A judge on Wednesday scheduled a late January hearing on a lawsuit alleging that a company owned by a politically connected lawyer and lobbyist violated the rules of a lucrative state contract by failing to disclose that a former state senator and a prominent Springfield lobbyist had profited from the deal. .
The case concerns a program intended to address the problem of slow state payments to contractors. More than a decade ago, the state began allowing some contractors to buy back unpaid invoices from the state and then collect late fees. Under the program’s rules, participating companies must disclose any person or entity that has a financial interest in the program, according to the complaint filed by the law firm Michael Forde, former attorney for former Mayor Rahm Emanuel.
One of the companies that participated in the program was the Vendor Assistance Program, owned by Brian Hynes, a longtime political insider who worked closely with former Speaker of the House of Representatives Michael Madigan. The lawsuit says the Hynes Company and associated trusts purchased $5.7 billion in receivables through the state program, but assigned many of them to “a vast network of third parties” and granted “rights of profit sharing to individuals never disclosed to the State.”
Among those who received a share of the profits were former Democratic Sen. James DeLeo and veteran Republican lobbyist Nancy Kimme, according to the lawsuit. The complaint states that in 2018, VAP and associated companies entered into an agreement where DeLeo could receive 1% of these companies’ profits, which would allow DeLeo to earn hundreds of thousands of dollars over the next four years.
The companies entered into a similar agreement with Kimme, former chief of staff to Comptroller Judy Baar Topinka, in 2020, according to the complaint. Kimme had been registered to lobby on behalf of VAP for about two years, but her financial interests in the company were never disclosed to the state, the complaint says.
Because these benefit agreements were not disclosed, the state did not know who had a financial interest in the company, the complaint says. The company’s agreements and other conduct amounted to making false statements to the state, the lawsuit says.
“All of this is important because the State did not get what it bargained for in allowing VAP and the VAP Trusts to participate in the program,” the complaint states, adding that the State “was left in the lurch.” ignorance as to who was on the other side of the program.” his deals, including former officials and lobbyists.
The original lawsuit was already dismissed, but the plaintiffs filed an amended complaint last month that included allegations that DeLeo and Kimme were undisclosed beneficiaries of profits from VAP’s contract with the state.
A VAP spokesperson said in a statement that the plaintiffs “continue to peddle false accusations, despite the court’s decision and Illinois law proving that VAP has met all state requirements.”
“We look forward to the next steps that will help repair the plaintiffs’ damage to our reputation,” the company’s statement said.
Neither DeLeo, who left the state Senate in 2010, nor Kimme could immediately be reached for comment.
At a hearing at the Daley Center on Wednesday, Judge Jerry Esrig scheduled a Jan. 31 hearing on a motion to dismiss the amended complaint and said he hoped to rule the same day.
