Anti-Corruption - University of Illinois at Chicago

Crooked Code 2006 - 2009
Federal investigators used telephone wire taps, hidden cameras, voice recording devices
and an undercover mole to document widespread corruption in Chicago’s Building and
Zoning Department. The investigation was called “Crooked Code” because it involved
bribes to inspectors so they would ignore or circumvent requirements of the city’s
building code.
The FBI, with the help of postal inspectors and the City’s Inspector General, David
Hoffman, developed evidence that developers, contractors and architects paid bribes and
traded cash and sports tickets for falsified inspection reports and faster approval on
construction projects. 17
A government agent working as a mole is at the center of the federal probe. The mole
wore a hidden recording device and passed bribes from developers to city inspectors.
Among 23 defendants, 15 are city officials, many of whom had deep connections to the
36th Ward Democratic Organization. 18
Federal authorities also charged the mole, Catherine Romasanta, with bribery. The
indictment alleged that she paid a $6,000 bribe to William Wellhausen, a city zoning
inspector with deep roots in Alderman William J.P. Banks’ 36th Ward Democratic
organization.
The Chicago Tribune reported that a real estate developer, Beny Garneata, “was
considered central to the case in part because of his broad connections to politicians such
as Banks. Garneata has donated $4,000 to Banks’ Democratic ward organization. The
alderman’s nephew, zoning lawyer James Banks, is the registered City Hall lobbyyist for
Garneata, city records show.” 3
Crooked code is still ongoing but the investigation has already resulted in changes in
how city departments do business. In an effort to curb bribery, City Hall will no longer
accept phone calls to schedule appointments with building inspectors organization. 4
1. Jeff Coen and Mihalopoulos, Dan. "Bribery probe shines light on City Hall tape-cutters - "Expediters"
have put themselves at the hub of Chicago's permit process, and now one of them is the key to a federal
corruption investigation ." Chicago Tribune, May 28, 2008.
2. Marin, Carol. "Fraud probe raises intriguing questions." Chicago Sun-Times, June 18, 2008.
3. Mihalopoulos, Dan . "Expediter who aided probe is charged - She wore wire for investigation into city
bribes." Chicago Tribune, January 15, 2009.
4. Mihalopoulos, Dan . "Inspection requests now by e-mail only - City changes system to curb bribery
attempts, officials say ." Chicago Tribune, June 27, 2008.
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