Editing Richard M. Daley (section)

==== Daley son concealed city contracting ====
Mayor Daley's son [[Patrick R. Daley]] was an [[MBA]] student at the [[Booth School of Business|University of Chicago Graduate School of Business]] working as an unpaid intern at Cardinal Growth, a Chicago [[venture capital]] firm, when he profited from two Cardinal Growth ventures formed to win city contracts while concealing his role. Patrick's cousin, and Mayor Daley's nephew, is Robert G. Vanecko. In June 2003, Patrick and Vanecko formed a Delaware company, MSS Investors LLC, and invested $65,000 each.{{efn|{{inflation|US|65000|2003|fmt=eq}}{{inflation/fn|US}}}} MSS Investors LLC in turn purchased a 5% stake in Municipal Sewer Services, a Cardinal Growth venture. Patrick and Vanecko failed to disclose their ownership stake in Municipal Sewer Services as required by city ethics ordinances.<ref>{{cite news |title=Daley's son also invested in city sewer deal |first1=Tim |last1=Novak |first2=Chris |last2=Fusco |date=June 6, 2011 |newspaper=[[Chicago Sun-Times]] |url=http://www.suntimes.com/news/watchdogs/5743011-452/daleys-son-also-invested-in-city-sewer-deal.html}}</ref> Brunt Brothers Transfer Inc. was one of the largest black-owned contractors in the [[Hired Truck]] program. Municipal Sewer Services partnered with Brunt Brothers Transfer Inc. in their bid for City sewer-inspection contracts. Five months after Patrick and Vanecko became owners, Municipal Sewer Services' city contract was extended by $3 million,{{efn|{{inflation|US|3000000|2003|fmt=eq}}{{inflation/fn|US}}}} the first of two no-bid contract extensions, totaled an additional 23 months and $4 million.{{efn|{{inflation|US|4000000|2004|fmt=eq}}{{inflation/fn|US}}}} Patrick and Vanecko cashed out their initial investment after about a year as the federal investigation into the Hired Truck program advanced. Patrick and Vanecko got a $13,114 "tax distribution" in December 2004. Patrick, then 29 and a recent University of Chicago MBA graduate, enlisted in the [[US Army]].<ref name=son>{{cite news |title=Daley's son's secret deal; Mayor signed pacts, but spokeswoman says he didn't know his son was an owner of a sewer-inspection business that did city work |first=Tim |last=Novak |date=December 14, 2007 |url=http://www.suntimes.com/news/politics/3192303-418/sewer-services-municipal-daley-company.html |newspaper=[[Chicago Sun-Times]]}}</ref><ref name=folds>{{cite news |title=Sewer firm tied to Mayor Richard Daley's son folds |date=April 24, 2008 |first1=Todd |last1=Lighty |first2=Dan |last2=Mihalopoulos |url=http://articles.chicagotribune.com/2008-04-24/news/0804231029_1_mayor-daley-city-contracts-robert-bobb |archive-url=https://web.archive.org/web/20120812041823/http://articles.chicagotribune.com/2008-04-24/news/0804231029_1_mayor-daley-city-contracts-robert-bobb |url-status=dead |archive-date=August 12, 2012 |newspaper=[[Chicago Tribune]]}}</ref> The day after the Mayor's son's and nephew's hidden involvement in the city contract was disclosed by the ''[[Chicago Sun-Times]]'', Daley spoke at a Chicago police recruit graduation ceremony, then left for [[Fort Bragg]], [[North Carolina]] to see his son deployed.<ref>{{cite news |title=Daley quiet on son's tie to deal; Owned stake in firm with city contracts |date=December 15, 2007 |first1=Mickey |last1=Ciokajlo |first2=Ray |last2=Gibson |newspaper=[[Chicago Tribune]] |url=https://www.chicagotribune.com/2007/12/15/daley-quiet-on-sons-tie-to-deal/}}</ref> Before departing, Mayor Daley read a statement to reporters, his voice cracking, fighting back tears,

<blockquote>I did not know about [Patrick's] involvement in this company. As an adult, he made that decision. It was a lapse in judgement for him to get involved with this company. I wish he hadn't done it. I know the expectations for elected officials, their families, are very high—rightfully so—especially for me.&nbsp;... Patrick is a very good son. I love him. Maggie and I are very proud of him. I hope you respect I have nothing more to say on this.<ref>{{cite news |title=Mayor calls son's deal a 'lapse in judgment' |date=December 19, 2007 |first=Gary |last=Washburn |newspaper=[[Chicago Tribune]] |url=http://articles.chicagotribune.com/2007-12-19/news/0712180755_1_mayor-richard-daley-navy-pier-contract|archive-url=https://web.archive.org/web/20120812041631/http://articles.chicagotribune.com/2007-12-19/news/0712180755_1_mayor-richard-daley-navy-pier-contract|url-status=dead|archive-date=August 12, 2012}}</ref></blockquote>

Mayor Daley also said he didn't know if there were other city contracts involving the younger Daley.<ref>{{cite news |title=This one fails the smell test |date=December 20, 2007 |newspaper=[[Chicago Tribune]] |url=https://www.chicagotribune.com/2007/12/20/this-one-fails-the-smell-test/}}</ref><ref>{{cite news |title=Mayor in dark: aide; Says Daley had no role in sewer firm's pact with city |newspaper=[[Chicago Sun-Times]] |date=December 15, 2007 |first=Fran |last=Spielman}}</ref> The city's [[Inspector General]] and federal authorities began investigations in December 2007. Patrick and Vanecko hired [[criminal defense attorney]]s.<ref>{{cite news |title=Daley kin lawyer up; Contract Probe; Son, nephew hire criminal defense attorney |newspaper=[[Chicago Sun-Times]] |date=March 27, 2009 |first1=Tim |last1=Novak |first2=Fran |last2=Spielman}}</ref> Municipal Sewer Services LLC folded in April 2008.<ref name=folds/> In January 2011, Anthony Duffy, the president of Municipal Sewer Services, was charged with three counts of mail fraud in conjunction with minority-contracting and Jesse Brunt and his company, Brunt Brothers Transfer Inc., were indicted on three counts of mail fraud. Patrick and Vanecko were not charged.<ref>{{cite news |title=Daley son's business partner indicted for mail fraud |first=Tim |last=Novak |date=January 7, 2011 |newspaper=[[Chicago Sun-Times]] |url=http://www.suntimes.com/news/metro/3193061-418/brunt-company-owned-duffy-sewer.html}}</ref><ref>{{cite news |title=Former business partner of Daley's son indicted; Bartlett man accused of using minority-owned business as a front |date=January 6, 2011 |first1=Hal |last1=Dardick |first2=Jeff |last2=Coen |newspaper=[[Chicago Tribune]] |url=https://www.chicagotribune.com/2011/01/06/former-business-partner-of-daleys-son-indicted/}}</ref><ref>{{cite news |title=Key players in city sewer-cleaning case |first=Tim |last=Novak |newspaper=[[Chicago Sun-Times]] |url=http://www.suntimes.com/3172334-417/mss-chicago-daley-business-company.html |access-date=December 1, 2012}}</ref>

In 2005, Concourse Communications, another Cardinal Growth venture, signed a city contract for airport [[Wi-Fi]] service at city-owned [[Ohare|O'Hare]] and [[Midway Airport|Midway]] airports. For years, the Daley administration maintained that Patrick had no financial stake in the deal. Concourse disclosed its investors to the city, as required, but Patrick was not reported. Patrick lined up investors for Concourse. On June 27, 2006, nine months after Concourse signed the contract, Concourse was sold at a 33% profit to [[Boingo Wireless]] Inc. for $45 million.{{efn|{{inflation|US-GDP|45000000|2006|fmt=eq}}{{inflation/fn|US-GDP}}}} On June 30, 2006, Patrick received the first of five payments totaling $708,999.{{efn|{{inflation|US-GDP|708999|2006|fmt=eq}}{{inflation/fn|US-GDP}}}} On December 3, 2007, shortly after Patrick received the last of those payments, Mayor Daley's press secretary, Jacquelyn Heard said Patrick Daley "has no financial interest with the Wi-Fi contract at O'Hare."<ref>{{cite news |title=Former Mayor Daley's son profited after airport Wi-Fi deal |first1=Tim |last1=Novak |first2=Chris |last2=Fusco |date=June 6, 2011 |newspaper=[[Chicago Sun-Times]] |url=http://www.suntimes.com/news/watchdogs/5754016-452/former-mayor-daleys-son-profited-after-airport-wi-fi-deal.html}}</ref> The ''[[Chicago Sun-Times]]'' editorialized, "...&nbsp;the conflict of interest was blatant."<ref>{{cite news |title=Ethics laws can't stop every schemer |date=June 9, 2011 |newspaper=[[Chicago Sun-Times]]}}</ref>