Law firm refunds money to Kane County for work Lauzen ordered

Newly released documents show the law firm involved in an improperly awarded contract by Kane County Board Chairman Chris Lauzen has repaid every taxpayer dollar it received. However, the relationship between Lauzen and the law firm continues.

Copies of checks and corresponding letters distributed to Lauzen, the state's attorney's office, the county finance and treasurer's departments and the Schain, Banks, Kenny & Schwartz law firm show $40,000 returned between July and October 2016.

The last payment from the Chicago firm was about a month after a letter from the state's attorney's office indicated Lauzen put taxpayers on the hook for up to $95,000 in legal fees without getting approval by the county board or the state's attorney's office. The letter also cited an apparent effort by Lauzen and the firm to change the terms of the contracts after the state's attorney's office began asking questions so as to bring the deals in line with state law and the county purchasing ordinance.

In a mid-October letter, the firm handed over nearly $12,000 from retainers to perform the work Lauzen requested. It involved research on the legalities of leasing utility pole space for cellphone amplification devices, monetizing the county's fiber optic network and luring a waste-to-fuel facility to the county.

Lauzen has defended hiring the firm as a necessary consequence of receiving what he said was faulty legal advice from the state's attorney's office about the projects. The state's attorney's office says it never weighed in on the legality of the projects. The illegality of the hiring of the law firm is not in dispute.

“At the time the fees were billed by the law firm, it was believed there was appropriate authorization for the work which was requested and performed and that payment was properly made,” reads the letter from the firm. “We now understand authorization was not correctly obtained, or is at least disputed. In either case, the firm wishes to return the fees which it was paid by the county. It is best to return fees which are in dispute.”

The return of the money is significant as it appears to remove any actual harm resulting from Lauzen's actions, blunting the need for any further investigation. In an unusually long explanation, the Kane County state's attorney's office refused to either confirm or deny the presence of any investigation.

“Receipt of a request to open an investigation are not publicly acknowledged,” reads the office's statement. “Such requests are referred to the proper investigative agency for review and investigation, but no decisions are made at that time as to whether to proceed on the specific request.

“When the state's attorney's office forwards a matter to a law enforcement agency, we are not concealing information. We are simply following the long-standing policy and practice that we will refrain from publicizing nonpublic information. Our silence should not be interpreted as confirmation or denial of an inquiry or investigation.”

The release of the documentation showing the refund coincides with an email sent by Jerry Schain of the Schain, Banks law firm showing an ongoing relationship with Lauzen. The email markets a June 15 Chicago River cruise fundraiser for Lauzen. Tickets range from $500 to $5,000.

“We are asking anyone who appreciates what Chris has achieved to consider contributing to his re-election efforts,” Schain wrote. “With Chris' help, Kane County can continue to put citizens first and hold the line on taxes.”

Lauzen said Schain's letter is just another nice deed Schain is doing. Lauzen was re-elected last November. He said he hasn't decided on running for a third term.

“But I certainly will be prepared to run again,” Lauzen said. “And I appreciate that vote of confidence from Jerry. I think he was treated roughly in this controversy about the help he provided. It's just awfully nice of him to send that letter.”

Asked if he's bringing on Schain as a paid consultant for his re-election, Lauzen said there is no re-election team. He would neither ask for nor accept any campaign contribution from Schain.

“He doesn't need this money,” Lauzen said. “There are some people who place reputation at least on the same level, or even above, money. Jerry Schain is a brilliant guy. He has a sparkling reputation that he enjoys in northern Illinois.”