Chicago Tribune (Sunday)

Berrios’ son-in-law indicted in scheme involving Arroyo

Former state rep. has charges added in alleged bribery

- By Jason Meisner jmeisner@chicagotri­bune. com

The son-in-law of onetime Cook County Democratic boss Joseph Berrios has been indicted for his alleged role in a bribery scheme that brought down ex-state Rep. Luis Arroyo and exposed a shadowy lobbying effort to expand sweepstake­s gaming machines.

James Weiss, 41, was charged in an eight-count supersedin­g indictment made public Friday with bribery, wire fraud, mail fraud and lying to the FBI. Weiss is married to Berrios’ daughter, former state Rep. Toni Berrios.

The indictment also added new wire and mail fraud charges against Arroyo, who was originally charged in October 2019 with one count of federal program bribery and had been on track to plead guilty. Arroyo resigned from office soon after he was charged.

The case centers on the largely uncharted world of sweepstake­s machines, sometimes called “gray machines,” which allow customers to put in money, receive a coupon to redeem for merchandis­e online and then play electronic games like slot machines.

Since the machines can be played for free, they are not considered gambling devices. Critics, however, contend the unregulate­d devices, which operate in cities like Chicago that have banned video gambling, are designed to skirt the law.

According to the 15-page indictment, Weiss paid bribes to Arroyo beginning in November 2018 in exchange for Arroyo’s promotion of legislatio­n beneficial to Weiss’ company, Collage LLC, which specialize­d in the sweepstake­s machines.

The bribes were paid via off-the-books lobbying payments to Arroyo’s consulting firm, Spartacus 3 LLC, which Arroyo failed to report to state regulators, according to the charges.

Both Weiss and Arroyo also conspired in 2019 to pay a state senator $2,500 a month in kickbacks in exchange for the senator’s support on the proposed sweepstake­s game legislatio­n, the indictment alleged.

The senator has not been named in court documents, but the Chicago Tribune has reported he is Terry Link, a Vernon Hills Democrat who resigned from office before pleading guilty to unrelated tax evasion charges last month.

Both Weiss and Arroyo will be arraigned on the new indictment at a later date. No attorney was listed for Weiss in the court docket as of Friday.

Weiss’ involvemen­t in the bribery probe was first reported by the Tribune last year after the FBI raided Weiss’ business offices. He declined to comment on his role in the investigat­ion at the time, telling a reporter outside his River Grove home, “I have no idea what’s going on.”

According to prosecutor­s, the unnamed state senator had told the FBI that Arroyo approached him about “the passage of sweepstake­s-related legislatio­n” during the House’s 2019 spring session. At the time, the senator was cooperatin­g with authoritie­s in the hopes he’d get a break on expected tax-related charges.

In early August 2019, Arroyo texted the senator asking to meet at a restaurant in Highland Park. Also at the meeting was Weiss as well as one of Weiss’ associates, prosecutor­s alleged.

During the meeting, Arroyo said he was going to introduce a “trailer bill” in the veto session expanding the use of sweepstake­s games and offered to make periodic payments to the senator in exchange for his support, according to the criminal complaint filed against Arroyo last year.

Weiss told the group he would forward a draft of the proposed legislatio­n that the senator could look over, according to the complaint.

“I would like for you to carry the bill,” Arroyo allegedly told the senator. “I don’t have nobody in the Senate.”

Three weeks later, the senator was wearing an FBI wire when Arroyo allegedly delivered the first of the promised $2,500 checks at a restaurant in Skokie, according to the complaint.

“This is, this is the jackpot,” Arroyo allegedly told the senator as he handed over the money. Additional monthly $2,500 payments were expected to be made over the next six to 12 months, federal authoritie­s alleged.

The complaint alleged Weiss later emailed the state senator a note of thanks.

“I appreciate your help and assistance,” Weiss allegedly wrote. “I know there are challenges in front of me with sweepstake­s. Please let me know if there is anyone else you would recommend I meet with and share informatio­n.”

According to the indictment filed Friday, Weiss mailed a final $2,500 check to the senator on Oct. 22, 2019, three days before the charges against Arroyo were filed under seal.

On Oct. 25, the FBI asked Weiss about the payments during an interview in Maywood. The indictment alleged Weiss lied to agents about whether he knew the money was going to the senator. Arroyo was arrested two days later.

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