IL: Chicago businessman gets 10 years in fraud (long-time Daley family supporter)

CHICAGO (AP) - A politically connected businessman who admitted lying to get $120 million in city contracts set aside for companies operated by women and minorities was sentenced Wednesday to almost 10 years in federal prison.

James Duff, 46, whose family has been prominent among Mayor Richard M. Daley's supporters, sat expressionless as Judge Elaine E. Bucklo described him as a bully who contributed to an impression that corruption is widespread in Chicago.

"The public needs to know that corruption and fraud against the city will not be dealt with by a slap on the wrist," Bucklo said in imposing the sentence of nine years and 10 months.

He had pleaded guilty to racketeering, mail fraud, money laundering and other offenses that victimized programs designed to ensure that companies operated by women and minorities get a share of city contracts. He admitted landing $120 million in such contracts by claiming that his 76-year-old mother and a black friend were running companies that he controlled.

On the third day of a complex, three-day sentencing hearing, Duff made a passionate appeal to the judge, saying he deeply regretted what he had done and already had turned around a life marked by heavy drinking and a penchant for gambling. He swore he would never be caught in a similar position in the future and that he would miss his six children while in prison.

But Bucklo said Duff was portrayed by a number of people who knew him as a bully and that some of his former employees "were clearly afraid of him."

"He did this out of just pure greed," Bucklo said. She said that because of his scheme, companies operated by women and minorities would not be able to expand and develop as hoped when the City Council created the programs to assure their companies of a share in city contracts.

Members of the Duff family have been prominent supporters of Daley, raising funds for him and socializing with him at Christmas parties and other events. But after Duff pleaded guilty, Daley said the businessman deserved to be severely punished.

Daley has ordered a thorough examination of companies that have contracts earmarked for businesses run by women and minorities to make certain that white males are not the real bosses.

http://cbs2chicago.com/topstories/local_story_138175307.html

James Duff Sentenced to Nearly 10 Years

May 18, 2005 4:50 pm US/Central
CHICAGO (CBS 2) The most notorious cheater in Chicago’s minority contracting scandal, James Duff, has just been sentenced to nearly 10 years in prison.

Duff has been a major contributor to Mayor Daley's campaigns. As CBS 2 Political Editor Mike Flannery reports, the judge says the stiff sentence delivers a strong message.

He was polite as he arrived at the court house, but by the end of the day, Duff had been sentenced to pay more than $22 million and to serve 9 years, 10 months in federal prison.

Duff pleaded guilty, admitting that he had his 76-year-old mother and an African-American friend of his family pretend to own and operate companies that fraudulently received more than $100 million in city contracts set aside for women and minorities.

At Duff's sentencing, Judge Elaine Bucklo declared: "The public needs to know that corruption and fraud against the city will not be dealt with by a slap on the wrist."

"The human cost is sort of untold because we don’t have names of people who would have had the contracts, names of people who worked there. But it’s very real, and the judge sent that message that business as usual must stop so that in the future those contracts go where they belong,” said U.S. Attorney Patrick Fitzgerald.

Duff's lawyers told the court that he was getting treatment for addictions to alcohol and gambling and hoped he might be sentenced to as little as two years in prison.

Duff had contributed tens of thousands of dollars to Mayor Daley's political campaigns. On Wednesday, the mayor spoke of the difficulty of deterring fraud.

“Well, you know human frailties are always there, you know that human basis, but I believe we have hard working people work for government do the job every day. Over the long run, I think they're good people,” Daley said.

The mayor Wednesday named Ron Huberman as his new chief of staff. Among his many duties, Huberman is supposed to see to it that only good people get city contracts.

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