Troutman faces new indictment - 13 federal counts added in alleged payoff schemes

Troutman faces new indictment - 13 federal counts added in alleged payoff schemes
By Ray Gibson and Todd Lighty
Copyright © 2007, Chicago Tribune
Published July 12, 2007

Former Chicago Ald. Arenda Troutman hung out a virtual for-sale sign at her 20th Ward office, demanding cash payoffs from developers and others in return for her support on zoning changes, building permits and the sale of city-owned real estate, a new federal indictment charged Wednesday.

Troutman agreed to write a letter of support for one developer's project as she simultaneously handed him tickets for her "Masquerade Ball" political fundraiser in late 2003, prosecutors alleged. "You just bought some tickets," the indictment quoted her as saying. The developer won Troutman's support for his project after he contributed a combined $5,000 to her campaign funds, the charges alleged.

The indictment charged that Troutman or one of her political committees took in more than a combined $60,000 in payoffs for greasing the way for City Hall approval on various projects in her South Side ward.

In two instances, Troutman denied support to business people who refused demands to raise or make campaign contributions on her behalf, the charges alleged. One of them had wanted to convert a building to housing for low-income families, prosecutors said.

Troutman originally was charged in January with taking bribes to grease one development in her ward. Wednesday's indictment added a half dozen new allegations of shakedowns between early 2002 and early 2007. In addition, Steven Boone, a former Troutman aide, and South Side businessman Vincent Gilbert were indicted for the first time in the case.

Troutman was indicted Wednesday on 13 counts of extortion, bribery, mail fraud and income tax evasion. Boone was indicted on four counts of bribery, mail fraud and lying to the FBI, while Gilbert was charged with a single count of extortion.

Troutman pleaded innocent to the initial federal bribery charge. Her attorney, Sam Adam Jr., who couldn't be reached Wednesday for comment, has strenuously denied any wrongdoing.

Reached Wednesday evening on her cell phone, Troutman, who lost re-election in February after the initial charges, said she was driving and could not talk. Asked to comment about the new indictment, Troutman said, "I haven't heard about that." She then hung up.

Troutman had been in the spotlight in 2004 for her association with Black Disciples gang leader Donnell "Scandalous" Jehan, a fugitive wanted on federal drug charges.

Boone, who lost election to the Illinois House in 2002, now works for the city of Chicago as a staff assistant in the Department of Housing. Both he and Gilbert, a former political adviser to Troutman, did not return calls seeking comment.

Wrongdoing denied

But in interviews earlier this year with the Tribune, both Boone and Gilbert denied any wrongdoing. "It all sounds wild to me," Boone said then. "I have not known her to do anything wrong. It's quite shocking."

"My involvement with the alderman has been a positive one," said Gilbert, a former district director to U.S. Rep. Gus Savage who worked in consumer services for Mayor Harold Washington's administration. He said he was a founding member of the African American Contractors Association and was himself a developer in the 20th Ward.

According to the charges, Troutman introduced one developer to Gilbert and said she would support the developer's real-estate project if he made Gilbert a partner on the project despite his having little experience.

What Troutman and Gilbert did not realize was that the developer was working undercover for federal authorities. As part of his undercover work, the developer entered a consulting contract with Gilbert.

In July 2005 when the developer handed a $5,000 check to Gilbert, Gilbert is alleged to have replied, "When I'm happy, the alderman's happy."

Developer balks

When the developer balked at making Gilbert a partner, however, Gilbert warned that Troutman wouldn't support his project.

At a meeting later that year, Troutman allegedly told the developer what was at stake. "You're in business, you want to make money, and I have to have money in order to survive," Troutman was quoted in the indictment as saying. "I got to think about something after this. You know what I'm saying?"

Because of the developer's conflict with Gilbert, Troutman suggested that instead her brother be hired on the project, the indictment alleged. "And then, I'm paid through him, see? So, maybe we'll do it like that," she allegedly said.

The developer declined to make the brother a partner in the project, and Troutman no longer discussed the project with the developer, the charges alleged.

As part of the scheme, Troutman was accused of using a corporation called the 20th Ward Women's Auxiliary to conceal the payoffs to her and staffers from developers.

Troutman kin implicated

The indictment charged that an undisclosed Troutman relative withdrew tens of thousands of dollars in cash from the auxiliary and that none of the funds were ever accounted for in required reports for not-for-profits or political committees.

According to the indictment, Troutman pocketed $20,000 after she intervened with city officials and the Cook County Circuit Court to halt the demolition of a building that she and an undisclosed partner wanted to buy from its owner.

One of the owners acceded to the demands because he feared Troutman would withhold her support for other of his projects in her ward, prosecutors charged.

Land records show that in January 2004, Mildred Bradley, one of the owners who was sued by the city in the demolition case, sold the building to a secret land trust for $60,000. The indictment noted that as part of a mail fraud count that Bradley received a court order blocking the demolition of the property. She could not be reached for comment.

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rgibson@tribune.com

tlighty@tribune.com