- It's one of City Hall's busiest woman- and minority-owned contractors. And, for the last two years, Azteca Supply Co. has been the target of a federal investigation that led to charges last month that the company is a sham "front" that fraudulently was awarded millions of dollars in government contracts.
This is the story of a Hispanic woman who found she could make millions by selling goods to government agencies eager to do business with women and minorities -- and did so with the help of some of Chicago's most well-connected Hispanic leaders, including a former chief of staff to Mayor Daley.
But there was one problem: Federal authorities say Aurora Valadez Venegas lied to the city to obtain certification as a woman- and minority-owned business so she could get government contracts set aside for women and minorities.
This is a massive part of the high cost of doing business with the City of Chicago and it's all played out in the open. Say you need something for the your department - a box of paper, a length of chain, a pipe, a widget. You can't just go to Staples or Office Max or Home Depot or WalMart or any on-line site and do a little price comparison before buying what your department needs. You have to go through a vendor. And certain things are only sold by connected vendors, many of which are so-called "set asides."
But this "set aside" company isn't anything special. In most cases, this company simply goes to Staples or Office Max or Home Depot or WalMart or any on-line site and buys the exact same thing you could have gotten. He (or she) just adds in their mark-up charge to the cost of doing business. Voila! Minority contract!
And in almost ever case, these "companies" aren't warehouses, storing whatever material you need that you can get at a moment's notice. They are storefront offices with an answering service. You can find lists of approved vendors and contractors on line and when you look up their addresses, they are in some of the most unlikely places, many times in buildings owned by connected people.
It's all connected.
But this "set aside" company isn't anything special. In most cases, this company simply goes to Staples or Office Max or Home Depot or WalMart or any on-line site and buys the exact same thing you could have gotten. He (or she) just adds in their mark-up charge to the cost of doing business. Voila! Minority contract!
And in almost ever case, these "companies" aren't warehouses, storing whatever material you need that you can get at a moment's notice. They are storefront offices with an answering service. You can find lists of approved vendors and contractors on line and when you look up their addresses, they are in some of the most unlikely places, many times in buildings owned by connected people.
It's all connected.
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