Pritzker, Family Under Federal Criminal Investigation: Report

CHICAGO — A federal criminal investigation into how Illinois Gov. JB Pritzker and his family reduced their Cook County property tax bill by more than $331,000 remains ongoing, but there are no signs that charges are about to be filed, WBEZ reported. The controversial tax break was obtained, in part, by pulling all the toilets out of one of their multi-million dollar Golf Coast mansions so that the Cook County Assessor's Office would declare the house "uninhabitable." The Pritzkers paid back the money to the Cook County Treasurer while denying wrongdoing.

The federal investigation began last October after the Chicago Sun-Times published a confidential report from the Cook County Inspector General's Office. It found then-candidate Pritzker, his wife M.K. and her brother Thomas Muenster engaged in a "scheme to defraud" taxpayers. According to the report, they submitted false affidavits to lower their tax assessments on an Astor Place mansion the Pritzkers purchased for $3.7 million next to their primary Chicago mansion, which they spent $14.5 million to buy plus up to another $25 million on improvements.

Citing a law enforcement source familiar with the investigation, WBEZ reported Wednesday the federal criminal probe remains active. The Pritzkers' lawyer, whose firm has so far received nearly $1.5 million in campaign expenditures, told the station he has not been contacted by any law enforcement investigators in connection with the property tax appeal and said he's confident that "any further review of the matter will show that the appropriate rules were followed."

The personal assistant of the governor's wife has retained a high-powered former federal prosecutor as her personal attorney, according to the WBEZ report. The governor's brother-in-law, who was found to have made "false representations" on sworn statements used to get the tax breaks, has not commented. The station was unable to find records of any subpoenas sent to the offices of the county assessor or treasurer.

A spokesperson for Cook County State's Attorney Kim Foxx said after the inspector general's report was released that the matter was "in the hands of our special prosecutions unit." An aide to Foxx recently refused to confirm or deny whether a county investigation ever existed, WBEZ reported.

The Sept. 28, 2018, summary report by Cook County Inspector General Patrick Blanchard sent to former Cook County Assessor Joe Berrios includes footnotes citing the federal mail fraud statute and the legal definition of perjury as it laid out its findings and conclusions.

"Based on the information obtained during the investigation, our office determined that the [Cook County Assessor's Office] received sworn affidavits containing false representations and placed significant reliance on the affidavits in deciding to grant the Prtizkers' property tax break," Blanchard wrote. "The evidence indicates that the use of these affidavits was part of a scheme for obtaining money by means of false representations and, in executing the scheme, the responsible parties caused checks to be issued by the Cook County Treasurer and delivered by U.S. Mail according to the direction theron."

"As a result, the County ultimately fell victim to a scheme to defraud, executive in part through the use of these affidavits," the inspector general continued. That scheme, he said, resulted in more than $331,000 in property tax refunds for the Pritzker for the years 2012 to 2016.

Following the release of the report, all seven members of Illinois' Republican congressional delegation sent a letter to the U.S. Attorney's Office in Chicago noting the "facts described in the Inspector General's report appear to constitute fraud and perjury" and urging federal prosecutors to "fully investigate this matter with all due speed." The congressmen's Oct. 3 letter pointed out that four of Illinois' last nine governors have gone to prison.

The toilet removal scheme was a recurring theme in last falls' gubernatorial campaign. Republican former Gov. Bruce Rauner hammered his opponent on the point, but Pritzker ultimately outspent Rauner 3 to 1 and beat him at the ballot box by about 15 percentage points.

"Mr. Pritzker is advocating for tax hikes for the people of Illinois — everyone in the state — while he has been cheating on his taxes," Rauner said at the pair's first debate. "It's already been established by the Cook County Inspector General he has cheated on his property taxes in a scheme to defraud, possibly criminal behavior."

Read more from WBEZ-FM Chicago Public Radio

Earlier:

• Pritzker Toilet Removal Was Scheme To Defraud: Inspector General
• Pritzkers Sought To Keep Wealth From Jury In Construction Lawsuit
• Rauner, Pritzker Clash Over Toilets, Taxes At First One-On-One Debate