AT&T Illinois has been fined $23m and must send regular reports to the US government on the establishment of a compliance and ethics program after admitting it paid for votes to secure favorable legislation.

An investigation by the Department of Justice (DOJ) led the telecoms company to admit it paid an ally of former Illinois Speaker of the House Michael J Madigan in return for his “vote and influence over a bill”.

Company president signed off

AT&T Illinois was trying to influence a bill, which eventually became law, that removed its responsibility to provide carrier of last resort (COLR) services in the state. The DOJ said that the company paid an associate of Madigan’s $22,500 for a nine-month contract through a lobbying firm. The payment did not specify any work, and AT&T Illinois’ president signed off on the payment in an email saying it was OK “as long as you are sure we will get credit and the box checked”.

The company said in a statement: “We hold ourselves and our contractors to the highest ethical standards. We are committed to ensuring that this never happens again.”

Deferred prosecution

Under the agreement, prosecution on the charge will be deferred for two years and then potentially dismissed if AT&T Illinois abides by certain conditions, including continuing to cooperate with any investigation related to the misconduct alleged in the information.

That cooperation could lead to further trouble for Madigan, who retired under some pressure last year. In March, he was charged with being part of an alleged $3m racketeering scheme. The Democrat Senator had been the longest-serving speaker of a state House of Representatives in US history and had gained the nickname “the velvet hammer” for the influence he wielded over which bills received a hearing and which didn’t.