Guilty plea in Chicago Medical School fund scandal
Another player has fallen to the feds in a scam involving political powerbroker Stuart Levine and the former Chicago Medical School.
John Glennon, who did bond work for CMS -- now known as Rosalind Franklin University of Medicine and Science -- pleaded guilty Monday to knowledge of misapplication of bond funds.
Glennon was himself a well-known politico, doing bond work for DuPage County and once running George Ryan's campaign fund.
The plea is a significant step back from what authorities had charged him with: three counts of knowledge of misapplication and making false statements to the FBI. They had also alleged in a court document Nov. 7 that Glennon had engaged in a "sham" marketing agreement as a way to disguise Levine and construction firm owner Jacob Kiferbaum's theft.
The charge of misapplication of bond funds is a highly technical one that even U.S. District Judge John F. Grady had trouble simplifying into plain language when Glennon, 55, of Lake Forest pleaded guilty Monday.
"Do I misunderstand the gist of this thing that he (Glennon) knew these two (Levine and Kiferbaum) were going to steal?" Grady said.
Prosecutors said it wasn't that simple.
Whereas before they had alleged Glennon received $700,000 for little or no work, they were no longer alleging that, saying that he "may" have done work for that money.
Previously, prosecutors said Glennon signed a "sham" consulting contract with Kiferbaum, who had built a $20 million addition on to a building at CMS.
Prosecutors acknowledged that although Levine arranged for the extra money to go to Glennon, it was ultimately for Levine's own benefit.
Grady was mystified as to how Levine profited from that.
"That may have to wait for another trial in another courtroom," answered prosecutor William Hogan.
That may be a reference to Levine's involvement in a state teachers pension board scam, which is being handled by another judge in the federal building.
All that can be said for certain is Levine's plea -- made in October 2006 -- references the fact that he knew he was not getting a cut of the $700,000 in the CMS scam.
While Glennon's sentencing has been postponed pending his full cooperation with federal prosecutors, they refused to detail what that cooperation could bring. But Glennon's plea does reference a new player in the CMS scam, an "Individual A," who was a CMS board member and aware of the $700,000 misapplication.
What prosecutor are still alleging against Glennon -- and what he pleaded guilty to -- is that his $700,000 wasn't channeled properly, was a crime by Levine and Kiferbaum, and that Glennon failed to report that crime.
The channel was improper because Glennon received the money from construction bonds, which regulations require be applied only to construction costs.
Kiferbaum has already pleaded guilty.