Preckwinkle, Alvarez Sue Channahon and Kankakee to Stop Kickback Scheme

In an effort to stop the unlawful practices of two neighboring towns, Cook County Board President Toni Preckwinkle was joined by Cook County State’s Attorney Anita Alvarez in announcing that the County has filed a twelve count complaint against the City of Kankakee, the Village of Channahon and three separate Retail Acceptance Brokers to stop a wrongful sales-tax kickback scheme.

The suit alleges that Kankakee and Channahon pretends that sales take place where the order is “received,” — often in a virtually empty office — even when the bulk of the transaction takes place somewhere else. These municipalities collect sales taxes based on these transactions, then kickback up to 85% of the proceeds to the retailers and brokers.

Preckwinkle says her administration is not going to let these schemes harm Cook County tax payers any longer.

“This type of practice by any municipality or government is fundamentally wrong and we are determined to protect the interests of Cook County and those businesses that are complying with the law,” President Preckwinkle said. “We are not going to tolerate any practice that harms taxpayers so we are taking our fight to the courts and deprives our County of resources. We are looking to the courts to grant us the remedies we are afforded under law.”

Every retail sale that is wrongfully sourced to Kankakee and Channahon hurts law-abiding businesses, and robs other local governments of their fair share of tax proceeds. When sales are wrongfully sourced, local governments don’t get their fair share of sales taxes, even though they incur the costs of the services, roads, and infrastructure that are utilized to support the business. Instead, towns where an order is “accepted” get the taxes, but don’t incur costs associated with the actual business. Businesses who pay their fair share of sales taxes see their prices unfairly undercut by those who source their sales to other regions.

State’s Attorney Anita Alvarez said her office is prepared to pursue this lawsuit and take whatever steps are necessary to stop these unlawful practices and ensure that retailers pay their fair share going forward.

“As Cook County government struggles with its ongoing budget crisis, there is no better time for us to do everything within our power to ensure that we are capturing all possible sales tax revenues,” Alvarez said. “And it is important to send the message out today that we will be very diligent in our efforts.”

The lawsuit concerns wrongful sales sourcing and kickback schemes, practices that were banned by the state legislature in 2004 because they are fundamentally unfair to law-abiding retailers and local governments.

It is nearly impossible to quantify the financial impact this has had on Cook County because Kankakee and Channahon continue to keep hidden what businesses have unlawfully benefited from the kickback scheme.

In implementing this scheme, Kankakee and Channahon have been supported by self-named “retail order acceptance brokers,” including MTS Consulting, Inspired Development and Minority Development who join the towns as Defendants in the lawsuit. Two of these retail order acceptance brokers are now being sued by local governments in California, for precisely the same reason.

The City of Chicago and the RTA have already filed similar lawsuits with Kankakee and Channahon. Cook County’s suit varies slightly with these because it addresses the region of Cook County as a whole.
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China’s trillion One Belt One Road (New Silk Road) initiative is unprecedented in size and scope. President Xi Jinping has sealed megaproject deals with 65 countries to construct ports, power stations, rail lines, roads, and all the tunnels and bridges needed to connect them back to mainland China.

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There’s one major pitfall for African countries along China’s new Silk Road

What’s driving China’s New Silk Road, and how should the West respond?

…and the Internet.

Having recently completed both the world’s most extensive system of expressways and the planet’s longest high speed rail network, China is now looking beyond its borders for opportunities to keep building. President Xi Jinping announced at a recent summit that Beijing has sealed megaproject deals with 65 countries throughout Eurasia and Africa to construct ports, power stations, rail lines, roads, and all the tunnels and bridges needed to connect them back to mainland China.

At a total cost of over trillion, the One Belt, One Road initiative is unprecedented in size and scope. So is the bold funding mechanism: China will use its large, state-run banks to provide most of the financing, a risky move, when you consider how few of the nations in the O.B.O.R. could afford something like this on their own. “Oh,” say the leaders of economically-challenged, underdeveloped Laos, Yemen, or Ethiopia — or the blood-soaked regime of Bashar al-Assad in war-ravaged Syria — “you want to loan us billions of dollars to build some cool stuff in our countries? Of course, why not!?”

China is hard-selling the project as a way to boost its westward connections, an update of the silk road trade route that played a significant role in developing China and the rest of the region 1,000 years ago. But many analysts see this comparison as little more than a marketing pitch.

Al Jazeera clip: “Is the real point of this, East-West service then simply to boost China’s westward connections?
[Pauline Loong] “Well I wouldn’t say simply to boost China’s westward connections, but I totally agree with Charles that it’s more a PR stunt. To call it the “Silk Road,” that’s really brilliant—evocative of romantic camel travels in the past. When, you know, you have these lovely silks and trade and so forth. And it’s good, because look at all the headlines it has been getting, but in practical terms, it’s early days yet.”

[Bryce] Aside from the lessons China learned from its own recent infrastructure boom, Beijing is also drawing inspiration from the American Marshall Plan which financed the rebuilding of Western Europe after it was decimated during the second world war. That program was worth the equivalent of 0 billion in today’s dollars and ensured the US had reliable export markets for the manufactured goods and machinery its growing economy had become dependent on producing.

China’s modern version — first announced in 2013 — is the signature initiative of President Xi Jinping. Several projects have already been completed. Earlier this year London became the 15th European city connected directly to China through an ever-expanding global rail system, meaning freight trains loaded with goods can now arrive after a 12,000km journey all the way from the east coast of the landmass.

And, at a cost of billion, China also just completed Africa’s first transnational electric railway, which runs 466 miles from Djibouti to Addis Ababa, the capital of Ethiopia. Chinese companies designed the system, built the line, and supplied the train cars…
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  1. Rudy Juchem says:

    ….please, make a video….China in Sud-América……..Tanks!!!

  2. 历下名士 says:

    China's New "Silk Road", reported by Al Ja-negative.

  3. Zamri Kalis says:

    Around the world know who najis,he is a traitor and stole money

  4. Zamri Kalis says:

    And stop murder rohingya people,if you want land no murder

  5. Zamri Kalis says:

    To me im just want a diplomatic with china,no projek mega or sell land or aset to china,and i look china technology so far then Japan and west europe,you cant beat germany car like mercedes,and japan car toyota or honda smooth engine,if china try to destroy system duplicate economy world can stable,stop duplicate and give money to buy the land,this wrong,so im not agree with silk road,this is danger to other country,an example philipine,brunei,singapore,vietnam,taiwan,indonesia,u can buy najis but u cant buy the another country,i hope you understand,so you can cancel the projek silk road,thank you very much,next time talk english!!!!!!!!!

  6. Tes Ste says:

    . shut up
    . you understanding not even if you say how it is
    "rich state bank" mean be rich country mean is not private mean lot money to do what ever state want
    . you must be american
    . and they goes build even in Monte Negro even this year
    . have money hard cash
    . you must be truly one american
    . do you know difference between state bank and private bank
    . who is rich if is state bank rich
    . who is rich if is private bank rich
    . who is rich if is state insurance rich
    . who is rich if is private insurance rich
    . and when the peoples in state something want
    . what they can to do in your system and what in China
    . in your system they can only to complain be alive and get nothing
    . and in China what they can there do what ever they want
    . you must be have Nobel Price for economy
    Monte Negro want auto road highway does not have money at all?
    China say to them "we" have money "we" goes build (to get more money and jobs isn`t)
    . what has it to do with China if peoples in Monte Negro latter complain about some environment
    . they have wanted or theirs reign not China
    sick nation truly one sick nation
    . what you here playing is one drunkard who want explain to householder how to do
    . while in meanwhile that one drunkard has borrow loan money for own fake style everywhere included at that householder
    . you loan anyone day the 3.5 billiard dollars otherwise whole state bankrupt
    . you do not want even known how much is that money
    (one road highway long 400 to 600km)
    (two Burj Khalifa)
    (two some huge projects do not matter how huge)
    (but anoyne single day)
    (seven days you got your aircraft carrier)
    . but you one drunkards do nothing except to loan more

  7. itsnotatoober says:

    china is making friends with dictatorships because America isn't interfering. It doens't have anything to do with Trump looking bad or good compared with Obama. Its has to do with AMerica's foreign policy, that's it.

  8. itsnotatoober says:

    You dont explain china's motivation well. Its not the ccp dream world, its that china's govt is run by powerful mafias who are raping the country. Xi and all politicians can't stay in power (or alive) if they let the Steel, etc industries lose money on their watch. The CCP has no fear of it's citizens, because they don't vote and have no power. You're thinking like an idealistic American.

  9. Ali G says:

    drink water you don't gets anway road and train 🚂 does

  10. TAM says:

    This is totally brain washing way of presenting such a great initiative that might help the world , as far as what we see on the ground , they are building and developing others countries without any war or people dead

  11. Chadwin Headlam says:

    Wow! Calling an experienced businessman a 'bummeling fool'… I think you need to review that notion before just throwing it out there

  12. bestamerica says:

    oh no no…
    why china use and want american own dollars in china project…
    what for…
    dont do that…
    no no no way…
    china have their own currencys – Renminbi Renminbi Renminbi -…
    china have alot of Renminbi Renminbi Renminbi…
    not american currencys

  13. Thunder Snake says:

    This is why China don’t to go to war with anyone they all about making that money.

  14. Griffith Huyan says:

    We see in the past, all emerging powers ended with WAR with existing powers.
    Perhaps we are viewing a history that China will emergy without big war. Hopefully.

  15. Ant Nam says:

    China is expanding, while Britain and the U.S are isolating.
    Theirs a clear winner here.

  16. Trailer Master (Aust) Pty Ltd says:

    It looks everyone concerned about chinese growth

  17. real karma says:

    Using outsiders to look China's insider.

  18. Stuart says:

    Trump is no "bumbling fool" Your bias has no basis in reality.

  19. Kris kemp says:

    just report the news, stop pulling these so called "experts" who only speak negatively about it.  your bias is showing.

  20. Kris kemp says:

    propaganda by the mainstream media.  so much bias in this story, it is corrosive.
    #MSM #FakeNews #MediaBias