CHICAGO — A Chicago-area real estate developer was sentenced Friday to 32 months in federal prison for bribing then-Ald. Edward Burke to help him secure a pole sign permit for a Northwest Side liquor store, marking the end of a corruption case that rocked City Hall and became a watershed in the downfall of the old political machine.
In sentencing Charles Cui, U.S. District Chief Judge Virginia Kendall said Cui violated the trust the public put in him as a lawyer through his corruption, and exacerbated it by later lying to federal agents and failing to turn over crucial emails to a grand jury in an attempt to cover it up.
Kendall also said a message had to be sent to “other developers here in the city, especially those who are trying to make money on real estate and development of properties.”
“(They) need to recognize that you can’t go around the government’s processes, you have to go through them legally,” Kendall said.
Dressed in a blue suit and yellow tie, Cui sat at the defense table for most of the hearing, eyes downcast and one foot occasionally tapping quickly under the table. Before the sentence was announced, Cui stood at the lectern and read a tearful apology to the court and his family.
“Your honor, today marks the lowest point in my life,” Cui said in a deep, soft voice, reading from a sheet of paper with his hands in his pockets. “I am truly ashamed.”
Cui’s sentencing was likely the final court hearing stemming from the bombshell corruption investigation into Burke, the city’s longest-serving alderman and longtime head of the powerful Finance Committee.
Burke was convicted along with Cui and sentenced in June to two years in federal prison. A third defendant, Burke’s longtime ward aide Pete Andrews, was acquitted of all charges.
In giving Cui a slightly longer sentence than Burke, Kendall said she must treat each defendant individually and that Buke had several mitigating factors in his favor, including his advanced age that would make prison “more difficult” as well as the dozens of letters she received extolling Burke’s good works.
Burke also served in the military and as a police officer, the judge noted, adding, “He did not obstruct justice. He did not lie to the FBI.”
Cui was convicted by the jury in December of hiring Burke’s firm, Klafter & Burke, to do property tax appeals in exchange for Burke’s intervention in a permit dispute for a standalone pole sign for Binny’s Beverage Depot.
The jury found him guilty on five counts: corruptly offering or agreeing to give things of value; using an interstate facility to promote unlawful activity; and knowingly making a false statement to the FBI.
During the two-month trial, jurors heard meticulously detailed evidence about the pole sign permit, which was for a development far from Burke’s 14th Ward. Cui stood to lose significant money if the sign couldn’t be used, and reached out to Burke, hoping his clout would grease the wheels with the city.
In asking for a term of at least 51 months behind bars, Assistant U.S. Attorney Timothy Chapman told the judge that public corruption was such a scourge on the city that it even has a well-worn name: “The Chicago Way.”
“It’s a term that no one in this courtroom should know what it means. but the sad reality is that everyone in this courtroom knows exactly what it is,” Chapman said.
Chapman said the “long history of corruption and bribery and graft that plagues the city of Chicago renders us more like a punchline for late-night comedy.”
A significant prison sentence was necessary, Chapman said, to send a message to others to “other real estate developers out there,” people who need zoning changes, permits, licensing or other help with their business.
“There are people in the world who need stuff from government, and they may try to bribe their way into getting that advantage,” Chapman said, adding that this case could prompt them to think twice.
“They could say, ‘I’m not gonna be the next Charles Cui,'” Chapman said. “‘I’m not going down that road.'”
Still, a nearly five-year prison term for Cui seemed like a tall order considering that Kendall only handed down 24 months to Burke, an elected official who, unlike Cui, was convicted of racketeering conspiracy for a series of schemes where he sought to use his official position for personal gain.
Cui’s lawyers argued their client is a hardworking immigrant from China whose brief dalliance with Chicago’s most powerful alderman was a blip in an otherwise law-abiding life.
Attorneys Susan Pavlow and Adam Sheppard wrote in their sentencing filing that Cui was “significantly less culpable” than Burke given he’s not a public official, was not charged with racketeering, and was only involved in one of the four criminal episodes contained in Burke’s sweeping indictment.
“While every defendant is viewed individually, and Burke’s age and good deeds played a role in (Burke’s) sentence, he was convicted of more offenses, and more serious offenses, than Mr. Cui,” the defense memo stated.
In court Friday, Pavlow described Cui as “a very good and decent man” who has lost everything because of his decision to seek Burke’s help, including his credibility with lenders and his ability to practice law.
“Charles lost his project, he lost his investment, he’s being sued for millions of dollars as a result of this,” Pavlow said.
The evidence at trial focused on a series of emails Cui sent in 2017 as he was desperately trying to get the city to reverse its denial of the Binny’s pole sign permit.
In perhaps the most damning communication, jurors were shown a 2017 email from Cui to his lawyer, asking to switch attorneys.
“Can I have Edward Burke handle 4901 W Irving Park property tax appeal for me, at least for this year?” Cui wrote. “I need his favor for my TIF money. In addition I need his help for my zoning etc for my project. He is a powerful broker in City Hall, and I need him now. I’ll transfer the case back to you after this year.”
Burke tried to smooth the way for the permit sign, jurors heard, calling the city zoning administrator and reaching out to the buildings commissioner. The permit, however, was still not approved, and ultimately the sign was torn down.
Cui also emailed Burke asking him for representation from Klafter & Burke, records show.
On Aug, 25, 2017, Burke responded to Cui’s email saying someone from his firm will reach out. Over the next week, Burke was caught on wiretaps telling his assistant to call then-Buildings Commissioner Judy Frydland about the pole sign, according to court records.
After Frydland talked about it with Cui, he had his zoning attorney submit a photoshopped image of the sign to the Buildings Department purporting to show the sign had been in recent use.
On Sept. 5, less than two weeks after his first outreach to Burke, Cui signed contingent-fee paperwork hiring Klafter & Burke for the Portage Park development, according to records.
By that time, however, Cui’s photoshopped image was red-flagged by a Buildings Department design specialist, who brought it to Frydland’s attention, according to court records.
Cui tried to claim the image came from a real estate broker who could vouch for the image’s accuracy, and, after learning about the issue, Burke allegedly had his assistant contact a zoning administrator to help resolve it, according to court records. Both efforts failed, and City Hall’s denial of the sign permit became final on Nov. 6.
Over the next several weeks, however, Burke voted in favor of several other measures involving Cui’s property that came before the City Council, including a permit for a different sign board and an ordinance granting a privilege “in the public way,” according to prosecutors.
When Cui was confronted by FBI agents in 2019, he lied about his interactions with Burke, saying he’d only hired Burke’s firm because he’d “heard” they were good tax attorneys, according to trial testimony.
Prosecutors on Friday also alleged Cui obstructed justice by failing to turn over several of the most incriminating emails after receiving a federal grand jury subpoena for any records pertaining to his interactions with Burke.
In his argument, Chapman said that as a sophisticated businessman and licensed attorney, he knew what he was doing in reaching out to Burke.
“This wasn’t a bribe paid to some pole sign inspector,” he said. “he sought out the most powerful alderman in the City Council, and maybe the most powerful alderman in the city’s history.”
As for the motive, Chapman said it was what most bribery cases come down to: greed.
“He knows it’s a crime to pay a bribe to an alderman. He knows it’s a crime to lie to the FBI. He knows right from wrong,” Chapman said. “But when money was on the line, he chose wrong.”
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