{"id":5321,"date":"2017-10-18T18:18:24","date_gmt":"2017-10-18T15:18:24","guid":{"rendered":"http:\/\/anticorr.media\/?p=5321"},"modified":"2017-10-20T10:29:26","modified_gmt":"2017-10-20T07:29:26","slug":"vzlet-i-padenie-musornyx-korolej-detrojta","status":"publish","type":"post","link":"https:\/\/anticorr.media\/en\/vzlet-i-padenie-musornyx-korolej-detrojta\/","title":{"rendered":"The Rise and Fall of Detroit Garbage Tycoon"},"content":{"rendered":"<h3 class=\"headline\">Rizzo family takes plea deal in corruption case<\/h3>\n<p>This material belongs to: <a href=\"https:\/\/www.clickondetroit.com\/news\/rizzo-family-takes-plea-deal-in-corruption-case\">ClickOnDetroit<\/a>.<\/p>\n<p class=\"sub-headline\">Garbage collection tycoons have plea hearing.<\/p>\n<p><iframe loading=\"lazy\" src=\"https:\/\/cdnapisec.kaltura.com\/p\/2031091\/sp\/203109100\/embedIframeJs\/uiconf_id\/36217991\/partner_id\/2031091?iframeembed=true&amp;playerId=media-preview_0_0_7ylvmydz&amp;entry_id=0_7ylvmydz&amp;flashvars[streamerType]=auto\" width=\"640\" height=\"395\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n<p><strong>DETROIT<\/strong>\u00a0&#8211; The father and son tandem of <a href=\"http:\/\/www.freep.com\/story\/news\/local\/michigan\/macomb\/2017\/06\/02\/chuck-rizzo-corruption-scandal\/363787001\/\">Chuck<\/a> and\u00a0<a class=\"_magnetEntNameitent_208-1\" href=\"https:\/\/www.clickondetroit.com\/topic\/Charles%20Rizzo?entityid=828243644&amp;lang=en\">Charles Rizzo<\/a>\u00a0are well-known names around <a href=\"https:\/\/en.wikipedia.org\/wiki\/Metro_Detroit\">Metro Detroit<\/a>.<\/p>\n<p><strong>They once owned the <a href=\"https:\/\/www.bloomberg.com\/research\/stocks\/private\/snapshot.asp?privcapId=30424329\">Rizzo Environmental Services<\/a> company. The red garbage trucks could be spotted across the region. However, as quickly as their trash collection empire rose, it has fallen.<\/strong><\/p>\n<p><strong>The original indictment was 43 complicated pages laying out the case against the Rizzos. The very end came with more more simplicity: A single page with the Rizzos\u00a0agreeing to appear in federal court Nov. 9 in <a href=\"https:\/\/en.wikipedia.org\/wiki\/Port_Huron,_Michigan\">Port Huron<\/a> for a plea hearing.<\/strong><\/p>\n<p><a class=\"_magnetEntNameitent_208-1\" href=\"https:\/\/www.clickondetroit.com\/topic\/Chuck%20Rizzo?entityid=1102094296&amp;lang=en\">Chuck Rizzo<\/a>, who is the son of Charles, started out helping federal investigators in their attempts to ferret out the widespread corruption they found in <a href=\"https:\/\/en.wikipedia.org\/wiki\/Macomb_County,_Michigan\">Macomb County<\/a>. Chuck wore a wire and helped expose the payoffs of government officials in order to gain trash hauling contracts. Overall, 17 people were arrested as a result of Chuck Rizzo&#8217;s cooperation.<\/p>\n<p>However, somewhere along the line Chuck Rizzo decided to stop helping\u00a0with the investigation. That led the feds to point much of the investigation toward him and his father.<\/p>\n<p><a href=\"http:\/\/clintontownship.com\/trustees.html\">Dean Reynolds<\/a>, a <a href=\"https:\/\/en.wikipedia.org\/wiki\/Clinton_Township,_Macomb_County,_Michigan\">Clinton Township<\/a> trustee closest to Rizzo, was named in the federal indictment. The feds said Rizzo served as a bagman in paying bribe money to Reynolds from Boulevard and <a href=\"http:\/\/www.boulevardtrumbulltow.com\/\">Trumbull Towing<\/a> magnate <a href=\"http:\/\/www.freep.com\/story\/news\/2017\/06\/19\/indicted-gasper-fiore-loses-towing-contracts-msp-wayne-county\/409327001\/\">Gasper Fiore<\/a>\u00a0in order for Fiore to get a township towing contract.<\/p>\n<p>The even bigger problem for Rizzo stems from the construction of his <a href=\"https:\/\/en.wikipedia.org\/wiki\/Bloomfield_Hills,_Michigan\">Bloomfield Hills<\/a> mansion. He, along with his father Charles, allegedly used friends to steal money from Rizzo Environmental Services &#8212; the other owner was a New York hedge fund. The feds said the Rizzos were using the stolen money to finance the mansion construction.<\/p>\n<p>Chuck Rizzo faces eight conspiracy and bribery counts and roughly half a dozen wire fraud charges.<\/p>\n<p>Meanwhile, it appears the heat is on Fiore. With the Rizzos\u00a0striking a plea deal, they likely will testify at a trial. That trial may be Fiore&#8217;s.<\/p>\n<h3 class=\"asset-headline speakable-headline\">How Rizzo Services built a garbage empire in metro Detroit<\/h3>\n<p>This material belongs to: <a href=\"http:\/\/www.freep.com\/story\/news\/local\/michigan\/macomb\/2016\/10\/15\/rizzo-garbage-macomb-county-corruption\/92048890\/\">Detroit Free Press<\/a>.<\/p>\n<p class=\"lead-in\"><strong>Trash hauler Rizzo Environmental Services now is at the center of a major federal corruption probe in Macomb County, sources say.<\/strong><\/p>\n<p class=\"speakable-p-1 p-text\"><strong>Fifteen years ago, Rizzo Environmental Services\u00a0was plowing snow for the <a href=\"https:\/\/en.wikipedia.org\/wiki\/Hamtramck,_Michigan\">City of Hamtramck<\/a>, its first and only major customer.<\/strong><\/p>\n<p class=\"speakable-p-2 p-text\">Then came the garbage.<\/p>\n<figure id=\"attachment_5323\" aria-describedby=\"caption-attachment-5323\" style=\"width: 534px\" class=\"wp-caption alignleft\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-5323\" src=\"http:\/\/anticorr.media\/wp-content\/uploads\/2017\/10\/636121551122994440-LIVBrd-01-18-2015-Birmingha.jpg\" alt=\"\" width=\"534\" height=\"401\" srcset=\"https:\/\/anticorr.media\/wp-content\/uploads\/2017\/10\/636121551122994440-LIVBrd-01-18-2015-Birmingha.jpg 534w, https:\/\/anticorr.media\/wp-content\/uploads\/2017\/10\/636121551122994440-LIVBrd-01-18-2015-Birmingha-300x225.jpg 300w\" sizes=\"auto, (max-width: 534px) 100vw, 534px\" \/><figcaption id=\"caption-attachment-5323\" class=\"wp-caption-text\">Source: Rizzo Environmental Services.<\/figcaption><\/figure>\n<p class=\"p-text\">Hauling trash, the company would discover, was a lucrative business in the municipal world, where multimillion-dollar contracts were up for grabs to the lowest bidder.\u00a0Rizzo Services rolled in with its rock-bottom prices. And before long, the\u00a0<a href=\"https:\/\/www.sterling-heights.net\/\">Sterling Heights<\/a> company was king of\u00a0\u00a0trash,\u00a0running a garbage empire that today includes 55\u00a0municipalities across metro Detroit, where Rizzo&#8217;s signature\u00a0red trucks\u00a0have\u00a0popped\u00a0up in record numbers, replacing the\u00a0green, blue and yellow trucks that had serviced towns for decades.<\/p>\n<p class=\"p-text\">This\u00a0meteoric\u00a0growth spurt happened in the last five years as\u00a0Rizzo\u00a0more than doubled in size. In 2011, it served 20 communities; now it has 55, including <a href=\"https:\/\/en.wikipedia.org\/wiki\/Detroit\">Detroit<\/a>.<\/p>\n<p class=\"p-text\">But amid\u00a0this explosion in growth,\u00a0the FBI was watching.<\/p>\n<p class=\"p-text\">In U.S. District Court last week, a sensational\u00a0criminal case surfaced that placed\u00a0Rizzo\u00a0at the center of a <a href=\"http:\/\/www.freep.com\/story\/news\/local\/michigan\/macomb\/2016\/10\/13\/clinton-township-trustee-bribery\/91994052\/\">federal public corruption investigation<\/a>\u00a0that is expected to expose numerous pay-to-play schemes in\u00a0Macomb County and\u00a0charge\u00a0the\u00a0politicians behind them, according to multiple sources familiar with the investigation.\u00a0The sources told the Free Press that Rizzo\u00a0is cooperating with the government after getting caught allegedly paying\u00a0bribes\u00a0to a Clinton Township official who was charged Thursday with selling his vote in exchange for pushing through\u00a0an $18 million deal for the trash hauler. Federal prosecutors allege township Trustee Dean Reynolds was paid up to $75,000 in cash and was provided a free\u00a0lawyer\u00a0in his divorce.<\/p>\n<p class=\"p-text\">Plenty more politicians can expect to be charged, if the FBI&#8217;s own words in the charging document are any indication.<\/p>\n<p class=\"p-text\">&#8220;This is an extensive investigation into systemic corruption in multiple municipalities in southeastern Michigan, primarily Macomb County,&#8221; the FBI wrote.<\/p>\n<p class=\"p-text\">Since the corruption probe\u00a0surfaced, a team of <a href=\"https:\/\/en.wikipedia.org\/wiki\/Detroit_Free_Press\">Free Press<\/a> reporters has interviewed multiple public officials,\u00a0businessmen and lawyers\u00a0and reviewed hundreds of court documents,\u00a0contracts and government meeting minutes to help\u00a0explain\u00a0how the family-owned\u00a0Rizzo Environmental Services exploded and dominated the garbage market in 15 years before\u00a0landing\u00a0on the FBI&#8217;s radar.<\/p>\n<p>Among those who offered insight were\u00a0Rizzo&#8217;s competitors, including \u00a0longtime trash hauler <a href=\"http:\/\/tringalisanitation.com\/history.htm\">Dominic Tringali<\/a>, who has\u00a0lost several contracts to Rizzo over the years and believes\u00a0that Rizzo grew too big and too fast.<\/p>\n<p>&#8220;I couldn&#8217;t\u00a0believe it. It\u00a0was unreal,&#8221; Tringali said of Rizzo&#8217;s growth, noting his half-century-old\u00a0<a href=\"http:\/\/tringalisanitation.com\/history.htm\">Tringali\u00a0Sanitation<\/a>\u00a0has never had more than 10 municipal contracts.\u00a0&#8220;I&#8217;ve been doing\u00a0this for 50 years and I got to 10.&#8221;<\/p>\n<figure id=\"attachment_5322\" aria-describedby=\"caption-attachment-5322\" style=\"width: 180px\" class=\"wp-caption alignleft\"><img loading=\"lazy\" decoding=\"async\" class=\"size-full wp-image-5322\" src=\"http:\/\/anticorr.media\/wp-content\/uploads\/2017\/10\/636121551000689656-Tringali-Sanitation-8.jpg\" alt=\"\" width=\"180\" height=\"240\" \/><figcaption id=\"caption-attachment-5322\" class=\"wp-caption-text\">Dominic Tringali, founder president of Tringali Sanitation, a Troy-based garbage hauling business for 50 years, says Rizzo Environmental Services grew too big and too fast over the last decade. His company has lost several contracts to Rizzo, which is a central figure in a federal public corruption probe in Macomb County involving alleged pay-to-play schemes. Source: Tringali Sanitation.<\/figcaption><\/figure>\n<p class=\"p-text\">Tringali&#8217;s current customers are\u00a0<a href=\"https:\/\/en.wikipedia.org\/wiki\/Troy,_Michigan\">Troy<\/a>, <a href=\"https:\/\/en.wikipedia.org\/wiki\/Oak_Park,_Michigan\">Oak Park<\/a>, <a href=\"https:\/\/en.wikipedia.org\/wiki\/Berkley,_Michigan\">Berkley<\/a>,\u00a0<a href=\"https:\/\/en.wikipedia.org\/wiki\/Clawson,_Michigan\">Clawson<\/a>, <a href=\"https:\/\/en.wikipedia.org\/wiki\/Lathrup_Village,_Michigan\">Lathrup Village<\/a>, <a href=\"https:\/\/en.wikipedia.org\/wiki\/Pleasant_Ridge,_Michigan\">Pleasant Ridge<\/a>, <a href=\"https:\/\/en.wikipedia.org\/wiki\/Huntington_Woods,_Michigan\">Huntington Woods<\/a> and <a href=\"https:\/\/en.wikipedia.org\/wiki\/Hazel_Park,_Michigan\">Hazel Park<\/a>, which he&#8217;s about to lose to Rizzo after decades of working there. Tringali&#8217;s contract was up this year\u00a0and Rizzo Environmental Services\u00a0won it in a no-bid deal.\u00a0This past year, Rizzo also picked up <a href=\"https:\/\/en.wikipedia.org\/wiki\/Livonia,_Michigan\">Livonia<\/a>, <a href=\"https:\/\/en.wikipedia.org\/wiki\/Southfield,_Michigan\">Southfield<\/a> and <a href=\"https:\/\/en.wikipedia.org\/wiki\/Sterling_Heights,_Michigan\">Sterling Heights<\/a> \u2014 Michigan&#8217;s fourth largest city.<\/p>\n<p class=\"p-text\">&#8220;How does that happen? They&#8217;re batting 1,000. They&#8217;re getting every job they come across. They go in real cheap. And once\u00a0they get it, it never goes out for bids again,&#8221; Tringali said: &#8220;A guy that plays fair and square doesn&#8217;t have a chance.&#8221;<\/p>\n<p class=\"p-text\">Waste Management \u00a0has taken the biggest hit, said Tringali, arguing\u00a0&#8220;they&#8217;ve been getting clobbered.&#8221;<\/p>\n<p class=\"p-text\">According to <a href=\"https:\/\/en.wikipedia.org\/wiki\/Waste_Management_(corporation)\">Waste Management<\/a>, the company has lost almost half of its customers to Rizzo Environmental Services\u00a0over the last decade. Ten years ago, Waste Management serviced about 45 communities across metro Detroit; 21 of them have switched to Rizzo.<\/p>\n<p class=\"p-text\">\u201cIn some instances, bid processes we\u2019ve certainly not seen before \u2014 like allowing bids to be revised and resubmitted \u2014 were observed,\u201d Waste Management spokesman <a href=\"https:\/\/lansingbusinessnews.com\/uncategorized\/2016\/12\/working-together-to-manage-waste\/\">Tom Horton<\/a> told the Free Press in a statement. \u201cWe will continue to watch as the recently announced investigation unfolds.\u201d<\/p>\n<h3 class=\"presto-h3\"><span class=\"print_subhead\">Winning on price<\/span><\/h3>\n<p class=\"p-text\">Rizzo has not been charged with\u00a0any criminal wrongdoing.<\/p>\n<p class=\"p-text\"><a href=\"https:\/\/twitter.com\/joemunem\">Joseph A. Munem<\/a>, director of\u00a0government affairs and\u00a0public relations for\u00a0Rizzo Environmental Services, has said the company is cooperating, but\u00a0declined to elaborate any further.<\/p>\n<p class=\"p-text\">\u201cIn this, as in all matters, we\u2019re cooperating with the legal authorities. We will follow their guidance so long as it may be required in the coming weeks,\u201d Rizzo said in a statement.\u00a0\u00a0\u201cWe will continue to focus on delivery of our services, and to demonstrate to our employees, partners and customers that we remain the premier provider of environmental services in our community.\u201d<\/p>\n<p class=\"p-text\">Munem did, however, offer an explanation for the company&#8217;s growth:<\/p>\n<p class=\"p-text\">&#8220;We&#8217;ve grown on a reputation of excellent service at a competitive price,&#8221; Munem said.<\/p>\n<p class=\"p-text\">Numerous public officials across metro Detroit\u00a0agreed that that\u00a0philosophy has won them over. It&#8217;s hard to turn down Rizzo Environmental Services\u2019\u00a0super low bids, they said, especially when the company comes highly recommended from\u00a0neighboring communities that also switched to Rizzo and were satisfied with its services. Rizzo&#8217;s bids, they said,\u00a0come in as low as 20% cheaper than competitors. And recycling is often lumped in.<\/p>\n<p class=\"p-text\">The company\u2019s website also boasts of such claims, listing letters of support from municipalities, including Hamtramck, <a href=\"https:\/\/en.wikipedia.org\/wiki\/New_Haven,_Michigan\">New Haven<\/a> and <a href=\"https:\/\/en.wikipedia.org\/wiki\/Fraser,_Michigan\">Fraser<\/a> and\u00a0<a href=\"https:\/\/en.wikipedia.org\/wiki\/Chesterfield_Township,_Michigan\">Chesterfield Township<\/a> \u2014 all of which picked Rizzo because it was cheaper than everyone else.<\/p>\n<p class=\"p-text\">\u201cFor me, it\u2019s real simple \u2026 when you hear positive feedback from other municipalities, and when that quote comes in 20% lower than anyone else, it\u2019s really difficult to tell your residents, \u2018Well, I really don\u2019t like it. I\u2019m going to go with the guy who\u2019s 20% higher,\u201d <a href=\"https:\/\/en.wikipedia.org\/wiki\/Harrison_Township,_Michigan\">Harrison Township<\/a> Supervisor <a href=\"http:\/\/rcnmc.com\/2012-republican-primary-candidate-guide\/harrison-township\/kenneth-verkest\/\">Ken Verkest<\/a> said in explaining why his community\u00a0switched to Rizzo last year.<\/p>\n<p class=\"p-text\">In 2015, Harrison Township awarded a five-year contract for $1.18 million a year\u00a0to Rizzo, which beat out Tringali and Waste Management in a bidding war. Verkest noted that Rizzo Environmental Services came to town five years ago\u00a0but didn\u2019t have the lowest bid and lost to Tringali. Five years later, Rizzo came back with the lowest price: $140 per house for a year: Tringali was $175;\u00a0Waste Management $173.<\/p>\n<p class=\"p-text\">\u201cIt wasn\u2019t close whatsoever,\u201d Verkest said. \u00a0\u201cIn the end, if they\u2019re providing the service and holding the price they\u2019re quoted, how do you walk away from that?\u201d<\/p>\n<p class=\"p-text\"><a href=\"https:\/\/en.wikipedia.org\/wiki\/Shelby_Township,_Michigan\">Shelby Township<\/a> \u00a0has a similar story. After 15 years of using <a href=\"https:\/\/www.indeed.com\/q-Republic-Services-l-Michigan-jobs.html\">Republic Services<\/a> for trash hauling, it switched to Rizzo in 2012 because it had the lowest bid for garbage, yard waste and recycling.\u00a0The initial Rizzo contract was for three years. It was extended for another 10 years last year.<\/p>\n<p class=\"p-text\">Supervisor <a href=\"http:\/\/shelbytwp.org\/departments\/supervisors_office\/index.html\">Richard Stathakis<\/a> said the township previously had Republic Services for about 15 years and went with Rizzo because: Rizzo had the lowest bid, offered a \u00a0recycling program with separate wheeled bins, versus a small box for recycling with Republic and offered\u00a0a 10% senior discount.<\/p>\n<p class=\"p-text\">&#8220;They didn&#8217;t do anything wrong,\u201d Stahakis said of Republic. \u201cIt&#8217;s very competitive. It was bid out. It just came down to the prices \u2026 . We found a company that could do it for more service and at a better price.\u201d<\/p>\n<p class=\"p-text\">Plus, Stathakis added: \u00a0&#8220;The service they have been providing to the residents has been impeccable.&#8221;<\/p>\n<h3 class=\"presto-h3\"><span class=\"print_subhead\">Rizzo employee \u2018I feared for my well-being\u2019<\/span><\/h3>\n<p class=\"p-text\">A 2008 lawsuit in U.S. District Court paints a harrowing picture of one employee\u2019s experience while working for Rizzo Environmental Services\u00a0for more than six years.<\/p>\n<p class=\"p-text\"><a href=\"https:\/\/www.gpo.gov\/fdsys\/pkg\/USCOURTS-mied-2_08-cv-10315\/pdf\/USCOURTS-mied-2_08-cv-10315-1.pdf\">Migena Gjonaj<\/a>, a former Rizzo billing department manager,\u00a0sued the company as well as\u00a0Charles Rizzo Sr.\u00a0and Charles Rizzo\u00a0Jr., alleging she was discriminated against, harassed and eventually fired in \u00a02007 after she reported what she believed were\u00a0illegal activities to the Sterling Heights police.<\/p>\n<p class=\"p-text\">In the lawsuit, which was settled before it reached trial, Gjonaj claimed that she frequently was asked to create fraudulent bills for work never performed. In addition, she claimed, some employees boasted of illegal campaign contributions to local politicians.<\/p>\n<p class=\"p-text\">According to the woman\u2019s lawsuit, Rizzo Environmental Services was investigated long before the current revelations. The <a href=\"https:\/\/en.wikipedia.org\/wiki\/Michigan_Gaming_Control_Board\">Detroit Gaming Commission<\/a> interviewed her about billings from Rizzo to <a href=\"https:\/\/www.motorcitycasino.com\/default.aspx\">Detroit\u2019s Motor City Casino<\/a> for work that wasn\u2019t done, the suit stated. Federal agents also questioned her on several occasions about the company\u2019s activities, she alleged.<\/p>\n<p class=\"p-text\">In a deposition taken as part of her lawsuit, Gjonaj under oath told an attorney for the company that she once asked company\u00a0officials how to handle a business customer that was complaining of a $15,000 overcharge. She said a Rizzo official told her to \u201cfake bill this customer\u201d and called it a \u201cChristmas bonus\u201d for Rizzo Environmental Services.<\/p>\n<p class=\"p-text\">Also in that April 2008 deposition, Gjonaj was asked for names of people who received illegal campaign contributions from company employees.<\/p>\n<p class=\"p-text\">\u201cMayor Kwame,\u201d she answered, referring to former Detroit Mayor <a href=\"https:\/\/en.wikipedia.org\/wiki\/Kwame_Kilpatrick\">Kwame Kilpatrick<\/a>, who was still in office in 2008 but is now serving prison time for corruption.<\/p>\n<p class=\"p-text\">Gjonaj said an intermediary told her a\u00a0company executive wanted to pay her $50,000 to not go to the police about what she saw at the company.<\/p>\n<p class=\"p-text\">She went to the Sterling Heights police in October 2007\u00a0anyway and was fired days later.\u00a0The lawsuit does not indicate what, if anything, came of her informing the police\u00a0\u2014 except for a mention that Sterling Heights police in turn informed the FBI.<\/p>\n<p class=\"p-text\">\u201cI feared for my well-being,\u201d she said in her deposition. \u201cI did not want to be persecuted. I did not want no investigation done on me since I was the manager of the billing department. I had seen fraud. I had seen illegal activities \u2026\u00a0committed there and I didn\u2019t want to be a part of it. I wanted to report it. \u2026 I did not want to go down for these people.\u201d<\/p>\n<p class=\"p-text\">She also accused Rizzo Environmental Services of doing nothing to stop employees who heckled her over her Albanian heritage, referred to her with slurs and called her names and posted notes around the office banning \u201cAlbanians\u201d from the office coffee pot and the kitchen.<\/p>\n<p class=\"p-text\">Messages and e-mails left for the company\u2019s attorneys were not returned to the Free Press.<\/p>\n<p class=\"p-text\">In court documents, lawyers for the company argued that Gjonaj\u2019s suit was \u201cfrivolous and without merit\u201d and was intended to harass the defendants and extort money from them.<\/p>\n<p class=\"p-text\">The suit was settled in 2009.<\/p>\n<p class=\"p-text\">Gjonaj\u2019s lawyer, <a href=\"https:\/\/www.gpo.gov\/fdsys\/pkg\/USCOURTS-mied-2_08-cv-10315\/pdf\/USCOURTS-mied-2_08-cv-10315-1.pdf\">Robert Fetter<\/a>, said Friday that he couldn\u2019t comment on the terms of the settlement because of a nondisclosure agreement, but he said his client stood by her allegations.<\/p>\n<p class=\"p-text\">\u201cShe believed them to be true,\u201d Fetter said. \u201cWe wouldn\u2019t have put them in the complaint unless we did.\u201d<\/p>\n<h3 class=\"presto-h3\"><span class=\"print_subhead\">The telltale deal<\/span><\/h3>\n<p class=\"p-text\"><a href=\"https:\/\/en.wikipedia.org\/wiki\/Clinton_Township,_Macomb_County,_Michigan\">Clinton Township<\/a> was looking to save money when it awarded Rizzo Environmental Services a three-year contract \u00a0in 2010. The Waste Management contract had expired. It went out to bid, and Rizzo came in $1 million cheaper than Waste Management and won.\u00a0\u00a0The Rizzo contract costs Clinton Township\u00a0$3.5 million\u00a0to $3.6 million per year, Supervisor\u00a0<a href=\"https:\/\/robertjcannon.com\/\">Robert Cannon<\/a> said.<\/p>\n<p class=\"p-text\">It was that\u00a0deal that eventually landed Rizzo\u00a0under federal scrutiny..<\/p>\n<p class=\"p-text\">According to court records and interviews with numerous sources, here&#8217;s what happened:<\/p>\n<p class=\"p-text\">When Clinton Township&#8217;s\u00a0three-year contract expired, Rizzo wanted the township to extend it for another 18 years\u00a0but without putting it out to bid. To make that happen, the FBI said in court filings,\u00a0Rizzo\u00a0paid between $50,000 and $70,000 in cash bribes to Reynolds,\u00a0who also got a free divorce lawyer,\u00a0to help the company win the extension without a bid process.<\/p>\n<p class=\"p-text\">Reynolds talked about the bribes in telephone conversations, the FBI said in court documents. Agents had tapped his phone, and the phone of an unnamed company\u00a0&#8220;principal&#8221;\u00a0who had paid the bribes, the FBI said. When confronted by authorities, the alleged bribe-giver\u00a0admitted responsibility and agreed to cooperate, the FBI said.<\/p>\n<p class=\"p-text\">The allegations, meanwhile, have troubled some Clinton Township officials who voted against extending the Rizzo\u00a0contract. It was Reynolds, they recalled, who made the motion to extend the contract without seeking bids from other haulers\u00a0\u2014 and it worked. The township voted 4-3 to extend the contract.<\/p>\n<p class=\"p-text\">Among those who voted no was <a href=\"http:\/\/clintontownship.com\/trustees.html\">Trustee Paul Gieleghem<\/a>.<\/p>\n<p class=\"p-text\">&#8220;Competitive bidding, in my opinion, is the way that we ensure the public that they&#8217;re getting the best possible services at the best possible price,&#8221; \u00a0said Gieleghem, who noted that he is satisfied with Rizzo&#8217;s service\u00a0but concerned about the bidding process.<\/p>\n<p class=\"p-text\">&#8220;I was upset when they voted to approve the contract without a bid, and that&#8217;s why I voted &#8216;no&#8217;,&#8221; Gieleghem said, adding &#8220;The allegations are very troubling.&#8221;<\/p>\n<p class=\"p-text\">Township Treasurer\u00a0<a href=\"http:\/\/www.housedems.com\/sowerby\">Bill Sowerby<\/a> also voted against the no-bid extension.<\/p>\n<p class=\"p-text\">&#8220;This is why the public expects open, good government and bidding on contracts \u2014\u00a0\u00a0so that there is fairness in the entire government process,&#8221; Sowerby said, declining to elaborate further.<\/p>\n<p class=\"p-text\">Supervisor Cannon said the township&#8217;s contract with Rizzo\u00a0Environmental Services has been\u00a0added to the agenda for discussion at\u00a0Monday night&#8217;s Board of Trustees meeting.\u00a0He said there also is an item for the board&#8217;s approval to remove Reynolds from all committees and assignments until further notice.\u00a0The trustees cannot remove him from the board, but Cannon said he and the other five board members signed a letter to Reynolds asking him to resign.<\/p>\n<h3 class=\"presto-h3\"><span class=\"print_subhead\">Customer concerns<\/span><\/h3>\n<p class=\"p-text\">The U.S. Attorney&#8217;s Office has declined comment on reports\u00a0that Rizzo\u00a0is the company referenced by the FBI in the court documents filed\u00a0in the case. It also declined to comment on whether any bribery charges would be brought against the company. It would neither confirm nor deny Rizzo Environmental Services&#8217;\u00a0involvement.<\/p>\n<p class=\"p-text\">Federal authorities have\u00a0said only that the Clinton Township bribery case is part of a broader\u00a0federal investigation and that numerous communities are involved. The probe \u2014 like the <a href=\"https:\/\/en.wikipedia.org\/wiki\/Detroit_City_Hall\">Detroit City Hall<\/a> corruption case that brought down Kilpatrick and dozens of others \u2014 also involves wiretaps, informants, and secret videotaped recordings.<\/p>\n<p class=\"p-text\">&#8220;Corruption undermines the very nature of representative government,&#8221; U.S. Attorney <a href=\"https:\/\/en.wikipedia.org\/wiki\/Barbara_L._McQuade\">Barbara McQuade<\/a> said, noting the federal government &#8220;is committed to seeking out and prosecuting corrupt public officials in all areas &#8230; including suburban communities.&#8221;<\/p>\n<p class=\"p-text\">McQuade declined further comment.<\/p>\n<p class=\"p-text\">Since the allegations involving Rizzo Environmental Services\u00a0surfaced, several communities have expressed concern, though most have said they are satisfied with the trash hauler&#8217;s services.<\/p>\n<p class=\"p-text\">Rizzo\u2019s largest customer is the City of Detroit, which privatized its garbage pickup in 2014 under then Emergency Manager <a href=\"https:\/\/en.wikipedia.org\/wiki\/Kevyn_Orr\">Kevyn Orr<\/a>, who said privatizing garbage collection would save Detroit about $15 million.\u00a0Out of 10 bidders, Detroit picked two garbage haulers: Rizzo signed a $49.1 million contract for five years to pick up trash for 90,000 households; <a href=\"http:\/\/www.advanceddisposal.com\/mi\/detroit\/detroit-residential-collection\">Advanced Disposal<\/a> signed a five-year deal for $73.5 million to pick up trash for the other 125,000 households.<\/p>\n<p class=\"p-text\">The Free Press asked Mayor <a href=\"https:\/\/en.wikipedia.org\/wiki\/Mike_Duggan\">Mike Duggan<\/a>\u2019s office whether it had any concerns about the new allegations. This is how\u00a0the\u00a0mayor\u2019s office responded:<\/p>\n<p class=\"p-text\">&#8220;The City of Detroit&#8217;s contract with Rizzo Environmental Services was negotiated and entered into by the emergency manager. The city&#8217;s role today is to manage and enforce the terms of the EM contract.&#8221;<\/p>\n<p class=\"p-text\">Nearly two weeks before news of the alleged pay-to-play scheme broke, <a href=\"https:\/\/en.wikipedia.org\/wiki\/Kinderhook_Industries\">Kinderhook Industries\u00a0LLC<\/a>, a private investment firm, announced the sale of its equity interest in Rizzo Environmental Services to Toronto-headquartered <a href=\"http:\/\/gflenv.com\/\">GFL Environmental Inc<\/a>.<\/p>\n<p class=\"p-text\">In an Oct. 3\u00a0news release, Kinderhook\u2019s managing director, <a href=\"http:\/\/www.kinderhook.com\/team\/index.html\">Rob Michalik<\/a>, said\u00a0the company has\u00a0enjoyed working with Rizzo\u00a0over the past four years, stating:\u00a0 \u201cThe combination of Rizzo and GFL creates one of the industry\u2019s largest private environmental services providers and we expect Rizzo to continue to flourish under GFL\u2019s ownership.\u201d<\/p>\n<p class=\"p-text\">In the same news release, Rizzo CEO Chuck Rizzo said the company is excited about its partnership with GFL.<\/p>\n<p class=\"p-text\">Fallout from the investigation remains to be seen. But on its website, the company appears optimistic if its mantra is any indication:\u00a0\u00a0\u201cWe roll on our integrity .. we lead with our character.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Rizzo family takes plea deal in corruption case This material belongs to: ClickOnDetroit. Garbage collection tycoons have plea hearing. DETROIT\u00a0&#8211; The father and son tandem of Chuck and\u00a0Charles Rizzo\u00a0are well-known names around Metro Detroit. They once owned the Rizzo Environmental Services company. The red garbage trucks could be spotted across the region. However, as quickly [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":5338,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3,38],"tags":[58,64,93,71,79,62,94,104,76,118,63,80,105,78,153],"class_list":["post-5321","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-review","category-investigation","tag-politiki","tag-antikorrupcionnaya-politika","tag-borba-s-korrupciej","tag-vzyatka","tag-gossluzhashhie","tag-korrupciya","tag-korrupciya-v-biznese","tag-korrupciya-v-politike","tag-moshennichestvo","tag-politicheskaya-korrupciya","tag-protivodejstvie-korrupcii","tag-stroitelstvo","tag-ssha","tag-chinovniki","tag-ekonomicheskaya-korrupciya","has-thumb"],"translation":{"provider":"WPGlobus","version":"3.0.2","language":"en","enabled_languages":["ru","en"],"languages":{"ru":{"title":true,"content":true,"excerpt":false},"en":{"title":true,"content":true,"excerpt":false}}},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.1.1 - 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