Robert Bobb Jr. Blue Islands very own

Robert Bobb Jr. Blue Islands very own

Posted in the Dixmoor Forum

Larry

Orland Park, IL

#1 Jun 27, 2011
Federal government takes over fund with ties to Daley’s son, Patrick

Between 2002 and 2009, Patrick Daley (shown in May) was paid more than $1.2 million by Cardinal Growth L.P. and its general partner, Cardinal Growth LLC.|
Former Mayor Daley will get back all of his pension contributions within 26 months

A Chicago venture capital fund whose projects paid more than $1.2 million to former Mayor Richard M. Daley’s son has been taken over by the federal government, which says the fund owes taxpayers $21.4 million.

Cardinal Growth L.P.— which was run by attorney and former federal prosecutor Robert Bobb Jr. and accountant Joseph McInerney, a close friend of Daley’s son, Patrick Daley — borrowed nearly $51 million from the U.S. Small Business Administration over the past decade but has been unable to repay $21.4 million, court records show.

U.S. Attorney Patrick Fitzgerald filed the civil lawsuit on behalf of the federal agency on June 15. The SBA is seeking to liquidate Cardinal Growth L.P. because of mounting losses that threaten the fund’s ability to repay the taxpayer money it got from the agency.

The venture capital fund agreed to be liquidated, acknowledging that it has mounting losses.

“There’s been significant write-downs on the portfolio,” says Alan B. Roth, its attorney.“If a company is not performing well, you have to write down its value.’’

A federal judge approved the plan last week, removing Bobb and McInerney as the fund’s general partners and ordering them to turn over their records to the SBA.
De Nial

AOL

#2 Jun 27, 2011
The feds are now watching fund projects much more closely; in an effort to catch/stop the next ponzi scheme. It's agreed Bernie should have never been able to get away with his scheme for so many years.
Henry

Berwyn, IL

#3 Jul 2, 2011
Is he the same Robert Bobb that went to D.D.E.?
Romey

Chicago, IL

#4 Feb 25, 2012
Sewer company boss: I was told to hide Daley son’s role
By TIM NOVAK Staff Reporter
The owner of a sewer-inspection and cleaning business admitted Friday that he lied to federal agents when they asked him why he failed to tell City Hall that his company’s investors included the son and a nephew of then-Mayor Richard M. Daley.
At first, when he spoke with investigators on March 10, 2008, Tony Duffy blamed his own “carelessness and negligence” for omitting the names of Patrick R. Daley and Robert G. Vanecko from the ownership documents that Municipal Sewer Services was required to file with City Hall to get millions of dollars worth of city business.
But that was a lie, according to Duffy. He now says he didn’t know at first about Daley and Vanecko’s involvement. He says that, when he found out, he went to Joseph M. McInerney, a principal in Cardinal Growth, a Chicago venture capital firm that also invested in the sewer company, and that McInerney “directed” him not to change the ownership-disclosure filing, to “keep it the same,” according to court records and sources familiar with the case.
McInerney is a friend of Patrick Daley.
Duffy changed his story as part of his plea agreement with federal prosecutors. He did so in hopes of avoiding deportation to his native Scotland, according to his attorney, John Meyer.
Duffy, 47, is a lawful permanent resident of the United States. He and his wife live in Bartlett.
Duffy, who could not be reached for comment, pleaded guilty to lying to a federal agent.
He initially was charged last year with three counts of mail fraud, accused of participating in a fraudulent minority-contracting scheme with Jesse Brunt, the owner of Brunt Bros. Transfer Inc., to obtain city contracts to inspect and clean Chicago sewers.
Brunt — whose company also had gotten city work through the now-disbanded Hired Truck Program — is also expected to plead guilty in the case.
Brunt’s company had been certified by City Hall as a minority-owned and operated business. That helped him land millions of dollars in city business set aside for minority-owned companies. But Brunt’s company didn’t do most of the sewer work, according to prosecutors.
Patrick Daley and his cousin — neither who could be reached for comment — haven’t been charged with any crime.
The federal investigation of the sewer deal began after the Chicago Sun-Times reported in December 2007 that Patrick Daley and Vanecko had secretly held an ownership stake in the sewer company. MSS was given more than $4 million in no-bid contract extensions from Mayor Daley’s administration during the time the mayor’s son and nephew had a stake in the company, the Sun-Times reported.
The then-mayor said he didn’t know his son and nephew were involved until the Sun-Times revealed that.
Duffy says the sewer company might have faced “greater scrutiny” if he’d disclosed that his partners included the mayor’s son and nephew, according to his plea agreement, entered before Senior U.S. District Court Milton Shadur.
Duffy was the president of Municipal Sewer Services, which he founded in 2003 with investments from Cardinal Growth, whose principals were McInerney and Robert Bobb Jr., a friend of Mayor Daley. The mayor’s son and nephew invested $65,000.
Municipal Sewer Services took over two city contracts that previously were held by Duffy’s former employer, Kenny Industrial Services, which had gone bankrupt. MSS also took over Kenny’s role as a subcontractor to Brunt, responsible for inspecting and cleaning city sewers south of 63rd Street.
Patrick Daley and Vanecko cashed out their stake in MSS at the end of 2004, as the heat was on at City Hall, with federal investigators interviewing the operators of all companies involved in the Hired Truck Program, including Brunt Brothers.
Patrick Daley subsequently enlisted in the Army, though he kept his venture capital business and his vehicle registered at McInerney’s Cardinal Growth offices at 311 S. Wacker.
Romey

Chicago, IL

#5 Feb 25, 2012
Cardinal Growth had invested in Concourse Communications, a company the city of Chicago hired in September 2005 to install Wi-Fi Internet service at O’Hare and Midway airports. After the system was installed, Concourse Communications was sold — a deal that made $708,999 for Patrick Daley, who had helped find investors for the company.

The U.S. Small Business Administration took control of Cardinal Growth last summer, saying the venture capital firm owed taxpayers $21.4 million. Bobb and McInerney were ousted from Cardinal Growth, which had borrowed more than $50 million from the SBA over a decade — money they used to invest in companies including Municipal Sewer Services, which went out of business four years ago amid the investigation by the FBI and the city inspector general’s office.
nothing to be proud of

Blue Island, IL

#6 Oct 30, 2013
Sewer company boss: I was told to hide Daley son’s role
By TIM NOVAK Staff Reporter [email protected] February 25, 2012 1:17AM
The owner of a sewer-inspection and cleaning business admitted Friday that he lied to federal agents when they asked him why he failed to tell City Hall that his company’s investors included the son and a nephew of then-Mayor Richard M. Daley.
At first, when he spoke with investigators on March 10, 2008, Tony Duffy blamed his own “carelessness and negligence” for omitting the names of Patrick R. Daley and Robert G. Vanecko from the ownership documents that Municipal Sewer Services was required to file with City Hall to get millions of dollars worth of city business.
But that was a lie, according to Duffy. He now says he didn’t know at first about Daley and Vanecko’s involvement. He says that, when he found out, he went to Joseph M. McInerney, a principal in Cardinal Growth, a Chicago venture capital firm that also invested in the sewer company, and that McInerney “directed” him not to change the ownership-disclosure filing, to “keep it the same,” according to court records and sources familiar with the case.
McInerney is a friend of Patrick Daley.
Duffy changed his story as part of his plea agreement with federal prosecutors. He did so in hopes of avoiding deportation to his native Scotland, according to his attorney, John Meyer.
Duffy, 47, is a lawful permanent resident of the United States. He and his wife live in Bartlett.
Duffy, who could not be reached for comment, pleaded guilty to lying to a federal agent.
He initially was charged last year with three counts of mail fraud, accused of participating in a fraudulent minority-contracting scheme with Jesse Brunt, the owner of Brunt Bros. Transfer Inc., to obtain city contracts to inspect and clean Chicago sewers.
Brunt — whose company also had gotten city work through the now-disbanded Hired Truck Program — is also expected to plead guilty in the case.
Brunt’s company had been certified by City Hall as a minority-owned and operated business. That helped him land millions of dollars in city business set aside for minority-owned companies. But Brunt’s company didn’t do most of the sewer work, according to prosecutors.
Patrick Daley and his cousin — neither who could be reached for comment — haven’t been charged with any crime.
The federal investigation of the sewer deal began after the Chicago Sun-Times reported in December 2007 that Patrick Daley and Vanecko had secretly held an ownership stake in the sewer company. MSS was given more than $4 million in no-bid contract extensions from Mayor Daley’s administration during the time the mayor’s son and nephew had a stake in the company, the Sun-Times reported.
The then-mayor said he didn’t know his son and nephew were involved until the Sun-Times revealed that.
Duffy says the sewer company might have faced “greater scrutiny” if he’d disclosed that his partners included the mayor’s son and nephew, according to his plea agreement, entered before Senior U.S. District Court Milton Shadur.
Duffy was the president of Municipal Sewer Services, which he founded in 2003 with investments from Cardinal Growth, whose principals were McInerney and Robert Bobb Jr., a friend of Mayor Daley. The mayor’s son and nephew invested $65,000.
Municipal Sewer Services took over two city contracts that previously were held by Duffy’s former employer, Kenny Industrial Services, which had gone bankrupt. MSS also took over Kenny’s role as a subcontractor to Brunt, responsible for inspecting and cleaning city sewers south of 63rd Street.
Patrick Daley and Vanecko cashed out their stake in MSS at the end of 2004, as the heat was on at City Hall, with federal investigators interviewing the operators of all companies involved in the Hired Truck Program, including Brunt Brothers.
nothing to be proud of

Blue Island, IL

#7 Oct 30, 2013
Patrick Daley subsequently enlisted in the Army, though he kept his venture capital business and his vehicle registered at McInerney’s Cardinal Growth offices at 311 S. Wacker.

Cardinal Growth had invested in Concourse Communications, a company the city of Chicago hired in September 2005 to install Wi-Fi Internet service at O’Hare and Midway airports. After the system was installed, Concourse Communications was sold — a deal that made $708,999 for Patrick Daley, who had helped find investors for the company.

The U.S. Small Business Administration took control of Cardinal Growth last summer, saying the venture capital firm owed taxpayers $21.4 million. Bobb and McInerney were ousted from Cardinal Growth, which had borrowed more than $50 million from the SBA over a decade — money they used to invest in companies including Municipal Sewer Services, which went out of business four years ago amid the investigation by the FBI and the city inspector general’s office.
Greedy

Blue Island, IL

#8 Mar 13, 2014
17 months in prison for businessman in Daley kin sewer scam: Watchdogs
By TIM NOVAK Staff Reporter March 13, 2014

A former Mississippi sharecropper who landed millions of dollars in contracts from the city of Chicago was sentenced Thursday to 17 months in prison for his role in a minority-contracting scandal that involved sewer deals held by a company whose investors secretly included then-Mayor Richard M. Daley’s son and nephew.

Jesse Brunt, 77, the owner of Brunt Bros. Transfer, had pleaded guilty more than a year ago to mail fraud, admitting the trucking company’s role in the city deals was a sham.

The black Chicago businessman admitted Brunt Bros. acted as a minority front in sewer deals with City Hall beginning with Kenny Industrial Services, owned by the clout-heavy Kenny family, and continued when their business was taken over in 2003 by a company owned in part by Daley’s son Patrick Daley and nephew Robert G. Vanecko.
Daley’s son and nephew weren’t charged in the scheme and were never interviewed by investigators, Brunt’s attorney Jeffrey Steinback said in court Thursday.

Daley and Vanecko had secret ownership stakes in Municipal Sewer Services, created by Anthony Duffy to take over the city contracts from Kenny’s company.

Duffy, 49, pleaded guilty in October. He is serving a 17-month prison term in Ohio and faces possible deportation to his native Scotland.

Brunt’s cooperation with the federal investigation led to a guilty plea from Duffy, who had been cooperating with the federal investigation but suddenly stopped, according to Steinback.

Brunt admitted his fraud cost the city nearly $8.8 million.

“I am ashamed and feel guilty for my conduct,” Brunt told U.S. District Judge Milton Shadur.“I have worked hard all my life, and to end up here ... is inexcusable. I apologize to the city of Chicago, the court and my family for the harm I have caused by my conduct.”

Brunt gave up picking cotton in Mississippi and moved to Chicago at 16. He became a business partner of Howard Medley, a top campaign fund-raiser for the late Mayor Harold Washington. Brunt eventually bought Medley’s equipment and began landing work as a subcontractor for other trucking companies after getting City Hall’s certification as a minority-owned and operated business.

Brunt eventually teamed with Kenny, which needed a minority business partner to land city contracts to clean and inspect sewers under the Daley administration.

Explaining the arrangement to the judge, Steinback said:“Two big shots” from Kenny “thought of it. They helped him fill out the certification ... and basically they ran the show.

“These two guys”—

whom Steinback did not identify —“... made millions, and they walked because the statute of limitations passed and they went bankrupt.”
Duffy ran Kenny’s sewer-cleaning business. When the company went bankrupt in 2003, Duffy got financing from Cardinal Growth, a Chicago venture capital firm, to buy the assets and take over the city contracts, with Brunt continuing to work as a minority-owned front.
Cardinal Growth was headed by Robert Bobb and Joseph McInerney, businessmen with close ties to the Daley family.

The mayor’s son and nephew were investors in Duffy’s sewer company, but he never disclosed their ownership stake in filings with City Hall, then lied about it when questioned by the FBI.

The Daley family ties to the sewer company were exposed by the Chicago Sun-Times in December 2007, sparking an investigation of the sewer contracts by the city inspector general’s office and federal authorities that led to the charges against Brunt and Duffy.

Daley’s son and nephew said at the time they already had sold their stakes in Municipal Sewer Services.

Cardinal Growth has since been taken over by the U.S. Small Business Administration, which is seeking to recover millions of dollars in unpaid loans that were used to finance several companies, including Municipal Sewer Services.
Greedy

Blue Island, IL

#9 Mar 13, 2014
Kenny and then MSS hired Brunt to haul debris from the sewers in the northern two-thirds of the city. Brunt landed a separate deal with City Hall to clean and inspect sewers south of 63rd Street. But Brunt didn’t have the cameras needed for the work. So it was all done by Kenny and later MSS.

“Was he responsible for his misconduct? Absolutely,” Steinback said.“He understood there was always a possibility he could get in trouble.”

Brunt’s company began working for City Hall during the Washington administration. He was a minority subcontractor to Fred Barbara Trucking, a garbage-hauling company owned by the nephew of then-Ald. Fred B. Roti. After his death, Roti was identified by the FBI as a “made member” of the Chicago mob. After Barbara sold his company to Allied Waste, Brunt continued working as a waste-hauler.

In January 2012, Allied paid the city $11 million to settle claims it failed to meet minority-subcontracting requirements because some companies it hired — including Brunt Bros.— were shams.

Brunt was involved in the sewer-fraud scheme with MSS in January 2004 when the Sun-Times published an investigation of Daley’s Hired Truck Program, which cost City Hall $40 million a year to hire private trucking companies that did little or no work. Brunt said in an interview for those stories that his trucking business was often “paid to do nothing.”

Brunt wasn’t charged in the Hired Truck scandal, which resulted in 48 federal bribery and corruption convictions against other trucking company owners and city officials.
Brunt and Duffy were indicted in the sewer scam in January 2011. Their companies — Brunt Bros. Transfer and MSS — are no longer in business.

Duffy — whose pregnant wife attended Brunt’s sentencing — is due to get out of prison next March. Brunt agreed to start serving his sentence on June 3.

Brunt must pay $533,749 in restitution to the city. Duffy owes the city $428,438.74.
Another Blue Island Crook

Blue Island, IL

#11 Mar 14, 2014
Robert Bobb, has no excuse, he and his wife are both lawyers! Will this be investigated by the FBI, or do they have enough clout, to cover it up? The taxpayer will end up paying one way or the other.

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