Story posted Wednesday, February 3, 2010
Village Launches Internal Investigation
By TOM ROBB Journal & Topics Reporter
An internal investigation of Niles village government began last week after a sentencing memorandum prepared by prosecutors in former Niles Mayor Nicholas Blase's federal corruption case implicated village employees of using their offices to further Blase's criminal scheme.
Village Attorney Joe Annunzio confirmed that an investigation is in its very early stages and would likely focus on the police department and in the building permit process. The probe, he said, is based on new information in the prosecutor's memo not made public before a sentencing memorandum was filed with the court on Friday, Jan. 22.
What exactly happened, who was involved and whether those alleged events involved current employees is still unclear, said Annunzio.
What actions are taken next, be it contacting the Cook County State's Attorney, U.S. Attorney or handling the issue within the village would be determined by what is discovered in the investigation, said Annunzio. The issue is expected to eventually be brought before the Niles Board of Ethics.
Blase last Friday was sentenced to one year and one day and ordered to pay $1.1 million in fines and restitution including a $750,000 payment to three Niles elementary schools.
Blase pled guilty in October 2008 to two counts of an 11-count indictment to a scheme to strongarm Niles businesses to take out insurance policies with Ralph Weiner and Associates (RWA) for which he received at least $421,500 in kickbacks from RWA over a decade long period.
Prosecutors believe the scheme began in the 1970's but did not have enough documentation to move forward with charges relating to activities before the mid-1990's.
The sentencing memo gives an account gathered through grand jury testimony of how Blase used his position as mayor to pressure certain businesses through his position as liquor commissioner, and implicates Niles police and the village's permit process.
After a Niles business referred to in the document as Niles business "O" switched from RWA to a different insurance carrier in October 2005, cars outside the business began receiving village-issued parking tickets beginning in February 2006.
Employees and patrons of the business had been parking in the area without incident for 30 years.
When the owner of business "O" contacted Blase, he testified that he was told the problem would be taken care of and advised to carry his insurance through RWA. When the business owner said he had already been in contact with RWA, Blase responded that was "fine."
Prosecutors said Blase received $13,137 in kickbacks from business "O."
The memo also gives the account of Niles business "P", a restaurant.
When opening in the village, the memo said a village employee "strongly recommended," the owner use RWA for insurance. The owner opted not to.
Later when business "P" sought to convert part of its property to a parking lot, the village stopped the process and Steve Weiner, owner of RWA approached the business owner offering to take up the issue with Blase if he bought insurance from RWA, according to records. The owner purchased a $50,000 health insurance policy and the parking lot project was allowed to move forward.
The memo said, "Those (business) owners testifying before the grand jury made it clear that the defendant's (Blase) near complete control over business affairs in the Village of Niles created a state of fear in which owners dreaded the consequences if they did not purchase insurance from RWA."
Blase's sentence is expected to begin on Monday, Mar. 1.
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