Two state employees, one a Republican committeeman, were convicted Wednesday on fraud-related charges for pocketing more than $150,000 as part of a long-running kickback scheme.
A federal jury deliberated about seven hours before convicting Richard Hendershot, of River Forest, on three counts of mail fraud, and James Battista, of Chicago, on one count of aiding and abetting mail fraud.
Battista is a Republican state central committeeman and GOP committeeman of the 36th Ward.
Prosecutors alleged Hendershot steered worker compensation-related business to half a dozen investigation firms from late 1988 through summer 1994 in return for kickbacks when he worked for an insurance company based in Michigan. As a claims adjuster, Hendershot hired private investigators to determine the veracity of injured workers’ claims.
Battista was convicted of acting as a bagman, collecting the kickbacks beginning in spring 1991 and splitting the money with his friend Hendershot.
Hendershot now works as an arbitrator for the Illinois Industrial Commission. Battista is a manager for the Illinois Department of Transportation.
The jury also convicted a third defendant, Clifford J. Lanas, 62, co-owner of two private investigation firms and a Chicago resident, on charges he kicked back money to Hendershot and Battista.
Hendershot, 47, faces up to 3 1/2 years in prison and Battista, 44, about a year less. Sentencing is scheduled for May 26.
Lawyers for the defendants attacked the credibility of two private investigators who testified for the government, arguing that they couldn’t be believed after pleading guilty and winning reduced sentences for their cooperation.
But an attorney, Steven Rusin, testified for the government that in 1991 Battista and Hendershot offered to send hundreds of worker’s compensation cases to his law firm in return for kickbacks. Rusin rejected the scheme.
