Garden Variety Corruption in Chicago

By Kevin Robinson in News on Apr 22, 2009 2:20PM

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.

And James "Meatball" Athans, owner of Collision Towing, pleaded guilty to two counts of mail fraud and one count of tax fraud in federal court Tuesday. Meatball admitted that he conspired with two Chicago cops to scam insurance companies with false stolen vehicle claims. Athans had Chicago Police Officer Scott Campbell's car towed and sold for parts. Campbell then filed a false stolen vehicle report and took a $4,000 payment from State Farm Insurance. As part of the plea, Athans also admitted to not reporting nearly $70,000 in income from stolen cars on his tax return.