Federal Investigators Dig Into Illinois Governor Pritzker's Property Tax Break on Gold Coast Mansion

Federal Prosecutors Seek Records on $331,000 Tax Scheme

Federal investigators are collecting records related to Illinois Governor J.B. Pritzker's property tax break on a Gold Coast mansion, according to reports from the Chicago Sun-Times. Federal prosecutors have been requesting documents from the Cook County assessor's office about a $331,000 tax break the governor received after removing toilets during remodeling of a home he owns next to his own residence.

Tax Break Details

The improper tax breaks took place during the tenure of Joe Berrios as Cook County assessor. Current Cook County Assessor Fritz Kaegi has been complying with federal record requests. Authorities sought the name of every employee involved in the tax break, along with associated communications.

A 2018 Cook County Inspector General report described the situation as a scheme to defraud taxpayers. The report stated that Illinois First Lady MK Pritzker ordered workers to remove all toilets from the mansion during renovations so it would be deemed uninhabitable. After an inspection was complete, workers reinstalled one toilet in the governor's hangout area.

Ongoing Federal Investigation

According to Fox News, Illinois Gov. J.B. Pritzker, along with his wife and brother-in-law, reportedly is under federal criminal investigation for a questionable property tax appeal that has hung over him since last year's gubernatorial race. A law enforcement source told Chicago radio station WBEZ that Pritzker has been the subject of an ongoing criminal investigation since last October, although no criminal charges have been brought against him.

Marc Elias, a lawyer representing the Pritzkers, told WBEZ that neither the governor nor his wife has been contacted by law enforcement regarding the property tax appeal. Elias stated: "Neither the Governor nor the First Lady have been contacted by law enforcement regarding the property tax appeal. We are confident that any further review of the matter will show that the appropriate rules were followed."

Political Fallout

The reports of the investigation into Pritzker were quickly flagged by political rivals. Illinois Republican Party Chairman Tim Schneider issued a statement calling the matter absurd given that Pritzker continues to push tax hikes on Illinois families and businesses.

Schneider said: "An Illinois governor under federal criminal investigation 101 days into office must be a new record - even for Illinois. We already knew Pritzker was a serial tax dodger. He stashes millions offshore in zero-tax Bahamas bank accounts and took the toilets out of his Chicago mansion to dodge over $330,000 in property taxes."

Broader Financial Questions

The Chicago Tribune reported last year that Pritzker used offshore banking in the Bahamas to avoid paying taxes on his family's fortune. Pritzker acknowledged the offshore accounts but argued that they were originally set up long ago by his grandfather.

The newspaper found several offshore shell companies created between 2008 and 2011, long after his grandfather's death, that were either totally owned by Pritzker and his brother, or by close associates of the now-governor.

Campaign Finance Context

While Pritzker is embroiled in a federal investigation of alleged tax fraud, he is asking Illinois taxpayers to support his plan to raise income taxes for the third time in a decade. Pritzker has put $56.5 million of his own money into a campaign to remove the state's flat income tax protection from the Illinois Constitution to allow for a progressive income tax.

If voters approve Pritzker's amendment on November 3, Illinoisans could find themselves paying more taxes in six different ways. Illinois State Treasurer Mike Frerichs confirmed in June that the governor's fair tax amendment would open the door for a retirement income tax.

Previous Inspector General Findings

The 2018 Cook County Inspector General report called Pritzker's actions a scheme to defraud taxpayers. The report said the governor's brother-in-law, Thomas J. Muenster, and the first lady's personal assistant, Christine Lovely, made false representations on tax appeal documents. The scheme apparently cost taxpayers more than $331,000, according to the IG report.