New investigation into tax appealsRecords sought involving firms in lawmaker's districtThursday, July 23, 2009 Chicago Tribune by John Chase
Cook
County prosecutors have demanded records from the county tax appeal
board amid questions about property-tax breaks awarded to businessmen
who are political supporters of a state lawmaker, the Tribune has
learned.
The grand jury subpoenas to the Cook County Board
of Review seek records on tax appeal cases that are already the subject
of an internal board investigation involving state Rep. Paul Froehlich
(D- Schaumburg) and a political associate who used to work for tax
board Commissioner Joseph Berrios.
One of three elected board members, Berrios is also chairman of the Cook County Democratic Party and a Springfield lobbyist with close ties to House Speaker Michael Madigan, the state Democratic Party chairman.
Board members and their staffs have been investigating whether
Froehlich used any "undue influence" through Victor Santana, the
political associate who worked for Berrios, or anybody else to get the
tax breaks for businesses in Froehlich's district, Commissioner Larry
Rogers Jr. said. Rogers said he was aware that investigators for
State's Atty. Anita Alvarez were looking at tax cases as well but wouldn't say whether they were the same ones.
The April and May subpoenas obtained by the Tribune sought the files
for 25 tax cases, including several in which Froehlich helped suburban
business owners who got tax breaks. That included two hotel operators
who together donated more than $36,000 to his campaign, according to
state records.
Froehlich said in a statement to the Tribune that he has done nothing
wrong and has yet to hear any allegation or evidence the businesses he
helped didn't deserve the tax breaks. He said he used his experience as
a former township assessor to offer advice for filling out forms and
explain the tax appeal process.
"I have never asked for any fee or campaign contribution in return for
my assistance and I never will," Froehlich said in the statement. He
declined to be interviewed.
Berrios did not return calls for comment. The state's attorney's office did not return calls for comment.
Froehlich was at the center of a political controversy in 2007 when he upset Republicans
by switching parties as the northwest suburbs became more Democratic.
He won re-election to the House with the help of more than $388,000
from Madigan and the Democratic Party.
In recent weeks, staff members for Berrios, Rogers and fellow
Commissioner Brendan Houlihan have spoken freely in open meetings about
the accusations, which first came to light on a conservative Internet
blog and later in reports by television station WFLD-Ch. 32. Amid the
controversy, Froehlich has announced that he is not seeking re-election.
In two cases, the owners of separate Schaumburg hotels received tax breaks totaling $137,000.
John Muldoon, attorney for Bimal and Kiran Doshi, who own Comfort
Suites on Higgins Road, said his clients discussed their property-tax
increase with Froehlich at one of his fundraisers. The owners have
given more than $18,000 to Froehlich.
"They've attended a few fundraisers and donated cash and services ...
and they discussed the fact that their taxes had gone up," he said.
"They don't remember much of the conversation, and he gave them general
information, which they pretty much knew anyway."
Muldoon said other area hotels got bigger tax breaks. "If there was a
quid, there was no quo because they were treated worse than other
hotels," he said.
County records show that the board decreased the Comfort Suites
assessment by $473,355 or about 36 percent, which works out to roughly
a $94,600 annual tax savings.
Sharad Dani, the owner of the Wingate Wyndham hotel on Remington Road,
told the board he spoke to Froehlich about his taxes and that Froehlich
recommended a lawyer to use, but that Froehlich didn't ask for any
money. Dani's companies donated more than $17,000 to Froehlich's
campaign last year.
The decrease in Wingate's assessment translated to a tax savings of about $43,100.
Board staffers have questioned Dani's attorney, who is new to the tax
appeal business and is friends with Froehlich and Santana. A political
operative who did work for Froehlich and who worked for Berrios at the
board for 10 years, Santana was allowed to visit private areas of the
board offices until commissioners recently banned him.
Santana denied wrongdoing and said he was in the offices because they were talking about business unrelated to tax appeals.
jchase@tribune.com
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