Testimony Returns to Eddie Acevedo’s AT&T Contract as Defense Case Underway in Michael Madigan Corruption Trial

Ex-lobbyist Mike McClain, left, longtime confidant to former House Speaker Michael Madigan, right, are pictured in previous appearances at the Dirksen Federal Courthouse in Chicago in relation to their public corruption trials. (Andrew Adams / Capitol News Illinois) Ex-lobbyist Mike McClain, left, longtime confidant to former House Speaker Michael Madigan, right, are pictured in previous appearances at the Dirksen Federal Courthouse in Chicago in relation to their public corruption trials. (Andrew Adams / Capitol News Illinois)

AT&T Illinois execs agreed to hire former state Rep. Eddie Acevedo — an ally of Michael Madigan — as a consultant in 2017, but that decision likely wouldn’t have been made if not for a request from the powerful House Speaker’s right-hand man as the phone giant sought to pass crucial legislation in Springfield.

That’s according to testimony from Steve Selcke, a retired AT&T Illinois lobbyist who was on the witness stand Thursday morning in the ongoing racketeering trial of Madigan and his longtime confidant Michael McClain.

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The prosecution formally rested its case Wednesday morning, and Selcke marked the first and only defense witness called by McClain’s defense team before they too rested their case Thursday morning. McClain officially waived his right to testify Thursday evening and will not take the witness stand in his own defense.

Madigan, who is charged alongside McClain, is alleged to have orchestrated multiple corruption schemes, wielding his political power to reward loyal allies and enrich himself. Both men are each charged with racketeering, bribery and wire fraud and each have pleaded not guilty.

One of the alleged schemes Madigan and McClain are accused of setting up involved arranging for AT&T Illinois to pay Acevedo in exchange for the speaker’s support on legislation crucial to the phone company.

Between 2017 and 2018, records show Acevedo collected $22,500 in indirect payments from AT&T Illinois, which prosecutors allege stemmed from no-work contracts arranged by McClain at Madigan’s request as Acevedo was a key Madigan ally in the General Assembly’s growing Latino Caucus.

The jury has already heard from former AT&T Illinois contract lobbyist Tom Cullen, who testified about agreeing to be the intermediary for the company’s $2,500-per-month payments to Acevedo for nine months beginning in mid-2017. Cullen testified that AT&T increased the size of Cullen’s monthly retainer, and he cut Acevedo a check each month.

Prosecutors have shown jurors emails spanning from early 2017, when AT&T’s top legislative priority bill — carrier of last resort, or COLR, relief— was pending in the Illinois House. Until it received that relief, AT&T was required to provide landline service to any customer who requested it throughout Illinois.

In one email from Feb. 14, 2017, McClain asked an AT&T official whether there was “even a small contract” for Acevedo. Two days later, McClain told La Schiazza that Madigan had assigned him to work on the AT&T legislation as a “Special Project.”

On March 28, 2017, La Schiazza allegedly confirmed that AT&T had gotten the “GO order” to hire Acevedo — which prosecutors claimed was a directive from Madigan, given through McClain — and directed his employees to “move quickly to get this done.”

Selcke on Thursday told jurors he was aware of Madigan’s standing as the most powerful legislator in the state and knew he had the power to stop bills in their path in the General Assembly. So when they were asked to hire Acevedo — a request made by McClain on Madigan’s behalf — they did so to avoid any issues securing COLR relief.

“We wanted to stay on as neutral ground as possible,” Selcke testified, later adding that at “that particular point in time, I don't believe that we would have” hired Acevedo if not for the request from McClain.

Selcke on Wednesday that a pair of GOP House members had warned that hiring Acevedo as a lobbyist might hurt AT&T’s hopes for a bipartisan vote on a COLR bill. At the time, consultants did not need to publicly register like lobbyists did, which is why Selcke suggested the company retain Acevedo as a consultant instead.

According to Selcke, AT&T Illinois execs were not otherwise looking to hire Acevedo, saying that contract was not something they had “proactively suggested.” Even so, the company agreed to offer Acevedo a contract.

When doing so in 2017, Acevedo’s first question wasn’t about any work he’d be doing, but rather what pay he’d receive. When told it would be $2,500 per month, he became “somewhat agitated and upset,” according to Selcke.

“He expressed a feeling, I believe, that he deserved a higher level of compensation than what we were offering,” he testified.

Selcke noted that he’d previously described Acevedo’s response as “borderline unprofessional,” and their meeting came to an abrupt end.

Acevedo had sought at least $3,000 per month, but he did ultimately agree to the initial $2,500/month offer in April 2017. But even as that occurred, AT&T leaders weren’t yet sure what work Acevedo would be doing for them.

“No finalized approach had been done, was my understanding,” Selcke said.

Eventually, Acevedo was assigned to complete a report for AT&T Illinois on his former colleagues in the Latino Caucus, but Selcke said he has no idea whether “Eddie produced a report or didn't produce a report.”

The COLR relief legislation did eventually pass in July 2017, which Selcke said was viewed as a major victory for AT&T.

Selcke on Wednesday insisted neither he nor any of his colleagues believed hiring Acevedo had any bearing on the passage of a bill AT&T had been working on for the last six years, except to avoid “rocking the boat” with Madigan’s office.

He also insisted that AT&T execs had not sought to trade that contract arrangement with Acevedo in exchange for COLR relief.

Thursday is expected to be the final day of testimony in the monthslong trial for the year. Court proceedings will pause next week during the Christmas holiday and only attorneys will be present Dec. 30 for a jury instruction meeting before testimony resumes following New Year’s Day.

Capitol News Illinois contributed to this report.


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