Suffredin- For a Better Cook County  
 

Accountability
Forest Preserves
Public Safety
Cook County Budget
Forest Pres. Budget
Property Tax Appeal
Health & Hospitals
Land Bank Authority
Policy Resolutions
Unsung Heroine

 

   
 
   
   
 
   
     
  Office phone numbers:  
   
 
 

The Cook County Code of Ordinances are the current laws of Cook County.

   
 

Search current and proposed Cook County Legislation in Larry's exclusive legislative library.

   
  Cook County has the largest unified trial court system in the world, disposing over 6 million cases in 1990 alone.
   
     
     
     



Medical supplier's officials indicted in cover-up

Saturday, January 21, 2006
Chicago Sun-Times
by ABDON M. PALLASCH AND DAVE NEWBART

An executive and an attorney for medical supply giant Siemens have been indicted for allegedly lying to the FBI and a federal judge to cover up a scheme in which Siemens paid a minority businessman to be their phony partner in a $49 million Cook County contract.

"They went before a judge and took an oath," said U.S. Attorney Patrick Fitzgerald.

Last year, a grand jury indicted businessman Faust Villazan for allegedly bribing an unidentified Cook County official with $20,000 to approve his bid for Siemens to supply radiology equipment at Cook County Hospital for $49 million.

All deny wrongdoing

The superseding indictment handed up late Thursday and made public Friday adds as defendants Siemens Medical Solutions USA, an American subsidiary of Germany's Siemens AG, an electronics powerhouse; Daniel Desmond, the business administrator of SMS's Hoffman Estates office, and Ellen Roth, in-house attorney for Siemens, USA.

Attorneys and representatives for Siemens, Roth, Desmond and Villazan all denied wrongdoing by their clients said they would be vindicated in court.

Instead of following the county's rules, which require a company to have a 30 percent minority partner, Siemens allegedly privately agreed to pay Villazan $500,000 to pretend to be a 30 percent partner.

"He had to share in the risks, the losses, the profits and the work," Fitzgerald said.

Siemens stood to make most of the profits from the $49 million deal under the secret agreement prepared with the knowledge of Siemens officials, Fitzgerald said.

GE -- which lost to Siemens in the bidding -- sued the county and Siemens in federal court, alleging fraud in the bidding process. Siemens officials, including Roth and Desmond, lied in court and said there had been no fraud, officials said. Roth told the FBI she would be "shocked" to learn that Siemens entered into any "side" agreement with Villazan to pay him just $500,000 on the deal instead of 30 percent, Fitzgerald said.

Chicago FBI chief Robert Grant said the true victims of the fraud were minority-owned businesses the county's rules were designed to help.

Fitzgerald would not elaborate on the $20,000 bribe Villazan allegedly paid a still-unidentified county official, or whether the donations Villazan and Siemens made to Cook County commissioners on the eve of the contract implicated any commissioner. Smiling, Fitzgerald acknowledged that count is "a bit skimpy" but noted the investigation continues.

Civil lawsuit credited

Fitzgerald's office has subpoenaed information from Commissioner Roberto Maldonado and interviewed Commissioner Joseph Mario Moreno. Villazan also made donations to County Board President John Stroger and Commissioner Deborah Sims.

Faustech and Siemens gave $3,000 to Maldonado before the bids were to be submitted. They gave Moreno $1,500 on July 2, 1999, and Stroger $500 on April 26, 2000.

"I think the feds should continue their investigation the way that they are doing," Maldonado said.

"It's unfortunate that anyone has to get involved in doing stuff like that to get business," Moreno said. "Certainly it doesn't surprise me."

Fitzgerald and Grant credited GE's civil lawsuit filed four years ago with starting the process of exposing the alleged fraud.

"If not for the light shed on this scheme by a competitor, this fraud might not have been uncovered," Grant said.

"I'm pleased to see that both the individuals and the companies involved are being called to account for their roles in perpetrating this scheme and attempting to cover it up," said GE's attorney Kathy Roach.

U.S. Magistrate Judge Geraldine Soat Brown ruled in the civil case that Faustech appeared to have been brought into the deal merely to facilitate "access" for Siemens executives to county officials.



Recent Headlines

Cook County Public Defender Amy Campanelli on Gun Violence, Police Database.
Monday, August 26, 2019
WTTW

Assessor: Homes values, sale prices up in Schaumburg Township
Tuesday, August 20, 2019
Daily Herald

Home improvement grant designed to get the lead out
Tuesday, August 20, 2019

Cook County census panel seeks outreach help for hard-to-count communities
Monday, August 19, 2019

Cook County Land Bank Authority Announces Opening of Registration to Give Away a Free Home
Tuesday, August 13, 2019
The Chicago Crusader

NEW ILLINOIS LAW ENDS $120 FEE TO CLEAR FALSE CRIMINAL RECORDS IN COOK COUNTY
Friday, August 09, 2019
Illinois Policy

America’s most interesting sheriff
Friday, August 09, 2019

Top Cook County Jail chess players take on the world
Wednesday, August 07, 2019
Chicago Sun-Times

Public defender takes shots at Chicago Police gun offender webpage
Wednesday, August 07, 2019
Chicago Sun-Times

Commentary: Data alone won’t stop Chicago gun violence; Cook County needs a public ‘Violence Reduction Dashboard’
Wednesday, August 07, 2019
Chicago Tribune

Cook County Jail detainees take on inmates around the world in online chess tournament
Tuesday, August 06, 2019
Chicago Tribune

Here’s What You Need To Know About The Ongoing Bail Debate In Chicago
Monday, August 05, 2019
WBEZ Chicago Public Radio

Cook County Jail hosts international chess tournament
Monday, August 05, 2019
WGN Chicago

Cook County property taxes are due today, Aug. 1.
Thursday, August 01, 2019
Special to suffredin.org

Forest Preserves of Cook County Celebrate Dan Ryan Woods Investments
Thursday, August 01, 2019
Chicago Defender

Cook County TIFs generate $1.2 billion
Thursday, August 01, 2019
Chicago Sun-Times

Changes coming to Cook County assessor’s office
Thursday, August 01, 2019
Chicago Daily Law Bulletin

In Chicago, TIF Revenues Soaring
Wednesday, July 31, 2019
WTTW News

A controversial tax subsidy program will generate a record $1.2 billion in revenue. Here’s what the number means for Chicago.
Wednesday, July 31, 2019
Chicago Tribune

Group to rally in support of Kim Foxx as challengers emerge
Tuesday, July 30, 2019
Crain's Chicago Business

all news items

Paid for by Larry Suffredin and not at taxpayer expense. A Haymarket Production.
^ TOP