Fraud Investigation at the CTA

Hmmm, fraud allegations in a governmental agency? Who woulda guessed? And connected to Mayor Daley as well? Wow, that's never happened before.

windows need to be washed, even on brand new buildings
New CTA headquarters

Federal prosecutors have subpoenaed records connected to the purchase of office furniture for the Chicago Transit Authority's new Lake Street headquarters, an agency spokeswoman said Tuesday.

The subpoena, issued last year, asked for any records pertaining to the $5.9 million procurement of furniture for the CTA's new administrative building at 567 W. Lake St., CTA spokeswoman Noelle Gaffney said. If a minority-owned firm was involved, the subpoena also asks for any records connected to that, she added.

The furniture was supplied by Desks Inc., a 50-year-old company once owned by Patrick Degnan, brother of Timothy Degnan, a top political strategist for Mayor Richard Daley. The firm received the business through Fifield Companies, a Chicago development company that the CTA hired in 2002--after Degnan sold the furniture business--to design, construct and furnish the building.

Another Degnan brother, Robert, has been the CTA's general manager of system maintenance support since 2002, a post that pays about $102,000 annually, according to CTA records. The job puts Robert Degnan in charge of CTA's non-revenue vehicle fleet, such as maintenance vehicles, Gaffney said.

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This page contains a single entry by Seth A. published on March 15, 2006 9:02 AM.

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