AT&T Illinois will pay $23 million settlement to dismiss corruption charges related to former politician

AT&T Illinois has agreed on a $23 million settlement to dismiss a federal investigation into the company’s illegal activities to influence former Illinois House Speaker Michael Madigan.

Madigan will also face charges for his part in the scheme, prosecutors confirmed on Friday.

As part of the settlement, AT&T will admit that it arranged to funnel payments to an associate of Madigan, who carried considerable political power in the state at the time, in exchange for Madigan’s assistance in passing legislation that would be helpful to AT&T, the U.S. attorney’s office in Chicago confirmed in a press release.

Prosecutors have also confirmed that AT&T have agreed to assist them with any other related probes.

According to prosecutors, in 2017, AT&T admitted to arranging for a close associate of Madigan ally to receive the payments through a lobbying firm that had worked closely with AT&T. Prosecutors believe that the arrangement was made to “disguise” why the associate, who was not on the payroll of AT&T, was being paid.

Prosecutors said that all charges against AT&T will be dropped provided that the company “abides by certain conditions, including continuing to cooperate with any investigation related to the misconduct alleged in the information,” 

Madigan ended his role as the longest longest-serving speaker of a state House of Representatives in modern history when he retired last year, under some duress.

Madison was charged in an alleged racketeering bribery in March, which involved utility Commonwealth Edison. Prosecutors alleged that Madigan consistently used his powers as speaker to further his criminal schemes.

AT&T released a short statement saying “We hold ourselves and our contractors to the highest ethical standards. We are committed to ensuring that this never happens again.”