Case: 1:17-cv-08067 Document #: 80 Filed: 01/15/20 Page 1 of 97 PageID #:1119 UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION LAWRENCE H. GRESS, ) ) Plaintiff, ) ) Case No.: 17 CV 8067 v. ) ) Judge: Hon. Martha M. Pacold REGIONAL TRANSPORTATION AUTHORITY, an ) Illinois Municipal Corporation; PACE SUBURBAN ) Magistrate Judge: Hon. Sidney BUS SERVICE, A DIVISION OF THE REGIONAL ) I. Schenkier TRANSPORTATION AUTHORITY, an Illinois ) Municipal Corporation; SUSAN RUSHING, ) Individually; ROCKY DONAHUE, Individually; ) LINDA SWEDLUND, Individually; JANIKA ) MILLER, Individually; THOMAS J. (T.J.) ROSS, ) Individually; MARTIN SANDOVAL II Individually; ) and SENATOR MARTIN SANDOVAL, Individually; ) and Unknown and Unnamed Defendants, ) ) Defendants. ) ___________________________________________ ) SECOND AMENDED COMPLAINT Now comes the Plaintiff, Lawrence H. Gress (“Gress”), by and through his attorneys, KENT MAYNARD & ASSOCIATES LLC, and for his Second Amended Complaint against the Defendants, states as follows: NATURE OF THE ACTION This action seeks relief for damages caused by unlawful discrimination and organized, long-term, and habitual criminal activity involving violations of federal and state law, corrupt practices in hiring, public corruption, and white-collar crime, all of which were orchestrated by Illinois State Senator Martin Sandoval (“Sen. Sandoval” or “Sandoval”). Sen. Sandoval is the kingpin at the center of the wide-ranging and longstanding criminal conspiracy alleged herein (“the Sandoval Racketeering Conspiracy”), which conspiracy extended Case: 1:17-cv-08067 Document #: 80 Filed: 01/15/20 Page 2 of 97 PageID #:1119 its tentacles into various public and private enterprises that would benefit from Sen. Sandoval’s corrupt assistance or suffer from his displeasure, which public and private enterprises were therefore anxious to curry favor with Sen. Sandoval, even if that meant breaking the law. As alleged below, included among the enterprises corruptly infiltrated by Sen. Sandoval are at least two of the Service Boards of the Regional Transportation Authority (“RTA”), including the Pace Suburban Bus Company (“PACE”) and the Chicago Transit Authority (“CTA”); The Illinois State Toll Highway Authority; ComEd and its parent company Exelon; and the Red-Light Camera provider, SafeSpeed LLC (“Safespeed,” and collectively with RTA, PACE, CTA, ComEd, and Exelon “the RICO Enterprises”). Sen. Sandoval first came to power as a result of public corruption and patronage hiring and continued to exploit those and other corrupt practices as his wide-ranging racketeering conspiracy grew. The various RICO Enterprises have ascertainable structures separate and apart from the pattern of racketeering activity in which the Sandoval Conspirators were engaged, and are separate and distinct from the Sandoval Conspirators. Plaintiff seeks relief for damages that he suffered after applying for employment at PACE, one branch of the wide ranging Sandoval Racketeering Conspiracy alleged herein. JURISDICTION AND VENUE 1. This Court has subject matter jurisdiction over this action pursuant to 42 U.S.C. § 2000(e)-2; 42 U.S.C. § 1981 (b); 29 U.S.C. § 621, et. seq.; 28 U.S.C. § 1331 and, as to Count VIII, 18 U.S.C. § 1964. 2. Jurisdiction of this Court over is invoked pursuant to 28 U.S.C. §§ 451, 1331, 1337, 1343, and 1345. -2- Case: 1:17-cv-08067 Document #: 80 Filed: 01/15/20 Page 3 of 97 PageID #:1119 3. This action is authorized and instituted pursuant to Section 706(f)(1) and (3) of Title VII of the Civil Rights Act of 1964 (“Title VII”), as amended, 42 U.S.C.§ 2000e-5(f)(1), (3), and pursuant to Section 402 of the Civil Rights Act of 1991, 42 U.S.C. § 1981. 4. Venue is proper in this Court under 28 U.S.C. § 1391 and, as to Count VIII, 18 U.S.C. § 1965(a) because the unlawful practices alleged herein were committed within the jurisdiction of the United States District Court for the Eastern District of Illinois and 28 U.S.C. § 1391 because the RICO Defendants are subject to personal jurisdiction in this judicial district and reside in this district. PARTIES 5. Plaintiff, a non-Hispanic natural person, is a citizen of the United States, a resident of Downers Grove, Illinois, and older than 40. 6. As such, Plaintiff is protected by the provisions of Title VII of the Civil Rights Act of 1964, as amended, 42 U.S.C. Section 2000e-5(b) and by 18 United States Code, Sections 1341, 1346, and 2. 7. The RTA is a unit of local government that serves as the financial and oversight body for CTA, Metra, and PACE. 8. As an operating division of RTA, PACE professes that “[t]he purpose of PACE is to provide a well-coordinated, safe, economical, and efficient system of public transportation [by operating or contracting with third parties to operate bus routes] . [in] the Northeastern area of Illinois, consisting of Cook, DuPage, Kane, Lake, McHenry, and Will Counties.” 9. The headquarters of PACE is located at 550 West Algonquin Road, Arlington Heights, Illinois. -3- Case: 1:17-cv-08067 Document #: 80 Filed: 01/15/20 Page 4 of 97 PageID #:1119 10. Office-holders of RTA and PACE are public officials because their offices were created by legislation or a municipality or other body with authority conferred by the legislature; the office was delegated a portion of the powers of a government body, and legislative authority or law defined, either directly or indirectly, the powers conferred and the duties to be discharged by the office. 11. At all times relevant hereto, Defendants RTA and PACE have been engaged in an industry affecting commerce under Sections 701 (b), (g), and (h) of Title VII, 42 U.S.C., and have been doing business in the State of Illinois. 12. Section 701 of Title VII defines “commerce” as “trade, traffic, commerce, transportation, transmission, or communication among the several States; or between a State and any place outside thereof; or within the District of Columbia, or a possession of the United States; or between points in the same State but through a point outside thereof.” 13. RTA and PACE do business in the State of Illinois within an industry affecting commerce as defined in Section 701 of Title VII . .” 14. At all times relevant hereto, PACE has continuously had at least 15 employees and, as such, is an “employer” as that term is defined under the Civil Rights Act of 1964, as amended, 42 U.S.C. § 2000e(b), and has continuously had at least 20 employees within the contemplation of the ADEA, 29 U.S.C. § 630(b). 15. RTA and PACE oversee and operate programs and activities that receive federal financial assistance and are themselves programs or activities that receive federal financial assistance, including assistance within the contemplation of Title VI of the Civil Rights Act of 1964, as amended, 42 U.S.C. § 2000(d) et. seq. 16. As such, RTA is subject to requirements described in the U.S. Office of -4- Case: 1:17-cv-08067 Document #: 80 Filed: 01/15/20 Page 5 of 97 PageID #:1119 Management and Budget Circular A-133, Compliance Supplement that apply to each of its major federal programs. 17. Compliance with the requirements of laws, regulations, contracts, and grants applicable to each of RTA’s major federal programs is the responsibility of RTA’s management and subject to regular audits conducted by independent third-party auditors. 18. In the past, RTA has received a variety of federal grants and awards, such as a Pass-Through Illinois Department of Transportation grants; Transit Planning and Research grants; Technical Assistance grants; and Metropolitan Planning grants. 19. The services provided by RTA and the Service Boards, including PACE, to their intended beneficiaries are degraded by corrupt or discriminatory hiring practices because such practices lead, among other things, to the engagement of unqualified or poorly qualified employees to the exclusion of better qualified employees. 20. Defendant Miller was, at all times pertinent hereto, employed by PACE as a “Human Resources Specialist.” 21. In her capacity as a Human Resources Specialist at PACE, in 2016, as one discrete instance in the ongoing pattern of unlawful practices promoted by the Sandoval Racketeering Conspiracy, Miller knowingly and intentionally participated in and aided and abetted a corrupt and unlawful hiring process in which she intentionally discriminated against Gress because of his age and race, and also discriminated against him because he was not the son of Sen. Sandoval, who had been secretly and unlawfully pre-selected as the “winner” of the posted job opening, Posting 523. 22. Defendant Rushing was, at all times pertinent hereto, employed by PACE as a Manager of Community Relations, and in that capacity reported to Rocky Donahue (“Donahue”), -5- Case: 1:17-cv-08067 Document #: 80 Filed: 01/15/20 Page 6 of 97 PageID #:1119 who was then PACE’s Deputy Executive Director of External Relations. 23. In her capacity as PACE’s Manager of Community Relations, in 2016, as one discrete instance in the ongoing pattern of unlawful practices promoted by the Sandoval Racketeering Conspiracy, Rushing knowingly and intentionally participated in and aided and abetted a corrupt and unlawful hiring process in which she intentionally discriminated against Gress because of his age and race, and also discriminated against him because he was not the son of Sen. Sandoval, who had been secretly and unlawfully pre-selected as the “winner” of the posted job opening, Posting 523. 24. Defendant Donahue was, at all times pertinent hereto, employed by PACE as its Deputy Executive Director of External Relations with responsibility for “government affairs” and reporting to PACE’s Executive Director, T.J. Ross. 25. In his capacity as Deputy Executive Director of External Relations of PACE in 2016, Donahue was recruited by Sen.