In 2017, AT&T Illinois achieved a significant legislative victory in Springfield that promised significant savings, gaining the support of then-Illinois House Speaker Michael J. Madigan. However, this win came with a caveat: AT&T Illinois had agreed to pay $22,500 over nine months to a key Madigan ally. Subsequently, Madigan’s son approached with another financial request, causing then-utility president Paul La Schiazza to express concerns about the endless demands in an email to a colleague. Prosecutors argue that this email helps prove the payment was a bribe. A jury will soon determine the validity of this claim as La Schiazza faces a trial starting Tuesday.
The five-count indictment, issued in October 2022, is part of the federal government's broader investigation into Madigan's dealings. This trial is expected to last three weeks, preceding Madigan’s own racketeering trial on October 8. Madigan, a once-influential Democrat, also faces charges related to the alleged scheme involving La Schiazza and AT&T Illinois, which has already agreed to a $23 million fine. Key figures in La Schiazza’s case include Michael McClain, a longtime Madigan confidant, and former state Rep. Edward “Eddie” Acevedo, the recipient of the $22,500 who has already served time for tax evasion. McClain is set to stand trial with Madigan next month on similar charges. La Schiazza’s defense attorney, Tinos Diamantatos, contends that the indictment lacks merit, asserting it doesn’t allege Madigan’s awareness of AT&T’s hiring of Acevedo or any quid pro quo.
He argues that merely trying to curry favor with a politician is not inherently criminal. The case bears similarities to last year’s ComEd bribery trial, where a jury in May 2023 found McClain and several others guilty of a conspiracy to bribe Madigan to benefit ComEd. Jurors heard that five Madigan allies were paid $1.3 million by ComEd over eight years. However, a recent U.S. Supreme Court decision complicating the bribery statutes in these cases now casts doubt on those convictions. U.S. District Judge Robert Gettleman, overseeing La Schiazza’s case, recently denied a motion to dismiss certain counts, stating the Supreme Court’s ruling doesn’t affect the charges.
Diamantatos argues that Madigan’s son’s request for a donation to a non-profit after key legislation passed falls under the kind of activities deemed non-criminal by the ruling. Center to the case is AT&T Illinois's prolonged effort to pass a bill ending its obligation to provide landline telephone service across Illinois, believing it could save millions. From 2010 to 2015, the bill failed to pass. In February 2017, McClain requested a small contract for Acevedo, and discussions quickly ensued about Acevedo’s payment and role. La Schiazza and his team strategized around objections and concerns about hiring Acevedo, often discussing using intermediaries to ensure credit for the hiring.
In April 2017, Acevedo was offered a $2,500-per-month consultant role to report on legislative dynamics but countered for $3,000. La Schiazza was willing to concede if necessary but ultimately, Acevedo accepted the original offer communicated by McClain. Payments were funneled through lobbyist Tom Cullen's firm, and Acevedo never produced the commissioned report. Despite these dealings, the COLR bill became law after an override of a gubernatorial veto. Soon after, Madigan’s son requested another financial favor. La Schiazza, frustrated, remarked that they were on a “friends and family plan,” signaling continuing financial demands tied to legislative favors.
