Blagojevich indicted on corruption charges

Blagojevich Charged With 16 Corruption Felonies
By MONICA DAVEY and SUSAN SAULNY
Copyright by The New York Times
Published: April 2, 2009
http://www.nytimes.com/2009/04/03/us/03illinois.html?th&emc=th


CHICAGO — Rod R. Blagojevich, the ousted governor of Illinois, used his chance to fill the Senate seat vacated by Barack Obama as one more money-making plan in a vast racketeering scheme, federal prosecutors said Thursday, an operation they portrayed as the “Blagojevich Enterprise.”

In a 19-count indictment, prosecutors said the “primary purpose of the Blagojevich Enterprise was to exercise and preserve power over the government of the State of Illinois for the financial and political benefit of” Mr. Blagojevich, his family and his friends.

Running 75 pages, the indictment had been expected for nearly four months, since Mr. Blagojevich was arrested. The former governor, a second-term Democrat whose political career has come apart, was charged with 16 felonies, including racketeering conspiracy, wire fraud, extortion conspiracy, attempted extortion and making false statements to federal agents. Five of his closest advisers — his brother, one of his top fund-raisers, two of his former chiefs of staff and a Springfield businessman — were also charged with crimes.

Mr. Blagojevich, who was believed to be vacationing with his family near Walt Disney World in Florida when the indictment was announced here late Thursday, issued a statement through his publicist. “I’m saddened and hurt, but I am not surprised by the indictment,” he said. “I am innocent. I now will fight in the courts to clear my name.”

The indictment lays out a broad pattern of corruption spanning from before Mr. Blagojevich was elected governor in 2002 to the day of his arrest, Dec. 9. He used his official position, the indictment suggested, to seek financial gain in nearly every element of government work, from picking members of state commissions to signing legislation.

Mr. Blagojevich sought a return on deals to give money to a hospital, to approve legislation helpful to racetrack owners, to pick a particular candidate to fill the Senate seat and, according to the indictment, from a United States representative who was pressing for a $2 million grant for a publicly supported school.

The indictment describes the member of Congress as United States Congressman A, one of a series of unidentified public officials listed throughout the document only by letters of the alphabet. White House officials confirmed that Rahm Emanuel, a former House member who is President Obama’s chief of staff, was Congressman A.

In 2006, when Congressman A was making inquiries about the status of state grant money intended for the school, Mr. Blagojevich sent a message that a brother of the representative (apparently, officials said, Ari Emanuel, an agent in Hollywood) needed to have a fund-raiser for Mr. Blagojevich, the indictment says. Mr. Blagojevich told an employee not to release the grant money, already in the state’s budget, until the governor gave further notice. According to the indictment, the fund-raiser never occurred.

Then last year, the indictment says, Mr. Blagojevich seemed to envision multiple, varying plans for how he might secure money or win a high-paying job through his choice of who would fill Mr. Obama’s seat. Among them, the documents say, Mr. Blagojevich believed he might get $1.5 million in campaign contributions from an associate of one person, identified only as Senate Candidate A, who hoped to receive the appointment.

In December, at the time of Mr. Blagojevich’s arrest at his home on the North Side of Chicago, Patrick J. Fitzgerald, the United States attorney for the Northern District of Illinois, said he had gone forward with a criminal complaint — not a formal indictment after a review of the case by a grand jury — because telephone calls intercepted by agents had forced the authorities to move quickly to stop what Mr. Fitzgerald described as a crime spree in progress. At that point, the Senate seat, now held by Roland W. Burris, was still vacant.

Some legal experts had suggested that Mr. Fitzgerald’s choice might signal that he did not yet have a prosecutable case in hand; some raised broader questions about the strength of his case and the difficult legal distinction between illegal acts and simply unseemly political talk.

But legal experts said that the scope of the indictment on Thursday showed no signs that prosecutors were backing away from their case.

“It weaves together all the series of acts we’ve all been hearing about,” said Leonard L. Cavise, a professor at the DePaul University College of Law who has expertise in criminal defense. “It’s broad ranging. It will be a very complex trial.”

Some of the most serious counts against Mr. Blagojevich carry prison sentences of as long as 20 years.

Mr. Blagojevich’s wife, Patti, was not charged with any crimes but was repeatedly mentioned in the indictment as another element of his efforts to win money.

Prosecutors said Ms. Blagojevich, who has worked as a real estate agent, had received thousands of dollars in payments on deals for which she had done little or nothing. At another point, Mr. Blagojevich talked of putting his wife on the state’s Pollution Control Board — where she would be paid a salary — but an adviser reminded him that she was not qualified for the job.

“This indictment is bittersweet news for my client,” said Ms. Blagojevich’s lawyer, Raymond Pijon. “There is a sense of relief over what the government elected to do relating to her case, but it is a sad occasion for her family.”

Mr. Blagojevich, formerly a state legislator and member of Congress, got his start in politics thanks in large part to the political operation of a powerful Chicago alderman, Dick Mell, who is Ms. Blagojevich’s father.

In Chicago, a place long plagued with a reputation for political shenanigans, the indictment came at a delicate moment. It was hardly the message officials here were trying to send on Thursday as international officials arrived to study the city’s bid for the 2016 Summer Olympics.

And the indictment seemed to erase some of the progress political leaders here had been trying to make in regard to the state’s reputation for political machines, deal-making and elected officials on trial.

“To say it’s a sad day is an understatement,” said State Representative Tom Cross, the Republican leader in the House. “You want desperately just to climb out of this hole, this ethics garbage dump we have. Every day you think you can climb out, then this adds another bulldozer of dirt on top of you.”

Only this week, a “reform commission” created by Gov. Patrick J. Quinn — elevated to the position after Mr. Blagojevich was impeached and removed from office — announced proposals to cap campaign contributions, bar lobbyists from giving to campaigns and make more information available to the public.

“It’s a sad day for the people of Illinois, and now the defendants will have their day in court,” Mr. Quinn said late Thursday. “The people of our state want clear and honest government, and that’s why I’m governor today.”

Karen Ann Cullotta contributed reporting from Chicago, and Carl Hulse from Washington.





Blagojevich, his brother, top aides indicted
By Jeff Coen
Copyright © 2009, Chicago Tribune
April 2, 2009 6:46 PM
http://www.chicagobreakingnews.com/2009/04/blagojevich-indicted-corruption-illinois-governor-impeach.html


Former Gov. Rod Blagojevich, his brother, and a former top fundraiser were among six men indicted today on political corruption charges, the U.S. attorney's office in Chicago announced.

In addition to Rob Blagojevich, 53, and fundraiser Christopher Kelly, 50, charged were Lon Monk, 50, a lobbyist and former Blagojevich chief of staff; John Harris, 47, also a former chief of staff to Blagojevich; and William Cellini, 74, a Springfield insider for decades.

The sweeping indictment comes four months after Blagojevich was arrested and charged with engaging in pay-to-play politics in a major federal complaint that accused him of trading state jobs, contracts and regulatory favors for campaign contributions.

The criminal complaint charged Blagojevich with attempting to sell the U.S. Senate seat vacated by Barack Obama and seeking the firing of Tribune editorial writers in return for state help on the sale of Wrigley Field. The ballpark and newspaper are owned by Tribune Co.

While those allegations are repeated in today's charges, the 19-count indictment also includes allegations that convicted insider Antoin "Tony" Rezko steered real estate commissions to former first lady Patti Blagojevich despite her performing no work and paid cash to Monk for a car and home improvements. The indictment claims Blagojevich attempted to extort a U.S. congressman for campaign cash by withholding a $2 million state grant to a public school in the congressman's district.

All told, the ex-governor faces 16 felony counts, including racketeering conspiracy, wire fraud, extortion conspiracy and lying to federal agents. The government is seeking forfeiture of $188,370 from Blagojevich and will try to take his Ravenswood Manor home if needed.

"I'm saddened and hurt but I am not surprised by the indictment," Blagojevich said in a statement. "I am innocent. I now will fight in the courts to clear my name. I would ask the good people of Illinois to wait for the trial and afford me the presumption of innocence that they would give to all their friends and neighbors."

The governor is not in Chicago and will not be doing any interviews. He is spending family time with his wife and kids during spring break. They ask that you respect their privacy, according to the statement.

"We're saddened but not surprised by the indictment" Blagojevich lawyer Sheldon Sorosky said. "Gov. Blagojevich is innocent and will fight this in court."

The formal charges also draw Blagojevich's family further into the scandal. While Patti Blagojevich was referred to in the indictment but not charged, the grand jury did indict the ex-governor's brother.

Rob Blagojevich took over as head of the governor's campaign fund last August, just two months before federal authorities won court authorization to wiretap the then-governor's home phone and campaign office. He faces two counts of wire fraud.

"We were hoping it wouldn't happen, but it did," said attorney Michael Ettinger, who represents Rob Blagojevich. "Now my client is looking forward to being vindicated at a trial. My client has said from the beginning that he was not doing anything outside the bounds of normal fundraising."

Ettinger said he was in Florida at Disney World with the former governor and their families. He said Rob Blagojevich was not with them.

This marks the third time Kelly has been charged by federal authorities but the first time for alleged wrongdoing with the former governor. In January the wealthy roofing contractor pleaded guilty to tax fraud for concealing his use of corporate funds to cover gambling debts, but just weeks later, he was charged in connection with a kickback scheme at O'Hare International Airport. Now Kelly faces a racketeering count and three counts related to fraud and extortion charges.

Michael Monico, who represents Kelly, said his client is not guilty of the charges. "Chris Kelly did not engage in pay to play politics," he said.

Harris, who faces one wire fraud count, is cooperating with federal authorities, prosecutors said.

Cellini was indicted last fall on charges he extorted a Hollywood producer to make a Blagojevich campaign donation. Cellini faces three counts with Kelly.

Attorney Dan K. Webb said "there is no justification whatsoever for including Bill Cellini in the indictment against former Gov. Blagojevich. The varied allegations against former Gov. Blagojevich have nothing to do with Bill.

"It is known that the government obtained evidence that it intends to use against the former governor from wiretaps on his telephones. I emphasize that Mr. Cellini has never spoken on the telephone with former Gov. Blagojevich. Additionally, Mr. Cellini has never had a substantive conversation with former Gov. Blagojevich on any topic. Nor has he ever had a private conversation of any kind with former Gov. Blagojevich. Mr. Cellini has never had any conversation whatsoever with former Gov. Blagojevich on any political topic, including fund raising.

"Mr. Cellini intends to ask the Court for a separate trial," Webb added.

Monk was also heard on the recordings. Monk faces one wire fraud count.

"Lon is a good man and it is my privilege to represent him," said Monk's attorney, Michael Shepard, a San Francisco lawyer who used to work as an assistant U.S. attorney in Chicago.

To read a Chicago Tribune editorial on the indictment of Rod Blagojevich, see Vox Pop at chicagotribune.com.

Gov. Pat Quinn offered his reaction at a quick news conference after stepping off a plane at O'Hare International Airport.

"This is a very sad day for the people of our state the people of Illinois are entitled to honest government all the time, the charges today are very, very serious. The defendants are entitled to their day in court, we believe in that in America. The people of Illinois are entitled to honest government that works for them 24 hours a day every day, that's what I'm committed to, that's why I was sworn in, I think, 9 weeks ago," Quinn said.

Monique Garcia contributed to this report.








Blagojevich indicted on corruption charges
By Hal Weitzman in Chicago
Copyright The Financial Times Limited 2009
Published: April 3 2009 00:17 | Last updated: April 3 2009 00:17
http://www.ft.com/cms/s/0/8db8ff78-1fd8-11de-a1df-00144feabdc0.html


Rod Blagojevich, the former governor of Illinois impeached in January after being accused of trying to sell President-elect Barack Obama’s vacant US Senate seat, was formally charged by federal authorities on Thursday on a range of felonies, including racketeering conspiracy, wire fraud, and attempted extortion.

“Since 2002, even before he was first elected governor that November, and continuing until he was arrested on December 9, 2008, former Illinois Governor Rod R. Blagojevich and a circle of his closest aides and advisors allegedly engaged in a wide-ranging scheme to deprive the people of Illinois of honest government,” said the office of Patrick Fitzgerald, the campaigning US Attorney for the Northern District of Illinois who has spearheaded the probe into Mr Blagojevich.

The indictment reiterated the charge that the former governor conspired to sell or trade Illinois’ US Senate seat formerly held by Mr Obama and that he tried to obtain campaign contributions in exchange for official actions. It also contains the allegations first made in December that he threatened to withhold state financial assistance from the Tribune Company in connection with the sale of Wrigley Field, the stadium of the Chicago Cubs baseball team, unless the company sacked Chicago Tribune editorial board members who had criticised Mr Blagojevich.

The indictment also adds several new allegations, accusing Mr Blagojevich of plotting to use his office for financial gain as far back as 2002, when he was first elected. It accuses him of directing lucrative state business relating to the refinancing Illinois pension bonds to companies in return for kickbacks, delaying money for a state-supported school until a fundraiser was held for him and lying to FBI agents about his finances.

Mr Blagojevich has repeatedly denied all the accusations, saying he will prove his innocence in court.

The indictment seeks forfeiture of $188,370 from Mr Blagojevich as proceeds of the alleged fraud scheme and racketeering activity, and lists Blagojevich’s apartment in Washington, DC and his Chicago home as substitute assets.

Mr Blagojevich’s brother Robert, two of his senior staff and two local businessmen were also indicted along with the disgraced former governor. The six accused will appear in federal court in Chicago, although the date for their arraignment has not yet been set.

The indictment also stresses the involvement of Antoin Rezko, the Chicago businessman who was a fundraiser for both Mr Blagojevich and Mr Obama, and who was convicted last year on fraud and bribery charges.

The charges accuse the former governor of letting Mr Rezko and Christopher Kelly, another local businessman and fundraiser for Mr Blagojevich, to make key appointments in return for kickbacks.

“As part of the racketeering conspiracy, Blagojevich allegedly permitted Kelly and Rezko to exercise substantial influence over certain gubernatorial activities, as well as state boards and commissions, knowing that they would use this influence to enrich themselves and their associates,” said Mr Fitzgerald’s office. “In return, Kelly and Rezko allegedly benefited Blagojevich by generating millions of dollars in campaign contributions and providing financial benefits directly to Blagojevich and his family.”

In one case detailed in the indictment, an unnamed lobbyist met Mr Kelly to ask if two of his clients could be appointed investment managers for the Illinois Teachers Retirement System (TRS) pension fund. Mr Kelly told the lobbyist he would speak to Mr Rezko, and reported back that it would require a $50,000 campaign contribution to Mr Blagojevich for a firm to get on TRS’s list of recommended fund managers.

In another case, Capri Capital, a Chicago real-estate investment company, was told than unless it raised significant political contributions for the former governor, it would not receive a proposed $220m investment from TRS.