-Caveat Lector-

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Hasn't Sherman Skolnick been writing about this case?

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Top Official in Cicero, Ill., Gets 8 Years in Fund Theft

January 10, 2003
By JOHN W. FOUNTAIN




CHICAGO, Jan. 9 - Nearly two years after federal officials
declared the Cicero "candy store" officially closed, Betty
Loren-Maltese, the former town president, was sentenced
today to eight years and one month in prison for helping
steal $12 million from a municipal insurance fund.

Ms. Loren-Maltese stood calmly, at times shaking her head
and at other times with head bowed, as Judge John F. Grady
of Federal District Court here announced her sentence and
rebuked her.

``This is a situation where the defendant was given
absolute and complete discretion,'' Judge Grady said. ``She
was trusted completely. She could do no wrong. It was the
wholesale betrayal of the naïve face of a whole town.''
Cicero, which abuts west-central Chicago, has about 85,000
residents.

Ms. Loren-Maltese was convicted of racketeering, wire fraud
and mail fraud. In addition to her maximum prison term, she
was fined $100,000 and ordered to pay more than $8 million
restitution. Judge Grady said she must surrender to the
authorities on April 1.

The authorities said much of the stolen money was used to
buy a hotel with a golf course in Wisconsin, a horse farm
in Indiana and luxury cars.

Before sentencing, Ms. Loren-Maltese, 52, gave a brief
emotional statement in which she sought leniency on the
grounds that a lengthy prison term would harm her
5-year-old adopted daughter.

``When it comes to my daughter,'' Ms. Loren-Maltese said,
``she is the most important thing to me. I love her and
miss her. I believe an adoptive parent loves her child and
is even more concerned about them than a natural parent,
because they know how lucky they are. I take special care
and concern when it comes to my daughter.''

After her sentencing, Ms. Loren-Maltese hurried from the
courthouse surrounded by bodyguards and lawyers. She
offered no comment.

She was the sixth of seven people convicted last year in
the Cicero scandal to be sentenced this week. Michael Spano
Sr., a reported organized-crime boss, was sentenced to more
than 12 years in prison for his role in the scheme. Emil
Schullo, a former chief of police, was given nearly 6
years; Michael Spano Jr., more than 6 years; Bonnie
LaGiglio, more than 3 years; and Charles Schneider, a
lawyer for Mr. LaGiglio and the elder Mr. Spano, 7 years.

Mrs. LaGiglio's husband, John, is awaiting sentencing. Mr.
LaGiglio was the founder of Specialty Risk Consultants, an
insurance administrator through which, prosecutors said,
the money was funneled from the insurance fund. A federal
jury convicted the seven in August after a 10-week trial.

At the time of the arrests in 2001, law enforcement
authorities accused Cicero's municipal officials of turning
the city into a personal piggy bank. With the filing of
charges, the head of the Chicago office of the F.B.I.,
Kathleen McChesney, said, ``The Cicero candy store is
closed.''

In the months before sentencing, Ms. Loren-Maltese had
insisted that a long term would be detrimental for her
daughter, but in court papers filed last week prosecutors
said Ms. Loren-Maltese's time spent being a parent had been
offset by the time spent being a gambler.

Prosecutors said that in the last three years Ms.
Loren-Maltese bet nearly $19 million at casinos, mostly in
Las Vegas, where she has a second house.

In 2000-01, they said, Ms. Loren-Maltese spent nearly 1,600
hours gambling, suggesting that someone other than her was
caring for her daughter.

Lawyers for Ms. Loren-Maltese said in court today that the
daughter would be placed in the care of a grandmother, 80,
who might not live long enough to provide adequate care for
the girl.

Judge Grady said that children's welfare was often involved
in such cases and that although a child might be adversely
affected, it was not enough to minimize the penalty that a
parent had to face for a serious crime.

Ms. Loren-Maltese's lawyers also presented the court with a
stack of letters from supporters, but those did not help
her. ``That's the kind of thing that makes this abuse of
trust more severe,'' Judge Grady said.



http://www.nytimes.com/2003/01/10/national/10CICE.html?ex=1043200389&ei=1&en=2363542072627edc



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