OIG Releases First Quarter 2018 Report

FOR IMMEDIATE RELEASE: April 16, 2018
PRESS CONTACT: Natalie A. Kuriata, (773) 478-8417

OIG Releases First Quarter 2018 Report

The City of Chicago Office of Inspector General (OIG) has released its first quarter report for 2018 to the City Council. The report summarizes the Office’s activity from January 1, 2018 through March 31, 2018.

This quarter’s report contains summaries of concluded OIG investigations, inquiries, and other activities, including:

  • An OIG investigation established that a Department of Cultural Affairs and Special Events director-level employee engaged in aggravated battery of a security guard and repeatedly sexually harassed two security guards during work hours on City property. As a result of OIG’s findings and recommendations, the employee resigned in lieu of discharge.
  • A summary of OIG investigations concerning Department of Water Management (DWM) employees and supervisory personnel who used City resources to transmit racist, bigoted, and misogynistic emails, which included offensive jokes, racial slurs, and sexually explicit photos. As a result of OIG’s findings and recommendations this quarter, one employee resigned in lieu of discharge, one employee was discharged (and is currently appealing the termination), and one employee was suspended for five days. To date, OIG’s findings and recommendations include: five DWM employees recommended for discharge, including four supervisory employees; one supervisory employee recommended for suspension; and one supervisory employee that was designated as having resigned under inquiry.
  • An OIG investigation, conducted along with the Illinois Attorney General, resulted in the arraignment of John and Natalie Balzano, who defrauded the City of nearly $1 million by generating false invoices for car wash products through the Minority and Women-Owned Business Enterprise Program. In connection with this case, two additional individuals under contract with the City, Clyde Williams and Kurt Koziol, were ordered to pay restitution of $22,280.51 and $8,637.24, respectively. Additionally, Williams and Koziol were permanently barred from doing business with the City of Chicago.
  • An OIG investigation established that a Chicago Police Department (CPD) deputy chief and a CPD lieutenant engaged in and supervised a preferential treatment scheme to reserve and provide free street parking for offduty law enforcement officers and their friends and family attending events at the United Center. As a result of OIG’s findings and recommendations, CPD reprimanded the deputy chief and declined to discipline the lieutenant that “followed the directions of the deputy chief in good faith.” CPD’s Bureau of Investigations reviewed other CPD members who received preferential parking but established that these CPD members did not believe the parking to be unauthorized or in violation of the law. Finally, CPD issued an administrative message to all CPD members reminding them that arranging, providing, or utilizing courtesy parking on the public way is prohibited and may result in disciplinary action

The full Quarterly Report can be found online at the OIG website: bit.ly/OIG2018Q1

Follow OIG on Twitter @ChicagoOIG for the latest information on how OIG continues to fight waste, fraud, abuse, and inefficiency in Chicago government.

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The mission of the City of Chicago Office of Inspector General (OIG) is to root out corruption, waste, and mismanagement, while promoting effectiveness and efficiency in City government. OIG is a watchdog for the taxpayers of the City, and has jurisdiction to conduct investigations and audits into most aspects of City government. If you see corruption, fraud, waste or dishonest practices of any kind, let us hear from you. For more information, visit our website at: www.chicagoinspectorgeneral.org