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National Legal Policy center reports-02-15-2000
Chicago tribune articles on Duff and
alderman Levar
HOTEL & RESTAURANT EMPLOYEES (HERE)
Chicago Duff Family Tied to HERE Corruption
Kurt W. Muellenberg, the former-court-appointed monitor over the Hotel Employees
& Restaurant Employees Int'l Union, banned Chicago boss John Duff III Feb.
11 from HERE office for life. Muellenberg issued a
report that said Duff cheated HERE out of $172,000, knowingly associated
with organized crime figures, and ran an illegal Fla. bookmaking operation while
on the union payroll. Duff remains a boss in the Liquor & Wine Sales
Reps., Tire, Plastic & Allied Workers Union, Local 3, a union founded by his
father.
Duff is a son of John Duff, Jr., the head of a family whose companies have won
$100 million in government business from Chicago Mayor Richard M. Daley (D). The
U.S. Atty.'s office is reportedly investigating several Duff contracts with the
city as well as Muellenberg's allegations.
Muellenberg reported that in 1996, Duff pocketed over $202,000 -- including
$35,000 as a HERE organizer and $88,333 from the liquor union. He also
drew salaries from Duff firms. The Duffs and the family of the late, corrupt
HERE boss Edward T. Hanley have allegedly been friends for years. Hanley
testified that he hired Duff in 1991 to organize a casino in Alton, Ill.
But by 1992, the report said, Duff was living in Fla., where he was running an
illegal bookmaking ring with organized crime figures.
When Duff was in Chicago, he gambled at riverboats while on HERE's payroll, the
report said. "Of the 80 visits [Duff] made to Chicago area riverboat
casinos during 1993-1996, at least 30 of these visits occurred during Local 1
office hours when [Duff] was allegedly in staff meetings and making office calls
at...Local 1," the report said. In four trips to the boats, Duff used cash
to buy $36,300 in chips.
Muellenberg said that because of his time in Fla., his trips to the boats, and
overseas travel, Duff wasn't working when he filed reports saying he was.
"I find that [Duff] embezzled approximately $172,930 from [HERE] in the
form of salary received for services not performed."
Reportedly, Duff's association with organized crime dated to 1988. The
report said Duff testified in the 1992 trial of reputed mafia boss Rocco
Infelice. Testifying under immunity, Duff said he often bet with bookmakers and
had two meetings with Infelice over a debt. In Nov. 1993, Duff was arrested by
Fla. police and reportedly boasted of his ties to Chicago mafia leaders,
threatening to have a police officer and his family killed. [Chi. Trib. 2/12/00]
(Arrest report available as
efax.document. go to www.hotsend.com to
obtain free viewer)
Illinois Dissident Demands $260,000 Return
Martin Preib, a Chicago dissident of HERE Local 1 that paid large fees to
allegedly bogus consultants, called Feb. 13 on Chicago Alderman Patrick Levar
(D) to account for $260,000 his firm was paid. Preib requested that HERE explain
the payments or recover money paid to Levar's firm, Gateway Associates, between
1988-96.
Under his contract, Levar's firm received $267,488 "for consulting on state
and federal matters" from Oct. 1988 to Nov. 1996. Kurt W. Muellenberg, the
former-court-appointed monitor over HERE said there is no indication what Levar
did.
Levar's involvement with HERE surfaced in Aug. 1998, in a report by
Muellenberg. It questioned millions of dollars in contracts to Hanley's
associates. Among the contracts cited were $50,000 to Dan Rostenkowski for
producing one memo, and $213,700 to the son of reputed Chicago mobster Pat Marcy
for "public relations." Levar is running for Cook County Circuit Court
clerk. [Chi. Trib. 2/14/00]
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