Former state Rep. Luis Arroyo leaves the Dirksen U.S. Courthouse in Chicago on Oct. 28, 2019. (Antonio Perez / Chicago Tribune)
Former state Rep. Luis Arroyo is scheduled to plead guilty Wednesday in a bribery scheme involving a shadowy lobbying effort to expand the use sweepstakes gaming machines that also led to criminal charges against the son-in-law of onetime Cook County Democratic boss Joseph Berrios.
Arroyo, 67, who resigned soon after he was charged with bribery in October 2019, is set to change his plea during a telephone hearing before U.S. District Judge Steven Seeger, court records show.
A superseding indictment filed last year added new wire and mail fraud charges against Arroyo and also charged James T. Weiss with bribery, wire fraud, mail fraud and lying to the FBI. Weiss, who is married to Berrios’ daughter, former state Rep. Toni Berrios, has pleaded not guilty.
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 was not been named in court documents, but the Chicago Tribune reported he is Terry Link, a Vernon Hills Democrat who resigned from office before pleading guilty to unrelated tax evasion charges in September 2020.
Weiss’ involvement in the bribery probe was first reported by the Tribune 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 that agents had seized his cell phone.
Weiss’ lawyer revealed in a court filing last week that the FBI had indeed pulled Weiss over as he drove in nearby Maywood two days before Arroyo was arrested and taken his phone.
The filing alleged agents interrogated Weiss about the case for more than an hour without telling him he was free to go, then tricked him into giving them his passcode for the phone.
The indictment alleged Weiss lied to agents during the interview about whether he knew the money was going to the senator.
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 in 2019.
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.”
Weiss mailed a final $2,500 check to the senator on Oct. 22, 2019, two days before agents interviewed him in Maywood, according to the indictment.
jmeisner@chicagotribune.com
Ex-state Rep. Luis Arroyo scheduled to plead guilty Wednesday in bribery case tied to sweepstakes machines
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