I have recieved numerous emails over the past few weeks about an ongoing investigation by the Illinois Review into Schaumburg Rep. Paul Froehlich’s actions concerning questionable fundraising and campaigning activities. In a state that has been rocked by a sitting governor allegedly auctioning a U.S. Senate seat and home to many public corruption scandals involving both political parties these types of allegations shouldn’t be treated lightly.

The evidence so far is handwritten notes from Rep. Paul Froehlich which suggest Paul asked for and received large donations from businesses who, with the help of Rep. Froehlich, received massive reductions on property tax bills.  But is that a crime?

Is this just really good constituent services or a pay-to-play scandal? I tend to believe Rep. Froehlich is performing valid constituent services, but it certainly is a becomes a grey area in he is accepting donations from those same entities. However, sources have told me that Paul Froehlich has a long standing history of facilitating assessment cuts for large numbers of people with no quid pro quo of any kind. It certainly is legal for representatives to assist constituents in obtaining more accurate/lower property tax assessments. If Froehlich perfoms this duty for all constituents who approach him on this subject, even ones with no prospect of assisting his political campaign, then it would appear no wrongdoing is taking place. Nothing so far in this investigation has suggested Froehlich only does this for big campaign donors or campaign volunteers. It will be interesting to see what comes of this investigation.

Even if there is no proven wrongdoing by Froehlich in this instance the investigation by the Illinois Review reveals two important issues: 1) The property tax system is fraught with error in accurately calculating tax assessments and property tax obligations and 2) the property tax appeals system system can be quite lucrative for those who learn to navigate the system.

The policy discussion should definitely be about how to make the assessment process more accurate so appeals are less necessary and the potential for corruption nonexistent.

Illinois Review stories below.

MONDAY, MARCH 30, 2009

FROEHLICH DENIES CAMPAIGN DONATION SWAP FOR LOWER RE-ASSESSMENT

lllinois Review has obtained documents that raise questions about a northwest suburban hotel owner’s 2008 in-kind contributions to Democrat State Rep. Paul Froehlich. On a printout of a Cook County Board of Review decision (right – click to enlarge), a handwritten memo dated July 8, 2008 describes a conversation between the writer and a “Bimal”, possibly the Comfort Suites Inn -Schaumburg owner Bimal Dositi, listed at the top of the report. Noting how Dositi would save $284,013 over three years after the ’07 property taxes on his Comfort Suites were appealed and lowered, the hand-written memo states: “I asked Bimal — and he agreed — to cover my sign bill ($12 K) and provide xxrooms for workers both in ’08 and in ’10.”

Rep. Froehlich denies he expected anything in return, although Illinois State Board of Elections’ records indicate Dositi’s Comfort Suites Inn donated to his 2008 House re-election campaign.

Continue reading “Froehlich denies campaign donation swap for lower re-assessment” »

WEDNESDAY, APRIL 01, 2009

FRIENDS OF FROEHLICH: PART 2

On Monday, Illinois Review revealed some “interesting” in-kind contributions made by a Schaumburg-based hotel owner to Democrat State Rep. Paul Froehlich’s 2008 campaign (see story here). Well, IR has obtained a second document showing another Schaumburg area hotel owner whose property was also favorably re-assessed and who also subsequently made in-kind contributions to Froehlich’s ’08 re-election campaign. The hotel this time is the Wingate by Wyndham Hotel, owned by Sharad Dani and located at 50 E. Remington Road in Schaumburg. Like the last document we provided, this one also has handwritten notes outlining how the hotel’s 2007 assessment would be lowered from $1,154,507 to $949,999, for a savings of $129,304.80 in property taxes over three years. (see above right – click to enlarge) Froehlich’s campaign reports show that Satkar Hospitality Inc, which is located at the same address as the Wingate (50 E. Remington Road), wrote a check to Heidner Property Management for $4,000.00 on Froehlich’s behalf. Why? Well, perhaps because Froehlich’s campaign office, located at 17 West Weathersfield in Schaumburg, is leased from Heidner Property Management. (see reports below)

Continue reading “Friends of Froehlich: Part 2″ »

FRIDAY, APRIL 17, 2009

FRIENDS OF FROEHLICH 3: CAMPAIGNING OR POLITICAL PRESSURE?

Scenario: You hear a knock at the door, and go to answer, seeing it’s someone with a clipboard. “Hi, I’m your state representative,” he says, ”and I wanted to stop by to let you know there’s an election coming up in a few weeks. I’m running for re-election, and hoped you’d support me. One of my big issues is helping homeowners make sure they’re not paying more than their fair share of property taxes. You’ve probably noticed your bill just went up. That’s because it was our section of the county’s turn for property re-assessments. It happens every three years.” He goes on: “As you know, our area is desirable to live in, and our home values have increased. So have our property taxes, as a result.

Continue reading “Friends of Froehlich 3: Campaigning or Political Pressure?” »

FRIDAY, APRIL 17, 2009

FRIENDS OF FROEHLICH 4: A KNOCK AT THE DOOR

Almost verbatim to the scenario scripted in Part 3 of Illinois Review’s ”Friends of Froehlich series,” a Schaumburg woman says she was surprised when she heard a knock at her door yesterday (4/16/09), and the person standing there was someone she’d read about online. “I couldn’t believe it”, said Linda Young of South Cedarcrest Court. “[State Rep.] Paul Froehlich stood at my door with a clip board in hand and said he was our state representative, and was visiting people in his district because the Illinois House wasn’t in session this week. Continue reading “Friends of Froehlich 4: A Knock At The Door” »

FRIDAY, APRIL 17, 2009

FRIENDS OF FROEHLICH 5: FRIENDLY VISIT OR INTIMIDATION?

Over the past six days an individual who is a key source for our stories on State Rep. Paul Froehlich has had three unannounced and unexplained visits from the Cook County state’s attorney office. It is unknown whether there is a connection. However, it doesn’t seem to be coincidental. The first visit occurred on Saturday April 11 at 10:00 am. A full-sized black car pulled into our source’s driveway, and a man came to the front door and knocked several times. After no answer he got back into the car and drove away. No information or identification was left in the door. The second visit was Monday April 13 at 7:20 pm. The same car with municipal plates entered the person’s driveway. It was driven by the same man. This time, however, he was accompanied by a woman. They both approached the front door and again knocked at least ten times according to our source. The man is reported to have yelled, “We know you’re in there, ******* (person’s name). Answer the door. I have credentials!” Continue reading “Friends of Froehlich 5: Friendly Visit or Intimidation?” »

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