Daley & George, Ltd.
Michael Daley, John J. George William Daley, Richard M. Daley, Margaret Daley
March 20, 1992 Attorney Registration & Disciplinary Commission 203 N. Wabash Avenue Chicago, Illinois 60601-2474 Attention: Mr. Scott Renfroe By: Fax & Mail Dear Mr. Renfroe
In our March 10, 1992 meeting regarding Michael Daley and Jack George and the law firm of Daley and George,Ltd. you requested me to put in writing my relationship with the above and what transpired. I offer you the following in addition to what I have provided:
1. The law firm of Daley Reilly & Daley and Daley & George, Ltd. were my attorneys both corporately and personally since the late 60's.
2. Over the years my friendship and trust grew of them. I believe they were honest and trustworthy. I followed their instructions because I believed they were looking out for my best interests, both personally and corporately.
3. As my company grew in the early 80's, Mike and Jack informed me I could do more work for Commonwealth Edison with their help and influence, but I would have to pay them a commission on all Commonwealth Edison work on their instructions. I paid approximately $140,000.00 in so-called commissions in 1984.
4. I was requested by Mike and Jack to use the accounting firm of Bansley & Kiener for all my accounting, both personal and corporate. They said they could trust them. I did so on their advise.
5. I invented and patent tools and procedures to clean precipitators in power plants with much success and tremendous profits. Mike and Jack informed me they wanted to start a new company and all work cleaning precipitators would go through the new company. They said I would not have to pay any more commissions, just run the new company for them. They wanted 80% of all the profits. Mike and Jack borrowed $500,000.00 from my bank and told me to co-sign the note. I did so as instructed.
6. The precipitator company needed start-up money; such as, small equipment, payroll and trips to Germany to purchase new equipment. Jack and Mike told me to pay these expenses and they would pay them back. I paid approximately $200,000.00 out of J-B Industrial Corp. for the above, which I had to borrow.
7. Mike told me Richard M. Daley needed money and to by [sic] a junk-jeep from wife, maggie Daley. The jeep was approximately 6 years old and in bad shape. He said make up a check for approximately $9,200.00. I did as instructed. He said they would pay me back later. I could have bought a new jeep for that amount. I borrowed the money also.
8. On still another occasion, they told me the precipitator company need money and to give them $120,000.00. They told me they would also pay that back. I borrowed the $120,000.00 and gave it to Mike. I never had access to the books and records.
9. The new equipment did not work properly. Mike did not attain proper warranties. I wanted to send the equipment back to the manufacturer (See Attached Letter I Submitted) but Mike and Jack over ruled me.
10. My men were hurt using the equipment, which cost my company approximately $80,000.00 in insurance costs.
11. Mike called me and said they sold the equipment and to come in to his office and sign papers to dissolve the company and then at a later date we would sit down and settle up the money they owed me and J-B Industrial Corp. I did as they instructed me to after that. They refused to talk to me or answer any of my letters.
In closing, Mike Daley, Jack George and Daley & George Ltd. controlled my life and my business. I trusted them as my attorneys and friends. They owe me and J-B Industrial Corp. approximately $800,000.00, which I can verify. They have ruined my life and my business, At "no" time was I told to seek outside counsel; nor, did I.
I am more than willing to state all of the above under oath and more and take a lie detector test and would hope Mike Daley and Jack George would do the same.
Respectfully, Errol C. O'Brien President J-B Industrial Corp.
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