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Feds: City workers in heroin ring

June 9, 2005

BY FRANK MAIN, MARK J. KONKOL, FRAN SPIELMAN AND CAROL MARIN Staff Reporters

 

A politically connected Water Management Department employee and two other city workers were arrested Wednesday on charges of conspiring to sell heroin, prompting Rep. Jesse Jackson Jr. (D-Ill.) to call on Mayor Daley to "drain all the sewage out of the Water Department and his entire administration."

George A. Prado -- a $62,000-a-year hoisting engineer for the Water Management Department and a deputy registrar for the Hispanic Democratic Organization -- was also a heroin distributor with ties to Colombian traffickers, federal prosecutors said.

The five-month drug investigation was separate from the federal Hired Truck corruption probe that has led to 27 criminal charges and 11 guilty pleas, said U.S. Attorney Patrick Fitzgerald. But that did not stop Jackson, a potential challenger to Daley in 2007, from ripping the administration.

"The fraud and corruption happening right under the mayor's nose is apparently winding up in the veins of too many Chicagoans," Jackson said.

Asked if the arrests of three city employees on drug charges embarrassed him, Daley said bluntly, "No, I didn't sell it." The mayor rejected the notion that the arrests demonstrate a continuing culture of corruption at City Hall.

"It's an epidemic," he said of heroin dealing. "You have federal and state and local employees selling it. You have private employees selling it."

HDO not involved, lawyer says

 

 

Prado is charged with eight other people, including his 45-year-old brother-in-law Anthony C. Ritacco, a cement mixer in the city Department of Transportation, and Michael D. Hart, 39, a Water Management employee. On Wednesday, the city fired Ritacco and moved to fire Prado and Hart.

Sources said Ritacco is the brother of Frank Ritacco, one of nine Water Management employees fired last week after a city investigation found they were being punched into a time-card reader at the Jardine Filtration Plant even though they were not on duty. The scandal led to the ouster of Water Management Commissioner Richard Rice.

Prado, Ritacco and Hart appear to have been conducting their alleged drug activity during normal business hours, Fitzgerald said. But federal investigators "have not checked their punch-in, punch-out" status to confirm they were on city time, he said.

Prado, 47, was hired by the city in 1990. In 2001, he contributed $850 to the campaign of state Sen. Antonio "Tony" Munoz, a leader of the Daley-created Hispanic Democratic Organization, records show.

"HDO does not have anything to do with this case," said Prado's lawyer, Joseph Lopez. "He's been involved in politics for many years. This case does not deal with [political] corruption. This case deals with something else other than their city jobs."

Indeed, federal prosecutors painted Prado as a ruthless drug dealer who threatened to kill a courier who lost a one-kilogram heroin shipment.

The dope was seized May 24 from a truck driven by the alleged courier, Vito Renteria. State Police had stopped him for driving 45 mph in a 30 mph zone. His license was suspended because of a DUI, officials said.

Prado was furious that his shipment was seized, and he did not believe Renteria's explanation that he was stopped for speeding, prosecutors said. Prado was secretly tape-recorded telling Renteria "he is f------ with the wrong people" and needed to come up with $60,000 to cover the loss, according to an FBI affidavit.

Co-worker a key witness

 

 

In a separately recorded conversation with a New York-based heroin supplier, Prado allegedly said that if he decided Renteria was lying, "they will get the knives out, and they will f--- him up."

Fearing for Renteria's safety, authorities quietly arrested him soon after that conversation.

Lopez scoffed at the notion that Prado threatened to kill Renteria, noting that they were "friendly to each other in the courtroom" Wednesday.

An unidentified co-worker of Prado's became a key witness for investigators. He allegedly accepted one heroin delivery outside their city work place March 10 after Prado contacted him. Prosecutors did not disclose the address.

Search warrants executed Wednesday at five Chicago addresses yielded about a quarter kilogram of heroin, 16 kilograms of cocaine, a gun and $50,000 in cash, officials said.

Last year, Prado was arrested on a misdemeanor charge of failing to have a state firearm owner's identification card after Chicago Police executed a search warrant at his home and said they recovered four guns, including a military-style Norinco SKS 7.62-millimeter semiautomatic weapon. The case was dismissed in March.

The government witness who worked with Prado told investigators he and Prado had discussed the 2004 search, according to the FBI.

Prado told the witness that at the time of the search, he had enough drugs in his home "to put him away for life," but the police did not find the stash, the FBI said.

'Thought he won the lottery'

 

 

The allegation does not make sense, said Lopez, who also represents Anthony Ritacco and alleged heroin distributor Javier Hernandez. A special police unit used drug-sniffing dogs during the search, Lopez said.

"The police officers were diligent and professional," he said. "If there were drugs in that house, they would have found them."

Prado, a fixture in the neighborhood along Taylor Street, had operated a bar there and a restaurant in southwest suburban Summit, Lopez said.

"He's always been a businessman," he said.

In one of his real estate forays, Prado unsuccessfully tried to buy the Taylor Street home of Judith Pedraza for $1.2 million in 2004, the 75-year-old widow said. Prado's parents were tenants in a building that Pedraza's parents had owned at Bishop and Taylor, she said.

Last year, he drove up in a black Mercedes and tried to buy her building, which houses Chiarugi's Hardware, she said.

"My husband just died, and I was vulnerable," she said. "He told me he would call that night. But I did not answer his calls."

Even though he moved to a different neighborhood on the South Side, he was frequently seen along Taylor Street. Prado did not seem to hold any ill feelings toward Pedraza for not selling her home, she said.

"I see him at the White Hen buying coffee in the morning," she said. "He says, 'Hi, Judy,' and I say, 'Hi, George.' He's real nice."

Still, Prado's alleged wheeling and dealing was somewhat of a mystery in the neighborhood.

"We knew he had a lot of money, but everybody thought he won the lottery," Pedraza said.

 

 

 
 
 
 

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