members of the

organization asked the Project Administrator for jobs and promotions, and he informed Katalinic.

Katalinic asked the Project Administrator how the person performed politically.71/

When Katalinic gave lists of job candidates to Sorich between 2000 and 2004, he told Sorich

that the people on the lists were working for his political organization, and he wanted to help them

because of their work for his political organization. Katalinic typically said words to the effect of,

Can we help these guys?? Sorich typically said that he would see what he could do, and that he

would have to check with the Commissioner and the Budget Department.72/ Katalinic told Sorich

of the workers role in Katalinics political organization. For example, Katalinic said things to

Sorich such as, These are my people. If we cant help them, how am I gonna hold them??

Case 1:05-cr-00644 Document 113 Filed 04/10/2006 Page 85 of 98

73/Katalinic recorded a discussion with Sorich in June 2005. During the discussion, Katalinic

mentioned having given hiring-related documents to Sorich and asked where they were; Sorich did

not deny having received the documents. Sorich also repeatedly told Katalinic to tell the truth.

74/On September 16, 2004, in a recorded call intercepted by Court-authorized wiretap,

Katalinic spoke by telephone with the Assistant General Superintendent in the Bureau of Street

Operations, who was also a senior member of Katalinics political organization. With respect to

Motor Truck Driver positions, Katalinic and the Assistant General Superintendent discussed the fact

that Streets & Sanitation was beginning the process of selecting people for two-hour positions. (For

two-hour positions, workers are promised a minimum of two hours pay; they are then called to

work more or less, depending on the Citys needs for the day.) Katalinic said, I already talked to

Tim McCarthy and Sorich. They told me to give them a list. Im going to give it to Bartello.?

(Michael Bartello was, at the time, Assistant Commissioner of Personnel in Streets and Sanitation.)

82

From approximately 2000 to fall 2003, Katalinic had these meetings with Sorich in his office

at IGA. Around fall 2003, Sorich told Katalinic words to the effect of, We shouldnt be meeting

in City Hall to discuss stuff like this. If anything, we should meet outside.? Also, on one occasion

at Madisons restaurant, in approximately 2001 or 2002, when Katalinic was having drinks with

Sorich and another IGA official and discussing his political organization and jobs for his workers,

Sorich stated that it was better to meet outside of City Hall and off City property because they

shouldnt be doing political work on City property or on City time. Katalinic told Sorich that it

didnt matter where they met, Katalinic just needed his help.73/

In approximately 2003, Sorich told Katalinic to start giving names to McCarthy. After

Sorich told him this, Katalinic gave his lists of names to McCarthy, and also provided copies to

Sorich or asked McCarthy to do so.74/ In 2004, like Sorich, McCarthy told Katalinic that he did not

want to receive the lists of names in his office at City Hall. McCarthy met with Katalinic in the

hallway near the elevators on the fourth floor of City Hall, or outside the building. After meeting

Case 1:05-cr-00644 Document 113 Filed 04/10/2006 Page 86 of 98

75/In a September 15, 2004 recorded telephone call, intercepted pursuant to a Courtauthorized

wiretap, Katalinic spoke with McCarthy about job positions for truck drivers. Katalinic

asked if there would be a couple [of positions] opening up for us,? and McCarthy responded,

Yeah.?

76/Likewise, the Sanitation General Superintendent once heard from Sullivan that the Streets

& Sanitation Commissioner was unhappy with the list from downstairs,? with downstairs?

referring to IGA.

83

with Sorich or McCarthy, Katalinics practice was to follow up afterwards with a phone call about

his requests.75/

Katalinic gave his lists of names to the Streets & Sanitation Commissioner around the same

time he gave them to Sorich, and the Commissioner told Katalinic that he would speak to Sorich

about the recommendations and see what theyll [IGA] allow us to do.? The Commissioner also

remarked once that he would have to check with John [Sullivan]? to see if we can make it

happen.? Katalinic also routinely spoke about his recommendations to Drumgould, who told

Katalinic that decisions were made by IGA and the Commissioners office. Drumgould said words

to the effect of, I have to find out what theyre going to do downstairs,? with downstairs? referring

to IGA.76/

5. CDOT Manager.

As noted above, the CDOT manager met with IGA to promote City employees affiliated with

his political organization. In the 1980’s, the CDOT manager worked for different political

organizations. In 1991, a top CDOT official asked for the CDOT managers help with a political

group of CDOT workers from the Bureau of Streets. The CDOT official told the CDOT manager

that he was setting up the group at the request of Individual A. After the CDOT official left, the

Case 1:05-cr-00644 Document 113 Filed 04/10/2006 Page 87 of 98

77/The CDOT managers organization was not the only political organization at CDOT.

Another top CDOT official had a political group comprised primarily of African-Americans.

Although that group originally was a part of the organization that the CDOT manager inherited, it

operated separately during the time the CDOT manager ran the organization. Sorichs secretary

confirmed that Sorich was in contact with both the CDOT manager and the head of the African-

American organization.

84

CDOT manager took over leadership of the organization.77/ After the CDOT manager took over, he

received phone calls to let him know that a coordinators meeting was being held. The meetings

were usually held at Plumbers Hall or campaign headquarters of the candidate. Individual A, Robert

Sorich, and other then-current or former IGA officials were frequently at the meetings.

After the CDOT manager became Deputy Commissioner in 1997, he met with Sorich to

submit his requests for hiring and promoting people in CDOT. (Before that time, he sometimes

accompanied top CDOT officials to similar meetings.) Sometimes the CDOT Assistant

Commissioner for Personnel would accompany the CDOT manager at the meetings with Sorich.

The CDOT manager told Sorich who he thought would be good, and mentioned which of his people

had done political work. The CDOT manager always shut the door when he entered Sorichs office.

Sorich would review the CDOT managers recommendations, and sometimes said he intended to

discuss them with the person who was then the IGA director. Sorich sometimes indicated that he

could do one or more of the persons requested by the CDOT manager, but that one or more specific

other persons would also have to get the promotions. Those persons would then be promoted.

H. Additional Attempts to Conceal the Fraud.

1. Sorichs maintenance of a secret jobs list in the 1990’s.

Beginning in 1989 and continuing to the present, there was an administrative assistant at IGA

who worked first as an assistant for Sorichs predecessor at IGA, and after that person left in or

Case 1:05-cr-00644 Document 113 Filed 04/10/2006 Page 88 of 98

78/ Sorichs predecessor at IGA told Sorichs secretary to maintain the database and files, but

not to tell other people that she was maintaining such lists and files.

85

about 1993, she became Sorichs assistant (Sorichs secretary?). She worked for Sorich and,

beginning in or about 2001, McCarthy as well.

In addition to her typical secretarial responsibilities for Sorich (and later McCarthy), Sorichs

secretary had what she described as a secret? job responsibility related to hiring and promotions

in City employment. She was responsible for maintaining lists and files related to requests for jobs

or promotions that campaign coordinators (such as Harjung, Katalinic, Tomczak, and HDO

officials), aldermen, union officials, and others brought to IGA.

During the 1990’s, Sorichs secretary kept a software program tracking employment-related

requests on a City-owned laptop in her office, but did not tell others why she had the laptop there.

Sorichs secretary also kept paper files tracking jobs and sponsors. There were also boxes of index

cards kept in Sorichs office and/or Sorichs secretarys office. The index cards included employee

names, job titles, and requests, and political sponsorship.

Sorich provided his secretary with the information to put in the database. Before meetings

with campaign coordinators, aldermen, and others, Sorich sometimes asked his secretary to print out

the jobs list by sponsor, so that he could talk to the sponsor about what requests had been granted

and what requests had not. The jobs on the list were covered by the Shakman decree, including

Motor Truck Drivers, Laborers, and Tree Trimmers. At one point, Sorich told his secretary to use

the laptop at home and not at work.78/ She then printed Sorichs lists at home, and brought them to

him at the office.

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86

As of December 1997, the jobs list contained over 5,700 entries relating to political

employment requests. According to City records produced to the government in 2005, the laptop

was checked out to Sorich.

2. Sorichs 1997 attempt to destroy IGA computer files.

In 1996 and 1997, a federal grand jury conducted an investigation into alleged federal

criminal violations at the Department of Water, including a sequence involving the hiring of rate

takers for the Water Department. In 1997, the grand jury returned an indictment against John

Bolden, who had served as Water Department commissioner, for various criminal acts, including

the hiring of a rate taker without disclosing that the rate taker owed money to Bolden. See United

States v. Bolden, No. 97 CR 218.

As part of the Bolden investigation, in March 1997, a grand jury subpoena was issued to IGA

calling for any and all records indicating how ten identified individuals were selected as water rate

takers. On August 28, 1997, in furtherance of the Bolden investigation, the FBI case agent conducted

a phone interview of Sorich. Sorich said that he provided the names of some rate-taker

candidates to Phyllis Bergthold (the personnel director at Water), that he had obtained those names

from community leaders,? and said that he had no records regarding the hiring of the rate takers.

As investigators would later learn as part of the instant investigation, seven of the individuals who

obtained rate-taker positions in 1997 were, at that time, listed on the Sorich database maintained by

Sorichs secretary.

Within days after the FBI interview, Sorich spoke with a city employee who provided

computer support to IGA (the IGA computer liaison?) in conjunction with the Citys Management

Case 1:05-cr-00644 Document 113 Filed 04/10/2006 Page 90 of 98

79/According to the MIS Commissioner, the IGA computer liaison had received the position

at Sorichs direction. There was no vacancy when the IGA computer liaison was hired, and no

interview was conducted for this Shakman-exempt position. The IGA computer liaison was related

to an alderman.

87

Information Systems group (MIS?).79/ Sorich asked the IGA computer liaison what information

was on the Citys computer mainframe. The IGA computer liaison told Sorich that the data from

each employees work computer was stored on the mainframe. The mainframe contained a backup

of every file on the City computers. Sorich told the IGA computer liaison that he wanted to erase

everything on his (Sorichs) computer. Sorich also discussed erasing Individual As computer.

The IGA computer liaison told Sorich that erasing the computer by itself would not work,

because everything on Sorichs computer was backed up on the Citys mainframe computer. Upon

hearing that, Sorich told the IGA computer liaison to get the mainframe files deleted, using words

to the effect of, Im giving you an order.? Sorich also told the IGA computer liaison not to tell

anyone. The IGA computer liaison told Sorich that he could not delete the backup files from the

mainframe, as he didnt know how to do it; he said he needed the help of a City employee who

served as a systems programmer at MIS (the systems programmer?). Sorich told the IGA computer

liaison to get the systems programmer involved and delete the backup files from the mainframe.

Sorich stated that he was giving the IGA computer liaison and the systems programmer a direct

order from the Mayors Office to delete the backup files from the mainframe.

The IGA computer liaison went to the systems programmer and told him of Sorichs order.

The IGA computer liaison told the systems programmer that the Mayors Office had sensitive data

that they? did not want backed up. The IGA computer liaison told the systems programmer that

they? wanted MIS to stop backing up the files, and to destroy the files. The systems programmer

Case 1:05-cr-00644 Document 113 Filed 04/10/2006 Page 91 of 98

88

thought the request was strange, but he deleted the mainframe tape files as he was instructed. The

systems programmer deleted several particular directories, at the IGA computer liaisons direction,

including one that belonged to Sorich.

A short time later, Sorich called the IGA computer liaison and asked him to come over to

his office at IGA. The IGA computer liaison went over to IGA, and Sorich asked him if the

mainframe files had been deleted. The IGA computer liaison stated that as far as he knew, the

mainframe files had been deleted. Sorich asked the IGA computer liaison to delete the computer

files on his personal computer at IGA. The IGA computer liaison again told Sorich that deleting

files off Sorichs computer would be insufficient, because someone could retrieve the deleted files.

The IGA computer liaison told Sorich that the only way permanently to delete the files was

physically to destroy the computer. Sorich told the IGA computer liaison, OK.? The IGA

computer liaison recalls that he either saw IGA computers or computer parts put into plastic bags

to be destroyed, or Sorich told him that computers were put into plastic bags.

During this same time frame in 1997, the MIS Commissioner saw the IGA computer liaison

in the hallway standing outside the computer data center, sweating profusely and looking terrible.

She asked him what was wrong, and he said hed just done something terribly wrong. The IGA

computer liaison told the MIS Commissioner that he had just come from IGA. The MIS

Commissioner asked if he had deleted files, and the IGA computer liaison said that he had, and that

hed destroyed the c: drives on the computers. When the MIS Commissioner asked the IGA

computer liaison why he had done that, he said that hed received a call from Sorich, who told him

to come over to IGA and get rid of their computers. The MIS Commissioner called in her First

Deputy.

Case 1:05-cr-00644 Document 113 Filed 04/10/2006 Page 92 of 98

80/The MIS First Deputy recently identified her handwriting on a box containing one set of

the backup tapes, confirming that the tapes are the same ones that she caused to be created in 1997,

following Sorichs order to destroy IGA computers and IGA files. Due to the age and format of the

tapes, the information on them has not been recovered to date. Paper printouts associated with the

tapes indicate that they contained, among other things, IGA files relating to political-hiring requests.

81/Sorichs secretary identified these documents, and said that she had printed them out at

Sorichs direction, so that he could give the lists to Individual A. Sorichs secretary printed as much

as she could before her home printer broke.

89

The MIS First Deputy asked the systems programmer to create a set of backups of the

information that had been deleted. The systems programmer created a set of tapes, in an attempt to

recapture the information that Sorich had instructed the IGA computer liaison to delete. The

systems programmer did not review the tapes. He provided the tapes to the MIS First Deputy.

Investigators visited the MIS First Deputy and requested that she provide the tapes. The MIS First

Deputy turned the tapes over to the investigators.80/

City computer records show that certain files were deleted from the network server on

September 2, 1997, the second business day after the phone interview of Sorich. Records show that

one set of backup tapes was made on September 5, 1997. A second set of backup tapes was made

in November 1997.

A federal grand jury subpoena was issued for the deleted materials on December 17, 1997.

This subpoena was based on information the IGA computer liaison provided to an FBI agent. The

IGA computer liaison did not disclose Sorichs name at that time. On December 19, 1997, the

Corporation Counsels office turned over two sets of backup tapes and certain documents, saying

they were printed out from deleted files. The printed documents included printouts of portions of

what was known to be the Sorich database listing City employees by ward, position, and sponsor.81/

They also included documents showing the sponsors of City employees in one City department, and

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82/Sorichs secretary has produced a record showing she purchased a computer in February

1999.

90

documents concerning recommendations by Individual A and Sorich for City jobs on behalf of

various persons.

3. Renewed use of the database.

With one exception, the files on the Sorich laptop appear not to have been accessed after

December 16, 1997. One database file was accessed in January 1998, but there are no new entries

after December 1997.

In the late 1990’s, Sorichs secretary spilled wine on the laptop, and it stopped working.

Sorichs secretary told Sorich what happened, and they were both concerned. Sorichs secretary

purchased a home computer, and began using it to maintain the jobs list.82/

After McCarthy arrived at IGA in 2001, Sorich and McCarthy purchased a new laptop for

Sorichs secretary to use to maintain the jobs list. Both Sorich and McCarthy provided Sorichs

secretary with information to update the database. In about 2002, they instructed her not to maintain

the database on computer any longer.

4. Sorich ordered the political hiring files destroyed.

While Sorich was at IGA, and continuing through the time McCarthy was at IGA, Sorichs

secretary maintained file cabinets with paper copies of files tracking jobs and sponsors. Sorich and

McCarthy had access to the files, and did access the files. At some point in the past few years,

Sorich told his secretary to shred the contents of the political hiring files in her file cabinets. She

did so, on Sorichs instruction.

Case 1:05-cr-00644 Document 113 Filed 04/10/2006 Page 94 of 98

91

When federal agents searched IGA in May 2005, there were no paper files or index cards in

or outside Sorich or McCarthys offices containing job seekers names or political sponsorship.

5. Sullivans statements to investigators.

John Sullivan was interviewed by federal agents in the investigation, on August 5, 2004,

February 18, 2005, and February 22, 2005. In the first interview, which took place at a City office,

Sullivan was asked various questions about the Citys Hired Truck Program. In addition, he was

asked what he knew about HDO in Streets & Sanitation. Sullivan said he did not know much about

it, and that it played no role that he knew of in getting people jobs. Sullivan said that he had not

heard from anyone that being in the HDO helped in getting a City job.

In the February 18 interview, which also took place at a City office, Sullivan said that he had

heard of Daniel Katalinics having a political organization. He stated that Katalinic may have some

guys.? Sullivan was asked about the interview process at Streets & Sanitation. He said that a

committee rates each candidate, and the person with the highest score gets the job unless there is a

problem with the employees attendance. When asked if Sullivan had heard of HDO members

getting preferential treatment in hiring, Sullivan said that Streets & Sanitation had been historically

white, and the City was trying to push minority hiring. Sullivan stated that he had never heard of

members of Katalinics political organization getting preferential treatment. Sullivan said he did

not know who the members of Katalinics organization were.

On February 22, 2005, agents interviewed Sullivan over the phone, after Sullivan requested

the opportunity to provide additional information regarding questions agents had asked on February

18. During the February 22 interview, agents asked if hiring, promotions, or overtime were in any

way affected by political factors. Sullivan said that politics definitely played a role for Shakman-

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92

exempt positions. As to Shakman-covered positions, Sullivan described general hiring processes

for Motor Truck Drivers and Laborers, but did not describe IGAs role, or the roles of political

factors, in the hiring and promotion process. Agents specifically asked Sullivan again about

Katalinics role in hiring, and Sullivan said he had thought about that all weekend. Sullivan stated

that Katalinic spoke to the Streets & Sanitation Commissioner about hiring. Sullivan did not

describe his tracking on color-coded lists of Katalinic political organization members hirings and

promotions in Streets & Sanitation, or his discussions with IGA about those positions.

IV. CONCLUSION.

The above is an outline of the evidence that the government will introduce to establish that

a scheme or joint venture existed involving defendants Sorich, McCarthy, Sullivan, and Slattery, and

their co-schemers as well as various individuals who acted as their agents in ways that allowed the

Case 1:05-cr-00644 Document 113 Filed 04/10/2006 Page 96 of 98

93

defendants to commit their frauds. This Court should find, based upon this proffer, that co-schemer

and agents statements are admissible pending the introduction of evidence to support this proffer.

Respectfully submitted,

PATRICK J. FITZGERALD

United States Attorney

By: s/ Philip A. Guentert

PHILIP A. GUENTERT

s/ Patrick M. Collins

PATRICK M. COLLINS

s/ Barry A. Miller

BARRY A. MILLER

s/ Julie B. Ruder

JULIE B. RUDER

Assistant U.S. Attorneys

219 South Dearborn Street, Room 500

Chicago, Illinois 60604

(312) 353-5300

Case 1:05-cr-00644 Document 113 Filed 04/10/2006 Page 97 of 98

CERTIFICATE OF SERVICE

The undersigned Assistant United States Attorney hereby certifies that the following

documents:

Governments Evidentiary Proffer Supporting the Admissibility of

Co-Schemer and Agent Statements

were served on April 10, 2006, in accordance with FED. R. CRIM. P. 49, FED. R. CIV. P. 5, LR 5.5,

and the General Order on Electronic Case Filing (ECF) pursuant to the district courts system as to

ECF filers.

s/ Julie B. Ruder

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