Bribery trail touches politicians' families:Bribery cause sprouts tentacles

 

Bribery trail touches politicians' families

Bribery cause sprouts tentacles

Relatives of congressman, aldermen landed jobs on the development project that spurred bribery charge

By Todd Lighty and Robert Becker Tribune reporters

March 7, 2010

Three politicians who supported a real estate venture at the center of an upcoming federal bribery trial have relatives who landed jobs tied to the project, offering a twist on the Chicago tradition of cozy relationships between developers and public officials.

Recently filed court records in the criminal case of developer Calvin Boender provide broad outlines about the jobs that went to relatives of U.S. Rep.Luis Gutierrez, Ald. Emma Mitts, 37th, and former Ald. Isaac "Ike" Carothers, 29th.

Gutierrez's sister-in-law was hired to sell real estate; Mitt's daughter was hired as a laborer; and Carothers' brother was selected to provide security.

Carothers agreed to testify for prosecutors at Boender's trial, which is scheduled to begin Monday. Testimony could spotlight numerous politicians' relationships with Boender and offer new details about how development works at City Hall.

Reached by telephone, Gutierrez declined to say how or when his sister-in-law Jeanette Torres was hired by Red Seal Development Corp., one of Boender's partners on the project. He then hung up.

"My employment with Red Seal Homes is a private matter," Torres wrote in an e-mail to the Tribune. "Congressman Gutierrez had nothing to do with my employment at Red Seal Homes."

Carothers, Mitts and Gutierrez supported rezoning the Galewood Yards project to allow Boender to build a 14-screen movie theater and a nearly $60 million residential development of 187 single-family homes, townhouses and condos. The zoning change meant an extra $3 million in Boender's pockets.

Boender faces charges that he bribed Carothers in exchange for the alderman's pushing the project through City Hall and over the objection of city planners.

Carothers in February pleaded guilty to corruption charges and resigned from the City Council. He admitted that Boender gave him $40,000 in home improvements in 2004 in exchange for supporting Boender's project.

The Tribune has reported that Boender, a friend and golfing buddy of Gutierrez, lent Gutierrez $200,000 in a real estate deal about the time the congressman was lobbying Mayor Richard Daley to back Galewood Yards.

Gutierrez, a nine-term Chicago Democrat who is seeking re-election in November, has not been charged with any wrongdoing. He told the Tribune in 2008 he supported Boender's project because it "included affordable housing, job training and job creation for Latinos and African-Americans on a parcel of land that had been unproductive for years."

What Gutierrez didn't say was that among those finding work was his sister-in-law.

A year before Boender's May 2009 indictment, his former attorneys told federal authorities some of what Boender knew about his dealings with politicians. Court records show that the attorneys provided prosecutors and the FBI a glimpse of what Boender might say if he were to talk to investigators.

Those attorneys for Boender told prosecutors Gutierrez's sister-in-law was a real estate broker for Red Seal. Red Seal also hired Mitts' daughter. Boender used Carothers' brother, a Chicago police officer, for security at the project.

"After Mr. Carothers found out that Mr. Gutierrez's sister-in-law was working for Red Seal, Mr. Carothers became upset and wondered why Red Seal could not be working with his brother," according to court records.

Brian Hoffman, Red Seal's vice chairman and chief financial officer, declined to comment.

Boender could not be reached for comment. The developer's current attorneys, who are representing him at trial, declined to comment.

Anthony Carothers, the brother of the former alderman, declined to comment.

"Ike's brother was legitimately in the security business and got an opportunity to get some additional business because Ike and Boender knew each other," said Jeffrey Steinback, Ike Carothers' attorney. He said Anthony Carothers was unaware of any alleged unlawful dealings between his brother and Boender.

Mitts' daughter, LaTonya Mitts, said she got the job on her own.

"I had the skills and I applied," LaTonya Mitts said.

Ald. Mitts said her daughter worked as an hourly maintenance laborer on the project for three to six months.

"One of my primary goals as alderman is to provide jobs and economic empowerment and opportunity for my constituents," Mitts said. "Several constituents, including my daughter, applied and after a review of their qualifications, were hired."

Gutierrez also had real estate dealings with Boender in the 1000 block of West Fulton Avenue. Boender in 2004 began selling lots there to investors, who included Gutierrez and Stanley Walczak.

Walczak's son was an intern for Gutierrez in Washington.. Walczak and Gutierrez several years ago invested in a real estate deal in which the congressman made at least $70,000 in profits.

Court records identified Walczak — acting at the direction of Boender — as having arranged for improvements to Ald. Carothers' home. Walczak declined to comment.

tlighty@tribune.com

rxbecker@tribune.com 

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