Don't Miss This
CHICAGO (CBS) — The federal government has taken over a company with ties to the son of retired Mayor Richard M. Daley.
As WBBM Newsradio 780′s Debra Dale reports, Cardinal Growth LP borrowed nearly $51 million from the U.S. Small Business Administration over the past decade, but only paid back about $30 million, the Chicago Sun-Times reported.
The federal government has filed a lawsuit to liquidate the company.
LISTEN: Newsradio 780′s Debra Dale reports
The Sun-Times reported Monday that the firm was operated by attorney Robert Bobb Jr. and accountant Joseph McInerney, who was a close friend of retired Mayor Daley’s son, Patrick Daley.
The Sun-Times reports Cardinal-owned businesses won some lucrative city contracts, and that Patrick Daley had a stake in some of those businesses. The newspaper reports further that from 2002 to 2009, Daley was paid more than $1.2 million by the firm.
Some of those payments to Patrick Daley involved transactions with City Hall, including a payout of about $709,000 after Cardinal sold the company Concourse Communications after it won a contract to install wireless service at the city’s airports.