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.”
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.