By Jamey Dunn
Gov. Pat Quinn took a swipe at Republican candidate for governor Bruce Rauner today after a former Republican powerbroker, who was convicted on a corruption charge, made positive statements about him.
William Cellini and Rauner attended a Republican fundraiser in Springfield yesterday. Cellini told reporters that it was the first time he had seen Rauner speak, and called him “impressive.” When asked if he planned to vote for Rauner, he said, “I've been a Republican all of my life, and he's the Republican candidate.”
Cellini was convicted in 2011 of attempting to extort a Hollywood producer into giving former Democratic Gov. Rod Blagojevich a $1.5 million campaign contribution. Cellini served less than a year in federal prison.
“I think he’s now a convicted felon, and I certainty don’t want to have anything to do with him personally, and I think anybody who aspires to this office should stay clear of him and should make that crystal clear to the people of Illinois,” Quinn said an unrelated news conference today.
A statement from Rauner’s campaign said that he “obviously renounces” any endorsement from Cellini.
Quinn, who served as lieutenant governor under Blagojevich, was asked today about his own ties to the impeached former governor, who is currently doing time in a federal prison after being convicted on corruption charges. “I’m not going to get into any politics,” Quinn responded.
Showing posts with label Bill Cellini. Show all posts
Showing posts with label Bill Cellini. Show all posts
Wednesday, April 09, 2014
Wednesday, February 15, 2012
Study: Chicago and Illinois among most corrupt places in U.S.
By Ashley Griffin
If you thought Chicago and Illinois were among the most corrupt locales in the nation, you weren’t wrong, according to a report released Wednesday.
According to the report “Chicago and Illinois, Leading the Pack in Corruption,” the Northern District of Illinois, which primarily consists of the Chicago metropolitan area, is the most corrupt federal district in the country, and Illinois ranks as the “third most corrupt” state. The report, released by the University of Illinois Chicago and the University of Illinois’ Institute of Government and Public Affairs, is based on data from the U.S. Department of Justice's Public Integrity Section that dates back from 1976.
“For a long time — going back to at least the Al Capone era — Chicago and Illinois have been known for high levels of public corruption,” Dick Simpson, head of the political science department at the University of Illinois Chicago and an author of the report, said in a prepared statement. “But now, we have the statistics to confirm their dishonorable and notorious reputations.”
In all, the Northern District has had more than 1,500 federal corruption convictions since 1976 and averaged 51 federal corruptions convictions per year. The report states: “The Illinois Northern District, which contains the entire Chicago metropolitan area, accounts for 1,531 of the 1,828 public corruption convictions in Illinois. Therefore, almost 84 percent of the state’s federal public corruption convictions took place in the Northern District. This makes it the federal district with the most public corruption convictions in the nation since 1976.”
New York and California ranked higher than Illinois for total corruption convictions by state. When corruption convictions were looked at on a per capita basis, the District of Columbia and Louisiana held the top spots, and Illinois again came in third.
James Nowlan, a senior fellow at the University of Illinois Institute of Government and Public Affairs, said of the rest of Illinois: “The other districts are much smaller in population, and they have significantly fewer, often very few, convictions for public corruption. A cursory look would suggest that Central and Southern districts are less corrupt than the Northern District.” However, Nowlan said such statistics could be misleading because prominent cases, such as the recent corruption trial of Springfield political insider William Cellini, are often tried in the Northern District, regardless of where they took place.
“We hope this report, imperfect as it is, does have some legs because I think most people in Illinois are distressed by the perception of Illinois,” said Nowlan, who is also one of the authors of the report. “Since the 1880s, Chicago has been known as a place in which people who enter public life often try to do well rather than do good, and so, the Chicago nexus of corruption has been with us more than a century, and it is rooted in machine politics, in which politics is a career for many who enter it.”
Despite such gloomy news, the report does make suggestions on how to address the problem. “Attacking corruption starts with a comprehensive programs of mutually reinforcing reforms. These should include a mix of corruption prevention and enforcement measure, along with public involvement and education,” states the report. It gives six recommendations that include amending the city’s ethic ordinance to cover aldermen and their staff and banning all gifts to all elected officials and public employees, except from family members. The report also supports Gov. Pat Quinn’s recently proposed constitutional amendment that would allow Illinois citizens to adopt ethics reforms by referendum.
“I haven’t seen it [the referendum] in detail, but Illinois has an ethics deficit, and anything we can do to improve our ethical behavior would be good for the state. So it sounds like it gives the citizens an opportunity to provide some input on ethical behavior, codes of ethics or other kinds of ethical programs,” Nowlan said. However, similar proposals from Quinn in the past have gone nowhere in the legislature.
Nowlan said public perception of the most corrupt states was spot on with the report’s findings. He said a yet unpublished national public opinion poll he conducted found Illinois ranked third among states most perceived as corrupt. New York and California also took the top spots in that poll.
Nowlan said the report will be presented today to Chicago Mayor Rahm Emanuel’s ethics commission, but so far, there are no plans to present it to any statewide ethics panels.
If you thought Chicago and Illinois were among the most corrupt locales in the nation, you weren’t wrong, according to a report released Wednesday.
According to the report “Chicago and Illinois, Leading the Pack in Corruption,” the Northern District of Illinois, which primarily consists of the Chicago metropolitan area, is the most corrupt federal district in the country, and Illinois ranks as the “third most corrupt” state. The report, released by the University of Illinois Chicago and the University of Illinois’ Institute of Government and Public Affairs, is based on data from the U.S. Department of Justice's Public Integrity Section that dates back from 1976.
“For a long time — going back to at least the Al Capone era — Chicago and Illinois have been known for high levels of public corruption,” Dick Simpson, head of the political science department at the University of Illinois Chicago and an author of the report, said in a prepared statement. “But now, we have the statistics to confirm their dishonorable and notorious reputations.”
In all, the Northern District has had more than 1,500 federal corruption convictions since 1976 and averaged 51 federal corruptions convictions per year. The report states: “The Illinois Northern District, which contains the entire Chicago metropolitan area, accounts for 1,531 of the 1,828 public corruption convictions in Illinois. Therefore, almost 84 percent of the state’s federal public corruption convictions took place in the Northern District. This makes it the federal district with the most public corruption convictions in the nation since 1976.”
New York and California ranked higher than Illinois for total corruption convictions by state. When corruption convictions were looked at on a per capita basis, the District of Columbia and Louisiana held the top spots, and Illinois again came in third.
James Nowlan, a senior fellow at the University of Illinois Institute of Government and Public Affairs, said of the rest of Illinois: “The other districts are much smaller in population, and they have significantly fewer, often very few, convictions for public corruption. A cursory look would suggest that Central and Southern districts are less corrupt than the Northern District.” However, Nowlan said such statistics could be misleading because prominent cases, such as the recent corruption trial of Springfield political insider William Cellini, are often tried in the Northern District, regardless of where they took place.
“We hope this report, imperfect as it is, does have some legs because I think most people in Illinois are distressed by the perception of Illinois,” said Nowlan, who is also one of the authors of the report. “Since the 1880s, Chicago has been known as a place in which people who enter public life often try to do well rather than do good, and so, the Chicago nexus of corruption has been with us more than a century, and it is rooted in machine politics, in which politics is a career for many who enter it.”
Despite such gloomy news, the report does make suggestions on how to address the problem. “Attacking corruption starts with a comprehensive programs of mutually reinforcing reforms. These should include a mix of corruption prevention and enforcement measure, along with public involvement and education,” states the report. It gives six recommendations that include amending the city’s ethic ordinance to cover aldermen and their staff and banning all gifts to all elected officials and public employees, except from family members. The report also supports Gov. Pat Quinn’s recently proposed constitutional amendment that would allow Illinois citizens to adopt ethics reforms by referendum.
“I haven’t seen it [the referendum] in detail, but Illinois has an ethics deficit, and anything we can do to improve our ethical behavior would be good for the state. So it sounds like it gives the citizens an opportunity to provide some input on ethical behavior, codes of ethics or other kinds of ethical programs,” Nowlan said. However, similar proposals from Quinn in the past have gone nowhere in the legislature.
Nowlan said public perception of the most corrupt states was spot on with the report’s findings. He said a yet unpublished national public opinion poll he conducted found Illinois ranked third among states most perceived as corrupt. New York and California also took the top spots in that poll.
Nowlan said the report will be presented today to Chicago Mayor Rahm Emanuel’s ethics commission, but so far, there are no plans to present it to any statewide ethics panels.
Tuesday, November 01, 2011
Operation Board Games investigation winding down with Cellini conviction
By Jamey Dunn
Springfield businessman William Cellini, a longtime Illinois political insider, was convicted on two federal felony charges today in Chicago.
Cellini was accused of attempting to extort campaign contributions for former Gov. Rod Blagojevich from Thomas Rosenberg, an investment firm owner and movie producer, in exchange for business handling pension investments for the state. Blagojevich was convicted on 17 corruption counts in June.
Springfield businessman William Cellini, a longtime Illinois political insider, was convicted on two federal felony charges today in Chicago.
Cellini was accused of attempting to extort campaign contributions for former Gov. Rod Blagojevich from Thomas Rosenberg, an investment firm owner and movie producer, in exchange for business handling pension investments for the state. Blagojevich was convicted on 17 corruption counts in June.
A jury found Cellini guilty of conspiracy to commit extortion and aiding and abetting bribery. He was found not guilty on two other charges, attempted extortion and mail and wire fraud.
Cellini’s lawyers painted him as and innocent go-between, saying he had nothing to do with any plans to squeeze campaign funds from Rosenberg but only delivered information to him. “We made our points. Obviously I’m very grateful that the jury appears to have agreed and at least has thrown out the most serious charges against Mr. Cellini,” Attorney Dan Webb told reporters in Chicago today.
“Shaking someone down and threatening them with loss of business is a crime,” U.S. Attorney Patrick Fitzgerald said today in Chicago. He said the conviction should make power brokers in Springfield and Chicago think twice before committing any illegal backroom deals. “The fact that Bill Cellini was convicted today sends a very, very loud message there.” Fitzgerald said that the investigation dubbed "Operation Board Games" — which led to the convictions of Blagojevich, his confidante Tony Rezko, Stuart Levine, who testified against Cellini, and others — is not officially closed because some defendants have appealed their convictions. However, he said he was not “predicting anything in the future” in regards to the investigation.
“I think clearly the whole corruption problems that occurred under the Ryan administration and then under Blagojevich — we have to root out every single manifestation, and that’s what I’ve tried to do since January 29 of 2009,” Gov. Pat Quinn told reporters in Chicago today. “We’ve passed ethics laws. We’ve established strong standards of conduct, and we enforce them,” Quinn said that “more than anything,” his “mission” is to “clean up Illinois government.”
More info on the Cellini trial see:
Tuesday, April 21, 2009
Forty days and 40 nights
That cliché of the day indicates the number of days state legislators have to negotiate major spending and revenue proposals before they’re scheduled to adjourn their spring session May 31. With ethics reforms, health care negotiations and construction projects in the mix today, alone, lawmakers have a ton of work to do in the next five and a half weeks.
Government reforms
By Bethany Jaeger
Today marked the first time that Gov. Pat Quinn’s Illinois Reform Commission directly interacted with the joint legislative committee on government reform, both of which are working separately on some of the very same topics.
Today, however, the commission was asked to narrow its testimony to state procurement and contracting practices. The focus conveniently skipped over one of the commission’s most controversial proposals: limiting campaign contributions. So-called contribution limits topped the commission’s first set of recommendations late last month.
It’s hard to avoid the link between campaign contributions and state procurement decisions, said Commissioner David Hoffman, inspector general for the City of Chicago, particularly when repeated investigations reveal that public funds flow through contracts to the same companies that shovel large amounts of money into candidates' political campaigns. “You’ve got to get to both sides of the equation, the pay side and the play side,” he said.
But the commission abided by the committee’s request and focused on ideas for state procurement reforms. The commission’s recommendations are intended to improve transparency and insulate the process from political influence, preventing such alleged scandals as requiring state contractors to go through political fundraiser Bill Cellini. Commissioner Patrick Collins, a former assistant U.S. attorney, said Cellini was not a state employee, but prosecutors allege that he exercised significant influence over which firms received state business.
“We are entering a critical period in the next 40 days,” Collins said. “The state will learn much about itself. This is a gut-check time. … The nation is watching.”
The Illinois Reform Commission suggests creating a new department to house all state procurement officers, making them independent from the state agencies and from the governor’s office. A new procurement monitor also would oversee and review contracts.
The state already has a Procurement Policy Board to oversee contracts; yet, Hoffman said because members are appointed by the governor and the legislative leaders, they’re powerless to resist political pressure. Hoffman said the goal is not to change the procurement rules but to change whom the procurement officials report to.
Legislators and some state officials aren’t fully on board with the commission’s idea to consolidate procurement officers into a new department because needs are so different when hiring companies for road construction, power supply or higher education material.
Auditor General Bill Holland added that consolidation efforts under Blagojevich resulted in members of the governor’s inner circle playing key roles in selecting the companies that received state contracts. In one instance, a state contract was granted to an agency that did not yet exist. (See Holland’s 2005 audit for background.)
The commission plans to release its second set of recommendations next week, marking 100 days since the panel started holding public hearings throughout the state.
Senate President John Cullerton said the committee will consider all of the commission’s recommendations, but he also intends to speak with Quinn to find out what he wants to pursue. House Speaker Michael Madigan indicated the legislative committee and the governor’s commission would work closely together to draft legislation.
Government reforms
By Bethany Jaeger
Today marked the first time that Gov. Pat Quinn’s Illinois Reform Commission directly interacted with the joint legislative committee on government reform, both of which are working separately on some of the very same topics.
Today, however, the commission was asked to narrow its testimony to state procurement and contracting practices. The focus conveniently skipped over one of the commission’s most controversial proposals: limiting campaign contributions. So-called contribution limits topped the commission’s first set of recommendations late last month.
It’s hard to avoid the link between campaign contributions and state procurement decisions, said Commissioner David Hoffman, inspector general for the City of Chicago, particularly when repeated investigations reveal that public funds flow through contracts to the same companies that shovel large amounts of money into candidates' political campaigns. “You’ve got to get to both sides of the equation, the pay side and the play side,” he said.
But the commission abided by the committee’s request and focused on ideas for state procurement reforms. The commission’s recommendations are intended to improve transparency and insulate the process from political influence, preventing such alleged scandals as requiring state contractors to go through political fundraiser Bill Cellini. Commissioner Patrick Collins, a former assistant U.S. attorney, said Cellini was not a state employee, but prosecutors allege that he exercised significant influence over which firms received state business.
“We are entering a critical period in the next 40 days,” Collins said. “The state will learn much about itself. This is a gut-check time. … The nation is watching.”
The Illinois Reform Commission suggests creating a new department to house all state procurement officers, making them independent from the state agencies and from the governor’s office. A new procurement monitor also would oversee and review contracts.
The state already has a Procurement Policy Board to oversee contracts; yet, Hoffman said because members are appointed by the governor and the legislative leaders, they’re powerless to resist political pressure. Hoffman said the goal is not to change the procurement rules but to change whom the procurement officials report to.
Legislators and some state officials aren’t fully on board with the commission’s idea to consolidate procurement officers into a new department because needs are so different when hiring companies for road construction, power supply or higher education material.
Auditor General Bill Holland added that consolidation efforts under Blagojevich resulted in members of the governor’s inner circle playing key roles in selecting the companies that received state contracts. In one instance, a state contract was granted to an agency that did not yet exist. (See Holland’s 2005 audit for background.)
The commission plans to release its second set of recommendations next week, marking 100 days since the panel started holding public hearings throughout the state.
Senate President John Cullerton said the committee will consider all of the commission’s recommendations, but he also intends to speak with Quinn to find out what he wants to pursue. House Speaker Michael Madigan indicated the legislative committee and the governor’s commission would work closely together to draft legislation.
Thursday, April 02, 2009
Prosecutors target “Blagojevich Enterprise” - UPDATED
By Bethany Jaeger, with Hilary Russell and Jamey Dunn contributing
Today’s 75-page federal indictment of former Gov. Rod Blagojevich and five members of his inner circle details an extensive and long-term scheme that allegedly began in 2002, before Blagojevich took his oath of office in January 2003.
U.S. Attorney Patrick Fitzgerald’s office is now going after what’s described as the “Blagojevich Enterprise,” which includes the office of the governor and Blagojevich’s campaign fund, Friends of Blagojevich. The entity, the feds allege, primarily existed to “exercise and preserve power over Illinois government for the financial and political benefit of Blagojevich,” as well as his family members and friends.
Read the U.S. attorney's press release here. A fact sheet is here. More context and online sources of how we got here at Illinois Issues magazine.
Blagojevich and his associates allegedly conducted a pattern of dishonest behavior designed to enrich themselves, which would violate the federal Racketeer Influenced and Corrupt Organizations Act, or RICO, according to Andrew Leipold, a law professor with the University of Illinois’ Institute of Government and Public Affairs.
Blagojevich is charged with 16 counts of federal corruption, including racketeering conspiracy, wire fraud, extortion conspiracy and attempted extortion. They each carry a maximum sentence of 20 years in prison and a $250,000 fine. He also allegedly lied to the FBI, a crime carrying a maximum five-year prison sentence and another $250,000 fine. In addition to the allegations already documented in the criminal affidavit filed with his arrest Dec. 9, 2008, today’s indictment includes new details and allegations.
Who
The indictment reads less like alphabet soup because federal prosecutors in the Northern District of Illinois have identified and, in some cases, convicted individuals as part of the ongoing probe called Operation Board Games. Joining Blagojevich in the indictment include five others:
What
Before Blagojevich even became governor, he, along with Monk, Kelly and Tony Rezko, allegedly started scheming to use the governor’s office for financial gain that would be split among them once Blagojevich left office. Blagojevich allegedly let Kelly and Rezko exercise significant influence over state government operations, and they, in turn, allegedly generated millions of dollars for Blagojevich’s campaign fund and “provided financial benefits directly to Blagojevich and his family.” For instance, one part of the scheme allegedly included Rezko's real estate business paying Patti Blagojevich, the then-governor's wife, $12,000 a month, as well as another $40,000 in commission, "even though she had done little or no work," according to the indictment.
The indictment also alleges that Blagojevich had control of his campaign fund at all times, even as the chairmen of the fund changed.
UPDATED: Some more highlights of the details:
Now what?
The indictment comes after more than a month of public hearings conducted by two panels, one appointed by Gov. Pat Quinn and one convened as a special joint legislative committee between the House and the Senate. Within two hours of the indictment being filed office tonight, one of the byproducts of the legislative committee passed both chambers.
The General Assembly approved SB 364, crafted with the leadership of House Speaker Michael Madigan and Senate President John Cullerton. It’s aimed at reforming the state’s public employee pension system and requiring all trustees to abide by state ethics laws. All trustees of the Teachers’ Retirement System, specifically, would be replaced. And the governor would be able to appoint more trustees to that board.
The Teachers’ Retirement System, which serves more than 355,500 teachers outside of Chicago, was one of the first state government operations revealed by the feds to be corrupted by Blagojevich’s inner circle, according to Fitzgerald’s office. System officials immediately released a statement of opposition, saying the governor’s ability to appoint more members has potential to increase, not decrease, the opportunity for political influence.
The board’s statement said the rationale behind the measure “erroneously accused the elected members of the board of failing to prevent a corruption scheme in 2004 hatched by a former gubernatorial appointee,” meaning Stuart Levine. “The elected trustees of the TRS Board are angry and deeply troubled by the implication that they were somehow complicit in the illegal behavior carried out by Stuart Levine,” said Bob Lyons, a board trustee twice-elected by annuitants of the Teachers’ Retirement System following Levine’s resignation, according to the statement.
Lyons also said that terminating Jon Bauman, executive director of the system, on July 1 would unfairly punish a man who hasn’t been accused of committing a crime.
Cullerton said the reforms are designed to prevent “what Stuart Levine got away with for so long” by requiring consultants to register, requiring all board members to follow the same ethics standards applied to legislators and executive branch employees to prevent conflicts of interest and so-called pay-to-play politics.
Cullerton also offered his personal reaction to the former governor’s indictment. “I think it’s a sad situation because he is the father of a couple of kids. He lives down the street from me, and it’s always sad when stuff like this happens. But, at the same time, I can’t imagine what this place would be like if he were still the governor trying to solve the problems that we have with the incredible deficits that we have.”
Legislators of both parties added that the indictment should serve as yet another wakeup call to enact meaningful reforms to strengthen rules for campaign finance, state procurement, public access to information and even the structure of government. Ultimately, however, reforms can only make it harder for people who are bent on mischief, Leipold said. “Surely oversight can help, sunshine can help, reporting can help, but nothing’s going to stop things like this completely.”
Many just want to move on from the embarrassment. “There’s plenty of blame to go around,” said Rep. Bill Black, a Danville Republican. “I don’t care about what has happened. Let's get involved and care about how we clean this up. I want my grandkids to be proud of me.”
At the least, federal prosecutors continue to send a message that “business as usual” won’t be tolerated. Sen. Matt Murphy, a Palatine Republican, said: “And the prosecutor is serious. People who want to play that game better learn real quick it’s a losing proposition.”
Today’s 75-page federal indictment of former Gov. Rod Blagojevich and five members of his inner circle details an extensive and long-term scheme that allegedly began in 2002, before Blagojevich took his oath of office in January 2003.
U.S. Attorney Patrick Fitzgerald’s office is now going after what’s described as the “Blagojevich Enterprise,” which includes the office of the governor and Blagojevich’s campaign fund, Friends of Blagojevich. The entity, the feds allege, primarily existed to “exercise and preserve power over Illinois government for the financial and political benefit of Blagojevich,” as well as his family members and friends.
Read the U.S. attorney's press release here. A fact sheet is here. More context and online sources of how we got here at Illinois Issues magazine.
Blagojevich and his associates allegedly conducted a pattern of dishonest behavior designed to enrich themselves, which would violate the federal Racketeer Influenced and Corrupt Organizations Act, or RICO, according to Andrew Leipold, a law professor with the University of Illinois’ Institute of Government and Public Affairs.
Blagojevich is charged with 16 counts of federal corruption, including racketeering conspiracy, wire fraud, extortion conspiracy and attempted extortion. They each carry a maximum sentence of 20 years in prison and a $250,000 fine. He also allegedly lied to the FBI, a crime carrying a maximum five-year prison sentence and another $250,000 fine. In addition to the allegations already documented in the criminal affidavit filed with his arrest Dec. 9, 2008, today’s indictment includes new details and allegations.
Who
The indictment reads less like alphabet soup because federal prosecutors in the Northern District of Illinois have identified and, in some cases, convicted individuals as part of the ongoing probe called Operation Board Games. Joining Blagojevich in the indictment include five others:
- His brother, Rob Blagojevich of Nashville, Tenn., who chaired his campaign fund since August 2008.
- John Harris of Chicago, Blagojevich’s chief of staff from late 2005 until last December, when he was arrested with Blagojevich.
- Alonzo “Lon” Monk of Park Ridge, a lobbyist and longtime Blagojevich insider and campaign manager, as well as Blagojevich’s first chief of staff upon becoming governor in 2003.
- Christopher Kelly of Burr Ridge, a Blagojevich fundraiser and previous chair of Blagojevich’s campaign fund.
- William “Bill” Cellini of Springfield, director of the Illinois Asphalt Pavement Association, who raised money for Blagojevich and allegedly influenced officials of the Teachers’ Retirement System. He also was associated with Commonwealth Realty Advisors, a real estate management firm that invested hundreds of millions of dollars on behalf of TRS. He was indicted in October 2008 for “allegedly conspiring with others to obtain campaign funds for Blagojevich by shaking down an investment firm seeking a $220 million allocation from TRS.” This replaces that indictment.
What
Before Blagojevich even became governor, he, along with Monk, Kelly and Tony Rezko, allegedly started scheming to use the governor’s office for financial gain that would be split among them once Blagojevich left office. Blagojevich allegedly let Kelly and Rezko exercise significant influence over state government operations, and they, in turn, allegedly generated millions of dollars for Blagojevich’s campaign fund and “provided financial benefits directly to Blagojevich and his family.” For instance, one part of the scheme allegedly included Rezko's real estate business paying Patti Blagojevich, the then-governor's wife, $12,000 a month, as well as another $40,000 in commission, "even though she had done little or no work," according to the indictment.
The indictment also alleges that Blagojevich had control of his campaign fund at all times, even as the chairmen of the fund changed.
UPDATED: Some more highlights of the details:
- Before Blagojevich became governor, he, along with Monk, Kelly and Rezko, allegedly started scheming to use the governor’s office for financial gain that would be split among them once Blagojevich left office.
- Blagojevich, Monk, Kelly and Rezko allegedly agreed to use Blagojevich’s and Monk’s offices to divide financial gain among themselves, including the kickback from the Pension Obligation Bond refinancing in 2003.
- The feds say Blagojevich lied to FBI agents on March16, 2005, when he said he kept state government and politics separate and didn't want to know who contributed money to his campaign.
- From 2004 to 2006, Rezko allegedly gave Monk between $70,000 and $90,000.
- Last year, Blagojevich allegedly directed Harris to find him a paid position at various state boards, and when that didn’t work, he directed Harris to connect his wife with financial institutions. When that failed, Blagojvich directed that those institutions to no longer get state business, according to the indictment.
Now what?
The indictment comes after more than a month of public hearings conducted by two panels, one appointed by Gov. Pat Quinn and one convened as a special joint legislative committee between the House and the Senate. Within two hours of the indictment being filed office tonight, one of the byproducts of the legislative committee passed both chambers.
The General Assembly approved SB 364, crafted with the leadership of House Speaker Michael Madigan and Senate President John Cullerton. It’s aimed at reforming the state’s public employee pension system and requiring all trustees to abide by state ethics laws. All trustees of the Teachers’ Retirement System, specifically, would be replaced. And the governor would be able to appoint more trustees to that board.
The Teachers’ Retirement System, which serves more than 355,500 teachers outside of Chicago, was one of the first state government operations revealed by the feds to be corrupted by Blagojevich’s inner circle, according to Fitzgerald’s office. System officials immediately released a statement of opposition, saying the governor’s ability to appoint more members has potential to increase, not decrease, the opportunity for political influence.
The board’s statement said the rationale behind the measure “erroneously accused the elected members of the board of failing to prevent a corruption scheme in 2004 hatched by a former gubernatorial appointee,” meaning Stuart Levine. “The elected trustees of the TRS Board are angry and deeply troubled by the implication that they were somehow complicit in the illegal behavior carried out by Stuart Levine,” said Bob Lyons, a board trustee twice-elected by annuitants of the Teachers’ Retirement System following Levine’s resignation, according to the statement.
Lyons also said that terminating Jon Bauman, executive director of the system, on July 1 would unfairly punish a man who hasn’t been accused of committing a crime.
Cullerton said the reforms are designed to prevent “what Stuart Levine got away with for so long” by requiring consultants to register, requiring all board members to follow the same ethics standards applied to legislators and executive branch employees to prevent conflicts of interest and so-called pay-to-play politics.
Cullerton also offered his personal reaction to the former governor’s indictment. “I think it’s a sad situation because he is the father of a couple of kids. He lives down the street from me, and it’s always sad when stuff like this happens. But, at the same time, I can’t imagine what this place would be like if he were still the governor trying to solve the problems that we have with the incredible deficits that we have.”
Legislators of both parties added that the indictment should serve as yet another wakeup call to enact meaningful reforms to strengthen rules for campaign finance, state procurement, public access to information and even the structure of government. Ultimately, however, reforms can only make it harder for people who are bent on mischief, Leipold said. “Surely oversight can help, sunshine can help, reporting can help, but nothing’s going to stop things like this completely.”
Many just want to move on from the embarrassment. “There’s plenty of blame to go around,” said Rep. Bill Black, a Danville Republican. “I don’t care about what has happened. Let's get involved and care about how we clean this up. I want my grandkids to be proud of me.”
At the least, federal prosecutors continue to send a message that “business as usual” won’t be tolerated. Sen. Matt Murphy, a Palatine Republican, said: “And the prosecutor is serious. People who want to play that game better learn real quick it’s a losing proposition.”
Thursday, October 30, 2008
Operation Board Game snags another piece
The U.S. attorney’s office in Northern Illinois is advancing its way around Gov. Rod Blagojevich’s inner circle, and Thursday’s indictment of GOP political bigwig William Cellini could be just another attempt to recruit one more person to testify against the governor, says Kent Redfield, political scientist with the University of Illinois at Springfield.
U.S. Attorney Patrick Fitzgerald indicted Cellini today on four charges of federal corruption. The 21-page indictment spells out a classic pay-to-play scheme of trading political campaign cash for state business. But Cellini’s attorney, Dan Webb of Winston & Strawn in Chicago, already combats the charges as “unfair and unjust” and based on shaky evidence.
The feds allege that Cellini was one of many people who conspired to rig state boards to hire investment firms that would, among other financial benefits, donate to the political campaign of Public Official A, previously identified as Blagojevich. The scheme allegedly happened between spring 2003 and summer 2005. Other conspirators already charged include Blagojevich insider Tony Rezko, former state board member Stuart Levine, attorneys Joseph Cari and Steven Loren and construction contractor Jacob Kiferbaum. Cellini’s indictment lists two more: Co-Conspirator A and a Teachers Retirement System Staffer A, yet to officially be identified. Co-Conspirator A is widely thought to be Christopher Kelly, who already was indicted on separate charges of tax fraud.
Cellini’s indictment alleges that he participated in a scheme to pressure Chicago businessman Thomas Rosenberg to give money to Blagojevich’s political campaign. The alleged ultimatum was that Rosenberg’s company, Capri Capital, had to raise money or donate to Blagojevich’s political fund to get a $220 million business deal with the Teachers’ Retirement System. The system oversees and handles investments for public pensions of teachers and administrators outside of Chicago. Private investment firms handle TRS assets. Through a statement, TRS administrators declined to comment but said the staff will “continue to uphold their fiduciary duty to our participants.”
According to Cellini’s indictment, the schemers decided it was too risky to continue pressuring Rosenberg when he threatened to go to authorities. But after that, Cellini, Rezko and others “discussed the possibility of removing the U.S. attorney for the Northern District of Illinois in an effort to stop any investigations into the co-conspirators and others,” according to the indictment.
Webb’s statement describes Cellini as “completely innocent of these charges, and he will fight this case because he has done absolutely nothing wrong.” It highlights the point that while a grand jury found Rezko guilty of 16 counts of corruption, they found him not guilty on one of the most serious charges of attempted extortion, relating to the charges involving Rosenberg. It states that Rosenberg testified in Rezko’s trial that “Bill Cellini never asked him for any money and that Rosenberg never paid any money to Cellini or anyone else.”
Redfield says if the assumption is that the U.S. attorney’s ultimate goal is to get all the way to Blagojevich, indicting Cellini makes sense. But there's no guarantee it'll work.
“At this point, Cellini thinks that this is not a slam dunk,” says Redfield. “And he’s willing to be indicted rather than to cooperate.”
And if the federal grand jury agrees with prosecutors’ assessment of Cellini’s involvement in the scheme, why would a successful, wealthy political insider at all levels of government work to secure funds on behalf of Blagojevich, a Democratic governor? Redfield says it’s all about power. “I don’t think it was so much about fighting for the governor as it was about power in the board and playing the game. He was as mover and shaker when [Jim] Thompson, [Jim] Edgar and [George] Ryan were governors. That’s what he knows and what he does … Power is addictive.”
U.S. Attorney Patrick Fitzgerald indicted Cellini today on four charges of federal corruption. The 21-page indictment spells out a classic pay-to-play scheme of trading political campaign cash for state business. But Cellini’s attorney, Dan Webb of Winston & Strawn in Chicago, already combats the charges as “unfair and unjust” and based on shaky evidence.
The feds allege that Cellini was one of many people who conspired to rig state boards to hire investment firms that would, among other financial benefits, donate to the political campaign of Public Official A, previously identified as Blagojevich. The scheme allegedly happened between spring 2003 and summer 2005. Other conspirators already charged include Blagojevich insider Tony Rezko, former state board member Stuart Levine, attorneys Joseph Cari and Steven Loren and construction contractor Jacob Kiferbaum. Cellini’s indictment lists two more: Co-Conspirator A and a Teachers Retirement System Staffer A, yet to officially be identified. Co-Conspirator A is widely thought to be Christopher Kelly, who already was indicted on separate charges of tax fraud.
Cellini’s indictment alleges that he participated in a scheme to pressure Chicago businessman Thomas Rosenberg to give money to Blagojevich’s political campaign. The alleged ultimatum was that Rosenberg’s company, Capri Capital, had to raise money or donate to Blagojevich’s political fund to get a $220 million business deal with the Teachers’ Retirement System. The system oversees and handles investments for public pensions of teachers and administrators outside of Chicago. Private investment firms handle TRS assets. Through a statement, TRS administrators declined to comment but said the staff will “continue to uphold their fiduciary duty to our participants.”
According to Cellini’s indictment, the schemers decided it was too risky to continue pressuring Rosenberg when he threatened to go to authorities. But after that, Cellini, Rezko and others “discussed the possibility of removing the U.S. attorney for the Northern District of Illinois in an effort to stop any investigations into the co-conspirators and others,” according to the indictment.
Webb’s statement describes Cellini as “completely innocent of these charges, and he will fight this case because he has done absolutely nothing wrong.” It highlights the point that while a grand jury found Rezko guilty of 16 counts of corruption, they found him not guilty on one of the most serious charges of attempted extortion, relating to the charges involving Rosenberg. It states that Rosenberg testified in Rezko’s trial that “Bill Cellini never asked him for any money and that Rosenberg never paid any money to Cellini or anyone else.”
Redfield says if the assumption is that the U.S. attorney’s ultimate goal is to get all the way to Blagojevich, indicting Cellini makes sense. But there's no guarantee it'll work.
“At this point, Cellini thinks that this is not a slam dunk,” says Redfield. “And he’s willing to be indicted rather than to cooperate.”
And if the federal grand jury agrees with prosecutors’ assessment of Cellini’s involvement in the scheme, why would a successful, wealthy political insider at all levels of government work to secure funds on behalf of Blagojevich, a Democratic governor? Redfield says it’s all about power. “I don’t think it was so much about fighting for the governor as it was about power in the board and playing the game. He was as mover and shaker when [Jim] Thompson, [Jim] Edgar and [George] Ryan were governors. That’s what he knows and what he does … Power is addictive.”
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