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In the past decade, a Chicago political insider’s company has raked in hundreds of millions of dollars through a state of Illinois program.

Now, a newly unsealed lawsuit alleges the company also schemed to “avoid paying Illinois income taxes” on the profits from its highly lucrative arrangement with the state.

The accusations target Vendor Assistance Program LLC, a Chicago company led by lawyer and lobbyist Brian Hynes. He got his start in politics as an aide to recently indicted former Illinois Democratic boss Michael Madigan, and Hynes also has close ties to disgraced ex-Chicago Ald. Danny Solis.

VAP has thrived as by far the biggest player in a program that allows a small group of state-certified companies to buy up debt from Illinois’ once-mountainous pile of unpaid bills.

VAP and the other companies in the program front unpaid state contractors 90% of what Springfield owes them — but later pocket late-penalty payments from the state, which pile up at a rate of 1% each month.

Illinois has forked over late-payment penalties totaling more than $294 million to VAP between July 2018 and February, according to state records.

And documents obtained by WBEZ show Hynes and the other investors in VAP have enjoyed net income of more than $23 million in a year.

But that windfall business model now is under threat. The state comptroller is calling for phasing...

Read Full Story: https://www.wbez.org/stories/company-accused-of-defrauding-state-of-illinois/...