Rezko Investigation Fallout?: Feds probe city records on alderman's zoning changes

The Chicago Sun-Times reports:

Federal investigators have requested city records on four West Side zoning changes pushed by Ald. Isaac Carothers (29th), amid questions about Carothers' relationship with a Chicago developer who made secret recordings as an FBI mole.

Last year, Carothers' New 29th Ward Campaign Committee got $11,000 in contributions from Morgan Properties Inc., which lists FBI mole John Thomas as "manager."
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Ald. Isaac Carothers (29th) is under scrutiny for work on land at Roosevelt and Central and an Austin stadium.


The contributions came in payments of $9,000, $500 and $1,500, with the last one made on Feb. 23, 2007 -- four days before the aldermanic election, records show.

Last April 9, the committee returned all $11,000, offering no explanation in campaign records except "refund of excess contribution."

Carothers, the powerful chairman of the City Council's Police and Fire Committee, did not return calls seeking comment. He also declined to answer written questions.

Thomas is the Chicago developer-turned-FBI-mole who played a pivotal role in one of the two federal cases involving Tony Rezko, the indicted developer and political fund-raiser who is accused of business fraud and of seeking kickbacks and campaign contributions for Gov. Blagojevich from companies seeking state pension business.

The Sun-Times has reported that Thomas recorded hundreds of hours of conversations for federal investigators. Sources said the government had Thomas -- who is cooperating in hopes of getting probation for a felony fraud conviction in New York -- secretly record conversations with an unidentified Chicago alderman.

One of the 29th Ward zoning files that federal authorities requested from the city dates to May 2005, when Carothers introduced a zoning change for vacant land at Roosevelt and Central to be converted from manufacturing to heavy commercial.

No word yet from Mayor Daley on this one.