Two sons of former Democratic state Rep. Eddie Acevedo pleaded not guilty Wednesday to federal tax charges stemming from the ongoing investigation of the lobbying practices of Commonwealth Edison.
The arraignments for Alex and Michael Acevedo were held a week after they and their father were charged in separate indictments with filing false tax returns in connection with the family’s lobbying firm.
Alex Acevedo, 35, who made a failed bid for alderman two years ago, was charged with two counts alleging he understated his gross income for 2017 and 2018. Each count carries a maximum of three years in prison.
He pleaded not guilty during a video arraignment before U.S. District Judge Edmond Chang, who released him on a recognizance bond. In addition to his aldermanic bid, Alex Acevedo previously ran an unsuccessful campaign to replace his father in the state legislature in 2016.
His attorney, Ricardo Meza, said Alex Acevedo is a registered nurse and spends part of the year in Hawaii. The judge told Acevedo to notify court officials of any travel outside the Chicago area. A status hearing was set for May 18.
An hour later, Michael Acevedo, 34, appeared via telephone before U.S. Magistrate Judge Beth Jantz where he pleaded not guilty to a felony count alleging he understated his income in 2015 and three misdemeanor charges of failing to file tax returns in 2016, 2017 and 2018.
Eddie Acevedo, meanwhile, is scheduled to be arraigned Friday on a six-count indictment alleging he attempted to evade paying taxes he owed, including by depositing cash payments into his bank account to conceal the source of income.
Prosecutors contended that his gross income in 2017 was more than $130,000, and he owed nearly $20,000 in taxes. But Eddie Acevedo allegedly had an accountant file a tax extension and claim the former lawmaker owed no taxes, prosecutors said. He allegedly followed a similar pattern in 2018 and failed to file returns in other years.
The grand jury that brought the indictment is the same panel that’s been investigating the ongoing bribery investigation of ComEd, which has admitted in court to funneling money and jobs to associates of then-House Speaker Michael Madigan in exchange for help with legislation in Springfield.
All three family members have at various times been registered lobbyists of state government. Eddie Acevedo, a former Chicago police officer, told the Tribune last year that he had been interviewed by federal authorities investigating the lobbying practices of ComEd and Exelon.
Eddie Acevedo previously told the Tribune he had worked as a consultant paid by former state Rep. John Bradley, a Democrat from Downstate Marion and a onetime contract lobbyist for ComEd. Acevedo said he had been paid as much as $5,000 a month by Bradley.
Before Bradley, Acevedo said, he had worked as a consultant for Shaw Decremer, a former Democratic House staffer and campaign operative ousted from Madigan’s political organization following complaints that he was abusive.
Federal authorities subpoenaed the secretary of state last year for Eddie Acevedo’s lobbying records, as well as those of his two sons and their lobbying firm, Apex Strategy LLC.
Last summer, ComEd agreed to pay a record $200 million fine as prosecutors unveiled a criminal complaint charging the company with a yearslong bribery scheme involving jobs, contracts and payments to Madigan allies.
Prosecutors said the utility attempted to “influence and reward” Madigan by providing financial benefits to some close to him, often through a key confidant and adviser at the center of the probe. In November, that key confidant, former lawmaker Michael McClain, and three others were charged.
Madigan has not been charged with any wrongdoing and has denied doing anything improper. But the ComEd scandal helped end Madigan’s reign as the nation’s longest-serving speaker in January. Madigan has since resigned from the Illinois House and as Illinois Democratic Party chairman.
jmeisner@chicagotribune.com
