chicago tax – CDMUG http://cdmug.org/ Fri, 17 Sep 2021 17:46:11 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 https://cdmug.org/wp-content/uploads/2021/06/icon-67-150x150.png chicago tax – CDMUG http://cdmug.org/ 32 32 Illinois misses deadline to repay $ 4.2 billion federal unemployment insurance loan https://cdmug.org/illinois-misses-deadline-to-repay-4-2-billion-federal-unemployment-insurance-loan/ https://cdmug.org/illinois-misses-deadline-to-repay-4-2-billion-federal-unemployment-insurance-loan/#respond Fri, 17 Sep 2021 17:35:24 +0000 https://cdmug.org/illinois-misses-deadline-to-repay-4-2-billion-federal-unemployment-insurance-loan/ Illinois missed the September deadline to repay a $ 4.2 billion federal unemployment loan. Employers warn that inaction by state lawmakers could “cripple” businesses and economic recovery from COVID-19. Illinois state officials missed the September 6 deadline to repay a $ 4.2 billion federal loan to state unemployment insurance fund, leaving Illinois taxpayers obligated to […]]]>


Illinois missed the September deadline to repay a $ 4.2 billion federal unemployment loan. Employers warn that inaction by state lawmakers could “cripple” businesses and economic recovery from COVID-19.

Illinois state officials missed the September 6 deadline to repay a $ 4.2 billion federal loan to state unemployment insurance fund, leaving Illinois taxpayers obligated to pay $ 60 million annual interest on that loan.

The unemployment fund was depleted during the economic downturn from COVID-19. Between the loan and the failure of heads of state to replenish the fund, potentially using federal COVID-19 bailout funds, the deficit stands at $ 5.8 billion.

Business leaders warn that defaulting on debt would result in automatic tax hikes for Illinois employers starting at $ 500 million, further hampering the country’s stagnant employment recovery ‘State. There would also be automatic reductions in benefits of the same amount. Employers could be subject to further discretionary tax hikes from the state legislature if these automatic solvency measures fail to fill the void.

Since the start of the COVID-19 pandemic, the number of Americans filing unemployment claims nationwide has reached historic highs, putting unprecedented pressure on state unemployment systems. Illinois has experienced a spike in unemployment at 16.3% in April 2020 as Governor JB Pritzker imposed statewide business closures.

More than 202,000 Illinois in one week filed for unemployment at the time. It is more than 12 times the number of claims the Illinois Department of Job Security received during the same period during the Great Recession.

All of these claims led to a deficit of $ 5.8 billion, with more job seekers being paid out than in the fund.

The amount of the deficit includes $ 4.2 billion the state borrowed during the pandemic from initially interest-free federal funds and the $ 1.6 billion change in the trust fund balance since the start of the pandemic. The trust fund held $ 1.85 billion in February 2020 and had a balance of only $ 256 million in September 2021, according to the treasury department.

Illinois was originally one of 22 states that requested these advanced federal loans. But after the state missed the September 6 loan repayment deadline, Illinois found itself among 10 states to accumulate interest on that debt.

Business groups estimated that these impending interest payments could cost Illinois residents up to $ 14 million in 2021 and up to $ 60 million per year from 2022. The first of these payments to the US Treasury is due September 30.

Illinois business leaders and labor groups have warned that failure to address the state’s growing unemployment insurance fund deficit for too long could also result in ‘crippling’ business taxes and major cuts in unemployment benefits.

Federal law mandates states maintain the solvency of unemployment funds to protect vulnerable residents. Without external funding, the two ways states can fund their trusts are to either increase employers’ payroll taxes or reduce benefits for the unemployed.

But if a state maintains an unpaid federal loan balance at the start of two consecutive calendar years, federal law triggers a series of automatic tax increases on companies in that state. The standard federal tax rate of 0.6% could increase by 0.3% from January 1, 2022, and then increase by 0.3% each year, with the balance owed, to a maximum of 6%.

Rob Karr, CEO and president of the Illinois Retail Merchants Association, estimated that these reductions in unemployment credits would essentially raise business taxes by $ 500 million and cut unemployment benefits by $ 500 million.

With Illinois unemployment rate stagnating at 7.1% since March as national unemployment continues to decline, the rise would further hurt the ability of Illinois businesses to hire and workers to find jobs.

Illinois’ struggles with its underfunded unemployment insurance trust fund are not new. During the Great Recession, the state had to borrow almost $ 1.5 billion in federal money to fill the fund. To avoid the automatic corporate tax hikes triggered by the deferred repayment of this federal loan, the state then sold the bond debt to pay off the federal government. These obligations have taken five years to repay, funded by a compromise with Illinois businesses that included modest increases in payroll taxes and reductions in employee benefits.

To reduce already struggling businesses, Karr and the State Policy Networkrecommend that Illinois use part of the US $ 5 billion in federal aid from the American Rescue Plan Act to cover the unemployment trust deficit. The US Treasury Earlier this year, he gave the green light for states to use those funds to restore unemployment trust fund balances to January 2020 levels.

States like Ohio have already acted by using $ 1.5 billion in federal funds to repay their Title XII loans.

“By paying off this loan in full, we are ensuring that Ohio businesses do not see an increase in their federal payroll taxes on unemployment,” Ohio Governor Mike DeWine said in A declaration. “Without this additional tax burden, our employers can invest more money in their businesses and hire more people.”

By prioritizing federal assistance to fuel the trust fund, Illinois can prevent its small businesses from facing further tax increases when they remain vulnerable. This would help supply the 69% of total new jobs that small businesses provide to the state, which would reduce the number of unemployed.

The use of clawback funds for the state unemployment insurance fund should be given priority over allowances such as the repayment of existing debt, which are mainly caused by irresponsible budgeting and increasing costs of pensions. These problems would be best resolved with structural reforms, such as a constitutional amendment aimed at controlling pension costs.

Illinois can put the stimulus funds to good use with lasting change that will rebuild the state’s economy.



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Chicago woman impersonates a relative of homicide victims for a tax refund: the federal government https://cdmug.org/chicago-woman-impersonates-a-relative-of-homicide-victims-for-a-tax-refund-the-federal-government/ https://cdmug.org/chicago-woman-impersonates-a-relative-of-homicide-victims-for-a-tax-refund-the-federal-government/#respond Fri, 17 Sep 2021 16:59:00 +0000 https://cdmug.org/chicago-woman-impersonates-a-relative-of-homicide-victims-for-a-tax-refund-the-federal-government/ A “career con artist” in Chicago has stolen the identities of young homicide victims to raise thousands of dollars in tax refunds and COVID-19 stimulus payments, according to federal prosecutors. Katrina Pierce, 50, was charged with wire fraud and aggravated identity theft in a 34-page complaint made public Thursday. Prosecutors say his fraud scheme was […]]]>


A “career con artist” in Chicago has stolen the identities of young homicide victims to raise thousands of dollars in tax refunds and COVID-19 stimulus payments, according to federal prosecutors.

Katrina Pierce, 50, was charged with wire fraud and aggravated identity theft in a 34-page complaint made public Thursday.

Prosecutors say his fraud scheme was first discovered in late 2019 by the Cook County Vital Records Bureau, which noticed Pierce requested four death certificates in one day while claiming to be each victim’s sister, well that they have different surnames.

A subsequent record check found Pierce requested 37 death certificates in 2019, obtaining at least 26 of them, according to the complaint.

“The director then searched the backgrounds of the deceased and discovered that they were all homicide victims, aged between ages 2 and 22, from south and west Chicago,” the complaint states.

The manager believed Pierce had targeted her victims because they would be less likely to have credit histories and she may have tried to open accounts using their identity, prosecutors said.

Antonio Brown (right) is comforted during a prayer vigil for his son, Amari Brown, 7, who was shot and killed in Chicago in 2015.
EUTERS / Jim Young

Amari Brown, a 7-year-old boy from Chicago who was shot dead in 2015, was reportedly among Pierce’s victims. She falsely claimed she was his aunt when getting her death certificate in 2019, then used the stolen information to file a fraudulent tax return which resulted in a refund check for $ 4,407 from the ‘IRS, prosecutors said.

“Why would anyone want to do this?” »Amari’s aunt, Andrina Hailey, told WLS-TV, accusing Pierce of reopening the family wounds. “It’s very sensitive to us, and we just think it’s disgusting.”

IRS agents went to the return address Pierce provided in his January 2020 requests and found handwritten notes listing the names of those who died as well as how they died, including “gunshot” , ” where are you ” .

Investigators said Pierce also sought personal information about people who died in St. Louis, including a homicide victim, to fraudulently obtain COVID-19 stimulus payments and a prepaid debit card in his name.

Antonio Brown, father of Amari Brown, is seen near a sign honoring his son after his death in 2015.
Antonio Brown, father of Amari Brown, is seen near a memorial in honor of his son in 2015.
(AP Photo / Christian K. Lee

Prosecutors said Pierce had multiple bank accounts using different names to hide his scheme. She deposited nearly $ 84,000 into one of the accounts over a six-month period last year ending in December – more than double the amount of her total income reported on her tax return, according to the complaint.

Pierce was arrested on Tuesday and appeared before a judge, who ordered her detention pending trial, according to court records cited by the Chicago Tribune. Its preliminary hearing is set for Tuesday.

In 2012, Pierce was sentenced to 11 years in federal prison for using stolen identities and other false documents to recover more than $ 200,000 in federal tax refunds and child care allowances, reported the newspaper.

Prosecutors at the time called her a “career crook” who graduated in shoplifting as a teenager before launching counterfeit, food stamp and theft programs. identity.

“Flying was [her] full-time occupation and she was good at it, ”prosecutors reportedly wrote in her earlier memo on the sentence. Pierce was still on probation when she was arrested, court records show. His court-appointed lawyer could not be reached for comment, the Tribune reported.

Investigators found handwritten notes from Pierce listing his victims and how they were murdered.
Investigators found handwritten notes from Pierce listing his victims and how they were murdered.



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UK tax office takes victory over Premier League referees https://cdmug.org/uk-tax-office-takes-victory-over-premier-league-referees/ https://cdmug.org/uk-tax-office-takes-victory-over-premier-league-referees/#respond Fri, 17 Sep 2021 14:32:44 +0000 https://cdmug.org/uk-tax-office-takes-victory-over-premier-league-referees/ The British tax authorities have won an appeal linked to their long battle to reclassify Premier League and FA Cup referees as employees. The victory clears the way for Her Majesty’s Revenue and Customs to collect back taxes for payments made by Professional Game Match Officials Limited to arbitrators for unpaid income tax and national […]]]>


The British tax authorities have won an appeal linked to their long battle to reclassify Premier League and FA Cup referees as employees.

The victory clears the way for Her Majesty’s Revenue and Customs to collect back taxes for payments made by Professional Game Match Officials Limited to arbitrators for unpaid income tax and national insurance contributions, a UK tax on employment which will soon be increased.

The lower courts “erred in law in their approach to the issue of reciprocity of obligations in individual contracts” and the first level court “erred in law in their approach to the issue of control in contracts Individuals ”, England and Wales Court of Appeal, Judge Sir Nicholas Patten said in his judgement published Friday.

PGMOL, established in 2001, helps organize the officials of football matches, including the Premier League, FA Cup, Champions League and international matches.

It classifies 30,000 referees into 10 categories, from trainees to international standards. Of these, PGMOL employs full-time referees and part-time referees known as Tier 1, during the two years 2014-15 and 2015-2016 mainly covering Premier League matches.

Part-time arbitrators, who are the subject of the appeal, typically combine arbitration with full-time jobs in other fields. There were 60 of these umpires in 2014-15.

The tax office argued that these arbitrators were under contract and performed the work of salaried workers and should have paid income tax and national insurance contributions on payments made to them by PGMOL. During the years 2014-15 and 2015-16, to which the case relates, they owe 583,874 pounds ($ 805,000) excluding interest.

PGMOL appealed, and in a 2018 judgement the FTT sided with the company, concluding that HMRC had failed to prove that the contracts in question showed that PGMOL had control over the part-time arbitrators.

HMRC appealed to the tax chamber of the Upper Tier Tribunal, which, in May 2020 upheld the lower court judgment. HMRC then appealed to the Court of Appeal, which today ruled that the two lower courts erred in law by not correctly applying the threshold criteria to determine the difference between a contractor and an employee.

HMRC declined to comment. PGMOL did not immediately respond to a request for comment.

The case is Revenue and Customs v Professional Game Match Officials Ltd [2021].



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Sports betting in Chicago stadiums, arenas pushed by John R. Daley, Patrick Daley Thompson could vote on the plan https://cdmug.org/sports-betting-in-chicago-stadiums-arenas-pushed-by-john-r-daley-patrick-daley-thompson-could-vote-on-the-plan/ https://cdmug.org/sports-betting-in-chicago-stadiums-arenas-pushed-by-john-r-daley-patrick-daley-thompson-could-vote-on-the-plan/#respond Fri, 17 Sep 2021 10:30:00 +0000 https://cdmug.org/sports-betting-in-chicago-stadiums-arenas-pushed-by-john-r-daley-patrick-daley-thompson-could-vote-on-the-plan/ The behind-the-scenes lobbying effort to bring sports betting into Chicago’s professional sports arenas has enlisted a powerful name – Daley. John R. Daley – the son of Cook County Commissioner John Daley and a nephew of former Mayor Richard M. Daley – works as a lobbyist for the White Sox as a team, acting in […]]]>


The behind-the-scenes lobbying effort to bring sports betting into Chicago’s professional sports arenas has enlisted a powerful name – Daley.

John R. Daley – the son of Cook County Commissioner John Daley and a nephew of former Mayor Richard M. Daley – works as a lobbyist for the White Sox as a team, acting in concert with the Cubs, Bears, Blackhawks and Bulls, is pushing Chicago City Council to let them all open sports betting facilities in or near their stadiums.

John R. Daley’s first cousin, Ald. Patrick Daley Thompson represents the family’s political base, the 11th Ward of the South Side, which houses the Sox baseball stadium, Guaranteed Rate Field. Sources say another lobbyist, not Daley, has been tasked with lobbying the alderman on behalf of the Sox.

Thompson – a grandson and nephew of Chicago’s two oldest mayors – has backed the proposal to allow sports betting in stadiums and arenas in discussions with other aldermen, lobbyists and others in recent months. , according to sources.

Under a draft ordinance introduced by Ald. Walter Burnett (27th), each sports betting operation would pay City Hall a fee of $ 50,000 plus an annual renewal fee of $ 25,000 to operate inside each stadium or within a five-block radius.

A draft ordinance introduced by Ald. Walter Burnett would allow Guarantee Rate Field and other professional sports stadiums in Chicago to each operate a sports betting operation.
Charles Rex Arbogast / AP

When asked why John R. Daley was hired, a White Sox spokesperson said, “John is highly respected in his field, he’s smart and experienced. In this particular case, all the teams, their leaders and their lobbyists worked together towards a common goal of passing this one ordinance. The governor wants it. The legislator supports it, as does the mayor. And we think the majority of city council is doing it too.

“John and Lisa Duarte have worked as lobbyists for the United Center for several years at the state level, so it made sense to add them to the lobbyists working on this ordinance at the city of Chicago level as well. We are proud of the relationship we have with John and appreciate what he brings in terms of judgment, trust, care and results.

John R. Daley did not comment, but sent a letter from his attorney saying he was “not precluded from registering or acting as a lobbyist on the affairs of the city of Chicago due to of this family relationship “.

A source describes Thompson as generally supportive of the proposed ordinance – which would allow players to bet on sporting events at or near Sox Park, Wrigley Field, Soldier Field and the United Center even when they’re not hosting games.

But Thompson, whose loved ones have held Sox memberships for generations, is concerned about the impact, including traffic, on residential areas of Bridgeport, according to the source.

Thompson did not respond to interview requests.

He abstained from voting on issues involving his uncle, the former mayor, who is now a lawyer at a law firm, and the cousin of Alderman William Daley, who works for Goldman Sachs. The two companies have been involved in financial deals with the town hall.

Thompson, a lawyer in his second term on the council, is one of three city councilors indicted by the federal government in separate criminal cases.

He and his attorneys are preparing for his trial next month in federal court on charges that accuse him of filing false income tax returns and lying to federal investigators about an estimated $ 219,000 in loans he obtained from a very influential bank in his neighborhood, the Washington Federal Bank. for savings.

Federal regulators shut down the bank almost four years ago after uncovering a massive fraud scheme that embezzled tens of millions of dollars in neighborhood bank deposits. The bankruptcy of the bank cost the Federal Deposit Insurance Corp. about $ 90 million.

According to the federal indictment he faces, Thompson had not made any payments on his loans, but had listed the interest on the payments nonetheless. Investigators said he never paid the bank as a deduction from his federal income tax returns.

In addition to the White Sox, John R. Daley also lobbies city officials on behalf of the United Center, jointly owned by Jerry Reinsdorf, president of the Bulls and the Sox, and Blackhawks owner Rocky Wirtz. Wirtz is an investor in the Chicago Sun-Times.

Mara Georges.

Mara Georges’ law firm is also lobbying on behalf of the proposal to allow sports betting in professional sports stadiums and arenas in Chicago. Georges was the best attorney in town hall during the administration of Mayor Richard M. Daley.
Sun-Times file

Also among the power brokers involved in the effort: the longtime Daley family law firm, Daley & Georges, which was recently renamed Georges & Synowiecki. The managing partner of the firm is Mara Georges, who was town hall’s top lawyer for much of Second Mayor Daley’s tenure and then joined the law firm then headed by former Mayor Michael Daley’s brother. .

Georges’ legal partner is Michael Synowiecki, a former member of Ald’s staff. Edward M. Burke (14th). The alderman is awaiting trial on federal charges that accuse him of trying to convince a Burger King franchisee to hire his law firm to handle property tax appeals. Synowiecki’s wife is a niece of Illinois Supreme Court Justice Anne Burke, the Alderman’s wife.

Amy Degnan, whose family has been close to the Daleys, is another partner in Georges’ cabinet who works as a sports betting lobbyist.

Kenneth Sawyer, a cousin of Ald, is also on the United Center lobbying team. Roderick Sawyer (6th).

United Center lobbyists have filed disclosure reports with city hall showing they were paid $ 25,500 this year, including $ 15,000 to John R. Daley. Lobbyists for Wirtz Corp. reported payments totaling $ 16,500, including $ 15,000 to Daley. White Sox lobbyists have been paid $ 10,500 this year, but Daley has not said he has received any payment for the Sox’s work since he was hired on April 1.

The Cubs have nine lobbyists, mostly team employees, including Tom Ricketts, the team president. The Bears’ only lobbyist, attorney Roger Bickel, did not report any payments.

The sports betting ordinance is expected to go to Chicago city council for a vote within a month or two.

Team owners see betting facilities as a way to generate more income.

They would also allow betting on other sports and would work year round.

The Cubs have said they want to place a sports betting operation next to Wrigley on Addison Street and Sheffield Avenue. United Center has space in the stadium that would be renovated to house a paris center, according to Georges.

The Illinois legislature passed a law in 2019 allowing professional sports stadiums to host sports books, which would require city council approval to operate in Chicago and also a state license from the Illinois Gaming Board. . The state license would cost $ 10 million, with an annual renewal fee of $ 5 million.

There has also been talk for years of bringing a casino to Chicago. Some in the casino industry fear that sports betting will attract potential customers.



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Democrats call on oil giants to testify on climate campaign – NBC Chicago https://cdmug.org/democrats-call-on-oil-giants-to-testify-on-climate-campaign-nbc-chicago/ https://cdmug.org/democrats-call-on-oil-giants-to-testify-on-climate-campaign-nbc-chicago/#respond Fri, 17 Sep 2021 00:11:03 +0000 https://cdmug.org/democrats-call-on-oil-giants-to-testify-on-climate-campaign-nbc-chicago/ Congressional Democrats are calling on top executives from ExxonMobil and other oil giants to testify at a House hearing as lawmakers investigate what they say is a long-running, nationwide campaign industry to spread misinformation about the role of fossil fuels in global warming. The House Oversight Committee on Thursday asked executives of ExxonMobil, BP, Chevron […]]]>


Congressional Democrats are calling on top executives from ExxonMobil and other oil giants to testify at a House hearing as lawmakers investigate what they say is a long-running, nationwide campaign industry to spread misinformation about the role of fossil fuels in global warming.

The House Oversight Committee on Thursday asked executives of ExxonMobil, BP, Chevron and Shell to testify at a hearing next month, as well as executives from the American Petroleum Institute, the main group of lobbying from the oil industry, and the American Chamber of Commerce.

“We are deeply concerned that the fossil fuel industry has raked in huge profits for decades while contributing to climate change that is devastating American communities, costing taxpayers billions of dollars and ravaging the natural world,” he said. said Carolyn Maloney, chair of oversight, and Representative Ro Khanna, D-Calif., wrote in a letter to executives in the oil industry.

“We are also concerned that to protect these profits, the industry has reportedly conducted a coordinated effort to disseminate disinformation in order to mislead the public and prevent crucial action to combat climate change,” said they wrote. Khanna, chairman of Oversight’s environment subcommittee, has been lobbying the oil industry for months for documents and other information about its role in stopping climate action.

Khanna focused on Exxon after a senior lobbyist for the company was caught in a secret video boasting that Exxon had fought climate science through “ghost groups” and had targeted influential senators in the industry. goal to weaken President Joe Biden’s climate agenda, including a bipartisan infrastructure bill and a massive $ 3.5 trillion spending bill currently pending in Congress.

Washington-based lobbyist Keith McCoy also dismissed Exxon’s public expressions of support for a carbon tax proposal on fossil fuel emissions as a “talking point.”

McCoy’s comments were made public in June by environmental group Greenpeace UK, which secretly recorded McCoy and another lobbyist in Zoom interviews.

Darren Woods, CEO of Exxon, condemned McCoy’s statements and said the company was delivering on its commitment to work to find solutions to climate change.

Woods is among the executives the House panel hopes to interview in an Oct. 28 hearing, along with BP America CEO David Lawler, Chevron CEO Michael Wirth and Shell president Gretchen Watkins.

The committee also said it would formally ask McCoy about his comments, although the timing for that interview has not been set.

Maloney and Khanna said in a statement that ExxonMobil and other oil companies “have worked to prevent serious action on global warming by creating doubts about the documented dangers of fossil fuels and by distorting the scale of their efforts to develop alternative energy technologies. the tactics of the tobacco industry to resist regulation “while selling products that kill hundreds of thousands of Americans.”

The oil industry’s “obfuscation and distraction strategies span decades and continue to this day,” Khanna and Maloney said. The five largest publicly traded oil and gas companies reportedly spent at least $ 1 billion from 2015 to 2018 “to promote climate disinformation through ‘branding and lobbying’,” lawmakers wrote.

The committee gave oil executives until September 23 to respond and said further measures, including issuing subpoenas, are possible.

An Exxon spokesperson said the company had received the letter and would respond to the committee. He declined to comment further.

API spokesperson Bethany Aronhalt said the group “welcomes the opportunity to testify again before the House Oversight Committee and advance our priorities on carbon pricing, methane regulation and reliable production of American energy “. API President Mike Sommers was among those invited to testify next month.

Exxon and other oil companies often brag about their efforts to generate clean energy in social media posts accompanied by stylish videos or images of wind turbines.

“Together, we are driving progress by providing more and cleaner energy solutions for the world,” says Shell’s Facebook profile, which is followed by more than 9 million people.

___

Associated Press writer Amanda Seitz in Columbus, Ohio contributed to this story.



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Ald. Patrick Daley Thompson used the same accounting firm that licensed Bridgeport bank before it went bankrupt https://cdmug.org/ald-patrick-daley-thompson-used-the-same-accounting-firm-that-licensed-bridgeport-bank-before-it-went-bankrupt/ https://cdmug.org/ald-patrick-daley-thompson-used-the-same-accounting-firm-that-licensed-bridgeport-bank-before-it-went-bankrupt/#respond Thu, 16 Sep 2021 18:59:05 +0000 https://cdmug.org/ald-patrick-daley-thompson-used-the-same-accounting-firm-that-licensed-bridgeport-bank-before-it-went-bankrupt/ An accounting firm that gave a Bridgeport bank a certificate of good health six months before it was shut down by federal regulators also prepared tax returns for Ald. Patrick Daley Thompson (11th), who is accused of illegally claiming interest that he never paid to the bank. Bansley & Kiener accounting firm managing partner Robert […]]]>


An accounting firm that gave a Bridgeport bank a certificate of good health six months before it was shut down by federal regulators also prepared tax returns for Ald. Patrick Daley Thompson (11th), who is accused of illegally claiming interest that he never paid to the bank.

Bansley & Kiener accounting firm managing partner Robert Hannigan is one of the key witnesses federal prosecutors have said will testify in their case against Thompson, grandson and nephew of Chicago’s two oldest mayors, who must stand trial. October 18.

Bansley & Kiener has decades-long ties to the Daley family, dating back to the late Mayor Richard J. Daley. The company prepared annual financial reports for the Chicago Tax Rise Funding Districts under the direction of Mayor Richard M. Daley. The company has done accounting work for the Daleys and Thompson’s campaign funds, according to campaign fundraising reports it filed with the Illinois State Board of Elections this summer.

Now, federal prosecutors have revealed in filings on Wednesday that the company had prepared the tax returns that Thompson and his wife, Kathleen, filed for several years, deducting about $ 15,000 of mortgage interest they did not have. never paid on the loans the Alderman received from the Washington Federal Bank for Savings, another client of the accounting firm.

The bank gave Thompson unsecured loans, not mortgages, so he should never have deducted the interest payments, even if he did pay them, prosecutors said.

Lawyers for the alderman argue the bank sent Thompson annual statements incorrectly stating he paid interest on the loans, and that Thompson forwarded them to Bansley, who prepared his tax returns which sometimes contained over 60 pages.

Defense attorneys also wrote in their own brief on Wednesday that mistakes had been made by Bansley and even by Thompson himself, writing that “Mr. Thompson’s lack of organization and his lack of attention to detail his personal financial affairs are at the heart of his defense.

Hannigan did not answer phone calls from the Chicago Sun-Times.

Federal regulators discovered the vast fraud scheme at the end of 2017, finding out that the family bank led by President John F. Gembara had made numerous loans without collateral, valuation or pending repayment.

Gembara was found dead on December 3, 2017, inside the Park Ridge home of Marek Matczuk, an entrepreneur who has since been accused of embezzling $ 6 million from the bank. Twelve days later, regulators shut down the bank amid the massive fraud scheme that reached $ 90 million.

Bansley & Kiener agreed to pay a $ 2.5 million settlement to the Federal Deposit Insurance Corp., the federal insurance program that was supposed to cover most of the bank’s losses.

Federal officials have subpoenaed Bansley & Kiener’s bank records, but the accounting firm refused to comply until a federal judge orders the firm to turn over the records in 2018.

As the company battled the subpoena, prosecutors said Hannigan and Thompson had had numerous discussions about how he could change his tax returns and repay money he shouldn’t have owed. deduct from his income tax returns.

Thompson emailed Hannigan on April 11, 2019, stating: “I would like to change the taxes every year that was in error with mortgage interest for the bank’s unsecured loan” and that he “would prefer [err on] the conservative side and paying more than underpaying.

Thompson also spent years trying to get Gembara to refinance Chase’s loans through the Washington Federal, prosecutors said. After Thompson obtained a $ 110,000 unsecured loan from Washington Federal in November 2011, Thompson wrote to Gembara 10 months later: “I know I owe interest. . . We talked about not paying because it was going to be wrapped up in refinancing, ”the records show.

In another email in February 2013, Thompson wrote that he wanted to “turn” the $ 110,000 loan into a new loan and added, “I know we’ll also have to add any unpaid interest, which is from about $ 4,000. ”

Meanwhile, the IRS sent a notice to Thompson and his wife in January 2013 that he was claiming $ 13,614. Thompson wrote to Gembara on February 22, 2013, “I have a tax liability that I need to make payment on. Thompson ended up writing a check for $ 13,772 to the IRS on March 20, 2013 – but it was not until two days later that the Washington Federal handed Thompson a check for $ 20,000 which gave him the money he needed to cover the payment to the IRS, prosecutors said. .

In April 2013, the closure of Thompson’s refinancing through Washington Federal failed after it was determined that a lien on a loan of $ 88,500 from North Community Bank to Thompson was in effect. Thompson ended up asking the Washington Federal to add it to its refinance and wrote to Gembara in July 2013, “I’m ready to close. How long will it take for you to close? “

Almost six months later, with no closure taking place, Thompson wrote to Gembara in January 2014 to complain that the North Community Bank “was pursuing legal action against me.”

” It is unacceptable ! Thompson wrote to Gembara. “I have asked you on several occasions to postpone the closure to make me say over and over again that you would. Now I’m in a very difficult position because I believed you when you said we were going to get there.

Thompson told Gembara to “please let me know if you are seriously considering taking out the loan,” and he gave Gembara more details on his dispute with North Community.



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Prosecutors offer plea deal to serial stowaway Marilyn Hartman – CBS Chicago https://cdmug.org/prosecutors-offer-plea-deal-to-serial-stowaway-marilyn-hartman-cbs-chicago/ https://cdmug.org/prosecutors-offer-plea-deal-to-serial-stowaway-marilyn-hartman-cbs-chicago/#respond Thu, 16 Sep 2021 16:17:00 +0000 https://cdmug.org/prosecutors-offer-plea-deal-to-serial-stowaway-marilyn-hartman-cbs-chicago/ CHICAGO (CBS) – Cook County prosecutors have offered serial clandestine Marilyn Hartman a plea deal on several charges against her, dating back to 2018 when she snuck on a flight to London. In a court hearing Thursday, Hartman’s lawyers told a judge they needed more time to discuss the plea offer with her. They are […]]]>




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Rockford sees public pensions eat up nearly 40% of municipal property taxes https://cdmug.org/rockford-sees-public-pensions-eat-up-nearly-40-of-municipal-property-taxes/ https://cdmug.org/rockford-sees-public-pensions-eat-up-nearly-40-of-municipal-property-taxes/#respond Thu, 16 Sep 2021 16:11:56 +0000 https://cdmug.org/rockford-sees-public-pensions-eat-up-nearly-40-of-municipal-property-taxes/ Public pensions are rising and taking a larger share of property taxes, hurting public services. Yet the average Rockford household owes more than $ 35,000 in state and local retirement debt. Illinois’ worst retirement debt has become a well-known problem. More than $ 144 billion in retirement debt for the five statewide retirement systems breaks […]]]>


Public pensions are rising and taking a larger share of property taxes, hurting public services. Yet the average Rockford household owes more than $ 35,000 in state and local retirement debt.

Illinois’ worst retirement debt has become a well-known problem. More than $ 144 billion in retirement debt for the five statewide retirement systems breaks down to nearly $ 30,000 in debt for each household, which must be paid by further tax hikes or further cuts in basic government services.

Less well-known is the nearly $ 75 billion pension debt held by local governments in Illinois, which is the number one reason for Illinois’ second-largest property taxes in the country. Combined with the state’s pension debt, politicians who mismanaged the pension system have dug a hole of $ 219 billion.

In Rockford, the average household owes $ 35,175 in state and local retirement debt, of which about $ 5,400 of this debt comes from local systems for police, firefighters and city workers. The retirement debt per household in Rockford is equivalent to almost 80% of the $ 44,252 Median annual household income in Rockford.

The city of Rockford has a local pension debt of more than $ 320 million, according to data available for fiscal 2019. This debt includes $ 168.3 million for fire pensions, $ 142.8 million for police pensions and $ 9.7 million for municipal employees.

Pension experts consider a capitalization ratio of less than 60% to be “”deeply troubled. “A 40% funding ratio can be a ‘point of no return’, meaning an inability to make required contributions or maintain adequate funding levels – without painful cuts or serious structural reforms. The Firefighters Fund de Rockford is only 46% funded, while the police pension fund has saved only 52 cents for every dollar in future pledges.

Pension plan contributions cost Rockford nearly $ 22.7 million in fiscal 2019, almost 40% of the $ 59 million in property taxes collected.

The local pension crisis is driving property tax hikes as mayors and other local leaders struggle to cope with the growing financial burden. Local leaders have struggled with pension systems created by state law and have virtually no option to cut costs or improve sustainability on their own. Property taxes equate to approximately $ 2,680 on a Rockford home valued around the region’s average $ 91,600, according to information from the county assessor. That’s 2.9% of the home’s value goes to property taxes each year.

In order for Rockford to avoid running out of money in five years, the city would need to eliminate 40 sworn police officers, shut down an entire fire station, freeze all city employee salaries at 2019 rates, and even sell its fuel supply system. water, consultants of National Resource Network in 2018 advised if the city were to continue to absorb the rising costs of pensions. These are just a few of the cuts needed to avoid a tax disaster.

In many cities like Rockford, taxpayers are being asked to pay more for less. Rising annual pension costs are crowding out local government spending on the services residents want and need.

In recent years, cities in Illinois have already been forced to lay off current workers, raise taxes, or both to meet the cost of these retirement systems. For example:

  • Jerome, Geneseo and Norridge increased property taxes to pay for retirement costs in 2018.
  • Harvey, in a southern Chicago suburb, in 2018 laid off a quarter of its police officers, more than half of its other police personnel and 40% of its firefighters after the state intercepted money destined for the city ​​under a pension law intended to force cities to pay the required pension contributions.
  • In 2019, the pension interception law was also triggered in North Chicago and East St. Louis. The resulting increase in retirement costs to city budgets led to cuts of $ 1.3 million in north Chicago, including layoffs for three firefighters and nine firefighters in East St. Louis.
  • Peoria, which cut 38 first responder jobs and 27 municipal jobs in 2018, has already been forced to cut 45 more jobs in 2020 after COVID-19 exacerbated the city’s budget problems related to pensions.

The combination of higher taxes and deteriorating services is one of the main reasons Illinois residents have increasingly fled to other states. The 2020 census marked the first time in 200 years that Illinois had lost population between decennial census counts, which was due to the migration of residents of Illinois to other states.

The state and local government pension crisis in Illinois is the most serious public policy challenge facing the state. It contributes to almost every other tax and economic problem, including high property taxes, cuts in government services, economic stagnation and the exodus from Illinois.

The only viable solution to Illinois’ pension crisis begins with a constitutional amendment to allow cuts in future benefit growth for current workers and retirees. The current retirement clause, which prevents altering not only vested benefits but also the future rate of benefit growth for work not yet performed, is a pair of fiscal handcuffs for mayors with few options in addition to raising taxes and cutting services.

A “harmless” pension reform plan developed by the Illinois Policy Institute for state systems can save an estimated $ 2.4 billion for the state budget in the first year and more than $ 50 billion up to. ‘in 2045. The plan would also completely eliminate the state’s pension debt during this period. time, rather than the 90% reduction that state leaders are hoping for. It does all of this while preserving every dollar in pension benefits promised to public workers for the work already done.

Similar reforms to local pension systems could offer significant tax relief to overburdened landlords, free up resources for day-to-day service expenses, or fund a combination of the two. In Peoria, such relief is badly needed.

Real pension reform, starting with a constitutional amendment, is the only way to stop the exodus from Illinois by finally giving taxpayers value for money.



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Pappas and ABC7 Chicago will collaborate to host the “Black and Latino Houses Matter” telephone bank on September 21. https://cdmug.org/pappas-and-abc7-chicago-will-collaborate-to-host-the-black-and-latino-houses-matter-telephone-bank-on-september-21/ https://cdmug.org/pappas-and-abc7-chicago-will-collaborate-to-host-the-black-and-latino-houses-matter-telephone-bank-on-september-21/#respond Thu, 16 Sep 2021 14:16:55 +0000 https://cdmug.org/pappas-and-abc7-chicago-will-collaborate-to-host-the-black-and-latino-houses-matter-telephone-bank-on-september-21/ Chicago (WLS) – Treasurer Maria Pappas and ABC 7 Chicago organized another “Black And Latino House Matter” phone bank on September 21, 2021 when Cook County owners found a refund. Apply for a property tax exemption to avoid sales taxes. “Since the launch of this program last year, we have repaid over $ 108 million, […]]]>


Chicago (WLS) – Treasurer Maria Pappas and ABC 7 Chicago organized another “Black And Latino House Matter” phone bank on September 21, 2021 when Cook County owners found a refund. Apply for a property tax exemption to avoid sales taxes. “Since the launch of this program last year, we have repaid over $ 108 million, mostly in black and Latin areas,” Papas said today.

“Thanks to ABC7 for teaming up during Hispanic Heritage Month after finding out that taxpayers have about $ 17 million in debt since March,” Pappas said. “The tax sale has a disproportionate impact on black and Latin homeowners, but all Cook County homeowners are encouraged to call the telephone bank.”

The details of the telephone bank are as follows.

-Date: Tuesday September 21, 2021
-Time: 11:00 a.m. to 4:30 p.m.
-Location: Cook County Finance Office
-Phone number: 312. 603. 5105

Samantha Chatman, consumer research reporter for ABC7’s I-Team, reports on telephone banks throughout the day. A team of accounting firms fluent in Spanish, Polish, Chinese and English:

– Research $ 72 million for available property tax refunds

-Check if you qualify for $ 43 million with the missing tax exemption

-Check if your property is on the overdue tax sales list

Copyright © 2021 WLS-TV. All rights reserved.

Pappas and ABC7 Chicago will collaborate to host the “Black and Latino Houses Matter” telephone bank on September 21.

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What is Chicago doing about residents’ complaints about crumbling and filthy viaducts? – CBS Chicago https://cdmug.org/what-is-chicago-doing-about-residents-complaints-about-crumbling-and-filthy-viaducts-cbs-chicago/ https://cdmug.org/what-is-chicago-doing-about-residents-complaints-about-crumbling-and-filthy-viaducts-cbs-chicago/#respond Thu, 16 Sep 2021 12:30:00 +0000 https://cdmug.org/what-is-chicago-doing-about-residents-complaints-about-crumbling-and-filthy-viaducts-cbs-chicago/ CHICAGO (CBS) – A frustrated viewer reached out about his neighborhood overpass. He sent us photos over the summer showing his sidewalk blocked with garbage at various times. It’s not the only gateway with this stinky situation. Morning Insider Lauren Victory watches how the city responds to 311 filth complaints and more. READ MORE: Hundreds […]]]>


CHICAGO (CBS) – A frustrated viewer reached out about his neighborhood overpass. He sent us photos over the summer showing his sidewalk blocked with garbage at various times. It’s not the only gateway with this stinky situation.

Morning Insider Lauren Victory watches how the city responds to 311 filth complaints and more.

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In a series of CBS 2 stories over the past two months, viewers have bitched to us about nasty pigeon shit, relating to cracks and peeling paint.

“Since I have been working here, we have been talking about the condition of the viaducts,” said Grace Chan McKibben, of the Coalition for a Better Chinese Community July 23.

We caught up with her to discuss the viaducts in her neighborhood which weren’t exactly welcoming with debris on the ground and pieces of wall missing.

The safety and cleanliness of our underground passages is not something Chicagoans take lightly. CBS 2 found over 300 overpass specific complaints at 311 in less than three years.

Most complaints are marked as completed, such as “Large piece of metal hanging down and about to fall” in Calumet Heights and “Debris falling in traffic lanes” in Chatham. Our quick colon check showed the issues were resolved, but how?

More than a third of the time, the Chicago Department of Transportation passed the issues back to the railroads for investigation.

READ MORE: 2’s Got Your Ticket: After 18 Months COVID Delay, “American Mariachi” Takes the Stage at the Goodman Theater

CDOT’s responsibilities include repairing potholes and repairing broken lights.

We identified at least 80 complaints specifically about waste in viaducts. 311 records show that many of these problems were considered “complete” with the city’s response “No viaduct cleaning program”.

CBS 2 asked how this fixes the problem, and the CDOT explained that these requests go to the Department of Streets and Sanitation (DSS).

At least on 67th and Dr. Martin Luther King Drive, it’s hard to say if the DSS has responded to these garbage complaints. It depends on what is considered clean.

A spokesperson for the DSS tells us that in general, the department “… cleans overpasses through its regular street sweeping program and in response to requests from residents, ward superintendents, other departments and church offices. aldermen. Neighborhood superintendents also monitor the need to clean the overpass and regularly contact crews for the cleanup. “

We know that activist Nancy Plax’s incessant emails to the city about its dilapidated University Village viaduct have finally paid off. CDOT went out on tour in July and walked away with the promise to paint.

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Plax tells us that the promise was recently kept near 16th and Morgan streets – a testament to persistence being key and proof that there is no harm in keeping 311 complaints coming.



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