Madigan's defense lawyers grill Solis on tax fraud, prostitution crimes as cross examination begins

Danny Solis made some big promises when he struck his secret deal with federal prosecutors years ago, including not to commit any additional crimes while cooperating with authorities.

Otherwise his deal could go "poof," as Michael J. Madigan’s defense attorney put it.

But jurors in Madigan’s racketeering conspiracy trial heard allegations Monday of tax fraud, bribery, prostitution and campaign law violations as defense attorneys began their long-awaited cross-examination of Solis, the star government witness who wore an FBI wire to avoid prison.

“Are you concerned about whether this agreement’s going to go ‘poof’?” Dan Collins, one of Madigan’s defense attorneys, asked Solis at one point in his interrogation.

It seems unlikely — Solis’ December 2018 deal says the feds will not prosecute him for conduct “disclosed by Mr. Solis” prior to signing it. Solis admitted Monday to crimes already documented by the FBI, including bribery offenses “with campaign contributions,” as well as encounters with prostitutes and massages that Solis insisted weren’t free.

“Never, I paid for them,” Solis said of the massages.

“We made a collection,” he insisted, when asked repeatedly about political insider Brian Hynes’ alleged role in hiring prostitutes for Solis and other public officials in Puerto Rico during a visit to a home Hynes owned.

But eventually, Collins insisted to Solis, “you haven’t told the government all the crimes you’ve committed, have you?”

“I don’t know what you’re referring to,” Solis said.

Collins’ four-hour cross-examination of Solis was less fiery than others witnessed by jurors so far in the trial of Madigan, Illinois’ former House speaker. But Solis is a former elected official whose dirty laundry is far more salacious. And defense attorneys have set their sights on Solis’ credibility.

His questioning is set to continue Tuesday.

Sister ‘recommending tax fraud?’

Solis represented Chicago’s 25th Ward for more than 20 years. He began wearing a wire for the FBI in June 2016 and helped federal agents build their case against Madigan. The once-powerful Southwest Side Democrat is accused of leading a criminal enterprise designed to enhance his political power and financial well-being.

Solis only agreed to wear a wire after being confronted by agents about his own alleged wrongdoing, though. And Monday, Collins turned his attention to Solis’ sister, Patti Solis Doyle.

The former Hillary Clinton 2008 campaign manager later co-founded a company called Vendor Assistance Program with Hynes. It pocketed roughly $400 million over more than a decade by serving as an intermediary that helped vendors get money owed to them by the state of Illinois.

Solis told jurors Monday that his sister paid him a fee of roughly $200,000 over five years for referring her to Hynes. But Collins went on to document far more — a total of $617,000 that Solis collected from his sister between 2014 and 2018.

“Your testimony is that you never had an ownership interest, correct?” Collins asked Solis. “… And you never made an investment … You made a referral for your sister to Brian Hynes?”

Solis said that was all correct.

Solis also acknowledged that he had conversations with Hynes and Solis Doyle in 2017 about reporting the VAP money he’d received as a capital gain. By then, the FBI was listening in on Solis’ phone calls. Collins noted that, at one point, Solis Doyle suggested “revising documents” to that end.

“Did you realize that your sister was recommending tax fraud?” Collins asked.

Solis said he didn’t.

Neither Solis Doyle nor Hynes have been charged with wrongdoing. An FBI special agent has said that Solis Doyle’s phone was wiretapped, but the resulting investigation was not fruitful.

‘Hard time reading tax returns’

Meanwhile, Collins questioned Solis about his tax returns dating back to 2014, and whether Solis had reported the VAP income to the IRS. Solis repeatedly professed confusion with taxes, telling the jury that “I have a hard time reading tax returns. I just don’t understand them.”

Solis pointed the finger toward his accountant at times — giving Collins an opportunity to note how a tax preparer would rely on information provided by Solis as jurors might.

Solis also told Collins his 2014 tax returns were “too far away” for him to remember, even though Solis had earlier testified about encounters with Madigan in 2014.

In fact, Solis, 75, told jurors at one point that, “I think I’m getting old, and I have problems with short-term memory and people’s names.”

Collins brought up Illinois Comptroller Susana Mendoza, noting the importance of her office to VAP, a company that interacted with state vendors. The defense attorney said Solis’ campaign made a $55,400 donation to Mendoza’s in February 2018.

Collins also alleged that entities associated with Hynes paid Solis $55,500 that June.

“Are you aware, sir, that Brian Hynes made his own donations to Friends of Susana Mendoza?” Collins asked. “If he had, and then you put another $55,400 on it, he is far in excess of what he is allowed to donate to Ms. Mendoza?”

Eventually, Collins asked about Solis’ sale of an apartment “at the end of 2018,” around the time Solis formally signed his deal with the feds.

Collins noted that Solis later failed to report a $194,000 profit from the sale to the IRS.

And that’s when Collins asked Solis whether his deal could go “poof.”

Solis Doyle did not immediately respond to a request for comment.

But a spokesperson for Hynes told the Sun-Times, "Solis was neither an owner or investor in nor was paid by the company. Claims made by the defense that tax advice was provided are false and while Solis stayed at the San Juan home when the owner was not present, other insinuations made by the defense are also false.”