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Gov’s office says Gregg lied
HARRISBURG – Nearly three years after his indiscretions were brought to the public regarding the viability of his holding of the position, former Harrisburg mayor Eric Gregg is no longer a member of the Illinois Prisoner Review Board (PRB).
Gregg was removed from the $86,000-a-year state position, which he’s held since April 26, 2013, on Friday, October 2, 2015, by Governor Bruce Rauner a few months after Rauner’s office opened an investigation into Gregg following discrepancies Gregg listed in his 2014 bankruptcy.
Disclosure, discovering Gregg’s Chapter 13 (restructuring/repayment) bankruptcy in December 2014, covered the matter in full in the January 2015 Special Edition and at that time sent a notice to the Rauner campaign/transition team (as he had just defeated former governor Pat Quinn in the November election and had not yet taken office) that there had been many spurious issues surrounding Gregg’s seat on the PRB.
Several months later, the bankruptcy of another PRB member, Vonetta Harris from the Metro-East area of Illinois, caught the attention of the Belleville News Democrat, and members of that newspaper also contacted the governor’s office asking about both Gregg and Harris.
Whether the primary question of “how state employees making more than twice the average pay of a privately-employed citizen could fall into bankruptcy” was posed by that paper or not is unknown.
However, repeated inquiries by first Disclosure and then the BND apparently prompted the investigation into not only Gregg’s bankruptcy filing, but into other doings within the PRB…which resulted in the resignation of the board’s former chairman Adam Monreal, one of the people who, when Disclosure was investigating Gregg’s appointment in 2013, was helping to obscure information or outright withholding it about the legality of the former mayor’s placement on the board.
Governor’s office advised months ago
In late December of 2014, Disclosure advised the Rauner transition team that Gregg was lying in his Dec. 22 bankruptcy paperwork, as was pointed out in the January 2015 front-page article, which appeared on stands December 30.
Informing the governor-elect that one of his PRB members had not only lied on the bankruptcy paperwork, but had lied on his application for employment in the state, Disclosure asked Rauner’s staff whether or not he had the option of “wiping out the Blagojevich and Quinn appointees on the PRB and replacing them with his own picks.”
Disclosure never received an answer from the governor or any staffer, and so believed that the Rauner administration might not’ve been any more interested in Gregg’s duplicity than the previous administration was.
In the article, Disclosure pointed out that Gregg deliberately did not place on his bankruptcy petition “all other names used by the debtor in the last 8 years, including trade names,” as required by law. Gregg listed only “formerly doing business as Southern IL Energy Group.”
Documents Disclosure obtained via FOIA in June of 2013 during the investigation into Gregg holding the position on the PRB in violation of state statute (which states that a PRB member must not hold any other position elected or appointed, nor have any other source of income or compensation in any form) show that the name of the company Gregg incorporated and sold energy aggregate to local entities under was “MidAmerican Energy Services.” On his resume to the state senate, through which he applied for the PRB position, he also listed “CenterPoint Energy Services” and indicated that he held a job as “Eric E. Gregg Consulting Services.”
The issue of the additional income
The fact that Gregg was receiving income from various sources while holding the position on the PRB from time of appointment until at least July 8, 2013 was also part of the genesis of the investigation conducted by Disclosure.
This paper learned that not only was Gregg holding the PRB position illegally as long as he was mayor (which he resigned on that July 2013 date) but that his income from the energy aggregate company had still been coming in until mid-June 2013, when he switched ownership of the company to his wife, Patti.
As well, he was reportedly receiving income from two other sources: The Saline County Industrial Commission, which sources within that agency confirmed in June 2013 that Gregg received compensation of about $25,000 annually; and, from the local radio station in Harrisburg, where he had a morning show for which, it was reported to Disclosure, he sold ads and benefited from a portion of those in order to keep the show on the air.
None of this was reported on Gregg’s application for employment through the state when he applied for the PRB position in 2012.
As required by law on the application, Gregg was supposed to have listed all jobs/positions in the previous calendar year (2011) that provided any income.
Greg listed only his $800-a-month income from holding the position as mayor of Harrisburg.
Quinn didn’t care
Disclosure informed the Quinn administration of this disturbing set of facts in 2013 when it was all uncovered via Freedom of Information Act requests, which FOIA’d material also turned up the actual application itself.
Quinn, naturally, paid no attention to the repeated inquiries Disclosure was making.
Disclosure also repeatedly attempted to reach Ken Tupy, legal counsel for the PRB, as well as all other members of the PRB as listed on the agency’s website (which included Monreal), and contacted every member of the Senate Approval Committee, which confirms or denies gubernatorial appointments to the various agencies within the state.
Only a few responded to the inquiries; among these were Sen. Tim Bivens, who voiced his dismay that Gregg had so blatantly lied on his application and no one seemed willing to give this the time of day.
Bivens also turned information over to Bill Brady, who in 2014 ran for the office of governor as a Republican in the Primary election, eventually losing out to Rauner.
Disclosure spoke with Brady in early 2014 at an event, and was told that he was examining what could be done about people who filed fraudulent applications for employment with the state…but nothing much more was done about it.
That is, until Gregg’s bankruptcy.
Objection hearing
Within a few months of filing, things began to heat up for Gregg.
During a March 18 objection hearing for the bankruptcy, LuAnn Walker, the Harrisburg woman who was in partnership with Gregg in his energy aggregate venture in 2011-12, argued her objection to Gregg’s petition for consolidation of debt under the bankruptcy.
His consolidation plan effectively entailed that he not pay back any of the $10,000 she claimed Gregg owed her, this as outlined in a Saline County civil suit she was forced to file in 2012 when the two “wrapped up their partnership” in the energy business venture.
Walker claimed at that time that Gregg took money owed to her through her work for his energy company and deposited it into a personal account of his, basically stealing wages from her.
The case has dragged through Saline County’s civil court for years now with nothing meaningful being done in it except to show that Gregg can’t keep any attorneys…likely because he can’t pay them.
During the March 2015 federal bankruptcy hearing, it was brought into question that Gregg had falsely filed certain details in his bankruptcy, as already listed in this article, which include false information on how much money he had coming in.
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Gregg gave testimony regarding discrepancies in the disclosures of financial assets and liabilities, stating that his wife’s income was what was making it appear as though he was making $48,000 annually more than what his state salary was.
Patti Gregg, however, was listed as a “non-filing spouse” on the bankruptcy…so her income, as such, could not be taken into consideration. Therefore, Gregg was caught in the situation of “were you lying then or are you lying now?” when he stated that he would have Patti listed as a bankruptcy filer in order to rectify the mistake.
Therefore, it appeared, he couldn’t make up his mind as to which time was a lie…a typical state of things for Eric Gregg.
Gov’s office reminded of Disclosure’s earlier inquiry
It’s unclear as to whether it was the Walker camp, via her attorney Michael Twomey, who ultimately contacted the governor’s office to further enlighten them as to one of their agency’s employees.
The BND would like to take full credit for getting the Gregg investigation kicked off, but Disclosure has been advised that it was going full force long before the BND got involved in mid-August 2015.
Confirming the status of the investigation on August 23, Disclosure staffer Angela Howser reminded the governor’s office of the late-December 2014 email to them and their question regarding whether Rauner now had the option of “wiping out” Quinn appointees such as Gregg, also reminding them that Disclosure had a host of FOIA’d documents pertaining to proof of Gregg’s inability to tell the truth, including material on his energy aggregate companies, as well as contracts with local entities such as the Harrisburg School District (something else Gregg lied about on his application to the Senate, wherein he was to disclose whether or not he’d been under contract with any state agency in the previous calendar year).
Disclosure also reminded the governor’s office that the paper was in possession of the full application, with specific falsehoods highlighted for ease of reading and determination that they were, indeed, falsehoods.
Rauner’s staffer Katherine Kelly advised Disclosure that the administration was interested in any and all material, and Howser forwarded that along, including all articles produced by the paper on the fraudulent acts/statements Gregg had engaged in over the past several years.
Bye Felicia
A week and a half later, Gregg was out.
Per a statement from the governor’s office, the basis for the ouster was “false statements made on a bankruptcy filing.”
This in and of itself could spell something worse for Gregg than a restructuring bankruptcy.
In October of 2014, an Eldorado couple in their 60s, Gary and Lucy McGill, were sentenced after pleading guilty earlier in the year to making false statements on their bankruptcy in the same federal court system where Gregg’s is taking place (Benton).
The McGills had filed a Chapter 7 bankruptcy in 2009. The McGills opted not to disclose money they’d been paid in the settlement of a couple of lawsuits ($22,000), falsely stating that that amount in two accounts in Mrs. McGill’s name actually belonged to her sister. Further, Mrs. McGill admitted that she’d created fake receipts to show that the money was her sister’s, not hers. As well, they concealed the fact that they’d given their son cash gifts that year in the amount of $6,800.
That amount of money – $28,800 – is considerably less than the amount of money Gregg is trying to say wasn’t “his” in his bankruptcy paperwork, but was actually “his wife’s.”
Federal bankruptcy courts take this kind of prevarication very seriously. Discharging of debt in a Chapter 7 costs all consumers and taxpayers alike – consumers in the form of higher costs of doing business with credit card companies and other credit agencies; taxpayers in the form of increased expenses associated with the court system itself, including increased caseload and objection hearings the likes of which Walker called in March in Gregg’s bankruptcy, wherein she took issue with discharge of a “debt” which hadn’t even been litigated in Saline County yet.
The federal system took it so seriously in the McGill’s case that the two were sentenced to two years probation, four months’ home confinement on electronic monitoring, 20 hours of public service, and fines of $1,000 each.
No charges have been filed by the feds in Gregg’s case. It appears, however, that that’s a distinct possibility.
Don’t lie to officials
But further will be the state’s investigation into the false statements Gregg made on his 2012 application to the Illinois Senate for the position on the Prisoner Review Board.
As Disclosure pointed out in a July 2013 article about Eric Gregg’s duplicity at that time, the penalty for lying on the Senate appointee resume is stated next to the signature block on the form: “I understand that the penalty for willfully filing a false or incomplete statement shall be a fine not to exceed $1,000 or imprisonment in a penal institution other than the penitentiary not to exceed one year, or both fine and imprisonment.”
While that’s the definition of a misdemeanor, an argument might well be made for an upcharge to a felony if Official Misconduct can be proven in the course of the 13 weeks Gregg held an office against state statute that proscribes PRB appointees.
Disclosure has learned that the local state’s attorney (Mike Henshaw) doesn’t have to be involved in this matter. If the governor’s office wants to pursue charges against Gregg over the case, they can simply call upon the Attorney General’s office to step in and handle it all.
As of press time (Oct. 4), there has been no indication of any charges being considered. However, none of it is out of the realm of possibility. And if Rauner is serious about “turning around” Illinois, he’ll send a strong message to those who subvert the law and lie with impunity, all while on the taxpayers’ dime – that it won’t be tolerated, no matter who you are or who is pulling strings on your behalf.