Daley Says He Was Unaware Of Nephew's City Deals, Urged Him To Get Out
CHICAGO (AP) -- Chicago Mayor Richard M. Daley is on the defensive over a federal probe into how a firm co-owned by one of his nephews got millions of dollars in city pension fund investments.
Daley insisted Thursday he didn't know that $68 million was awarded to DV Urban Realty Partners, founded by nephew Robert Vanecko, until a newspaper reported it two years ago. He said when he found out, he urged his nephew to get out of the deal.
Vanecko apparently ignored his advice until quitting this week, two weeks after the pension funds were subpoenaed by federal investigators.
In a rare airing of internal strife for a private family, Daley said Thursday that he loves his nephew and finds it difficult to talk about his disappointment publicly.
"When I did find out, I made it very clear that it was not a good decision and that (Vanecko) should end the business relationship immediately," Daley said, reading from a prepared statement.
"But, as an adult, Bob made a difficult decision - a different decision - which leads to a very painful string of news stories that have indeed caused tension in my family."
The mayor acknowledged DV Urban's dealings with the pension funds looked like favoritism.
"Bob's decision very clearly led to the perception that rules were broken, and preferential treatment was given," Daley said. "It is a perception that follows almost every business transaction involving any Daley family member or any aspect of local government."
When asked, Daley denied discussing his nephew's business dealings with aides he appointed to the pension fund boards.
Chicago Inspector General David Hoffman launched an investigation in March, but fund officials refused to comply with his subpoenas. Hoffman then brought the case to the attention of federal prosecutors, who agreed to enter into a joint investigation with his office.
-ASSOCIATED PRESS
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First Posted: 06-11-09 02:04 PM | Updated: 06-12-09 02:05 PM