CHICAGO - Both Governor Quinn and GOP gubernatorial candidate Bruce Rauner have ties to Cardinal Growth, a failed venture capitalist firm connected to former Mayor Richard Daley's son Patrick, a Sun-Times report shows.
"Robert Bobb Jr., Cardinal’s co-founder, has been a Quinn campaign contributor. And Quinn appointed Bobb’s partner Joseph McInerney to the board of the Illinois Finance Authority, which helps local governments borrow money by issuing bonds," Tim Novak writes.
Rauner and 33 others invested in Cardinal Growth, and was pressed by feds during investigation into recovering a $21.4 million the Small Business Association loaned to the firm. Rauner originally promised $200,000 to Cardinal Growth, and paid the last $50,000 to the feds, under a lawsuit threat.
“Bruce fulfilled the receiver’s request and was not among the seven remaining [investors] that the SBA sued for refusing to honor capital commitments,” Rauner spokesman Mike Schrimpf said by email in response to Novak's questions. “Bruce was a passive investor and played no role in the fund. Bruce lost all his money."
Not quite all his investment, Schrimpf later corrected. While the mayor's son Patrick walked away with $1.2 million for his effort with Cardinal Growth, Rauner didn't fare as well.
After the feds seized Cardinal, two key players were indicted, pled guilty to prosecutors' charges and are now in federal prison.
In 2003 and 2006, Rauner contributed to Daley's mayoral runs - $50,000 to Daley in 2003 and $150,000 in 2006. Four years later, Mayor Daley appointed Rauner to the interim board of the Metropolitan Pier and Exposition Authority, the government agency that owns McCormick Place and Navy Pier.