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 Blagojevich. Show all posts
Showing posts with label Blagojevich. Show all posts
Wednesday, April 09, 2014
Wednesday, October 24, 2012
New study drills down on state budget problems
By Jamey Dunn
A study released today takes a comprehensive look at Illinois’ fiscal situation and the events that led to the state’s current budget mess.
The study, which comes from the State Budget Crisis Task Force, is a follow-up to a report put out by the task force in July. The summer report focused on the budgets of California, Illinois, New Jersey, New York, Texas and Virginia. Richard Ravitch, the former lieutenant governor of New York, and Paul Volcker, the former chairman of the Federal Reserve, co-chair the task force, which seeks to parse state’s budget concerns in the wake of the national recession.
The report points to the usual suspects as cost drivers for the Illinois budget: growing pension and Medicaid costs. It also cites stagnant revenues, borrowing and shoddy accounting tactics as culprits in the state’s recent budget crisis. The report says that that tactic of selling bonds to cover pension costs — 2003, 2010 and 2011 — has been the primary contributor to Illinois having one of the highest debt rates per capita of any state.
The study says that the 2008 economic collapse was part of a perfect storm that sunk the state budget. Revenues tanked as demand for services spiked. “But unlike other states, Illinois was effectively insolvent. Illinois had no reserves and had used fiscal gimmicks and borrowing to balance the budget for the previous six or seven years.”
The authors attribute the problems leading up to 2008 to expansions of state programs and services without corresponding revenue increases under former Gov. Rod Blagojevich. The study said that the governor’s refusal to increase the state income tax and House Speaker Michael Madigan’s unwillingness to work with Blagojevich on alternative revenue sources left the state spending more than it could afford. “During Blagojevich’s two terms as governor, new programs were created and expanded, including health insurance coverage and preschool for Illinois children and free public transportation and prescription drugs for Illinois seniors. But with an existing structural deficit, and without new sources of revenue, the state did not have sufficient resources to meet all of its obligations,” the report said. “And while the recession took a toll on the state’s resources, Illinois’ government became essentially dysfunctional with the federal investigation of Governor Blagojevich and his removal from office.” The authors described the state’s budgeting tactics leading into the recession as such: “Illinois did all this without any sort of long-term financial plan to restore balance and without reserves. Illinois has been doing back flips on a high wire, without a net.”
Illinois economic growth has also stalled when compared with the rest of the country. “By FY 2010, Illinois’ total personal income fell 2 percent more and employment fell 1 percent more than in the U.S. as a whole. The impact of the recession on Illinois’ tax collections was much, much larger. In FY 2010, total state taxes in the U.S. were 93 percent of the amount in FY 2007, but Illinois’ tax revenues had fallen to 85 percent of the FY 2007 amount,” said the study. Illinois is recovering from the recession, but it is doing it more slowly than it recovered from the last three recessions.
The report notes that progress has been made to get the state back on secure footing. An income tax increase brought in new revenues, and lawmakers agreed on spending caps, cuts and sweeping Medicaid reforms. The authors note that such cuts are not painless and could have long-term effects on the state’s priorities, such as education and infrastructure. “There is, of course, nothing ‘encouraging’ about cuts in education, medical care and human services from the point of view of recipients or advocates. One of the most controversial budget appropriations was $6.5 billion for K-12 education, which was a cut of 3 percent from FY 2012,” said the study. Despite cuts and new revenues, the authors say the state cannot continue on its current budget trajectory. “Illinois’ budget is not fiscally sustainable. Despite recent progress and difficult choices, it is still in a deep hole. It cannot simultaneously continue current services, keep taxes at current levels, provide all promised [public employee] benefits, and make needed investments in education and infrastructure.”
Gov. Pat Quinn’s new budget spokesperson, Abdon Pallasch, echoed the idea that the current budget is unsustainable when he spoke to the Daily Herald’s editorial board yesterday. Quinn is pushing for concessions from the state’s largest public employee union and pension reform as at least a partial solution. “The alternative is we, you know, close a few prisons or universities, I guess,” Pallasch told the Daily Herald. “I’m not threatening to close prisons or universities,” he said. “I’m just saying, let your imagination run wild with what we’d have to do.” Officials with the American Federation for State County and Municipal Employees say Quinn and lawmakers should repeal tax breaks given to corporate interests, such as a recent tax deal given the Sears and the CME group, which owns the Chicago Mercantile Exchange and the Chicago Board of Trade.
The study also looked to potential future concerns for Illinois, including cuts to federal funding as deficit reduction efforts continue, the need to invest in infrastructure upgrades and the state’s aging residents. “Illinois’ demographics show an aging population with a trend toward fewer workers and more retirees, which will pose daunting fiscal challenges in the years ahead.”
A study released today takes a comprehensive look at Illinois’ fiscal situation and the events that led to the state’s current budget mess.
The study, which comes from the State Budget Crisis Task Force, is a follow-up to a report put out by the task force in July. The summer report focused on the budgets of California, Illinois, New Jersey, New York, Texas and Virginia. Richard Ravitch, the former lieutenant governor of New York, and Paul Volcker, the former chairman of the Federal Reserve, co-chair the task force, which seeks to parse state’s budget concerns in the wake of the national recession.
The report points to the usual suspects as cost drivers for the Illinois budget: growing pension and Medicaid costs. It also cites stagnant revenues, borrowing and shoddy accounting tactics as culprits in the state’s recent budget crisis. The report says that that tactic of selling bonds to cover pension costs — 2003, 2010 and 2011 — has been the primary contributor to Illinois having one of the highest debt rates per capita of any state.
The study says that the 2008 economic collapse was part of a perfect storm that sunk the state budget. Revenues tanked as demand for services spiked. “But unlike other states, Illinois was effectively insolvent. Illinois had no reserves and had used fiscal gimmicks and borrowing to balance the budget for the previous six or seven years.”
The authors attribute the problems leading up to 2008 to expansions of state programs and services without corresponding revenue increases under former Gov. Rod Blagojevich. The study said that the governor’s refusal to increase the state income tax and House Speaker Michael Madigan’s unwillingness to work with Blagojevich on alternative revenue sources left the state spending more than it could afford. “During Blagojevich’s two terms as governor, new programs were created and expanded, including health insurance coverage and preschool for Illinois children and free public transportation and prescription drugs for Illinois seniors. But with an existing structural deficit, and without new sources of revenue, the state did not have sufficient resources to meet all of its obligations,” the report said. “And while the recession took a toll on the state’s resources, Illinois’ government became essentially dysfunctional with the federal investigation of Governor Blagojevich and his removal from office.” The authors described the state’s budgeting tactics leading into the recession as such: “Illinois did all this without any sort of long-term financial plan to restore balance and without reserves. Illinois has been doing back flips on a high wire, without a net.”
Illinois economic growth has also stalled when compared with the rest of the country. “By FY 2010, Illinois’ total personal income fell 2 percent more and employment fell 1 percent more than in the U.S. as a whole. The impact of the recession on Illinois’ tax collections was much, much larger. In FY 2010, total state taxes in the U.S. were 93 percent of the amount in FY 2007, but Illinois’ tax revenues had fallen to 85 percent of the FY 2007 amount,” said the study. Illinois is recovering from the recession, but it is doing it more slowly than it recovered from the last three recessions.
The report notes that progress has been made to get the state back on secure footing. An income tax increase brought in new revenues, and lawmakers agreed on spending caps, cuts and sweeping Medicaid reforms. The authors note that such cuts are not painless and could have long-term effects on the state’s priorities, such as education and infrastructure. “There is, of course, nothing ‘encouraging’ about cuts in education, medical care and human services from the point of view of recipients or advocates. One of the most controversial budget appropriations was $6.5 billion for K-12 education, which was a cut of 3 percent from FY 2012,” said the study. Despite cuts and new revenues, the authors say the state cannot continue on its current budget trajectory. “Illinois’ budget is not fiscally sustainable. Despite recent progress and difficult choices, it is still in a deep hole. It cannot simultaneously continue current services, keep taxes at current levels, provide all promised [public employee] benefits, and make needed investments in education and infrastructure.”
Gov. Pat Quinn’s new budget spokesperson, Abdon Pallasch, echoed the idea that the current budget is unsustainable when he spoke to the Daily Herald’s editorial board yesterday. Quinn is pushing for concessions from the state’s largest public employee union and pension reform as at least a partial solution. “The alternative is we, you know, close a few prisons or universities, I guess,” Pallasch told the Daily Herald. “I’m not threatening to close prisons or universities,” he said. “I’m just saying, let your imagination run wild with what we’d have to do.” Officials with the American Federation for State County and Municipal Employees say Quinn and lawmakers should repeal tax breaks given to corporate interests, such as a recent tax deal given the Sears and the CME group, which owns the Chicago Mercantile Exchange and the Chicago Board of Trade.
The study also looked to potential future concerns for Illinois, including cuts to federal funding as deficit reduction efforts continue, the need to invest in infrastructure upgrades and the state’s aging residents. “Illinois’ demographics show an aging population with a trend toward fewer workers and more retirees, which will pose daunting fiscal challenges in the years ahead.”
Wednesday, December 07, 2011
Is Blagojevich's sentence enough to deter corruption?
By Jamey Dunn
Almost three years after his arrest on corruption charges, former Gov. Rod Blagojevich was sentenced to 14 years behind bars today, but some say the work to clean up “pay to play politics” in the state is not done.
“The long Blagojevich nightmare is over,” Andy Shaw, director of the Better Government Association, said in Chicago after the sentence came down today.
While the sentence is shorter than the 15 to 20 years that prosecutors requested for Blagojevich's 18 felony convictions, it is the longest prison term ever doled out for corruption in the state. Blagojevich was reportedly contrite today when he addressed U.S. District Judge James Zagel, saying he was sorry and that he has no one to blame but himself. According to the Chicago-Sun Times, Zagel told Blagojevich, “When it is the governor who goes bad, the fabric of Illinois is torn and disfigured and not easily or quickly repaired.” Blagojevich is must surrender on February 16, 2012. Under federal guidelines, he is required to serve 85 percent, almost 12 years, of his sentence. He was also hit with almost $22,000 in fines and penalties.
However, after the sentencing, Blagojevich vowed to fight on. “This is a time to be strong. This is a time to fight through adversity. This is a time for me to be strong for our children, be strong for Patti,” he told reporters in Chicago. “We’re going to keep fighting on though this adversity, and we’ll see you soon.” Blagojevich dusted off one of his favorite literary works, quoting Rudyard Kipling’s If, a poem he has been citing in speeches for years.
“It’s profoundly sad that we are here for the second time in five years to discuss the conviction and sentencing of a governor of Illinois.” U.S. Attorney Patrick Fitzgerald said today in Chicago. He said the sentence should deter future corruption and that it “sends a strong message that the public has had enough and judges have had enough. This needs to stop.”
Fitzgerald said that an end to corruption in Illinois would come with a change in public sentiment. He said that “to some extent” people are “resigned to corruption.” He encouraged citizens to become whistleblowers and change the climate so that those who would seek money or personal benefit in exchange for a political act “should be afraid to ask.”
Lt. Gov. Shelia Simon said Blagojevich’s sentence does not ensure an end to political malfeasance in the state. "We cannot rely on a prison sentence to deter corruption,” Simon said in a prepared statement. “Illinois needs stronger ethics laws to kill pay-to-play politics. It's time we expose conflicts of interest before they cost taxpayers, and clear the way for true public servants to rebuild trust with the public. Increased transparency, coupled with the threat of serious prison time, can end these shameful courtroom battles. Together we can put this chapter behind us, restore integrity to government and live up to our legacy as the Land of Lincoln.” Simon, who served on an ethics commission that made recommendations to the General Assembly in the wake of Blagojevich’s impeachment and removal from office, said the former governor’s conviction and sentencing provide an opportunity to have “public conversation again” about ethics in the state.
Dick Simpson, a professor and head of the Department of Political Science at the University of Illinois Chicago, agreed with Simon. “I don’t think that the sentence will be enough to deter corruption in the future.” He said that more recommendations from the ethics commission should be enacted. Simpson said that the job of cleaning up Illinois requires an educated public. “I think the most important single [recommendation to act on] would be to reintroduce into the public school system … both civics and the cost of corruption, and those are not taught in most schools anymore.”
He said students should be made aware of both the monetary costs of corruption as well as the human toll. “You can show examples of what happens when you can’t trust the policeman or you can’t trust the inspector and how it undermines trust in government and willingness to pay taxes. It’s not hard to put together a curriculum.”
He added, “Teaching political and civic engagement, rather than just the three branches of government, would be useful.”
He said that locking up offenders would never address the problem on a holistic level. “No amount of sentences would be sufficient. … Catching one crook at a time is not enough. It’s good that we punish people, but it isn’t sufficient.”
Gov. Pat Quinn called his predecessor’s sentence “stiff” but “necessary.” Quinn said there is “more work to do” to implement reforms, including enacting recommendations of the ethics commission. He renewed his call for a change to the state Constitution that would allow for citizens to put ethics measures on the ballot for a popular vote by collecting a enough voters’ signatures. Quinn said such initiatives, if passed, could apply to any level of government in the state. “We should not just have to rely on a legislature, or city councils or county boards [to pass ethics measures.]”
Quinn added, “We need to have a way for people to bypass the insiders to enact reforms that the people, the taxpayers, think are necessary.”
When asked about being Blagojevich’s running mate twice, Quinn said, “I think he let me down like he let down the people of Illinois.”
Other reading:
For more on the lack of civic education in Illinois schools, see Illinois Issues, September 2011.
For more on the history of political corruption in Illinois, see Illinois Issues Blog, December 2008.
For courtroom reporting on the sentencing, see the Chicago-Sun Times and the Chicago Tribune.
Almost three years after his arrest on corruption charges, former Gov. Rod Blagojevich was sentenced to 14 years behind bars today, but some say the work to clean up “pay to play politics” in the state is not done.
“The long Blagojevich nightmare is over,” Andy Shaw, director of the Better Government Association, said in Chicago after the sentence came down today.
While the sentence is shorter than the 15 to 20 years that prosecutors requested for Blagojevich's 18 felony convictions, it is the longest prison term ever doled out for corruption in the state. Blagojevich was reportedly contrite today when he addressed U.S. District Judge James Zagel, saying he was sorry and that he has no one to blame but himself. According to the Chicago-Sun Times, Zagel told Blagojevich, “When it is the governor who goes bad, the fabric of Illinois is torn and disfigured and not easily or quickly repaired.” Blagojevich is must surrender on February 16, 2012. Under federal guidelines, he is required to serve 85 percent, almost 12 years, of his sentence. He was also hit with almost $22,000 in fines and penalties.
However, after the sentencing, Blagojevich vowed to fight on. “This is a time to be strong. This is a time to fight through adversity. This is a time for me to be strong for our children, be strong for Patti,” he told reporters in Chicago. “We’re going to keep fighting on though this adversity, and we’ll see you soon.” Blagojevich dusted off one of his favorite literary works, quoting Rudyard Kipling’s If, a poem he has been citing in speeches for years.
“It’s profoundly sad that we are here for the second time in five years to discuss the conviction and sentencing of a governor of Illinois.” U.S. Attorney Patrick Fitzgerald said today in Chicago. He said the sentence should deter future corruption and that it “sends a strong message that the public has had enough and judges have had enough. This needs to stop.”
Fitzgerald said that an end to corruption in Illinois would come with a change in public sentiment. He said that “to some extent” people are “resigned to corruption.” He encouraged citizens to become whistleblowers and change the climate so that those who would seek money or personal benefit in exchange for a political act “should be afraid to ask.”
Lt. Gov. Shelia Simon said Blagojevich’s sentence does not ensure an end to political malfeasance in the state. "We cannot rely on a prison sentence to deter corruption,” Simon said in a prepared statement. “Illinois needs stronger ethics laws to kill pay-to-play politics. It's time we expose conflicts of interest before they cost taxpayers, and clear the way for true public servants to rebuild trust with the public. Increased transparency, coupled with the threat of serious prison time, can end these shameful courtroom battles. Together we can put this chapter behind us, restore integrity to government and live up to our legacy as the Land of Lincoln.” Simon, who served on an ethics commission that made recommendations to the General Assembly in the wake of Blagojevich’s impeachment and removal from office, said the former governor’s conviction and sentencing provide an opportunity to have “public conversation again” about ethics in the state.
Dick Simpson, a professor and head of the Department of Political Science at the University of Illinois Chicago, agreed with Simon. “I don’t think that the sentence will be enough to deter corruption in the future.” He said that more recommendations from the ethics commission should be enacted. Simpson said that the job of cleaning up Illinois requires an educated public. “I think the most important single [recommendation to act on] would be to reintroduce into the public school system … both civics and the cost of corruption, and those are not taught in most schools anymore.”
He said students should be made aware of both the monetary costs of corruption as well as the human toll. “You can show examples of what happens when you can’t trust the policeman or you can’t trust the inspector and how it undermines trust in government and willingness to pay taxes. It’s not hard to put together a curriculum.”
He added, “Teaching political and civic engagement, rather than just the three branches of government, would be useful.”
He said that locking up offenders would never address the problem on a holistic level. “No amount of sentences would be sufficient. … Catching one crook at a time is not enough. It’s good that we punish people, but it isn’t sufficient.”
Gov. Pat Quinn called his predecessor’s sentence “stiff” but “necessary.” Quinn said there is “more work to do” to implement reforms, including enacting recommendations of the ethics commission. He renewed his call for a change to the state Constitution that would allow for citizens to put ethics measures on the ballot for a popular vote by collecting a enough voters’ signatures. Quinn said such initiatives, if passed, could apply to any level of government in the state. “We should not just have to rely on a legislature, or city councils or county boards [to pass ethics measures.]”
Quinn added, “We need to have a way for people to bypass the insiders to enact reforms that the people, the taxpayers, think are necessary.”
When asked about being Blagojevich’s running mate twice, Quinn said, “I think he let me down like he let down the people of Illinois.”
Other reading:
For more on the lack of civic education in Illinois schools, see Illinois Issues, September 2011.
For more on the history of political corruption in Illinois, see Illinois Issues Blog, December 2008.
For courtroom reporting on the sentencing, see the Chicago-Sun Times and the Chicago Tribune.
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, August 23, 2011
Prosecutors: Blagojevich verdict reached after fair trial
By Jamey Dunn
Prosecutors say former Gov. Rod Blagojevich has no grounds to fight his conviction on corruption charges.
A federal jury convicted Blagojevich on 17 out of 20 counts in June. Blagojevich’s lawyers filed a complaint earlier this month seeking to have the convictions tossed out based on several claims, including judicial bias and a tainted jury pool. The complaint said U.S. District Judge James Zagel favored the prosecution, and some members of the jury had heard of Blagojevich’s case and said they thought he might be guilty. The motion also reiterated the defense's longstanding complaint that not all the audio recordings the government had of the former governor’s telephone calls were played during the trial.
The prosecution countered that Blagojevich was convicted after a fair trial, and the defense’s claims do not meet the “high burden” set for overturning a jury’s ruling. “In making these arguments [the] defendant disregards what the evidence at trial established and what the jury concluded — that the defendant knowingly engaged in a scheme to abuse his power as governor in exchange for personal financial gain. In reality, there was no bias, manipulation or unfairness on the part of the prosecution judge or jury. [The] defendant was fairly convicted by a jury of his peers based on overwhelming evidence, and his post-trial motion therefore should be denied,” said the prosecution’s response, which was filed today.
Blagojevich’s lawyers argued that jurors should have been allowed to hear all of the former governor’s telephone calls from the time period when the government was gathering evidence against him. The complaint accuses prosecutors of “cherry picking” conversations. However, the response said the other calls were irrelevant and some of the calls the defense wanted to submit were never recorded. “This court properly rejected the defendant’s request for discovery of evidence that either did not exist or that was completely irrelevant to any issue in the case,” the response stated.
As for the claims that Blagojevich faced a tainted jury, the prosecution said the former governor dragged his own case into the limelight with the intent of reaching possible jurors. The response said that jurors who knew about the case said they could put their opinions aside to give Blagojevich a fair shake. “[The] defendant engaged in an unprecedented national media campaign executed with the help of [a] retained public relations firm for the purpose of influencing public opinion, and that campaign was bound to have some impact, even if it was not the impact [the] defendant had hoped for.” However, the defense complained that a news conference held on the day of Blagojevich’s arrest — where U.S. Attorney Patrick Fitzgerald said the former governor’s behavior "would make Lincoln roll over in his grave” — also colored public opinion.
Zagel has yet to rule on the defense's request for a new trial. The former governor’s sentencing date is scheduled for October 6. Blagojevich also faces sentencing for a previous conviction of lying to federal officers.
Prosecutors say former Gov. Rod Blagojevich has no grounds to fight his conviction on corruption charges.
A federal jury convicted Blagojevich on 17 out of 20 counts in June. Blagojevich’s lawyers filed a complaint earlier this month seeking to have the convictions tossed out based on several claims, including judicial bias and a tainted jury pool. The complaint said U.S. District Judge James Zagel favored the prosecution, and some members of the jury had heard of Blagojevich’s case and said they thought he might be guilty. The motion also reiterated the defense's longstanding complaint that not all the audio recordings the government had of the former governor’s telephone calls were played during the trial.
The prosecution countered that Blagojevich was convicted after a fair trial, and the defense’s claims do not meet the “high burden” set for overturning a jury’s ruling. “In making these arguments [the] defendant disregards what the evidence at trial established and what the jury concluded — that the defendant knowingly engaged in a scheme to abuse his power as governor in exchange for personal financial gain. In reality, there was no bias, manipulation or unfairness on the part of the prosecution judge or jury. [The] defendant was fairly convicted by a jury of his peers based on overwhelming evidence, and his post-trial motion therefore should be denied,” said the prosecution’s response, which was filed today.
Blagojevich’s lawyers argued that jurors should have been allowed to hear all of the former governor’s telephone calls from the time period when the government was gathering evidence against him. The complaint accuses prosecutors of “cherry picking” conversations. However, the response said the other calls were irrelevant and some of the calls the defense wanted to submit were never recorded. “This court properly rejected the defendant’s request for discovery of evidence that either did not exist or that was completely irrelevant to any issue in the case,” the response stated.
As for the claims that Blagojevich faced a tainted jury, the prosecution said the former governor dragged his own case into the limelight with the intent of reaching possible jurors. The response said that jurors who knew about the case said they could put their opinions aside to give Blagojevich a fair shake. “[The] defendant engaged in an unprecedented national media campaign executed with the help of [a] retained public relations firm for the purpose of influencing public opinion, and that campaign was bound to have some impact, even if it was not the impact [the] defendant had hoped for.” However, the defense complained that a news conference held on the day of Blagojevich’s arrest — where U.S. Attorney Patrick Fitzgerald said the former governor’s behavior "would make Lincoln roll over in his grave” — also colored public opinion.
Zagel has yet to rule on the defense's request for a new trial. The former governor’s sentencing date is scheduled for October 6. Blagojevich also faces sentencing for a previous conviction of lying to federal officers.
Monday, June 27, 2011
Blagojevich verdicts may spark more reforms
By Jamey Dunn
Another of Illinois’ past governors faces potential years behind bars after being convicted on the majority of the corruption charges he was facing. But some Illinois officials warn it is not yet time to close the book on the state’s history of corruption.
A jury today convicted former Gov. Rod Blagojevich on 17 out of 20 counts. The jury found him not guilty on one count connected to an alleged plot to squeeze campaign money from road construction firms before he would sign a tollway plan that would benefit some builders. The jury did not come to a verdict on another charge related to that scheme and one tied to an alleged attempt to strong-arm U.S. Rep. Rahm Emanuel, now mayor of Chicago, into arranging a Blagojevich fundraiser before the governor would release a grant to the Chicago Academy. The defense called Emanuel to testify in the former governor’s retrial. Prosecutors reportedly do not plan to retry Blagojevich on the two charges that they jury could not agree on.
The jury found Blagojevich guilty on charges related to his most well-known scheme, attempting to sell Barack Obama’s former Senate seat for personal or political gain. He was also convicted on charges relating to him trying to get representatives of the horse racing industry to trade campaign contributions for his signature on a bill that would benefit them, as well as holding up legislation related to funding in an attempt to extort campaign contributions from the chief operating officer of Children’s Memorial Hospital.
“There’s not much left to say other than we want to get home to our little girls,” Blagojevich told reporters as he left the federal courthouse today. He said he was “stunned” and wanted to go home to explain what happened to his two daughters and decide what to do next.
“I’m sure we’ll be seeing you guys again,” he quipped, alluding to a potential appeal. Blagojevich was allowed to go home today, but he is not allowed to travel out of the federal Northern District of Illinois without permission from Judge James Zagel, who has presided over both of Blagojevich’s trials.
In his first criminal trial, Blagojevich was convicted of one charge of lying to federal officers. That jury could not reach an agreement on 23 other counts. Blagojevich decided not to testify at that trial, but he spent days on the stand in his retrial. Sam Adam Jr., who represented Blagojevich in his first trial but not in the most recent one, said that he thinks the jury didn’t believe what the former governor said in his own defense. “It’s obvious that the jury wanted to make a statement, and they made a statement,” Adam told WLS-TV Chicago. “It just seems the jury in this particular case didn’t buy what he had to say.”
Adam said he thinks Blagojevich has grounds for an appeal based on the courts refusal to allow the defense to present some of the pieces of his recorded phone conservations. He added that Blagojevich was unable to “corroborate” his testimony with this barred evidence. “I think he’ll end up vindicated,’ Adam said. He said he would work on an appeal if tapped to do so.
Adam predicted that if an appeal is not successful, Blagojevich could be sentenced to between five and nine years for his convictions. “He’s looking at some serious time here.” Adam added that if Zagel determines that Blagojevich lied during his testimony, the sentence could be longer.
“I'm glad that the verdict is finally in on Rod Blagojevich. However, this closes only one chapter of Democrat corruption in Illinois. Illinois Democratic politicians who now try everything they can to hide their past support of Rod Blagojevich should look themselves in the mirror and remind themselves that little has changed since the day Blagojevich was arrested,” Illinois Republican Party Chair Pat Brady said in a prepared statement. Republicans will likely try to make Illinois Democrats, including President Barack Obama and anyone else who said something positive in the past about the now-convicted felon, live down the legacy of Blagojevich in the next few election cycles.
However, many Democrats have been distancing themselves from the former governor for years, so time will tell whetherf Blagojevich’s conviction will become effective campaign fodder.
"Once again, the former governor's pattern of dishonesty has been confirmed. I thank the jury for its public service. Just as it was sad but necessary for the Senate to remove him from office, today is another sad event for Illinois. I would hope that this verdict would further allow us as a state to move on and ahead,” Senate President John Cullerton said in a written response to the verdict.
Senate Minority Leader Christine Radogno called on Illinois lawmakers to approve more reforms. In the wake of Blagojevich’s arrest, the General Assembly approved a campaign finance reform law that for the first time in Illinois caps the contributions politicians can accept. Lawmakers also enacted new ethics rules for state employees, as well as a new process for the way the state enters into contracts with vendors. However, Republicans have pushed for laws to lower campaign contribution caps and limit party contributions, with no gains over the last few years.
“It was clear that Rod Blagojevich conspired to use the governor's office for personal gain. He inflicted real, permanent damage on the state during his six years in office. Unfortunately, future generations will be paying for his administration for years to come,” Radogno said in a prepared statement. “I am as anxious as everyone to now put this sordid chapter in our state’s history behind us. But some will want to use this verdict to close the door on reform. Instead, it is our job as elected officials to make sure the public has confidence in the integrity of their government. We all have a responsibility to send a clear signal that Illinoisans do not need to tolerate even the appearance of conflicts of interest by elected officials.”
Gov. Pat Quinn agreed. “This is a serious day for our state,” Quinn said at a Chicago news conference. He said Blagojevich’s conviction, along with the previous conviction of former Gov. George Ryan on corruption charges, “underlines … for every person in Illinois the importance of reforming our government on a daily basis from top to bottom.”
He called for lawmakers to revisit several additional ethics provisions. Quinn said legislators should consider allowing open primaries in the state, imposing a mandatory “conflict of interest” requirement on themselves and extending the recall power to all elected offices. Quinn pushed a constitutional amendment approved last November, which allows Illinois voters to recall governors. “I also think that looking at campaign finance again is something worth trying,” he said.
Quinn renewed a call to allow citizens to present ethics laws through a voter initiative system. He tried to tack such a provision onto a bill through an amendatory veto last year, but lawmakers did not take up the veto for a vote. Experts said that the plan would likely not fit into the narrow voter initiative requirements in the state’s Constitution. This time, Quinn is calling for a constitutional amendment. “There’s a lot to be done. I’m sure there are many people with many ideas,” he said.
Quinn said he did not feel the need to apologize for supporting his former running mate in the past, saying Blagojevich had “deceived” him and others. “I have nothing to apologize for because I know I do things in an honest way.”
He said it is regrettable that two of his predecessors, Blagojevich and Ryan, may soon be behind bars. “I’m very sorry that happened to [the Blagojevich] family, but you have to be accountable for your deeds.”
Another of Illinois’ past governors faces potential years behind bars after being convicted on the majority of the corruption charges he was facing. But some Illinois officials warn it is not yet time to close the book on the state’s history of corruption.
A jury today convicted former Gov. Rod Blagojevich on 17 out of 20 counts. The jury found him not guilty on one count connected to an alleged plot to squeeze campaign money from road construction firms before he would sign a tollway plan that would benefit some builders. The jury did not come to a verdict on another charge related to that scheme and one tied to an alleged attempt to strong-arm U.S. Rep. Rahm Emanuel, now mayor of Chicago, into arranging a Blagojevich fundraiser before the governor would release a grant to the Chicago Academy. The defense called Emanuel to testify in the former governor’s retrial. Prosecutors reportedly do not plan to retry Blagojevich on the two charges that they jury could not agree on.
The jury found Blagojevich guilty on charges related to his most well-known scheme, attempting to sell Barack Obama’s former Senate seat for personal or political gain. He was also convicted on charges relating to him trying to get representatives of the horse racing industry to trade campaign contributions for his signature on a bill that would benefit them, as well as holding up legislation related to funding in an attempt to extort campaign contributions from the chief operating officer of Children’s Memorial Hospital.
“There’s not much left to say other than we want to get home to our little girls,” Blagojevich told reporters as he left the federal courthouse today. He said he was “stunned” and wanted to go home to explain what happened to his two daughters and decide what to do next.
“I’m sure we’ll be seeing you guys again,” he quipped, alluding to a potential appeal. Blagojevich was allowed to go home today, but he is not allowed to travel out of the federal Northern District of Illinois without permission from Judge James Zagel, who has presided over both of Blagojevich’s trials.
In his first criminal trial, Blagojevich was convicted of one charge of lying to federal officers. That jury could not reach an agreement on 23 other counts. Blagojevich decided not to testify at that trial, but he spent days on the stand in his retrial. Sam Adam Jr., who represented Blagojevich in his first trial but not in the most recent one, said that he thinks the jury didn’t believe what the former governor said in his own defense. “It’s obvious that the jury wanted to make a statement, and they made a statement,” Adam told WLS-TV Chicago. “It just seems the jury in this particular case didn’t buy what he had to say.”
Adam said he thinks Blagojevich has grounds for an appeal based on the courts refusal to allow the defense to present some of the pieces of his recorded phone conservations. He added that Blagojevich was unable to “corroborate” his testimony with this barred evidence. “I think he’ll end up vindicated,’ Adam said. He said he would work on an appeal if tapped to do so.
Adam predicted that if an appeal is not successful, Blagojevich could be sentenced to between five and nine years for his convictions. “He’s looking at some serious time here.” Adam added that if Zagel determines that Blagojevich lied during his testimony, the sentence could be longer.
“I'm glad that the verdict is finally in on Rod Blagojevich. However, this closes only one chapter of Democrat corruption in Illinois. Illinois Democratic politicians who now try everything they can to hide their past support of Rod Blagojevich should look themselves in the mirror and remind themselves that little has changed since the day Blagojevich was arrested,” Illinois Republican Party Chair Pat Brady said in a prepared statement. Republicans will likely try to make Illinois Democrats, including President Barack Obama and anyone else who said something positive in the past about the now-convicted felon, live down the legacy of Blagojevich in the next few election cycles.
However, many Democrats have been distancing themselves from the former governor for years, so time will tell whetherf Blagojevich’s conviction will become effective campaign fodder.
"Once again, the former governor's pattern of dishonesty has been confirmed. I thank the jury for its public service. Just as it was sad but necessary for the Senate to remove him from office, today is another sad event for Illinois. I would hope that this verdict would further allow us as a state to move on and ahead,” Senate President John Cullerton said in a written response to the verdict.
Senate Minority Leader Christine Radogno called on Illinois lawmakers to approve more reforms. In the wake of Blagojevich’s arrest, the General Assembly approved a campaign finance reform law that for the first time in Illinois caps the contributions politicians can accept. Lawmakers also enacted new ethics rules for state employees, as well as a new process for the way the state enters into contracts with vendors. However, Republicans have pushed for laws to lower campaign contribution caps and limit party contributions, with no gains over the last few years.
“It was clear that Rod Blagojevich conspired to use the governor's office for personal gain. He inflicted real, permanent damage on the state during his six years in office. Unfortunately, future generations will be paying for his administration for years to come,” Radogno said in a prepared statement. “I am as anxious as everyone to now put this sordid chapter in our state’s history behind us. But some will want to use this verdict to close the door on reform. Instead, it is our job as elected officials to make sure the public has confidence in the integrity of their government. We all have a responsibility to send a clear signal that Illinoisans do not need to tolerate even the appearance of conflicts of interest by elected officials.”
Gov. Pat Quinn agreed. “This is a serious day for our state,” Quinn said at a Chicago news conference. He said Blagojevich’s conviction, along with the previous conviction of former Gov. George Ryan on corruption charges, “underlines … for every person in Illinois the importance of reforming our government on a daily basis from top to bottom.”
He called for lawmakers to revisit several additional ethics provisions. Quinn said legislators should consider allowing open primaries in the state, imposing a mandatory “conflict of interest” requirement on themselves and extending the recall power to all elected offices. Quinn pushed a constitutional amendment approved last November, which allows Illinois voters to recall governors. “I also think that looking at campaign finance again is something worth trying,” he said.
Quinn renewed a call to allow citizens to present ethics laws through a voter initiative system. He tried to tack such a provision onto a bill through an amendatory veto last year, but lawmakers did not take up the veto for a vote. Experts said that the plan would likely not fit into the narrow voter initiative requirements in the state’s Constitution. This time, Quinn is calling for a constitutional amendment. “There’s a lot to be done. I’m sure there are many people with many ideas,” he said.
Quinn said he did not feel the need to apologize for supporting his former running mate in the past, saying Blagojevich had “deceived” him and others. “I have nothing to apologize for because I know I do things in an honest way.”
He said it is regrettable that two of his predecessors, Blagojevich and Ryan, may soon be behind bars. “I’m very sorry that happened to [the Blagojevich] family, but you have to be accountable for your deeds.”
Monday, February 14, 2011
Free ride for all seniors program is over
By Jamey Dunn
A program backed by former Gov. Rod Blagojevich, which was also a popular target of legislators looking to cut the budget, was limited today.
Gov. Pat Quinn signed Senate Bill 3788, which ends the free-rides-for-seniors program as it existed under Blagojevich. Under the new law, all seniors will pay half-price to use mass transit. To receive free rides, seniors must have income levels that qualify for state assistance programs, such as a state pharmaceutical aid program. One person making $27,610 or less will still be eligible for a free ride. Members of a two-person household earning less than $36,635 and any households of three or more that earn less than $45,657 will also still be able to ride for free.
“This reform sets the standard we must meet for state programs by reducing costs while also ensuring transportation services for our most dependent seniors,” Quinn said in a written statement. “To start off a week that will highlight important budget reforms, we’re taking important steps to ensure our state transit programs are fiscally responsible but also accessible to the riders who depend on them.”
A proposal to limit the program gained traction last spring but then stalled. Legislators brought the issue up again in the January lame-duck session, and the bill passed with little debate and no organized opposition. “It’s about time,” Senate Minority Leader Christine Radogno, a Lemont Republican, who has been pushing to roll the program back, said when the bill passed.
A program backed by former Gov. Rod Blagojevich, which was also a popular target of legislators looking to cut the budget, was limited today.
Gov. Pat Quinn signed Senate Bill 3788, which ends the free-rides-for-seniors program as it existed under Blagojevich. Under the new law, all seniors will pay half-price to use mass transit. To receive free rides, seniors must have income levels that qualify for state assistance programs, such as a state pharmaceutical aid program. One person making $27,610 or less will still be eligible for a free ride. Members of a two-person household earning less than $36,635 and any households of three or more that earn less than $45,657 will also still be able to ride for free.
“This reform sets the standard we must meet for state programs by reducing costs while also ensuring transportation services for our most dependent seniors,” Quinn said in a written statement. “To start off a week that will highlight important budget reforms, we’re taking important steps to ensure our state transit programs are fiscally responsible but also accessible to the riders who depend on them.”
A proposal to limit the program gained traction last spring but then stalled. Legislators brought the issue up again in the January lame-duck session, and the bill passed with little debate and no organized opposition. “It’s about time,” Senate Minority Leader Christine Radogno, a Lemont Republican, who has been pushing to roll the program back, said when the bill passed.
Wednesday, October 27, 2010
Judge upholds Blagojevich conviction
By Jamey Dunn
Federal Judge James Zagel denied former Gov. Rod Blagojevich’s bid to have the single conviction from his corruption trial tossed out.
Blagojevich was convicted in August on one charge of lying to federal agents — stemming from a 2005 discussion when he told FBI agents he kept a “firewall” between campaign fundraising and his job as governor.
Blagojevich asked Zagel to nullify the conviction based alleged misconduct by the prosecution.
Zagel did not agree that the prosecution took any inappropriate actions. "The arguments made here are weak in themselves. Defendant's motion is founded in substantial part on the well-known principle that if a lawyer cannot attack the law or the facts in a criminal prosecution, the only recourse is to attack the prosecutor,” Zagel said in a written opinion.
The jury was unable to reach a verdict on 23 other corruption charges, including allegations that Blagojevich tried to sell President Barack Obama’s former U.S. Senate seat. The former governor faces a retrial in April 2011. Zagel gave Blagojevich’s trimmed-down defense team more time to prepare after his earlier outspoken father-son lawyer team, Sam Adam and Sam Adam Jr., bowed out of having an active role in the retrial.
Federal Judge James Zagel denied former Gov. Rod Blagojevich’s bid to have the single conviction from his corruption trial tossed out.
Blagojevich was convicted in August on one charge of lying to federal agents — stemming from a 2005 discussion when he told FBI agents he kept a “firewall” between campaign fundraising and his job as governor.
Blagojevich asked Zagel to nullify the conviction based alleged misconduct by the prosecution.
Zagel did not agree that the prosecution took any inappropriate actions. "The arguments made here are weak in themselves. Defendant's motion is founded in substantial part on the well-known principle that if a lawyer cannot attack the law or the facts in a criminal prosecution, the only recourse is to attack the prosecutor,” Zagel said in a written opinion.
The jury was unable to reach a verdict on 23 other corruption charges, including allegations that Blagojevich tried to sell President Barack Obama’s former U.S. Senate seat. The former governor faces a retrial in April 2011. Zagel gave Blagojevich’s trimmed-down defense team more time to prepare after his earlier outspoken father-son lawyer team, Sam Adam and Sam Adam Jr., bowed out of having an active role in the retrial.
Wednesday, September 01, 2010
Ryan asks judge to reconsider charges
By Jamey Dunn
Former Gov. George Ryan is seeking to have some of the charges from his 2006 conviction on corruption thrown out based on a recent U.S. Supreme Court ruling.
The ruling scaled back a category of fraud, which requires public officials to provide “honest services.” Prosecutors now have to prove that an official received a bribe, kickback or some financial benefit when failing to provide honest service to the public. Prior to the court’s decision, prosecutors often used the statute to go after officials and executives who engaged in corrupt acts, such as lying to shareholders or not disclosing a conflict of interest, even if it did not result in a tangible benefit for the accused.
The ruling would not apply to all of the former governor’s crimes, but Ryan’s lawyers claim it would apply to mail fraud and racketeering convictions. They have asked the judge who presided over his trial to consider tossing these charges. His lawyers say the time he has served would satisfy his sentence for the remaining charges of lying to the FBI and tax violations. They asked that he be released on bail while U.S. District Judge Rebecca Pallmeyer considers their request.
The Illinois Supreme Court upheld Ryan’s conviction in 2008. He is serving his 6 1/2-year sentence in a federal prison at Terre Haute, Ind., where he has been since November 2007. He is due for release in 2013. His requests for a pardon from former President George W. Bush and President Barack Obama proved unsuccessful.
Federal prosecutors tweaked some of the charges against former Gov. Rod Blagojevich shortly before his corruption trial to avoid the U.S. Supreme Court ruling on honest services having a possible impact on the case.
Former Gov. George Ryan is seeking to have some of the charges from his 2006 conviction on corruption thrown out based on a recent U.S. Supreme Court ruling.
The ruling scaled back a category of fraud, which requires public officials to provide “honest services.” Prosecutors now have to prove that an official received a bribe, kickback or some financial benefit when failing to provide honest service to the public. Prior to the court’s decision, prosecutors often used the statute to go after officials and executives who engaged in corrupt acts, such as lying to shareholders or not disclosing a conflict of interest, even if it did not result in a tangible benefit for the accused.
The ruling would not apply to all of the former governor’s crimes, but Ryan’s lawyers claim it would apply to mail fraud and racketeering convictions. They have asked the judge who presided over his trial to consider tossing these charges. His lawyers say the time he has served would satisfy his sentence for the remaining charges of lying to the FBI and tax violations. They asked that he be released on bail while U.S. District Judge Rebecca Pallmeyer considers their request.
The Illinois Supreme Court upheld Ryan’s conviction in 2008. He is serving his 6 1/2-year sentence in a federal prison at Terre Haute, Ind., where he has been since November 2007. He is due for release in 2013. His requests for a pardon from former President George W. Bush and President Barack Obama proved unsuccessful.
Federal prosecutors tweaked some of the charges against former Gov. Rod Blagojevich shortly before his corruption trial to avoid the U.S. Supreme Court ruling on honest services having a possible impact on the case.
Friday, July 23, 2010
Blagojevich deliberations start next week
By Jamey Dunn
A jury could begin deliberating the fate of former Gov. Rod Blagojevich as early as Tuesday.
The defense in Blagojevich's federal corruption trial rested Wednesday without calling a single witness to refute the prosecution’s corruption case against the former governor. Blagojevich opted not to testify, even though his lawyer, Sam Adam Jr., had told jurors during opening statements that his client would take the stand.
Adam said at a Chicago press conference that the government did not prove its case, so there was no need to present a defense. He acknowledged that telling jurors Blagojevich would take the stand and then changing strategy could damage his client's credibility. The jury has been instructed not to take the change in plans into account while deciding on Blagojevich’s guilt or innocence, but Adam said human nature dictates that it will likely play a factor. He plans to explain the decision to the jury during Monday’s scheduled closing statement, for which the Chicago Tribune reported he requested two and a half hours from Judge James Zagel.
The jury will hear also hear from the prosecution and Robert Blagojevich’s defense team. The former governor’s brother is facing charges from the time he spent heading up his brother’s political fundraising operation. Zagel plans to give legal instructions to jurors on Tuesday and send them into deliberations.
Zagel has not ruled on a motion to drop the conspiracy charges against Blagojevich but appears to believe there is enough evidence to move forward with the case. Zagel reserved the possibility that he may reconsider the motion after closing arguments.
While it looks as if arguments could be wrapped up Monday, little in this trial has gone according to estimated schedules. The prosecution finished earlier than expected, and in a surprise move, the defense did not present a case. The Chicago Sun-Times reported that proceedings are running behind schedule today, and it is possible that could affect the plans for Monday.
A jury could begin deliberating the fate of former Gov. Rod Blagojevich as early as Tuesday.
The defense in Blagojevich's federal corruption trial rested Wednesday without calling a single witness to refute the prosecution’s corruption case against the former governor. Blagojevich opted not to testify, even though his lawyer, Sam Adam Jr., had told jurors during opening statements that his client would take the stand.
Adam said at a Chicago press conference that the government did not prove its case, so there was no need to present a defense. He acknowledged that telling jurors Blagojevich would take the stand and then changing strategy could damage his client's credibility. The jury has been instructed not to take the change in plans into account while deciding on Blagojevich’s guilt or innocence, but Adam said human nature dictates that it will likely play a factor. He plans to explain the decision to the jury during Monday’s scheduled closing statement, for which the Chicago Tribune reported he requested two and a half hours from Judge James Zagel.
The jury will hear also hear from the prosecution and Robert Blagojevich’s defense team. The former governor’s brother is facing charges from the time he spent heading up his brother’s political fundraising operation. Zagel plans to give legal instructions to jurors on Tuesday and send them into deliberations.
Zagel has not ruled on a motion to drop the conspiracy charges against Blagojevich but appears to believe there is enough evidence to move forward with the case. Zagel reserved the possibility that he may reconsider the motion after closing arguments.
While it looks as if arguments could be wrapped up Monday, little in this trial has gone according to estimated schedules. The prosecution finished earlier than expected, and in a surprise move, the defense did not present a case. The Chicago Sun-Times reported that proceedings are running behind schedule today, and it is possible that could affect the plans for Monday.
Wednesday, July 21, 2010
Blagojevich doesn't testify
By Jamey Dunn
Former Gov. Rod Blagojevich opted not to testify at his corruption trial today, and his defense team rested its case without calling a single witness.
Blagojevich’s lawyers said that the prosecution did not prove its case, so there was no need to respond with testimony from defense witnesses. “They’re the ones that failed to prove the case here. … The law is clear: The burden of proof is on the government,” said Sam Adam Sr., who heads Blagojevich’s legal team.
The jury did hear from Blagojevich’s brother, Robert, who had chaired his brother’s campaign fund since August 2008. Robert Blagojevich is on trial in connection with an alleged plot to sell Barack Obama’s former U.S. Senate seat, and his defense team decided to put him on the stand. Robert's wife, Julie Blagojevich, also testified.
Sam Adam Jr., who is defending the former governor alongside his father, had told jurors in his opening argument that they would hear from Blagojevich. He said today he still wants Blagojevich to testify, but his father’s opinion prevailed in the end. “It simply came down to an argument between an old bull and a young toad, and the old bull won,” the younger Adam said to reporters at in the Dirksen Federal Building in Chicago.
Rod Blagojevich has said for months that he was looking forward to taking the stand and defending himself. He said today that he still wanted to but was heeding the advice of his legal team. He told reporters, “I felt all along and believed all along that I was going to testify.”
Part of the defense’s strategy is to claim that Blagojevich was seeking the advice of lawyers during the secretly recorded phone conversations, which include speculation on what he could get in return for an appointment to Obama’s former Senate seat, the government presented as evidence. He called the conversations “brainstorming” with advisers and lawyers and said he never intended to do anything that broke the law.
“Yes, [prosecutors] proved some of the ideas were stupid, but they also proved some of the ideas were good,” Blagojevich said. He added that he did not take any money in connection with any corrupt actions. “The government, in their case, proved my innocence. They proved I did nothing illegal.”
Blagojevich proclaimed he had “learned a lot” during his corruption trial. “Perhaps maybe the biggest lesson I have learned is that I talk too much.”
The senior Adam conceded that the former governor’s verbosity was one of the reasons he hesitated to put him on the stand, saying “one of the concerns” was “that he talks too much.”
Blagojevich’s lawyers argued to have the conspiracy charges against their client tossed out on the basis that prosecutors did not prove their case. Judge James Zagel adjourned without ruling on the request. Lawyers are due back in court tomorrow morning. Closing arguments could begin as early as Monday.
When Blagojevich did take the stand (sort of)
Although Blagojevich made a surprise last-minute move today to forgo testifying in his criminal trial, he took almost the opposite action during his impeachment trial in January 2009. He maintained throughout those proceedings that he was not going to participate. In a surprise move before the last day of the trial, the public relations firm representing him announced via Twitter that then Gov. Blagojevich would come to Springfield to give a closing statement. (Blagojevich’s statement starts on page 589 and continues to page 636.)
However, he declined to make the statement under oath and continued to ignore legislators’ calls that he field questions.
Unlike during the criminal trial, Blagojevich pushed to call witnesses during his impeachment trial, saying their testimony would be key to proving his innocence. He cited not being able to call certain witnesses as one of his reasons for not answering questions.
His defense then is similar to the one being presented now: The prosecution didn’t prove its case, and he never intended to do anything illegal. From the transcript:
It is painful to be in a car and drive and see people sitting, standing at bus stops or walking down the street who voted for you, presumably, more of them did than didn't, and they've hired you and trusted you, and you're dying to tell them, I didn't do it, I didn't let you down, give me a chance to show you. It's painful, and it's lonely. But I want you to know, I want you to know I never, ever intended to commit a criminal act. I never, in any conversation, intended to violate any criminal law.
House Prosecutor David Ellis chastised Blagojevich for not participating in the full proceedings. From the transcript:
The defense tactics Blagojevich chose did not pan out for him at his impeachment trial. The Senate convicted him and removed him from office. However, that was a group of legislators, and with their positions comes inside knowledge of the system, personal experience dealing directly with the governor and political baggage. An impeachment trial is not a criminal trial. Time will tell if similar arguments from Blagojevich’s defense will persuade a jury that the state failed to prove its case.
Former Gov. Rod Blagojevich opted not to testify at his corruption trial today, and his defense team rested its case without calling a single witness.
Blagojevich’s lawyers said that the prosecution did not prove its case, so there was no need to respond with testimony from defense witnesses. “They’re the ones that failed to prove the case here. … The law is clear: The burden of proof is on the government,” said Sam Adam Sr., who heads Blagojevich’s legal team.
The jury did hear from Blagojevich’s brother, Robert, who had chaired his brother’s campaign fund since August 2008. Robert Blagojevich is on trial in connection with an alleged plot to sell Barack Obama’s former U.S. Senate seat, and his defense team decided to put him on the stand. Robert's wife, Julie Blagojevich, also testified.
Sam Adam Jr., who is defending the former governor alongside his father, had told jurors in his opening argument that they would hear from Blagojevich. He said today he still wants Blagojevich to testify, but his father’s opinion prevailed in the end. “It simply came down to an argument between an old bull and a young toad, and the old bull won,” the younger Adam said to reporters at in the Dirksen Federal Building in Chicago.
Rod Blagojevich has said for months that he was looking forward to taking the stand and defending himself. He said today that he still wanted to but was heeding the advice of his legal team. He told reporters, “I felt all along and believed all along that I was going to testify.”
Part of the defense’s strategy is to claim that Blagojevich was seeking the advice of lawyers during the secretly recorded phone conversations, which include speculation on what he could get in return for an appointment to Obama’s former Senate seat, the government presented as evidence. He called the conversations “brainstorming” with advisers and lawyers and said he never intended to do anything that broke the law.
“Yes, [prosecutors] proved some of the ideas were stupid, but they also proved some of the ideas were good,” Blagojevich said. He added that he did not take any money in connection with any corrupt actions. “The government, in their case, proved my innocence. They proved I did nothing illegal.”
Blagojevich proclaimed he had “learned a lot” during his corruption trial. “Perhaps maybe the biggest lesson I have learned is that I talk too much.”
The senior Adam conceded that the former governor’s verbosity was one of the reasons he hesitated to put him on the stand, saying “one of the concerns” was “that he talks too much.”
Blagojevich’s lawyers argued to have the conspiracy charges against their client tossed out on the basis that prosecutors did not prove their case. Judge James Zagel adjourned without ruling on the request. Lawyers are due back in court tomorrow morning. Closing arguments could begin as early as Monday.
When Blagojevich did take the stand (sort of)
Although Blagojevich made a surprise last-minute move today to forgo testifying in his criminal trial, he took almost the opposite action during his impeachment trial in January 2009. He maintained throughout those proceedings that he was not going to participate. In a surprise move before the last day of the trial, the public relations firm representing him announced via Twitter that then Gov. Blagojevich would come to Springfield to give a closing statement. (Blagojevich’s statement starts on page 589 and continues to page 636.)
However, he declined to make the statement under oath and continued to ignore legislators’ calls that he field questions.
Unlike during the criminal trial, Blagojevich pushed to call witnesses during his impeachment trial, saying their testimony would be key to proving his innocence. He cited not being able to call certain witnesses as one of his reasons for not answering questions.
His defense then is similar to the one being presented now: The prosecution didn’t prove its case, and he never intended to do anything illegal. From the transcript:
It is painful to be in a car and drive and see people sitting, standing at bus stops or walking down the street who voted for you, presumably, more of them did than didn't, and they've hired you and trusted you, and you're dying to tell them, I didn't do it, I didn't let you down, give me a chance to show you. It's painful, and it's lonely. But I want you to know, I want you to know I never, ever intended to commit a criminal act. I never, in any conversation, intended to violate any criminal law.
House Prosecutor David Ellis chastised Blagojevich for not participating in the full proceedings. From the transcript:
He could have put himself under oath and faced my questions and more importantly, much more importantly, faced your questions. But he didn't do that, did he? … He talked more about the evidence with Barbara Walters on The View than he did in this chamber today where he's facing impeachment and removal from office. He could have been here, and he wasn't. He could have provided the context for those recorded conversations, and he didn't. … He simply says there's no evidence and walks off the stage.
The defense tactics Blagojevich chose did not pan out for him at his impeachment trial. The Senate convicted him and removed him from office. However, that was a group of legislators, and with their positions comes inside knowledge of the system, personal experience dealing directly with the governor and political baggage. An impeachment trial is not a criminal trial. Time will tell if similar arguments from Blagojevich’s defense will persuade a jury that the state failed to prove its case.
Monday, July 12, 2010
Quinn signs Blagojevich-related reforms
As former Gov. Rod Blagojevich’s corruption trial continues in Chicago under a high level of media scrutiny, Gov. Pat Quinn approved two bills that are direct responses to the former governor’s alleged misdeeds.
Jurors have recently been listening to recorded phone conversations in which the former governor speculates on his possible choices to fill President Barack Obama’s former U.S. Senate seat, as well as possible future high-paying jobs for himself. Blagojevich is accused of trying to sell off the Senate seat for campaign contributions or personal gain. The prosecution is expected to wrap up their case as early as today. Blagojevich's lawyers requested a week-long break before they start the defense, claiming prosecutors will finish earlier than expected.
After Blagojevich’s impeachment and removal from office, legislators introduced a flurry of measures intended to prevent future corruption similar to the accusations against the former governor and, in some cases, reprimand him for his alleged infractions. The impeachment also produced a hotly debated campaign finance reform measure as well as procurement reform and heightened ethical standards for state employees.
Now some of those proposals are becoming law. Over the weekend, Quinn signed Senate Bill 2551, which requires public officials convicted of corruption to hand any money garnered from their corrupt actions over to law enforcement agencies. The measure is modeled on existing anti-drug laws.
Quinn also approved House Bill 5109, which prohibits public funds from being spent on a portrait of a governor who was impeached and removed from office. A portrait of Blagojevich could hang in the “hall of governors” in the Statehouse, but it cannot be paid for with state dollars. Both measures go into effect January 1, 2011.
Jurors have recently been listening to recorded phone conversations in which the former governor speculates on his possible choices to fill President Barack Obama’s former U.S. Senate seat, as well as possible future high-paying jobs for himself. Blagojevich is accused of trying to sell off the Senate seat for campaign contributions or personal gain. The prosecution is expected to wrap up their case as early as today. Blagojevich's lawyers requested a week-long break before they start the defense, claiming prosecutors will finish earlier than expected.
After Blagojevich’s impeachment and removal from office, legislators introduced a flurry of measures intended to prevent future corruption similar to the accusations against the former governor and, in some cases, reprimand him for his alleged infractions. The impeachment also produced a hotly debated campaign finance reform measure as well as procurement reform and heightened ethical standards for state employees.
Now some of those proposals are becoming law. Over the weekend, Quinn signed Senate Bill 2551, which requires public officials convicted of corruption to hand any money garnered from their corrupt actions over to law enforcement agencies. The measure is modeled on existing anti-drug laws.
Quinn also approved House Bill 5109, which prohibits public funds from being spent on a portrait of a governor who was impeached and removed from office. A portrait of Blagojevich could hang in the “hall of governors” in the Statehouse, but it cannot be paid for with state dollars. Both measures go into effect January 1, 2011.
Wednesday, February 10, 2010
Blagojevich pleads not guilty
Former Gov. Rod Blagojevich pleaded not guilty today in Chicago at his arraignment on new federal charges.
After leaving the courthouse, Blagojevich addressed reporters. He called on prosecutors to publicly play all taped conversations they have relating to his corruption case.
“I challenge the government. If you are on the side of truth and justice, as you say you are, and if this was a crime spree like you claim it was, then don’t hide behind technicalities. Play the tapes,” he said. Blagojevich’s lawyers filed a motion that would allow them to play as much of the tapes at the trial as they choose.
Blagojevich’s trial is set for June.
Thursday, February 04, 2010
Blagojevich indicted, again
Federal prosecutors indicted former Gov. Rod Blagojevich a second time today.
The eight new charges in the indictment do not allege any new criminal behavior. The indictment upholds all the previous charges but also alleges that Rod Blagojevich, Rob Blagojevich and former chief of staff John Harris’ actions violated additional laws.
Prosecutors hope to ensure that an upcoming U.S. Supreme Court ruling relating to some of the original charges will not delay Blagojevich’s trial
Tuesday, October 20, 2009
Operation Board Games gets another witness
By Bethany Jaeger
Alonzo “Lon” Monk is cooperating in the ongoing investigation into extensive political corruption in former Gov. Rod Blagojevich’s office and political campaign. Monk pleaded guilty Tuesday morning to one count of wire fraud.
That’s just one of 19 counts leveled on participants in “Blagojevich Enterprise," which 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. According to Monk’s plea, he received about seven to nine payments of $10,000 from Tony Rezko as “a gift, not a loan.” Monk joins list of witnesses in the governor’s June 2010 trial, so far including:
Monk, of Park Ridge, was Blagojevich’s former law school roommate, his general counsel when in Congress, his first chief of staff when he became governor in 2003, his campaign manager in his 2002 and 2006 gubernatorial bids and, most recently, a lobbyist. One of Monk's clients included a horse racetrack owner, reportedly John Johnston.
Monk’s guilty plea pertains to a scheme in November to December 2008 to pressure Johnston to raise $100,000 for Blagojevich’s political campaign (see Count 11 of the April indictment).
Part of the scheme allegedly was caught on secret FBI recordings. One brief conversation, according to the federal transcripts, was between Monk and Johnston about supporting Blagojevich’s campaign in return for the governor’s signature on a bill to subsidize the horse racing industry. The recording was played during Blagojevich’s impeachment trial in the Senate last January.
Monk, who was a lobbyist at the time of the recordings, was heard in another cell phone conversation with Blagojevich, telling the governor to call Johnston directly. “It’s better if you do it just from a pressure point of view,” Monk was heard saying to Blagojevich.
The scheme allegedly was under time constraints, as Blagojevich wanted the money before the end of the year, when a new state law — the so-called pay-to-play ban — would ban him from collecting political donations from contractors who do significant amounts of business with the state.
Monk’s plea also confirms conversations and actions taken to enrich themselves and Blagojevich’s campaign fund. For instance, before Blagojevich became governor in 2002, the plea says, Monk planned with Blagojevich, Rezko and Kelly to use the governor’s office and Monk’s chief of staff office for financial gain, dividing the proceeds among them. One scheme allegedly included a 2003 pension deal that refinanced $10 billion in pension obligation bonds, issuing all $10 billion at once so a particular investment firm would benefit and donate more money to the governor’s campaign. It also allegedly included pressuring engineering firms to contribute to Blagojevich’s campaign in return for state capital projects and pressuring Children’s Memorial Hospital in Chicago for a contribution in exchange for a state grant, according to the plea.
The feds also say that once convicted felon Stuart Levine had been confronted by the FBI in 2004 for rigging various state boards, the focus shifted to making money through Rezko’s real estate development, involving Blagojevich’s wife, Patricia, in marketing efforts.
One count of wire fraud carries a maximum prison sentence of 20 years and a fine of $250,000, although Monk’s plea agreement recommends a sentence between two and four years.
Blagojevich’s trial is scheduled to start June 2, 2010.
Alonzo “Lon” Monk is cooperating in the ongoing investigation into extensive political corruption in former Gov. Rod Blagojevich’s office and political campaign. Monk pleaded guilty Tuesday morning to one count of wire fraud.
That’s just one of 19 counts leveled on participants in “Blagojevich Enterprise," which 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. According to Monk’s plea, he received about seven to nine payments of $10,000 from Tony Rezko as “a gift, not a loan.” Monk joins list of witnesses in the governor’s June 2010 trial, so far including:
- John Harris, another former chief of staff who in July pleaded guilty to tax fraud.
- Rezko, who pleaded guilty in June 2008 and already is serving a prison sentence.
- **The late Christopher Kelly, who would have been a key witness, apparently committed suicide days after pleading guilty to other charges in September.
Monk, of Park Ridge, was Blagojevich’s former law school roommate, his general counsel when in Congress, his first chief of staff when he became governor in 2003, his campaign manager in his 2002 and 2006 gubernatorial bids and, most recently, a lobbyist. One of Monk's clients included a horse racetrack owner, reportedly John Johnston.
Monk’s guilty plea pertains to a scheme in November to December 2008 to pressure Johnston to raise $100,000 for Blagojevich’s political campaign (see Count 11 of the April indictment).
Part of the scheme allegedly was caught on secret FBI recordings. One brief conversation, according to the federal transcripts, was between Monk and Johnston about supporting Blagojevich’s campaign in return for the governor’s signature on a bill to subsidize the horse racing industry. The recording was played during Blagojevich’s impeachment trial in the Senate last January.
Monk, who was a lobbyist at the time of the recordings, was heard in another cell phone conversation with Blagojevich, telling the governor to call Johnston directly. “It’s better if you do it just from a pressure point of view,” Monk was heard saying to Blagojevich.
The scheme allegedly was under time constraints, as Blagojevich wanted the money before the end of the year, when a new state law — the so-called pay-to-play ban — would ban him from collecting political donations from contractors who do significant amounts of business with the state.
Monk’s plea also confirms conversations and actions taken to enrich themselves and Blagojevich’s campaign fund. For instance, before Blagojevich became governor in 2002, the plea says, Monk planned with Blagojevich, Rezko and Kelly to use the governor’s office and Monk’s chief of staff office for financial gain, dividing the proceeds among them. One scheme allegedly included a 2003 pension deal that refinanced $10 billion in pension obligation bonds, issuing all $10 billion at once so a particular investment firm would benefit and donate more money to the governor’s campaign. It also allegedly included pressuring engineering firms to contribute to Blagojevich’s campaign in return for state capital projects and pressuring Children’s Memorial Hospital in Chicago for a contribution in exchange for a state grant, according to the plea.
The feds also say that once convicted felon Stuart Levine had been confronted by the FBI in 2004 for rigging various state boards, the focus shifted to making money through Rezko’s real estate development, involving Blagojevich’s wife, Patricia, in marketing efforts.
One count of wire fraud carries a maximum prison sentence of 20 years and a fine of $250,000, although Monk’s plea agreement recommends a sentence between two and four years.
Blagojevich’s trial is scheduled to start June 2, 2010.
Tuesday, September 08, 2009
Chris Kelly pleads guilty to O'Hare scheme - UPDATED UPON HIS DEATH
By Bethany Jaeger
Christopher Kelly, a close adviser and fundraiser for former Gov. Rod Blagojevich, died Saturday, September 12, just days before he was to report to federal prison to serve at least eight years for two of three criminal cases against him. He was 51.
Christopher Kelly, a close adviser and fundraiser for former Gov. Rod Blagojevich, died Saturday, September 12, just days before he was to report to federal prison to serve at least eight years for two of three criminal cases against him. He was 51.
Law enforcement officials reportedly were looking into a drug overdose.
Kelly would have been a key figure in the ongoing corruption trial of Blagojevich, scheduled to go to court in June 2010. Kelly was indicted as part of “Blagojevich Enterprise,” an extensive scheme that allegedly began in 2002 to use the governor’s office for private and political gain, including auctioning off the U.S. Senate seat once held by President Barack Obama. Kelly was indicted along with the former governor; his brother, Robert Blagojevich; former campaign manager and lobbyist Alonzo Monk; Springfield lobbyist William Cellini; and former chief of staff John Harris. Kelly pleaded not guilty to those charges.
Shortly before his death, however, he pleaded guilty today to two counts of mail fraud in one of three federal indictments against him. But it's unknown whether he was cooperating in the ex-governor's ongoing corruption trial.
Read his plea agreement here. The Burr Ridge resident UPDATED: was supposed to report to jail September 18 and agreed to forfeit $450,000 for a scheme of rigging roofing contracts with two major airlines and using illegal kickbacks for personal use. On top of a three-year prison sentence for a separate tax fraud case, his plea Tuesday calls for a nearly five-year sentence.
Kelly pleaded guilty to rigging bids to steer $8.5 million in inflated contracts for roofing work done on American Airlines and United Airline facilities at O’Hare International Airport between 1998 and 2006. The scheme benefited BCI Commercial Roofing Inc. in Markham, of which he is president and owner.
About $1 million of the kickbacks went to repay gambling debts and a home loan, according to the plea. Some of the kickbacks also went to entities associated with Tony Rezko.
Kelly originally was charged with 11 counts of mail fraud and six counts of money laundering for the scheme.
Read his plea agreement here. The Burr Ridge resident UPDATED: was supposed to report to jail September 18 and agreed to forfeit $450,000 for a scheme of rigging roofing contracts with two major airlines and using illegal kickbacks for personal use. On top of a three-year prison sentence for a separate tax fraud case, his plea Tuesday calls for a nearly five-year sentence.
Kelly pleaded guilty to rigging bids to steer $8.5 million in inflated contracts for roofing work done on American Airlines and United Airline facilities at O’Hare International Airport between 1998 and 2006. The scheme benefited BCI Commercial Roofing Inc. in Markham, of which he is president and owner.
About $1 million of the kickbacks went to repay gambling debts and a home loan, according to the plea. Some of the kickbacks also went to entities associated with Tony Rezko.
Kelly originally was charged with 11 counts of mail fraud and six counts of money laundering for the scheme.
- His December 2007 indictment charged him with using corporate funds from his roofing and consulting firms to pay illegal gambling debt. He received three years in prison for those charges.
- His February 2009 indictment includes the O’Hare kickback scheme. His plea seeks nearly 4.5 years more on two counts of mail fraud.
- He still faced trial for his involvement in Blagojevich’s ongoing corruption case, scheduled for court June 2010. That indictment is here.
Friday, July 10, 2009
Burris: No longer in the running
By Bethany Jaeger
No Lisa Madigan. No Roland Burris. The race to be the next U.S. senator from Illinois just narrowed to a more classic competition. The seat has gained national attention for its previous occupant, President Barack Obama.
Madigan, the Illinois attorney general, announced yesterday and Burris announced today that they opted not run in 2010.
“It’s an open seat, and the focus is more going to be more on national issues than would have been the case if Burris were running or if Lisa Madigan essentially would have cleared the field,” said Kent Redfield, political scientist at the University of Illinois at Springfield.
If Madigan would have run, Redfield said she would have been the Democrats’ strongest candidate. “Her not running is a minus for the Democrats, but Burris not running is certainly a plus. There’s no question about that.”
Burris never shed the cloud that hovered over his appointment by former Gov. Rod Blagojevich. The then-governor had just been arrested on federal corruption charges, accused of trying to personally profit from his powers to appoint the state’s next senator. Early polling of 644 likely voters showed that just 5.3 percent of respondents supported Burris as a candidate for a full term. Numerous Illinois officials, including U.S. Sen. Dick Durbin and then-Lt. Gov. Pat Quinn, urged Burris step down. Burris wouldn’t budge. His ambitious style came through in, "Always in the running," our profile of him in Illinois Issues magazine.
Burris said today during a Chicago news conference that fundraising had a lot to do with his decision not to run in 2010. Here’s an excerpt of his announcement:
The chronicles of Burris’ statements about whether he spoke to Blagojevich, Blagojevich’s brother or Blagojevich’s inner circle was the never-ending story. First he testified to an Illinois House committee that was investigating cause for the governor's impeachment. He said he only spoke with Lon Monk, Blagojevich’s former chief of staff. Then Burris revealed in a follow-up affidavit that he also spoke with the governor’s brother, as well as three insiders: Doug Scofield, John Wyma and former Deputy Gov. John Harris, who just pleaded guilty to wire fraud in the ongoing Blagojevich corruption case.
Burris most recently avoided perjury charges in Sangamon County, where State’s Attorney John Schmidt said Burris’s statements might have been vague, but there’s no proof that he intentionally mislead the Illinois House committee. Burris still faces a probe by the U.S. Senate.
His bow out of the 2010 election eliminated an easy target for the GOP, Redfield said. “It kind of takes Burris and Blagojevich out of the Senate race.”
Now, likely candidates are taking shape. On the Democratic side, they include state Treasurer Alexi Giannoulias. Redfield says he has the advantage of being the only candidate so far who has run a statewide race before. He also has a significant campaign kitty, with reportedly more than $1 million raised for his potential Senate bid. Two candidates with less name recognition include Cheryle Jackson, chief executive officer of the Chicago Urban League, and Chris Kennedy, head of Chicago’s Merchandise Mart and son of the late U.S. Sen. Robert F. Kennedy. Redfield said Jackson also could have a slight disadvantage by being tied to Blagojevich. She was his communications director during his first term.
On the Republican side, U.S. Rep. Mark Kirk of Hinsdale has been reported as set to run for the Senate seat. Redfield said he brings his national experience to the table, but as a moderate Republican, he would have to work to gain the moderate and independent vote. Andy McKenna, chairman of the Illinois Republican Party and businessman, also has reportedly discussed the idea. He lost his 2006 bid.
No Lisa Madigan. No Roland Burris. The race to be the next U.S. senator from Illinois just narrowed to a more classic competition. The seat has gained national attention for its previous occupant, President Barack Obama.
Madigan, the Illinois attorney general, announced yesterday and Burris announced today that they opted not run in 2010.
“It’s an open seat, and the focus is more going to be more on national issues than would have been the case if Burris were running or if Lisa Madigan essentially would have cleared the field,” said Kent Redfield, political scientist at the University of Illinois at Springfield.
If Madigan would have run, Redfield said she would have been the Democrats’ strongest candidate. “Her not running is a minus for the Democrats, but Burris not running is certainly a plus. There’s no question about that.”
Burris never shed the cloud that hovered over his appointment by former Gov. Rod Blagojevich. The then-governor had just been arrested on federal corruption charges, accused of trying to personally profit from his powers to appoint the state’s next senator. Early polling of 644 likely voters showed that just 5.3 percent of respondents supported Burris as a candidate for a full term. Numerous Illinois officials, including U.S. Sen. Dick Durbin and then-Lt. Gov. Pat Quinn, urged Burris step down. Burris wouldn’t budge. His ambitious style came through in, "Always in the running," our profile of him in Illinois Issues magazine.
Burris said today during a Chicago news conference that fundraising had a lot to do with his decision not to run in 2010. Here’s an excerpt of his announcement:
Life is about choices. Make no mistake, I love serving in the United States Senate. I love serving the people of Illinois, make no mistake.
I’m the only African-American serving in the Senate, and I believe that diversity and representation of all segments of our society is essential to who we are as a nation.
The reality of being a U.S. senator today [is that it] requires not only a significant time commitment to performing the job, but an almost equal commitment to raising funds to run competitively for the office.
Political races have become far too expensive in this country.
I was called to choose between spending my time raising funds or spending my time raising issues for my state. The people … should always come first.
The chronicles of Burris’ statements about whether he spoke to Blagojevich, Blagojevich’s brother or Blagojevich’s inner circle was the never-ending story. First he testified to an Illinois House committee that was investigating cause for the governor's impeachment. He said he only spoke with Lon Monk, Blagojevich’s former chief of staff. Then Burris revealed in a follow-up affidavit that he also spoke with the governor’s brother, as well as three insiders: Doug Scofield, John Wyma and former Deputy Gov. John Harris, who just pleaded guilty to wire fraud in the ongoing Blagojevich corruption case.
Burris most recently avoided perjury charges in Sangamon County, where State’s Attorney John Schmidt said Burris’s statements might have been vague, but there’s no proof that he intentionally mislead the Illinois House committee. Burris still faces a probe by the U.S. Senate.
His bow out of the 2010 election eliminated an easy target for the GOP, Redfield said. “It kind of takes Burris and Blagojevich out of the Senate race.”
Now, likely candidates are taking shape. On the Democratic side, they include state Treasurer Alexi Giannoulias. Redfield says he has the advantage of being the only candidate so far who has run a statewide race before. He also has a significant campaign kitty, with reportedly more than $1 million raised for his potential Senate bid. Two candidates with less name recognition include Cheryle Jackson, chief executive officer of the Chicago Urban League, and Chris Kennedy, head of Chicago’s Merchandise Mart and son of the late U.S. Sen. Robert F. Kennedy. Redfield said Jackson also could have a slight disadvantage by being tied to Blagojevich. She was his communications director during his first term.
On the Republican side, U.S. Rep. Mark Kirk of Hinsdale has been reported as set to run for the Senate seat. Redfield said he brings his national experience to the table, but as a moderate Republican, he would have to work to gain the moderate and independent vote. Andy McKenna, chairman of the Illinois Republican Party and businessman, also has reportedly discussed the idea. He lost his 2006 bid.
Tuesday, May 05, 2009
Personnel issue dominates reform hearing
By Bethany Jaeger
Illinois Democrats and Republicans appeared split on whether to use legislation to fire two executive staff members of a hospital planning board plagued by corruption early in former Gov. Rod Blagojevich’s administration in 2003 and 2004. Controversy is nothing new to the Health Facilities Planning Board, and that’s not unique to Illinois. See the National Conference of State Legislators for background on the widespread debate.
Today’s debate, while tense and awkward at times, opens the door for more systemic questions about whether the legislature should fire individuals by name through legislation and whether the legislature can effectively remove politics from the hospital planning process altogether.
The process typically is designed to review hospital construction projects in an attempt to control costs and maintain access to critical health care services. Today’s bicameral legislative committee on government reform, however, didn’t focus on reforming the process (that was the focus of a previous legislative task force — its report is here). Members instead focused on whether the General Assembly should use legislation to terminate two high-level employees. Both are subject to harsh criticism from a hospital executive who blew the whistle on what turned out to be deep-rooted corruption in 2003.
House Republicans, led by Minority Leader Tom Cross, want to fire Jeffrey Mark, executive secretary of the Health Facilities Planning Board, and David Carvalho, a deputy director of the Illinois Department of Public Health that oversees the employees. “In our efforts to continue to fumigate state government, this is another board that needs to be sanitized and start fresh with new players from top to bottom,” Cross said.
Cross added, however: “While we are not alleging that either of the two that held these positions themselves did anything illegal, corrupt activity happened under their watch. They were there before, during and after corrupt activity occurred.”
Both were hired in 2003 and served for six months during a scheme that convicted former board member Stuart Levine and Blagojevich fundraiser Tony Rezko of federal corruption. According to federal prosecutors, Levine and Rezko schemed with a handful of others, including Blagojevich, to rig the state panel to reward themselves and political allies.
Both Mark and Carvalho testified to the committee that they had nothing to do with the schemes and notified appropriate authorities when they noticed irregularities in the way the board operated. For instance, they cited a situation when the board stopped in the middle of taking a vote during a public hearing to sway one more member to support granting a construction permit to a particular hospital project.
“It happened on my watch, yes it did,” Mark said to the committee. “Was I aware of it? Absolutely not. Should I have been aware of it? I’m not sure.” He said he was a subordinate who immediately reported questionable practices to the agency’s lawyer and inspector general. He later cooperated with the U.S. attorney’s office during the investigation.
Carvalho said he, too, conveyed his concerns lawyers and the inspector general. He also said Rezko’s trial revealed he and Levine, in fact, were trying to get rid of him because he was a “pain in the butt.” “What I have tried to do throughout the process is to stand in the way of people, both who were members of the board and people who were applicants, who were trying to get from this process what was not due them under the rules. And today I do feel like that person standing in front of a steamroller for simply doing my job.”
One who did report the suspicious activity directly to federal authorities was Pam Davis, president of Edward Hospital and Health Services in Naperville. She cooperated with the FBI for eight months by secretly recording phone calls and meetings related to her repeated application for a construction permit to build a new hospital in the rapidly growing village of Plainfield. She was pressured to hire a specific construction firm owned by Jacob Kiferbaum, who was scheming with Rezko. “If I did not use their services, I would never have this hospital approved,” she said. The Plainfield hospital project still has not been approved by the board.
Davis stopped short of alleging that Mark and Carvalho acted illegally, but she supports the House Republicans’ efforts to oust them from public office for allegedly protecting the status quo with outdated and unfair regulations and for failing to speak out during irregularities in the board’s proceedings. “While not pointing to any legalities by either of these two public officials, I can only imagine that the corrupt board members felt totally emboldened and powered by this lack of transparency.”
Carvalho said during his testimony: “Contrary to the suggestions of the CEO, the staff of the Health Facilities Planning Board, and I, in particular, are, in fact, grateful to her for her courageous efforts to expose the corruption of that prior board.”
Mark said: “I observed the same things she observed.” He said he felt “confused and surprised, and as I stated before the committee, I consulted the appropriate authorities.”
Mark was recommended for his position more than five years ago by Rezko. “It’s a matter of public record that my name was submitted by Tony Rezko,” Mark said after the hearing. “I met the man once prior to him taking my name. People can perceive whatever they want. I think my background and my record speak for itself. I’m very proud of what we’ve accomplished the last five years. I’m very not proud of what occurred during my first six months in this position.”
Sen. Susan Garrett, a Lake Forest Democrat who has been working on the health planning process for a year, said the current controversy could be rooted in bitterness over the panel’s decision to repeatedly deny Davis’ proposal for a Plainfield hospital. “It appears that the process for decades has been political, and that has been the downfall of this whole health facilities planning process. It was our hope and intent to remove the politics,” Garrett said.
“As somebody who is trying to be impartial and bipartisan, we thought we resolved that,” she added. “And I don’t think that has happened. And, quite frankly, I’m not sure today resolved any of the issues that were brought up three days ago or three years ago or three decades ago.”
The measure, SB 1905 (Senate-approved version here), is slated for consideration in a House committee Wednesday afternoon.
Quinn previously tried to name a new chairman of the board, Dr. Quentin Young, in April, but Young soon resigned because of a possible conflict of interest. (He realized that his former practice owns part of a property that rents space to a health care provider. State rules prevents the chair from having financial ties to any facility licensed by the state.)
Illinois Democrats and Republicans appeared split on whether to use legislation to fire two executive staff members of a hospital planning board plagued by corruption early in former Gov. Rod Blagojevich’s administration in 2003 and 2004. Controversy is nothing new to the Health Facilities Planning Board, and that’s not unique to Illinois. See the National Conference of State Legislators for background on the widespread debate.
Today’s debate, while tense and awkward at times, opens the door for more systemic questions about whether the legislature should fire individuals by name through legislation and whether the legislature can effectively remove politics from the hospital planning process altogether.
The process typically is designed to review hospital construction projects in an attempt to control costs and maintain access to critical health care services. Today’s bicameral legislative committee on government reform, however, didn’t focus on reforming the process (that was the focus of a previous legislative task force — its report is here). Members instead focused on whether the General Assembly should use legislation to terminate two high-level employees. Both are subject to harsh criticism from a hospital executive who blew the whistle on what turned out to be deep-rooted corruption in 2003.
House Republicans, led by Minority Leader Tom Cross, want to fire Jeffrey Mark, executive secretary of the Health Facilities Planning Board, and David Carvalho, a deputy director of the Illinois Department of Public Health that oversees the employees. “In our efforts to continue to fumigate state government, this is another board that needs to be sanitized and start fresh with new players from top to bottom,” Cross said.
Cross added, however: “While we are not alleging that either of the two that held these positions themselves did anything illegal, corrupt activity happened under their watch. They were there before, during and after corrupt activity occurred.”
Both were hired in 2003 and served for six months during a scheme that convicted former board member Stuart Levine and Blagojevich fundraiser Tony Rezko of federal corruption. According to federal prosecutors, Levine and Rezko schemed with a handful of others, including Blagojevich, to rig the state panel to reward themselves and political allies.
Both Mark and Carvalho testified to the committee that they had nothing to do with the schemes and notified appropriate authorities when they noticed irregularities in the way the board operated. For instance, they cited a situation when the board stopped in the middle of taking a vote during a public hearing to sway one more member to support granting a construction permit to a particular hospital project.
“It happened on my watch, yes it did,” Mark said to the committee. “Was I aware of it? Absolutely not. Should I have been aware of it? I’m not sure.” He said he was a subordinate who immediately reported questionable practices to the agency’s lawyer and inspector general. He later cooperated with the U.S. attorney’s office during the investigation.
Carvalho said he, too, conveyed his concerns lawyers and the inspector general. He also said Rezko’s trial revealed he and Levine, in fact, were trying to get rid of him because he was a “pain in the butt.” “What I have tried to do throughout the process is to stand in the way of people, both who were members of the board and people who were applicants, who were trying to get from this process what was not due them under the rules. And today I do feel like that person standing in front of a steamroller for simply doing my job.”
One who did report the suspicious activity directly to federal authorities was Pam Davis, president of Edward Hospital and Health Services in Naperville. She cooperated with the FBI for eight months by secretly recording phone calls and meetings related to her repeated application for a construction permit to build a new hospital in the rapidly growing village of Plainfield. She was pressured to hire a specific construction firm owned by Jacob Kiferbaum, who was scheming with Rezko. “If I did not use their services, I would never have this hospital approved,” she said. The Plainfield hospital project still has not been approved by the board.
Davis stopped short of alleging that Mark and Carvalho acted illegally, but she supports the House Republicans’ efforts to oust them from public office for allegedly protecting the status quo with outdated and unfair regulations and for failing to speak out during irregularities in the board’s proceedings. “While not pointing to any legalities by either of these two public officials, I can only imagine that the corrupt board members felt totally emboldened and powered by this lack of transparency.”
Carvalho said during his testimony: “Contrary to the suggestions of the CEO, the staff of the Health Facilities Planning Board, and I, in particular, are, in fact, grateful to her for her courageous efforts to expose the corruption of that prior board.”
Mark said: “I observed the same things she observed.” He said he felt “confused and surprised, and as I stated before the committee, I consulted the appropriate authorities.”
Mark was recommended for his position more than five years ago by Rezko. “It’s a matter of public record that my name was submitted by Tony Rezko,” Mark said after the hearing. “I met the man once prior to him taking my name. People can perceive whatever they want. I think my background and my record speak for itself. I’m very proud of what we’ve accomplished the last five years. I’m very not proud of what occurred during my first six months in this position.”
Sen. Susan Garrett, a Lake Forest Democrat who has been working on the health planning process for a year, said the current controversy could be rooted in bitterness over the panel’s decision to repeatedly deny Davis’ proposal for a Plainfield hospital. “It appears that the process for decades has been political, and that has been the downfall of this whole health facilities planning process. It was our hope and intent to remove the politics,” Garrett said.
“As somebody who is trying to be impartial and bipartisan, we thought we resolved that,” she added. “And I don’t think that has happened. And, quite frankly, I’m not sure today resolved any of the issues that were brought up three days ago or three years ago or three decades ago.”
The measure, SB 1905 (Senate-approved version here), is slated for consideration in a House committee Wednesday afternoon.
Quinn previously tried to name a new chairman of the board, Dr. Quentin Young, in April, but Young soon resigned because of a possible conflict of interest. (He realized that his former practice owns part of a property that rents space to a health care provider. State rules prevents the chair from having financial ties to any facility licensed by the state.)
Tuesday, April 14, 2009
Blagojevich pleads not guilty
By Hilary Russell
The last time he entered the building, he wore a running suit. This time, former Gov. Rod Blagojevich wore a suit and tie and maintained his innocence against the 16 criminal counts he was charged with in an April 2 indictment.
“His public persona is very consistent, and whether that’s based in confidence or delusion, I have no idea,” said Kent Redfield, a political science professor at the University of Illinois at Springfield. “But certainly he doesn’t act like someone who clearly is in jeopardy of spending a large chunk of the rest of his life in jail if he were to be convicted of all of the charges against him.”
U.S. District Judge James Zagel presided over the arraignment at the Dirksen U.S. Courthouse in downtown Chicago.
Blagojevich pleaded not guilty to all counts and was represented by defense attorney Sheldon Sorosky. According to the Associated Press, Sorosky requested the prosecutor’s permission to use money from one of Blagojevich’s campaign funds, Friends of Blagojevich, to help pay for additional attorneys to represent Blagojevich. Sorosky reportedly stated his concern that it will take more than one attorney to give his client fair representation.
But if Blagojevich were convicted, the Associated Press reported that prosecutors said they would ask the judge to forfeit the campaign money, which would mean that any attorney representing Blagojevich could be forced to return payments received from the campaign fund.
Redfield said that if money became an issue, that could spell trouble for Blagojevich. “The [former] governor faces a real possibility that he is not gonna have the strongest counsel as he would want because this is a very complex trial. There is a ton of discovery involving all those tapes and the defendants. It’s a very complex case, and it’s not clear where he would get the resources to hire a top-notch legal team to defend himself.”
Blagojevich lost his first legal team just prior to the Senate trial in which he was impeached and thrown out of office. Edward Genson, Sam Adam and Adam's son by the same name, cited different reasons for recusing themselves from the case.
Robert Blagojevich, the former governor’s older brother, also appeared at the arraignment today and was represented by Michael Ettinger. Robert Blagojevich was hired by his brother to act as campaign manager after prosecutors began investigating Christopher Kelly, who initially headed the former governor’s campaign fund.
In a statement released by the former governor’s public relations agency, Blagojevich said: “Now we can begin the process of getting the truth out, and I can clear my name and vindicate myself. I have not let down my family or the people of Illinois. I am innocent of every single allegation."
During an appearance with President Barack Obama’s Education Secretary Arne Duncan in Chicago, Gov. Pat Quinn said the only way to clean up state government is by making major changes.
“We have to take the indictment and dissect and identify every part of state government that was put in jeopardy,” Quinn said (download audio file here). “These are allegations, of course, but I think there’s still fire bells going off in the night to alert the people of Illinois and to the governor of Illinois that reform is indispensable.”
Kelly, a former Blagojevich aide, and John Harris, Blagojevich’s former chief of staff, and Springfield businessman William Cellini are scheduled to be arraigned Thursday. Alonzo “Lon” Monk, Blagojevich’s former campaign manager and chief of staff, is scheduled to be in court next week. Harris and Monk are reportedly cooperating with investigators.
The last time he entered the building, he wore a running suit. This time, former Gov. Rod Blagojevich wore a suit and tie and maintained his innocence against the 16 criminal counts he was charged with in an April 2 indictment.
“His public persona is very consistent, and whether that’s based in confidence or delusion, I have no idea,” said Kent Redfield, a political science professor at the University of Illinois at Springfield. “But certainly he doesn’t act like someone who clearly is in jeopardy of spending a large chunk of the rest of his life in jail if he were to be convicted of all of the charges against him.”
U.S. District Judge James Zagel presided over the arraignment at the Dirksen U.S. Courthouse in downtown Chicago.
Blagojevich pleaded not guilty to all counts and was represented by defense attorney Sheldon Sorosky. According to the Associated Press, Sorosky requested the prosecutor’s permission to use money from one of Blagojevich’s campaign funds, Friends of Blagojevich, to help pay for additional attorneys to represent Blagojevich. Sorosky reportedly stated his concern that it will take more than one attorney to give his client fair representation.
But if Blagojevich were convicted, the Associated Press reported that prosecutors said they would ask the judge to forfeit the campaign money, which would mean that any attorney representing Blagojevich could be forced to return payments received from the campaign fund.
Redfield said that if money became an issue, that could spell trouble for Blagojevich. “The [former] governor faces a real possibility that he is not gonna have the strongest counsel as he would want because this is a very complex trial. There is a ton of discovery involving all those tapes and the defendants. It’s a very complex case, and it’s not clear where he would get the resources to hire a top-notch legal team to defend himself.”
Blagojevich lost his first legal team just prior to the Senate trial in which he was impeached and thrown out of office. Edward Genson, Sam Adam and Adam's son by the same name, cited different reasons for recusing themselves from the case.
Robert Blagojevich, the former governor’s older brother, also appeared at the arraignment today and was represented by Michael Ettinger. Robert Blagojevich was hired by his brother to act as campaign manager after prosecutors began investigating Christopher Kelly, who initially headed the former governor’s campaign fund.
In a statement released by the former governor’s public relations agency, Blagojevich said: “Now we can begin the process of getting the truth out, and I can clear my name and vindicate myself. I have not let down my family or the people of Illinois. I am innocent of every single allegation."
During an appearance with President Barack Obama’s Education Secretary Arne Duncan in Chicago, Gov. Pat Quinn said the only way to clean up state government is by making major changes.
“We have to take the indictment and dissect and identify every part of state government that was put in jeopardy,” Quinn said (download audio file here). “These are allegations, of course, but I think there’s still fire bells going off in the night to alert the people of Illinois and to the governor of Illinois that reform is indispensable.”
Kelly, a former Blagojevich aide, and John Harris, Blagojevich’s former chief of staff, and Springfield businessman William Cellini are scheduled to be arraigned Thursday. Alonzo “Lon” Monk, Blagojevich’s former campaign manager and chief of staff, is scheduled to be in court next week. Harris and Monk are reportedly cooperating with investigators.
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.”
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