The developer convicted along with former Chicago Ald. Edward M. Burke was sentenced Friday to more than 2 ½ years in prison — a sentence that exceeds the two-year sentence handed to Burke nearly two months ago.
U.S. District Chief Judge Virginia Kendall explained while handing down the 32-month sentence to Charles Cui that Burke received a lower sentence for “significant reasons” — including his age and public service. Meanwhile, she pointed to Cui’s obstruction of the investigation that led to Burke’s conviction, including lying to the FBI.
Kendall also said she needed to send a message to other developers dealing with City Hall about what happens if they decide to bribe public officials.
“You can’t go around the government processes,” Kendall said. “You have to go through them legally.”
Earlier in the hearing, Assistant U.S. Attorney Timothy Chapman urged the judge to send such a message. He spoke to her about the “Chicago Way” and said it should be considered a vague concept unfamiliar to everyone in the courtroom.
“The sad reality is that every one of us in this courtroom knows exactly what that means,” Chapman said. He called it a “long history of corruption and bribery and graft that plagues the city of Chicago. And so it casts the general stain on the city as a whole.”
Cui attorney Susan Pavlow argued it was already true that no developer “wants to be the next Charles Cui.”
“Charles lost his project,” Pavlow said. “He lost his investment. He’s being sued for millions of dollars.”
And then, Cui spoke briefly to the judge. He struggled and spoke softly. But he referred to his conviction as a “disgrace” and said, “I accept the consequences of why I’m here today.”
Cui later left the Dirksen Federal Courthouse with his attorneys, Pavlow and Adam Sheppard, but didn’t comment.
Cui’s dealings with Chicago’s most powerful and longest-serving City Council member put him right in the middle of one of the town’s biggest corruption cases in years. The jury that convicted Burke in December also found Cui guilty of bribery and lying to the FBI.
But Cui played a central role in only one of Burke’s schemes — the one involving a Binny’s Beverage Depot on Irving Park Road.
The judge gave Burke his two-year sentence back in June. Meanwhile, prosecutors sought a roughly four-year sentence for Cui. They argued that mitigating factors affecting Burke’s sentence — including his age — shouldn’t affect Cui’s sentence.
Burke is 80 and Cui is 53.
The feds originally sought a 10-year sentence for Burke.
Cui’s business set out to redevelop commercial property on Irving Park, and in 2016 entered into a deal with City Hall, records show. The city was poised to provide up to $2 million in tax increment financing for the project under certain terms.
Binny’s leased space there from Cui’s company and expected it would be able to use a 30-foot-tall metal pole sign at Irving Park and Lamon Avenue. But the city denied an application for its use. Without it, Binny’s was entitled to a rent reduction worth $183,607 over 15 years, or $612,025 over 50 years, prosecutors say.
Cui turned to Burke, even though the property was not in Burke’s ward. He reached out by email and voicemail, telling Burke he needed help with a legal matter. When Burke didn’t respond, Cui emailed Burke and offered his business to Burke’s private tax law firm.
Cui also emailed his previous tax appeal attorney and explained why he needed to steer the business to Burke.
“Can I ask you for a favor?” Cui wrote. “Can I have Edward Burke handle 4901 W. Irving Park property tax appeal for me, at least for this year? I have TIF deal going with the City, and he is the Chairman of Finance Committee. … He is a powerful broker in City Hall, and I need him now. I’ll transfer the case back to you after this year.”
Cui then instructed the attorney to file appeals on other properties in the suburbs.
While trying to salvage his deal with Binny’s, Cui also had a doctored image of the sign — making it appear as though it was in use — sent to City Hall. A city official who was also a long-time resident of the neighborhood flagged it as a fake.
Then, on Nov. 29, 2018, Cui lied to FBI agents who interviewed Cui at his office. It was the same day agents famously raided Burke’s offices, making the public aware of their investigation. Prosecutors say Cui told his lies “with ice-water calm.”
Cui denied during that interview that he offered business to Burke’s law firm around the time he sought help with the pole sign.
“I offered Mr. Burke business a while ago,” Cui told the agents. “Just because he’s a good tax appeal lawyer.”
Pavlow and Sheppard argued that Burke’s firm never made any money from the deal it struck with Cui. As for Cui, who is also a lawyer, he has lost his entire investment, and a lender is suing him for $13 million.
“His law license is suspended and disbarment will follow,” they wrote in a recent court memo.