Former Fire Commissioner had role with Webio
Posted by Ed S. at 6/17/2009 9:07 PM CDT on Chicago Business

Former Chicago Fire Commissioner Cortez Trotter appears to have become tangled in the scandal surrounding David Hernandez, the businessman who has been charged with fraud and sued by the Securities and Exchange Commission this week on allegations he ran an $11 million ponzi scheme.

Crain's has learned in an email dated April 29 - and provided to me by a source - Mr. Hernandez wrote that he hired Mr. Trotter's company, Trotter Consulting Group, LLC, to assist with the operations of his various companies, including Chicagosportswebio.com, the Internet sports talk site that shut down Tuesday.

The email says, "Given the tremendous growth of the holding company and all our subsidiaries, I have asked Cortez (and he has agreed) to assist all of us by taking an active role in the management of all holding operations."

BeBe North, the chief operating officer for Webio, said Mr. Trotter took an active role after the April 29 email.

"He was involved in the day-to-day operations," said Ms. North, whose husband Mike helped found Webio with Mr. Hernandez. "He made the major decisions when David was not around. We had to go through him on every single move."

Ms. North declined to elaborate further. But other documents provided to me back up her assertion - including minutes from Webio meetings where Mr. Trotter was present.

According to sources, Mr. Trotter attended regular Tuesday meetings at Mr. Hernandez's NextStep offices. When Webio wanted to hire former Bears linebacker Doug Buffone as an analyst, he had to meet with Mr. Trotter, sources said.

Sources also said Mr. Hernandez ended his meeting with Webio employees Monday by saying, "If you have any questions, you can contact myself or Cortez."

It was at that meeting that Mr. Hernandez learned that the SEC had filed suit against him, alleging the Ponzi scheme. He left shortly thereafter and his wife, Gina, reported him missing to Downers Grove police later that evening.

I called Mr. Trotter's office tonight and sent him an email, but haven't heard back. Will update if I do.

This gets better every day.

Eventually, North is going to become too hot to have on TV. Comcast and its lawyer's are probably already nervous with him having a live microphone every morning as it is.

Eventually, North is going to become too hot to have on TV. Comcast and its lawyer's are probably already nervous with him having a live microphone every morning as it is.

Ed Sherman looks a little like Corky(?) from "Life Goes On", doesn't he?