### Mistrial Announced in AT&T Illinois Bribery Trial Featuring Ex-President Paul La Schiazza
A mistrial was declared in the proceedings against former AT&T Illinois President Paul La Schiazza, who was charged with bribery and conspiracy to commit bribery. The case centers on claims that La Schiazza facilitated payments to an associate of a prominent Illinois lawmaker in return for favorable legislation advantageous to AT&T’s operations. The trial, conducted in the Northern District of Illinois, concluded in a stalemate as the jury reported their inability to reach a unanimous decision.
#### Case Background
The case arises from a wider investigation into AT&T’s attempts to sway Illinois legislation. In 2022, AT&T consented to pay a $23 million penalty to settle a federal criminal probe into bribery accusations concerning former Illinois Speaker of the House Michael Madigan. The Justice Department stated that AT&T acknowledged arranging payments totaling $22,500 to former state Representative Edward Acevedo, an ally of Madigan, in 2017 to obtain favorable legislative outcomes.
The legislation at the heart of the matter, known as the Carrier of Last Resort (COLR) law, aimed to relieve AT&T Illinois of its obligation to provide landline telephone services to all residents of Illinois. This requirement had become financially burdensome for the company, and the enactment of COLR legislation was perceived as considerable financial relief for AT&T.
#### The Trial and Mistrial
Paul La Schiazza, who served as AT&T Illinois’ president at that time, faced bribery charges, conspiracy to commit bribery, and three counts of utilizing an interstate facility (email) to facilitate unlawful activity. The prosecution maintained that La Schiazza and AT&T engaged in corrupt actions to manipulate the legislative process, with payments to Acevedo forming a crucial aspect of this scheme.
The trial witnessed a significant moment when the jury communicated a request to US District Judge Robert Gettleman for clarification on whether mere intent sufficed to qualify as bribery, even without an actual exchange. The judge reiterated elements of the jury instructions, explaining that bribery occurs when someone provides or suggests something of value intending to influence an official act. Despite these clarifications, the jury could not reach a consensus, prompting Judge Gettleman to declare a mistrial.
#### Legal Contentions
The prosecution, led by Assistant US Attorney Sushma Raju, asserted that La Schiazza and AT&T had tainted the legislative process through payment for a determined outcome. “It was not lobbying… it was a crime, and Paul La Schiazza recognized it,” Raju asserted during her closing statements. The government introduced internal emails in which La Schiazza purportedly labeled his arrangement with Madigan as “the friends and family plan.” These emails aimed to substantiate the claim that the payments to Acevedo were not for authentic consulting services but part of a quid pro quo arrangement.
Conversely, defense attorney Tinos Diamantatos contended that the COLR legislation came from years of valid lobbying and diligent efforts by AT&T. He argued that the payments made to Acevedo did not constitute a bribery scheme but were rather for legitimate consulting services. “This was no bribe… The government did not fulfill its burden. It wasn’t even close,” Diamantatos expressed to the jury.
Prior to the trial, La Schiazza’s legal team submitted a motion to dismiss the charges, arguing that the government had not adequately shown that AT&T employed Acevedo in return for a specific official act. The defense asserted that no evidence of a quid pro quo existed, nor that La Schiazza perceived his actions as unlawful. However, Judge Gettleman rejected the motion, permitting the trial to proceed.
#### What Lies Ahead?
Following the declaration of a mistrial, the future of this case remains unclear. Judge Gettleman has organized a hearing to deliberate on subsequent actions, and a retrial for La Schiazza may be on the horizon. Nonetheless, any retrial is anticipated to occur after Michael Madigan’s trial, slated for October 2024, on federal racketeering and bribery charges. Madigan’s case closely intertwines with the allegations against La Schiazza, given that the former Speaker of the House is accused of orchestrating an extensive corruption scheme involving several companies, including AT&T.
#### Wider Consequences
The case against La Schiazza and AT&T is part of a larger trend of corruption investigations in Illinois, a state notorious for its political scandals. The allegations surrounding Madigan have particularly resonated within the state’s political landscape, as he was a dominant figure in Illinois politics for many years.
For AT&T, this case poses a considerable reputational threat. While the company has already agreed to remit a $23 million fine,
