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Former Sen. Sam McCann accused of campaign fund fraud, money laundering, tax evasion

SPRINGFIELD, Ill. (WCIA) — A grand jury has indicted a former Illinois State Senator and gubernatorial candidate on charges of fraud, money laundering, and tax evasion.

A press release from U.S. Attorney John C. Milhiser, Central District of Illinois, says from May 2015 to June 2020 former Sen. Sam McCann allegedly engaged in a scheme to convert over $200,000 in campaign donations to pay himself and make personal purchases. Additionally, the charges accused him of concealing his fraud from donors, the public, the Illinois State Board of Elections, and law enforcement.


WCIA was the first to report that McCann was under federal investigation in April 2019.

Most of his campaign funding in his third party bid for governor in 2018 came from the International Union of Local Operating Engineers 150, a labor union closely aligned with former House Speaker Michael Madigan. 

Our December 2019 investigation of McCann’s ‘Conservative Party’ expenses showed $168,665 in secret payroll expenses, which a spokesman for the State Board of Elections described as “illegal.”

He previously lived in Carlinville and owned and operated two construction related businesses, the release says.

Prosecutors say McCann organized several political committees that were registered with the Illinois State Board of Election. They include:

The indictment states that McCann and his political committees took in over $5 million in campaign donations from April 2011 to November 2018. Furthermore, it says there were several instances when he used the funds to buy personal cars and RVs, pay off personal debts and mortgage payments, and directly pay himself.

Specific examples include:

“The rental business retained approximately $9,838 for commission and paid McCann, as the owner, approximately $52,827 by direct deposit to McCann’s personal checking account,” says the release. “McCann reimbursed the campaign accounts $18,000, resulting in more than $77,000 in campaign funds used to buy and rent from himself.”

In addition to wire fraud and money laundering, prosecutors charged McCann with one count of tax evasion related to his joint return for 2018.

The release says McCann failed to report income from his 2018 rental payments to himself for the RV trailer and motor home. Additionally, McCann used a $10,000 check issued in March 2018 by a campaign account to make a down payment to a Shipman business for a motor home.

” When the purchase was not completed, the business issued a $10,000 refund check payable to William McCann, which he deposited to his personal checking account and failed to report as income received,” says the release.

McCann is scheduled to appear via telephone conference on Feb. 16, 2021, at 2:00 p.m. before U.S. Magistrate Judge Tom Schanzle-Haskins for arraignment.

“For the period of the alleged fraud scheme, from May 2015 to June 2020, the estimated loss is more than $200,000,” the release says.

If convicted, the statutory penalty for each count of wire fraud (seven counts) and one count of money laundering is up to 20 years in prison. For tax evasion, the statutory penalty is up to five years in prison.

The charges are the result of an investigation by the FBI and IRS Criminal Investigation. Assistant U.S. Attorney Timothy A. Bass is representing the government in the prosecution.

The indictment was announced by Central District of Illinois U.S. Attorney John C. Milhiser, FBI Special Agent in Charge Sean M. Cox, Springfield Division, and IRS Criminal Investigation Acting Special Agent in Charge David Talcott, St. Louis Field Office.

“Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.”