Alexi Giannoulias has big trouble ahead.
The wealthy, young, telegenic Democratic
candidate for state treasurer scored a decisive victory in all regions of the
state over Paul Mangieri in TuesdayÕs primary. U.S. Sen. Barack Obama appeared
in his TV ad.
Giannoulias has repeatedly claimed that
his experience working at his familyÕs bank makes him qualified to be state
treasurer, but late questions have arisen about some loans the bank made to an
ex-mobster, and the candidateÕs response has cast doubt on whether Giannoulias
is ready — or even fit — to hold statewide office.
Michael ÒJawsÓ Giorango was apparently a
member of the old Chicago Heights mob operation. Years ago, he was convicted
twice on bookmaking charges. One of the bookmaking operations he worked for
used Òthreats of bombings, beatings and robbery to collect unpaid debts,Ó
according to the Tribune.
Then, in 2004, Jaws Giorango was busted
again, this time for promoting a nationwide prostitution ring through a hotel
he co-owns in Florida. His interest in that hotel was at least partially
financed with millions of dollars lent to him by GiannouliasÕ family bank.
There have been no suggestions that
either the young Giannoulias or his bank knew what was going on at the Florida
hotel, or that the bank did anything illegal. But when pressed about the
connection at a press conference, GiannouliasÕ answers left many shaking their
heads.
After saying he had met Jaws Giorango at
the bank Òa fewÓ times, Giannoulias launched into a bizarre defense of the
man.
Giannoulias called the ex-con Òa very
nice person,Ó and then kept right on flapping his gums. ÒIs he a crime figure?Ó
Giannoulias asked reporters. ÒI donÕt know what the charges are that makes him
this huge crime figure.Ó
ItÕs completely unbelievable that
Giannoulias had no idea that the former bookie was a convict. CrainÕs Chicago
Business published a high-profile piece about the connection well before the
press conference, so Giannoulias had to have known that the subject would be
brought up.
His campaign staff played off
GiannouliasÕ remarks as simply a ÒgaffeÓ made by an inexperienced candidate.
That response only bolstered my long-held belief that politically inexperienced
rich people usually make lousy statewide candidates. If they started lower on
the rung, the media and their opponents would have a chance to examine their
backgrounds before they moved up to higher office.
But starting at the bottom, or even the
middle, is usually beneath them. And that means we end up with disasters like
Democratic US Senate wannabe Blair Hull, who spent $30 million but won just ten
percent of the vote in 2004 because it came out that the cops were called after
he allegedly hit his wife.
Or Jack Ryan, who had to drop out of the
US Senate race after he won the 2004 Republican primary when his divorce
records were unsealed.
The revelations about Giannoulias are
emerging so late in the campaign that they may not impact TuesdayÕs primary.
His personal wealth and ObamaÕs endorsement may drown out most of the negative
coverage.
But there is more to come about the
Giannoulias family bankÕs ties to Jaws Giorango, like how the bank lent $3.9
million to a Giorango family member last year. Most of that money, $3.4
million, was also loaned to a person with a Greek surname who appears on
official records as an investor in that Florida hotel.
Or how, according to official records,
one of the other investors in that very same Florida hotel was Spiros Naos.
Naos became such a controversial figure in the treasurerÕs race a couple of
weeks ago that Giannoulias was forced to return his campaign contribution.
NaosÕ uncle owned a casino fleet in Florida that he sold to disgraced
Washington, DC lobbyist Jack Abramoff. The uncle was gunned down Gangland style
after he sold the fleet. Later, Spiros Naos bought the fleet back.
ThereÕs no real indication that the
Giannoulias family bank did anything illegal. The younger Giannoulias didnÕt
even work at the bank when most of this stuff went down. But his public defense
of Jaws Giorango puts all of this on his shoulders and guarantees a lot more
media coverage down the road if he wins TuesdayÕs primary.
And thatÕs why I think, like Jack Ryan
before him, Giannoulias may not even make it to November despite his win on
Tuesday.
-30-
Rich Miller also publishes Capitol Fax, a daily political
newsletter. He can be reached at thecapitolfaxblog.com