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July 6, 2022

Senators Duckworth and Durbin gave $24 million to Illinois company later declared illegal and void –

By John Kraft & Kirk Allen

On July 11, 2020

Washington D.C. (ECWd) –

According to a 2018 press release from Senator Duckworth, both her and Senator Durbin proudly announced a $24 million federal grant to “Illinois Alluvial Regional Water Company (“IARWC”)” who had only been in business for 10 months prior to this announcement.

The Illinois Director of the United States Department of Agriculture knew at the time of the grants/loans that this company was in the middle of an ongoing lawsuit attacking its ability to even exist, but the USDA and Senators Duckworth and Durbin went full-steam ahead in granting this company federal funds.

The federal funds include this $24 million grant, and an additional $42 million combination of forgivable loan / low interest loan. Update: This is reportedly the largest project ever funded by the USDA Rural Development Program.

Why didn’t the Senators bother to check or even ask if this company was properly formed, if it was facing a lawsuit which would render it a void corporation, and why a 10-month old company was worthy of $66 million of federal funding? Did the Illinois Director of the USDA inform them of the lawsuit prior to the grant?

IARWC was formed in December of 2017, and less than three months later a lawsuit was filed against IARWC and its Members, attacking the validity of the company, and seeking to prevent the participation of its members in funding of IARWC.

On July 7, 2020, the Circuit Court in Macoupin County declared that Carlinville formed this company in violation of law, and declared Illinois Alluvial Regional Water Company a void corporation (read the last 2 paragraphs of the Court Order here). The Judge also made it effective immediately.

A void corporation can do nothing because it does not exist.

This means, or should mean, that all public funds, from any source, must be returned to the public entity which provided IARWC with funding.

The USDA approved grants/loans of up to $66 million dollars in 2018. What is unknown by us is how much of that $66 million has already been spent, and what happens to the spent and remaining funds. We believe all of it should be repaid to the USDA.

The City of Carlinville has given IARWC at least $30,000 obtained from an USDA grant to study the formation of a “regional water commission” – which is not what the public funds were used for. A water commission would have been a public entity, but IARWC was formed as a private company, subject to none of the transparency of a public entity. We question if this money will also have to be refunded.

We demand that the USDA, and Senators Duckworth and Durbin look into these grants/loans, and demand accountability to whomever approve this with full knowledge of the lawsuit attacking the existence of the company receiving these federal funds..

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9 Comments
  • Kathy
    Posted at 20:50h, 11 July

    So you think there’s any chance some of the federal money went into the campaigns of Durbin and Duckworth? In Late 2018 I attended a public information meeting because a certain entity had received a federal USDA grant. We were told the money would be used to equip a clinic that was being built in 2019. It is now 7 mos. into 2020…. there’s still no clinic.

  • Dave
    Posted at 06:45h, 12 July

    Incompetence by our US Senators from Illinois. They better be demanding the funds be returned to the treasury.

    • HT
      Posted at 10:10h, 14 July

      Don’t assume that these crooks are incompetent. They’re perfectly competent at raiding other people’s money at every level. It’s only when they get caught that it’s someone else’s oversight or technical mistakes.

      Just look at how many politicians who entered public service as with somewhat normal earnings but end up multi-millionaires while in office and definitely after they leave office. That’s not incompetence. That’s a scheme.

  • Jim
    Posted at 01:05h, 13 July

    It seems to me that the IRS would be all over that. ” but IARWC was formed as a private company, subject to none of the transparency of a public entity.” A private company that does not exist not subject to transparency? Can you say Federal Crime.

  • John
    Posted at 10:46h, 13 July

    To get federal $, an entity must have both a DUNS & EIN number. DUNS stands for Data Universal Numbering System, and is administered by Dun & Bradstreet. EINs are issued by the IRS. So Illinois Alluvial Regional Water Company received an EIN from the IRS and was certified to receive federal $ by Dun & Bradstreet. This is like blaming a company for relying on unknown fraudulent title insurance. Apparently the IRS and Dun & Bradstreet didn’t perform due diligence on Illinois Alluvial Regional Water Company.

  • Johnathan
    Posted at 12:22h, 13 July

    Nothing to see here keep moving forward (the cliff is near).

  • Tom Quandt
    Posted at 16:07h, 13 July

    Stay on top of this story.

  • Chris
    Posted at 10:17h, 14 July

    Holy cow! So who are the dirty rotten no goods behind this phony water company that these crooked politicians are donating too!? This is just maddening. Is anyone ethical and honest anymore? Thank you Edgar County for keeping an eye out all the time, good heavens!

  • Jessica Danialle
    Posted at 17:18h, 16 July

    I am fairly new to all this and don’t completely grasp what it all means so forgive me if I’m completely off but would this have anything to do with why nearly everyone in the city of carlinvilles water bills were double the normal amount this month?

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