The recent Supreme Court ruling limiting the use of Honest Services fraud in corruption trials has meant that a slew of convictions have had to be re-examined by lower courts (like Conrad Black). Among those cases was former Streets and Sanitation Commissioner and Hispanic Democratic Organization Chief Al Sanchez's conviction last year. more ›

Former alderman Isaac "Ike" Carothers, who pleaded guilty to bribery charges earlier this year, was sentenced today to 28 months in federal prison. Carothers has been ordered to report August 23 to begin serving his sentence. While which prison he serves time at ultimately rests with the Bureau of Prisons, the recommendation from the presiding judge was Yankton, South Dakota. Carothers admitted to one count each of accepting a bribe and filing a false federal income tax return. As part of his deal, four wire and mail fraud charges were dropped. Calvin Boender, the developer charged with bribing Carothers, was found guilty in March. Carothers, who served the 29th ward, was replaced by state Rep. Deborah Graham. more ›

• Police continue their investigation and have offered a reward in the murder of Lawndale resident Regina McGraw.
• A Cook County judged ruled in favor of Joseph Reyes, a father who wanted to take his young daughter to Catholic church during his visitation hours. The decision came as part of a divorce proceeding between Reyes and his wife, Rebecca Reyes, who asked for an injunction as she was raising their daughter Jewish.
• Two Kentucky men were arrested at the downtown Hyatt over the weekend for having $50,000 in counterfeit money, a suspected "date rape" drug, weapons and fake i.d.'s. No word if they'll also be charged for their hairstyles.

Michael Jordan isn't the only local sports legend dealing with identity issues this week. Blackhawks legend Stan Mikita has discovered he's a victim of identity theft in which $100,000 has been stolen from him. CBS 2 has the story. more ›

• An autopsy performed this afternoon on Jameshia Connor revealed the 12-year-old girl died by strangulation.
• Webio co-founder David Hernandez is planning on pleading guilty in his fraud case later this winter.
• The Tribune Company has until February 28, 2010 to submit their Chapter 11 reorganization plan.

Gov. Quinn has signed into law a bill that amends the Consumer Fraud and Deceptive Practices Act. The bill raises penalties and gives the state more power to enforce laws preventing "cramming," when scammers pile on unauthorized fees on your phone bills. David Kolata, of the Citizens Utility Board, said, "Cramming is just another name for fraud. It's a scam that must end, that should end and we believe with the extra protections in here including strong third party verification and disclosure and enhanced ability when you are crammed to know who you should call to solve the problem, we believe all these provisions will lead to a dramatic reduction in cramming." [ABC 7] more ›

Former Blago adviser Chris Kelly has reached a plea deal in regards to money laundering and mail fraud for a kickback scheme involving roofing work at O'Hare. Kelly's trial was set to begin tomorrow, but a potential plea agreement had been reported earlier by both the Tribune and Sun-Times. The Trib's Jeff Coen, though, updated the situation when he tweeted from the courthouse: "Pleading to count 1 and 14." He also added, "he pleads for 57 mos." We're waiting for confirmation from Coen, but it seems that could be Kelly's sentence for this plea deal. Kelly still faces charges stemming from his involvement with Blago. But it seems Kelly is already hard at work trying to make amends. Update: the Sun-Times' Natasha Korecki confirms the 57-month sentence which will be served after he serves 37-months from a previous case. more ›

A DuPage County woman has been accused of attempting to defraud her employer of $25,000 by claiming her daughter and husband had died, the Daily Herald reports. more ›

Former Streets and Sanitation Commissioner Al Sanchez, who was convicted earlier this year on federal corruption charges, is asking for a new trial in light of new developments in the case. Sanchez, who was convicted in March of rigging hiring through his position as a city commissioner and his role in the Hispanic Democratic Organization, has asked the judge for a new trial, citing prosecutors failure to disclose that a key government witness was a high-ranking gang member and drug-trafficker. According to Sanchez's lawyer Thomas Breen, Brian Gabriel, who testified against Sanchez in the corruption trial, was a member of the Spanish Vice Lords. "It is hard to imagine information that is more impeaching of a witness than self-admitted gang membership, even if such membership is in the past," Breen said. "The evidence of gang membership was also no doubt suppressed by the government. The prosecution learned of Gabriel's gang affiliation prior to trial and prior to Gabriel's testimony yet did not disclose it to the defense." more ›

The hammer of justice has come down on Webio co-founder David Hernandez, 48, of Downers Grove. Hernandez stands charged of four counts of mail fraud for running a Ponzi scheme that bilked people out of around $12 million. According to the Sun-Times, the feds are also trying, "to seize $3.5 million and two luxury automobiles from Hernandez, including a 2009 Audi and a 2007 Mercedes Benz ML350." more ›

There's not a whole heckuva lot of information, but the Trib is reporting that David Hernandez, former ChicagoSportsWebio co-founder and alleged Ponzi scheme runner, is in custody after a failed suicide attempt. We'll have more as the story develops. more ›

It's been a strange couple of days for ChicagoSportsWebio and it all culminated with the site shutting down yesterday, according to the Trib's Phil Rosenthal. While the site still looks like it's fully operational, indeed, there is no audio. The drama started when Mike North's complaints about bounced checks got him fired from the site by co-founder David Hernandez. Hernandez was then alleged to have been running a Ponzi scheme and subsequently disappeared, his wife yesterday filing a missing person's report. more ›

Have a safe and happy Memorial Day! more ›

Two executives of a local garbage cart firm were indicted on Tuesday on four counts of mail and wire fraud for their roles in allegedly rigging contracts to repair city garbage carts. Federal prosecutors also charge that the two men paid their minority and women-owned subcontractors substantially less than promised to the city. Urban Services gave more than $50,000 to Chicago political causes, including $35,000 that went to the now defunct Hispanic Democratic Organization. Federal prosecutors claim that Douglas Ritter, and Steven Fenzl, president and vice president, respectively, of Urban Services of America Inc., defrauded the city by orchestrating the amount of the other bids that came in for the contract, ensuring that they won a $2 million contract with the Streets and Sanitation in 2005. more ›

Yesterday evening, the other shoe dropped and Rod Blagojevich and five others were indicted on a wide range of fraud and corruption charges. The indictment contains 19 charges in all against Blagojevich, his brother Robert, former Chief-of-Staff John Harris, former adviser Lon Monk, former fundraiser Christopher Kelly, and power broker William Cellini. Here are some of the highlights from the news surrounding the indictments. more ›

The federal corruption trial of former streets and sanitation commissioner and Hispanic Democratic Organization chief Al Sanchez ended yesterday afternoon in his conviction on four counts of mail fraud. His alleged co-conspirator Aaron DelValle (who ran as a stalking horse against 25th Ward Alderman Danny Solis in 2007 in what was largely seen as an HDO vendetta against the alderman) was convicted of perjury. more ›

Adding to the ongoing headaches for the mayor around the O'Hare Expansion Project is news that the contract to build the third and final runway was awarded this week to a large contractor with deep ties to the Daley family. Walsh Construction was awarded the $79 million dollar contract late last week. According to the Sun-Times: "Matthew Walsh's father grew up with Mayor Daley's father, former Mayor Richard J. Daley. Before Richard M. Daley stopped accepting campaign contribution from city contractors in the wake of the Hired Truck scandal, the Walsh family had been among the mayor's most reliable contributors." more ›

The trial of Alfred Sanchez, former commissioner of streets and sanitation, has begun. Sanchez has been charged with fraud in connection with the Hired Truck scandal. Also on trial is Sanchez's aide, Aaron Del Valle. Jury selection should wrap up and opening statements are expected to be issued today. At the time of Sanchez's indictment, U.S. Attorney Patrick Fitzgerald's office issued a statement detailing the charges [via Capitol Fax]. more ›

Arenda Troutman, former Chicago Alderman of the 20th ward, was sentenced today to four years in prison on mail fraud and tax fraud charges. Troutman was arrested a little over two years ago and was overheard on a wiretap saying, "Well the thing is, most aldermen, most politicians are ho's." Troutman sang a different tune at her sentencing today, saying, "As God as my witness, I am no monster. I am not a criminal and I never helped criminals." more ›

Have you no shame, William Lofthus? Lofthus, of Plainview, pleaded guilty to stealing $400,000 from retired nun Bernice Laurins (now deceased). Lofthus was Laurins' trustee and stole the money by "by writing unauthorized checks from her account, using her bank account to pay his credit card bills, and transferring funds from her bank account to his." The thefts took place over a period from 2000 to 2005. Lofthus faces up to 15 years in prison but we imagine that won't come close to the spanking he'll get from St. Peter when he's turned away from the Pearly Gates. more ›

The family of Illinois' First Lady, Patti Blagojevich, has come to her defense in the wake of the charges brought against her husband by federal agents. State Rep./sister Debra Mell, Chicago Alderman (33rd Ward)/ father Dick Mell, and brother Rich Mell sat down with NBC 5 for an interview in which they sought to set the record straight on the woman some media outlets have referred to as "Lady Macbeth." Said sister Deb, "That is not my sister. My sister is a good woman, a good mother, a great friend, my closest friend, that's not my sister, no." Ald. Mell, who's relationship with his daughter has been strained since Mell accused the governor of promising positions in exchange for campaign contributions, said, "This is a pressure cooker that she's living in. And right, wrong, indifferent, whether they put themselves there, I don't know. All I know is what I see...She said, as rough as it is, what happened two years ago when her mother died was harder." The family denied any talk of a federal investigation into Patti's real estate dealings. more ›

Comments from Lt. Governor Pat Quinn's press conference. more ›

AP Photo/Seth Perlman