Feds nab seven city inspectors in bribery case
- By Steven Chaitman •
- May 22, 2008 @ 8:53 PM
Seven city inspectors were charged today with accepting bribes to allow developers to skirt building codes.
Chicago Inspector General David Hoffman says the city officials wrote false inspection reports in
exchange for cash and perks, including sports tickets.
"Anyone who pays a dime of city taxes should be dismayed by
the conduct of these individuals," Hoffman said.
The charges are the latest black mark against the city's code enforcement bureaucracy, which came under scrutiny for lax enforcement in February 2003, when 21 people were trampled to death at the E2 nightclub, and later the same year when a Wrigleyville porch collapse killed 12 and injured dozens.
Last year, federal authorities charged five city employees accused of corruption in code-enforcement matters.
"The picture painted by the criminal charges filed today shows sadly that the permit process in Chicago is governed by a separate set of rules for those who pay to corrupt the system," said U.S. Attorney Patrick Fitzgerald. "These charges also show that last year's arrests did not change the system enough. It didn't stop the bribery."
The charges stem from the work of an unnamed witness who has been cooperating with authorities to record meetings and phone calls with corrupt developers and code enforcement workers, according to court records.
The witness, an 'expediter' who worked to get permits and zoning changes approved for property owners and developers, would approach city officials with a request to grease that sometimes lengthy process.
The expediter would let city workers know that he was willing to do "whatever it takes" to get approval, and mention that incentives were available, court papers said.
The arrests were made through a collaborative effort between the U.S. Attorney's office, the city Inspector General, the FBI, and federal postal inspectors.
The charges are the latest black mark against the city's code enforcement bureaucracy, which came under scrutiny for lax enforcement in February 2003, when 21 people were trampled to death at the E2 nightclub, and later the same year when a Wrigleyville porch collapse killed 12 and injured dozens.
Last year, federal authorities charged five city employees accused of corruption in code-enforcement matters.
"The picture painted by the criminal charges filed today shows sadly that the permit process in Chicago is governed by a separate set of rules for those who pay to corrupt the system," said U.S. Attorney Patrick Fitzgerald. "These charges also show that last year's arrests did not change the system enough. It didn't stop the bribery."
The charges stem from the work of an unnamed witness who has been cooperating with authorities to record meetings and phone calls with corrupt developers and code enforcement workers, according to court records.
The witness, an 'expediter' who worked to get permits and zoning changes approved for property owners and developers, would approach city officials with a request to grease that sometimes lengthy process.
The expediter would let city workers know that he was willing to do "whatever it takes" to get approval, and mention that incentives were available, court papers said.
The arrests were made through a collaborative effort between the U.S. Attorney's office, the city Inspector General, the FBI, and federal postal inspectors.
In one case cited by Fitzgerald, a Skokie-based developer was accused of paying bribes to speed work on a condo conversion project at West Granville and North Paulina.
A court affidavit gave the following account of that process:
The developers, Dumitru Curescu, 46, and his wife Lavinia, Curescu, 42, of Skokie, bought the 13-unit building in June.
They sought to add to illegal apartments to the building's basement.
To accomplish that, they paid $2,500 to have a city official change a Department of Buildings database to remove evidence that the building was supposed to have only 13 units.
The Curescus later paid the expediter $10,000 to bribe William Wellhausen, 50, of Chicago, a Zoning Department investigator, to approve the two basement units.
Agents recorded a call between Wellhausen and the expediter:
"I’m giving him two extra ones [dwelling units]
that he’s going to build. He has nothing. I mean I’m
completely fabricating two other ones," Wellhausen said.
Later, the expediter met with Wellhausen at a BP gas station at Touhy and Cicero, and handed him $8,000.
"Oh, I appreciate that very much," Wellhausen said, according to the affidavit.
And finally, the Curescus paid $7,000 to bribe Mario Olivella, 40, of Chicago, a plumbing inspector in the Department of Buildings, to overlook unfinished plumbing work, the affidavit said.
The Curescus, Wellhausen and Olivella were charged with conspiracy.
Others named in the cases were:
A court affidavit gave the following account of that process:
The developers, Dumitru Curescu, 46, and his wife Lavinia, Curescu, 42, of Skokie, bought the 13-unit building in June.
They sought to add to illegal apartments to the building's basement.
To accomplish that, they paid $2,500 to have a city official change a Department of Buildings database to remove evidence that the building was supposed to have only 13 units.
The Curescus later paid the expediter $10,000 to bribe William Wellhausen, 50, of Chicago, a Zoning Department investigator, to approve the two basement units.
Agents recorded a call between Wellhausen and the expediter:
"I’m giving him two extra ones [dwelling units]
that he’s going to build. He has nothing. I mean I’m
completely fabricating two other ones," Wellhausen said.
Later, the expediter met with Wellhausen at a BP gas station at Touhy and Cicero, and handed him $8,000.
"Oh, I appreciate that very much," Wellhausen said, according to the affidavit.
And finally, the Curescus paid $7,000 to bribe Mario Olivella, 40, of Chicago, a plumbing inspector in the Department of Buildings, to overlook unfinished plumbing work, the affidavit said.
The Curescus, Wellhausen and Olivella were charged with conspiracy.
Others named in the cases were:
- Louis Burns, 52, of Chicago, a Buildings Department clerk, charged with bribery.
- Petru Cladovan, 48, of Prospect Heights, a contractor, charged with bribery.
- Vasile Fofiu, 57, of Skokie, charged with conspiracy.
- Beny Garneata, 43, of Lincolnwood, a developer, charged with conspiracy.
- Phyliss Mendenhall, 54, of Chicago, a buildings department aide, charged with bribery.
- MacArthur Milam, 56, of Chicago, a city inspector, charged with conspiracy.
- Lucian Muresan, 34 of Chicago, a general contractor, charged with bribery.
- Ronald Piekarz, 47, of Chicago, an architect, charged with conspiracy.
- Teofil Scorte, 27, of Morton Grove, a developer, charged with conspiracy.
- Anthony Valentino, 65, a Zoning Department inspector, charged with bribery.
- Thomas Ziroli, 61, of Chicago, a Buildings Department inspector, charged with bribery.
MOST viewed
-
CSU board blasts rubber-stamping, then uses rubber stamp
-
Some news about the Daily News
-
Residents gather to discuss Loyola University proposals
-
The Daily News Q & A
-
Need a nurse? Chicago may need 11,000 nurses in years to come
-
South Side Census forum airs undercounting concerns
-
Exclusive: Billing glitch led to mental health closures
E-MAIL headlines
Our Daily News headlines service brings you Chicago's best local news coverage every morning. From education to transit, housing, and block-by-block neighborhood reports, we've got it covered!
Discuss
Comments for this article are now closed