An operations manager at Chicago’s McCormick Place and the owner of a snow removal company both pleaded not guilty to federal fraud charges for a scheme involving overcharging for the cost of snow removal and then pocketing the proceeds.
The snow removal company owner would arrange for companies to overcharge for snow removal, allowing them to make more money for work they were doing at the massive convention center. He also convinced them to charge the facility for work they weren’t actually completing. The owner would then receive kickbacks from these other companies and pay the facility manager in turn for his role in approving the knowingly overcharged invoices.
Between 2022 and 2024, the two pocketed about $26,700, according to the Chicago Sun-Times. The facility manager had been working at McCormick Place since 2008 and also managed contracts for pest control, window washing, and landscaping.
The two, each charged with three counts of mail fraud, face up to 20 years in prison and a fine of $250,000 if convicted.
According to the Chicago Tribune, McCormick Place has long been a “hotbed of fraud, ghost payrolling, and bid-rigging,” often connected to organized crime. The paper reports that 10 years ago, a Chicago mobster was sentenced to federal prison for using confidential information about competitors’ bids to undercut them and win contracts.
Greg Zimmerman is senior contributing editor for FacilitiesNet.com and Building Operating Management magazine.
