Prospect Hts. developer charged in Chicago payoff probe

A Prospect Heights developer was one of 15 people charged Thursday in an investigation of payoffs to Chicago city officials, some through a "bagman" who was actually working undercover for the government.

Petru Cladovan, 48, of Prospect Heights was accused of giving $2,000 on Aug. 7, 2007, to a criminal informant with the intention that it be passed along to city inspectors to bribe them to issue a certificate of occupancy for a building Cladovan owned at 2754 W. Washington Blvd. in Chicago.

Cladovan was one of nine contractors charged in addition to six city employees.

"The picture painted by the criminal charges filed today shows sadly that the permit process in Chicago is governed by a separate set of rules for those who pay to corrupt the system," U.S. Attorney Patrick J. Fitzgerald said in a statement.

The bribes were paid in exchange for special treatment in building, zoning and related permit matters, prosecutors said in a statement.

Prosecutors said that in most cases, the bribes were paid through a so-called expediter whose job was to take permit applications and other construction matters to the city on behalf of homeowners and developers.

The expediter was pretending to be a bagman or bribe carrier but actually was working as a cooperating witness for federal investigators, prosecutors said. They said this person took part in meetings and recorded phone calls to collect evidence.

The name of the cooperating witness was not made public. But prosecutors said the witness has implicated a total of 30 people.

Prosecutors said the witness has not yet been charged with a crime but knows that he or she will eventually be charged.

Government officials said they worked on the case with the city's inspector general, David Hoffman, a former federal prosecutor.

The well-regarded Hoffman's appointment and continued work as inspector general has been seen by some as an index of how serious city officials are about ending corruption that has long plagued Chicago.

The charges were filed as part of an ongoing federal investigation dubbed Operation Crooked Code. A similar batch of charges was brought last year.

In addition to Cladovan, those charged Thursday hailed from Chicago, Skokie, Lincolnwood and Morton Grove. Cladovan could not be reached for comment Thursday.