In a strange twist, Mayor Rahm Emanuel said yesterday that Amer Ahmad, the former city comptroller, should have come clean and told him about the FBI investigation into his alleged activities in Ohio stemming from his time as Deputy Treasurer for the State of Ohio.
“You have an obligation, when something like that happens, to – when you start to get questions – to inform the people you work with who have entrusted you with the public trust. And that is where he violated the trust,” said the mayor at a press conference at William Jones College Preparatory High School after a ribbon cutting ceremony.
Mayor Emanuel also emphasized he knew nothing about the investigation into Amer Ahmad either.
The federal probe charges that Amer Ahmad was steering lucrative state contracts to a former high school classmate who went on to work as a securities broker. Douglas E. Hampton, the high school classmate, allegedly funneled more than $500,000 back to Amer Ahmad through his alleged co-conspirators and through phony loans to a landscaping company that Amer Ahmad partially controlled.
Amer Ahmad was indicted last week by a federal grand jury in Ohio on eight counts: three counts of money laundering and one each of conspiracy, bribery, wire fraud, conspiracy to launder money and making false statements.
Amer Ahmad had resigned abruptly in late July from his job as city comptroller, in what was then described by the Emanuel Administration as “expected midterm departures.” At the time of his resignation Mayor Emanuel said, “Amer has played an integral role in my efforts to reform government, strengthen the city’s finances, and professionalize our approach to fiscal management.”
The stunning news has put the Emanuel Administration on the defensive.
Former federal prosecutor Vincent J. Connelly and Zaldwaynaka “Z” Scott, Illinois’ former executive inspector general, had conducted a review in March 2011 review as attorneys working pro bono for then-Mayor-elect Rahm Emanuel’s transition team. The two had vetted Amer Ahmad and reported they had not found any reason not to hire Amer Ahmad.
Mayor Emanuel was asked by Fran Spielman of the Chicago Sun Times if he felt “let down” by Connelly and Scott and the mayor said “no.” The mayor said Connelly and Scott “did their job as best as they could do, given what he [Ahmad] provided and what other people said about him.”
He once again blamed Amer Ahmad. “Where do we think we were let down? . . . He let the mayor’s office and the mayor down. Having worked for two Presidents, he had an obligation when he started to get asked to say he was under questioning.”
This matter is a serious blow to Mayor Rahm Emanuel and his administration, who had made financial reform and fiscal responsibility a centerpiece of the administration. While there is no evidence as yet that Amer Ahmad had done anything similar to Chicago finances, the mayor has asked the Chicago’s Inspector General and the City of Chicago’s Corporation Counsel to investigate together. The mayor’s office also announced that two outside attorneys will also be investigating the matter of whether Amer Ahmad violated any laws while city comptroller. Those attorneys are Gordon Nash and Dan Collins of Drinker Biddle.
Amer Ahmad was brought in as the City Comptroller and touted in late April of 2011 as part of a “high-powered economic team” that also included Chief Financial Officer Lois Scott, Budget Director Alexandra Holt, City and Chief Technology Officer John Tolva.
The indictment alleges that Ahmad, 38, used his authority in the Ohio treasurer’s office to direct state business to Douglas E. Hampton, 39, a securities broker from Canton, Ohio, in return for payments from Hampton.
The Columbus Dispatch reported that the indictment was contained some of the following:
• The purpose of the conspiracy was for Ahmad, Alo, Chiavaroli and Hampton “to personally enrich themselves, their friends and associates and their businesses, by using Ahmad’s position … to secure lucrative state business for Hampton in exchange for payments to Ahmad, Alo, Chiavaroli and companies under their control and to conceal the conspiracy.”
• Ahmad authorized Hampton, 39, to conduct security trades for the state. Hampton conducted more business for the treasurer’s office than any other approved broker, pulling in $3.2 million in revenue for his firm with 360 trades.
• Hampton then gave Ahmad kickbacks of $123,623 in the form of “legal fees” to Ahmad’s Five Rivers Partners LLC, and $400,000 in the form of “loans” to Going Green Landscapes and Lawn Care, a company that Chiavaroli founded and Ahmad partially owned.
According to Fran Spielman of the Chicago Sun Times, Amer Ahmad played a pivotal role in disbanding the Department of Revenue and folding it into the Department of Finance. He also helped to dramatically reduce the amount of outstanding fines owed to the city by going after scofflaws, which generated $70 million in 2012 alone.
Earlier this year, Ahmad served as the point man in Emanuel’s controversial decision to phase out Chicago’s 55 percent subsidy for retiree health care by 2017 while continuing that coverage for the oldest retirees.
This is the first hint of scandal around the Emanuel Administration and comes at a bad time as the city’s bond rating is taking a hit and as the mayor is dealing with large budget deficits in the city and sister agencies.
Send John Presta an email and your story ideas or suggestions, johnpresta@att.net.
John is the author of an award-winning book, the 2010 Winner of the USA National Best Book award for African American studies, published by The Elevator Group, Mr. and Mrs. Grassroots. Also available an eBook on Amazon. John is also a member of the Society of Midland Authors and is a book reviewer of political books for the New York Journal of Books. John has volunteered for many political campaigns. John is an unpaid volunteer and social media advisor at Robin Kelly for Congress.
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