Attorney General Drops Bomb Friday Afternoon

Illinois Attorney General Lisa Madigan has opened up an investigation into the “transaction and implementation” of Chicago’s parking meter lease deal, according to our friends over at the Chicago Reader.

According to Mick Dumke’s Clout City post, this investigation is looking into whether consumers have been defrauded, and into the transaction and implementation of the new meter system itself, Dumke writes, quoting Madigan spokesperson Robyn Ziegler.

Ziegler says, the investigation issued subpoenas to Morgan Stanley, Chicago Parking Meters, LLC and LAZ Parking, but “We’re not investigating the city of Chicago.”

Hmmmmm.

Perhaps, at least part of the investigation is related to something this website reported several weeks back, when this website analyzed the terrific expose the Reader originally wrote on this subject.

Based on the documents procured by the Reader, Morgan Stanley seems to have misrepresented itself in it’s bid documents, claiming to be the sole vendor in it’s bid proposal, but ends up creating a separate entity called Chicago Parking Meters, LLC that is actually a consortium of investors, led by Morgan Stanley.

In fact, by the Reader’s time line, and searching the Illinois Secretary of State’s Corporate database, Chicago Parking Meters, LLC did not even exist as an entity when they submitted their bid or when they were announced as the winning bidder.

CPM, LLC did not come into existence until December 3, 2008 according to the State of Illinois, even though the bid’s were opened on December 1st and they were announced as the winning bidder on December 2nd.

There is obviously more to it than just this, but, this seems like something that may pique the Attorney General’s interest.

11 Responses to Attorney General Drops Bomb Friday Afternoon

  1. Ldypea says:

    Lisa…you are my hero…..please dont stop…..

  2. hilarious Joe says:

    Perhaps there is a reason Lisa Madigan is not investigating the City of Chicago itself. As we’ve seen very recently, investigation into municipal government shenanigans in Chicago is best left to one entity andone entity only………..The Office of the United States Attorney for the Northern District of Illinois!
    That’s right, i’m thinking that right now there is a decent possibility that the Feds are investigating the city and their handling of this entire debacle.
    And if they’re not, then consider this a formal invitation to Mr. Patrick Fitzgerald and his office to start one on behalf of all of the citizens of the City of Chicago.

  3. The Parking Ticket Geek says:

    Hilarious Joe, etal.

    HJ, I really like your thinking.

    I have MUCH less of an issue with CPM and LAZ in this debacle. To me, City Hall (Daley & the city council) are much more responsible for our current situation than these businesses.

    That’s not to say CPM/LAZ/Morgan Stanley should not be held responsible for their mistakes. But, to think that there would be no hiccups with this transition is naive.

    I am a little disappointed that Madigan is not sniffing City Hall as well. It seems a bit unfair to me.

  4. Greg says:

    Lisa Madigan is one class act.

    I am proud to say I know her personally. I know her husband fairly well from working with him on a couple of projects and have gotten to know her a bit. I voted for her and had huge respect for her long before I met her husband. The funny thing is I just saw her about 2 weeks ago and was going to ask her if – 1/2 jokingly – if she was going to look into the parking meter situation. But I respect her and don’t mix politics with personal.

    She is pretty fearless and is not afraid to investigate what she feels is illegal activity. I sincerely hope she runs and is elected governor, because she would be amazing and restore integrity to the office.

  5. The Parking Ticket Geek says:

    Greg-

    I like her a lot too, and met her very briefly when she ran for the Illinois Senate. I met her through a brief business transaction with her husband who’s a very nice guy as well. Plus, I would see them once in a while when I attended St. Ben’s over on Irving Park.

    She’s a great AG. So good, even though I normally NEVER vote for Democrats, I was compelled to vote for her because of her great performance and integrity.

  6. Fearless says:

    Fearless? If she were truly fearless she would investigate the MAyor and his staff, not Laz/Morgan Stanley.

    What a political campaign stunt. You guys need to take a look at other states where the real AGs are. They actually investigate political corruption like the Daley Family committed with the meters.

    Going after Morgan Stanley is useless. They just took advantage of what the Daley people handed them.

    Fearless she is not.

  7. Greg says:

    Fearless -

    Let’s wait and see what happens – she may find reason to investigate City Hall yet.

    I don’t think it’s a campaign stunt – she doesn’t need to do that.

  8. Skyway says:

    Ay-Oh! Let’s Go!

    This is GREAT News.

    When will a private law firm grow some cobbles and offer a class action suit on behalf of Chicago Citizens? I will be the first to sign up!

    (And, while I love that this is going on, Lisa Madigan is not a fearless defender of the public right. She is legacy politician, tied to other politicians-for-life and is more interested in running for office then doing her job.)

    Fortunately for us, NEXT YEAR IS AN ELECTION YEAR! GO LISA!

    Now PLEASE add the Da’City to this investigation.

    Skyway

  9. The Parking Ticket Geek says:

    Despite how much I do like what Madigan has done, it’ is hard to deny that this investigation does have a political element to it.

    There is definitely some political posturing for whatever office she decides to pursue.

  10. [...] thing is, AG Madigan has an open investigation into the legality of the meter lease deal. [...]

  11. [...] the “transaction and implementation” of the new meter system was on the up and up. So Madigan’s office issued subpoenas to the three main players–Chicago Parking Meters, LLC (the company that got the lease), [...]

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