From the Chicago Tribune

Hispanic legislative group fails to register
By Ray Gibson and Laurie Cohen
Tribune staff reporters
Published October 15, 2004
For two years, a foundation formed by the Hispanic members of the state legislature ignored state law and failed to register with Illinois regulators.
State Sen. Miguel del Valle acknowledged that the group, which has raised $55,000, failed to register with the state and file the required reports.
"Whatever filings we have to do, we'll do," said del Valle, president of the Illinois Legislative Latino Caucus Foundation.
A spokeswoman for the office of Illinois Atty. Gen. Lisa Madigan, which regulates charities and foundations, said that the group will be subject to fines and late filing fees.
In Illinois and other states, charitable organizations are required to register and file annual reports with state regulators so that potential donors have access to information about their fundraising and expenditures.
State campaign records show the group raised the $55,000 from various Illinois political committees and candidates. Its chief benefactor was the Hispanic Democratic Organization, the powerful political group headed by lobbyist Victor Reyes, a former top aide to Mayor Richard Daley.
The foundation's board of directors includes all the state's Hispanic legislators, as well as a number of Hispanic entrepreneurs. Also on the board is controversial lobbyist Alfred Ronan, who is not Hispanic.
The group's lawyer is Jesse Ruiz, whom Gov. Rod Blagojevich named last month to chair the newly reconstituted Illinois State Board of Education.
His role in the group was touted in the governor's news release announcing his appointment.
Ruiz said he advised the group to register with Madigan's office.
"Lawyers can advise clients, but they cannot make them do anything," Ruiz said.
Melissa Merz, a spokeswoman for Madigan, said another legislative group, the Illinois Legislative Black Caucus Foundation, also failed to register with the attorney general.
Both Ruiz and del Valle blamed the snafu on an unnamed accountant who they said was working for free. They said they have since hired an accountant.
Del Valle said the group awarded 13 scholarships worth $2,000 each last December at an awards banquet. The scholarship winners were chosen by the legislators, he said.
He said the group's board meets quarterly and that Ronan, despite his position as a director, has never attended a meeting. Del Valle said each of the legislators selected another individual to serve on the board and Ronan was the choice of state Rep. Maria Antonia "Toni" Berrios, a Chicago Democrat.
Ronan's firm, Ronan Potts LLC, admitted last month playing a role in a multimillion dollar bid-rigging scheme. It was placed on 2 years of probation and paid a $350,000 fine, and ordered to forfeit $67,000 in fees.
Ronan has not been charged with any wrongdoing in the case, but a vice president of the firm, Julie Starsiak, pleaded guilty to charges that she passed on confidential bid information on the expansion of McCormick Place to a client of the firm.
Ronan could not be reached for comment.
"We notified the caucuses that they must [register] as soon as possible and come into compliance with the registration and reporting requirements," said Merz