Chicago Democrat Arrested On Corruption Charges

CHICAGO — Federal prosecutors have charged a Democratic state representative from Chicago with offering a bribe to a state senator in exchange for support for a bill that would benefit a lobbying client. In meetings at restaurants in Skokie and Highland Park, the representative arranged with the senator to make a series of payments to a designated third party, and in return, the senator would sponsor legislation expanding "sweepstakes" gaming, according to the FBI.

Luis Arroyo, 65, was charged with one count of federal program bribery and made an initial court appearance Monday in federal court, the U.S. attorney's office announced. Arroyo has represented the Northwest Side 3rd District since 2006 while also managing the private lobbying firm Spartacus 3 LLC. He serves as the assistant majority leader in the Illinois House.

According to prosecutors, Arroyo offered to pay $2,500 per month to a state senator in an effort to gain support for sweepstakes-related legislation. The legislation would have benefited one of Spartacus 3's clients.

On Aug. 2, the senator met with Arroyo, a person referred to as Individual A and one of that person's associates at a restaurant in Highland Park.

"I worked with [Individual A], ah, as consultant. I cannot work as a legislator with somebody if it's illegal. I just can't. He knows that. I cannot be part of something that's illegal. That's just like being part of the mob or being part of a gang that's selling drugs. I can't be part of that. I'm not going to taint my reputation for something that's illegal," Arroyo said, according to the complaint. "Nobody has said it's illegal, so that's why I keep pushing."

Arroyo and the senator then met outside the restaurant, where the FBI said agents continued to surveil them.

"This is you and I talkin' now. ... Nobody else," he told the senator. "If you want to get paid, you want somebody else to get a check monthly, a monthly stipend, we could put them on contract. We could put you on contract. You tell me what it is. Tell me what you need."

On Aug. 22, Arroyo met with the senator at a restaurant in Skokie and gave him a $2,500 check as a first payment, according to the criminal complaint. The check was written out to a person nominated by the senator in order to hide the illegal contribution. Prosecutors said it was provided with an expectation that the senator would receive additional bribes for the next six to 12 months.

"I'm going to give you this here. This is, this is, this is the jackpot. Give me the name of [the senator's nominee, whose name had been provided by law enforcement]. Just put the name down here," Arroyo said.

The senator who Arroyo is charged with bribing was not named in the complaint — though it quoted him as saying he was in his “twilight.” According to Curtis Heide, the FBI agent whose affidavit was filed in support of the complaint, the senator first became a source for the feds in 2016. Then in November 2016, the FBI got word that the senator lied on his Internal Revenue Service tax returns.

The senator admitted filing false tax returns and expects to be criminally charged, the affidavit noted. He has been cooperating with law enforcement in the hopes of a reduced sentence, according to Heide.

If convicted, Arroyo faces a maximum of 10 years in prison, according to prosecutors. He was released on a signature bond ahead of his next court appearance after appearing in court Monday — the same day the legislative veto session began in Springfield. Arroyo did not issue any public comments in response to his indictment and arrest.

Sweepstakes gaming differs from video gambling in that they technically do not require money to play and the state collects no tax revenue from it. A WBEZ investigation in 2018 found businesses that had their applications for video gambling licenses rejected by state regulators have turned to the unregulated machines, which pay out in coupons instead of cash.

Illinois House Republican leader Jim Durkin of Western Springs told reporters he intends to introduce a resolution calling for an investigation that could expel Arroyo from the chamber if the Chicago Democrat does not resign by Monday evening, according to The Associated Press.

Democratic Speaker Mike Madigan said he would begin measures to oust Arroyo if he does not resign voluntarily.

"I urge Representative Arroyo to resign from the House of Representatives, effective immediately," Madigan said in a Monday afternoon statement. "If he refuses, I will take the necessary steps to begin the process to remove him from office."

UPDATE:

Unnamed sources identified the wired-up state senator as Assistant Majority Leader Terry Link, the Vernon Hills Democrat who sponsored last year's gambling expansion, the Chicago Sun-Times and the Chicago Tribune reported Monday evening. But Link has explicitly denied being the person identified as Cooperating Witness 1, telling WBEZ, "I wouldn’t know why anybody would want cooperate with any law enforcement if this is the abuse you’re going to take if you are cooperating."

Link has been the head of the Lake County Democratic Party since 1992 and a state senator since 1997. If he turned out to be the Illinois state senator who started working as a source for the FBI since 2016, it would mean the feds kept quiet about the fact he admitted to filing false income tax returns and allowed him to run unopposed in last year's Democratic party primary and win the general election by nearly 20 points.

According to a statement from Madigan's office Tuesday, it appears Arroyo refuses to leave office voluntarily.

"Today, I filed the necessary paperwork initiating the official process of removing Representative Luis Arroyo from office. At my request, Representatives Fred Crespo, Justin Slaughter and Barbara Hernandez will serve on an investigative committee as required under House rules," Madigan said. "They will plan on meeting for the first time this Friday, Nov. 1, with a second meeting on Friday, Nov. 8."

Read: Full criminal complaint against Illinois State Rep. Luis Arroyo (D-Chicago)