Loren-Maltese, 6 others guilty in Cicero corruption trial

August 24, 2002

BY STEVE WARMBIR, ABDON PALLASCH AND ANNIE SWEENEY STAFF REPORTERS

For nearly a decade, Cicero Town President Betty Loren-Maltese steamrolled her political opponents, vanquished her foes and humiliated all who might seize power from her.

Until Friday.

At 4:25 p.m. in a federal courtroom, Boss Betty was dethroned.

After 11 days of deliberation, a jury of seven women and five men found Loren-Maltese, reputed Cicero mob boss Michael Spano Sr. and four others guilty of taking part in a scheme to steal more than $12 million from the Town of Cicero through a mobbed-up insurance firm.

Another defendant was convicted on a tax charge.

The verdict stunned Loren-Maltese, who lost her presidency immediately after the verdict.

Slightly disheveled, Loren-Maltese, who is known for her brassy tongue, had nothing to say as she sped off in a gray Chevrolet Tahoe.

Her attorney, Terence Gillespie, said, "She's going to continue to fight. She isn't giving up."

Her foes were more talkative.

"We're going to have a party," said political nemesis David Boyle. "Ding-dong, the witch is dead."

The only person to escape untouched from the trial is former town Treasurer Joseph DeChicio, who was acquitted of all charges. His attorney, Thomas Durkin, argued he was just a figurehead who didn't know about the conspiracy.

The convictions could bring prison sentences of 10 to 15 years for Loren-Maltese, Spano and other key players, authorities said.

And the results could loosen the chokehold the mob has had on the town for decades.

"I think it's going to have a severe impact on the amount of money the mob can get out of Cicero," said Mike Rogers, one of the original FBI agents on the Cicero case, now a Michigan congressman.

"This gets at the heart of the mob's control of the town of Cicero," Rogers said, praising the work of all of the FBI agents on the case over the years.

Former Cicero Police Chief David Niebur--who was fired after working only several months in Cicero for cooperating with the FBI--sees hope for the town. "This is a victory for the citizens of Cicero," Niebur said.

Prosecutors put on more than 50 witnesses--including a former Internal Revenue Service investigator who switched sides and went to work for the Outfit--to show how a mobbed-up insurance firm called Specialty Risk Consultants siphoned cash out of the town.

The firm got money through overbilling, false billing and thievery, said prosecutors Mitchell Mars, Matthew Schneider and Stephen Andersson.

The money was spent on a Wisconsin golf course the mob tried but failed to turn into a casino.

The cash also went toward a vacation home for Spano in Wisconsin and an Indiana horse farm for two other players in the case, John LaGiglio and his wife, Bonnie.

And those were just the big purchases, according to evidence unearthed by IRS Agents William Paulin and Laura Shimkus and FBI Agents Michael Hartnett and Tricia Holt.

The thieves bought Cadillacs and lent money to friends and family--loans never repaid in full.

And while the thieves went on their spending sprees, Cicero town employees waited and waited to get their doctor bills paid by the mobbed-up insurance firm.

While the stolen money was paid to spruce up Spano's Wisconsin vacation home, town employees waited.

And as Cicero's onetime top cop Emil Schullo, also convicted, got his elective laser eye surgery paid for, a town employee battling cancer learned her doctor would stop treatments unless he started getting paid.

It's unclear exactly what persuaded jurors to convict seven of the eight on trial. The jurors can't talk about the case until they determine Monday how much money the feds can seize in the case.

As the jury's verdict was read, Loren-Maltese looked down and away.

Michael Spano Sr. kept the stoic look he held throughout the trial.

His son Michael Spano Jr., another one of the seven, said afterward he should change his last name, apparently implying he was convicted by association. "But my name is still Spano!" he said proudly. Spano Jr. is to be married next month in Berwyn.

John LaGiglio, who ran Specialty Risk with Spano, said he was "very surprised" by the outcome. His attorney argued he was too dumb to take part in the conspiracy. His wife, Bonnie, was convicted on a tax charge after other charges against her were dismissed by the judge.

Also convicted as part of the conspiracy was attorney Charles Schneider.

And this may not be the last corruption case against Cicero officials, as the feds have investigated a whole host of wrongdoing.

"This is just the beginning," former town police chief Niebur said, with hope in his voice.

Contributing: Chris Fusco, Art Golab and Nancy Moffett