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Fed Indictment Alleges New Heights of Corruption By Christopher Wills and
Mike Robinson CHICAGO (AP) -- Rod Blagojevich's schemes and corruption stretch back beyond trying to sell a Senate seat, beyond handing out jobs to political donors and even beyond his first day in the Illinois governor's office, federal prosecutors say. While he campaigned on a promise to clean up after the scandals of the previous governor, Blagojevich and a handful of political pals already were planning to line their pockets and split the money after Blagojevich left office, according to a 19-count indictment.If true, the allegations show Blagojevich blew past the actions that put ex-Gov. George Ryan in prison and took corruption to new levels in Illinois. Ryan pressured state employees to contribute $50 and $100 to his campaigns, while Blagojevich demanded $50,000 and $100,000 from companies simply wanting a chance to do business with the state, according to the indictment. Ryan steered government money to friends who gave him gifts and vacations. Blagojevich tried to block money for sick children and students unless he got big political contributions, the indictment says. "If the allegations are true, it is the epitome of hypocrisy. It's very sad," said Brad McMillan, a member of the Illinois Reform Commission appointed by the state's new governor. "He ran on a platform to clean up Illinois government, and at the time he's making those speeches he's engaging in the same kind of unethical behavior he was condemning," said McMillan, head of Bradley University's Institute for Principled Leadership in Public Service. Blagojevich, 52, was arrested in December on a host of charges, including the allegation he schemed to auction off the appointment to Barack Obama's U.S. Senate seat. He was impeached and booted out of office in January, a first in the long history of Illinois corruption. By one count, Illinois has seen 1,000 public-corruption convictions since 1970. Five former Illinois governors have been prosecuted during the past 44 years. Blagojevich, a Chicago Democrat, flatly denies the allegations, insisting he always behaved ethically and did his best to fight government corruption. "I am innocent. I now will fight in the courts to clear my name," Blagojevich said in a statement Thursday after prosecutors released the indictment that named him, his brother and four other aides and political allies. But U.S. Attorney Patrick Fitzgerald says he has Blagojevich on tape discussing the criminal activity in secretly recorded telephone conversations. The 75-page indictment outlines sharp differences between the Ryan and Blagojevich cases. In trying Ryan, prosecutors struggled to present jurors with examples of cash payoffs directly to the Republican governor. Such allegations are all over Blagojevich's case. According to the indictment, Blagojevich and his former chief of staff, Alonzo Monk, agreed to hand huge power to fixer Tony Rezko to name members of powerful boards and commissions. Rezko has been convicted of using that power as part of a scheme to raise $7 million in kickbacks from companies seeking state business. In return, Rezko provided Blagojevich's wife, Patti, with $54,396 in real estate commissions she did nothing to earn, according to the indictment. It says Rezko also gave her a $12,000-a-month job, "purportedly for real estate brokerage services." Blagojevich also allegedly ordered co-defendant John Harris, another chief of staff, to shut off state business for two financial institutions that did not respond satisfactorily to his demands for a well-paying job for his wife. "My first reaction when I read the Ryan indictment was 'where's the beef?'" said DePaul University law Professor Leonard Cavise. "There wasn't much to show Ryan took money and put it in his pocket. In the Blagojevich indictment it's all over the place. This isn't the kind of prosecution where you have to connect the dots." In framing the Blagojevich indictment, prosecutors engaged in a technical maneuver that effectively sent the case to a judge known for his skill in keeping order in the courtroom and preventing trials from turning into circuses. That could be important, given Blagojevich's behavior since his initial arrest in December. He appeared on nearly every talk show and news program in the country to proclaim his innocence and declare himself the victim of a conspiracy by his political enemies. He signed a book deal and hosted a Chicago talk-radio show. He held a news conference with sick people and claimed he was being persecuted because he had championed health care programs to help them. His lead attorney dropped the case, saying Blagojevich wouldn't even listen to his advice. Some of the action in Ryan's trial took place outside the courtroom. Ryan exploded on television against one of the witnesses - former Texas Sen. Phil Gramm - and his wife went on TV in what prosecutors saw as a play for sympathy. Ryan also spotlighted his stand against the death penalty. Patrick M. Collins, who headed the government team that sent Ryan to prison, urges the current team of prosecutors not to let Blagojevich distract them with similar tactics. "I'll give the prosecutors the same advice I got," Collins said. "Keep your eyes on the prize and remember that the important part is in the courtroom." New Gov. Pat Quinn and Illinois lawmakers are studying ways to clean up the state's "culture of corruption," but the Blagojevich allegations highlight the difficulty of stopping someone bent on misconduct. Blagojevich didn't stumble into a gray area or cut some corners after years in office, according to the indictment - he set out from day one to abuse his authority. Doug Alexander, who owns a book store in Quincy, said he doubts anything will change in Illinois until voters make it clear they demand honest government. "I don't think it's something you can legislate," Alexander said. "I think it's something that has to come from the people themselves." --- Associated Press Writer Christopher Wills reported from Springfield. Writer David Mercer contributed to this report from Champaign. © 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. Learn more about our Privacy Policy. Illinois Court Rejects Attempt to Remove Governor Breitbart.com The Illinois supreme court Wednesday rejected a bid to remove the state's corruption-tainted governor from office in the wake of charges he tried to sell president-elect Barack Obama's vacant senate seat. State's attorney general asked the court last week to impose a restraining order stripping Rod Blagojevich of the bulk of his powers while considering her request to have him temporarily replaced by the state's lieutenant governor. "In light of his arrest in the filing of the criminal complaint, Governor Blagojevich can no longer fulfill his official duties with any legitimacy," Lisa Madigan said Friday after filing the requests. The court denied her request without comment, an order filed Wednesday showed. Blagojevich has so far refused mounting calls to resign after he was arrested on December 9 amid an FBI investigation that accuses him of a staggering pattern of corruption, including refusing to free up funds for a children's hospital until he received a 50,000-dollar State legislators launched an inquiry Monday to determine if there were grounds for impeachment. Illinois Lawmaker Launches Blagojevich Impeachment By Christopher Wills SPRINGFIELD, Ill. — The speaker of the Illinois House took the first step Monday toward impeaching scandal-plagued Gov. Rod Blagojevich, appointing a committee to recommend whether he should be ousted after his arrest on federal corruption charges. "We're going to proceed with all due speed, but we're going to make sure that what we do is done correctly," said Speaker Michael Madigan, who often has clashed with fellow Democrat Blagojevich. Once the committee makes a recommendation, the full House will formally decide whether to file impeachment charges. The Senate then would rule on the charges. Blagojevich was arrested Tuesday on federal fraud and bribery charges, including allegations of a scheme to profit from his power to appoint a replacement for the Senate seat vacated by President-elect Barack Obama. The state constitution gives lawmakers broad authority to impeach a governor for any reason they consider sufficient. The governor, who remains defiant and returned to work Monday to sign a tax credit bill, had no immediate reaction to the impeachment committee, spokesman Lucio Guerrero said after Madigan's announcement. "Impeachment talk's nothing new for this governor," Guerrero said. "They've been talking about it for a long time." Indeed, Madigan said Monday his staff has been reviewing the legal possibilities for impeachment for about a year. His office produced a memo earlier this year outlining all the arguments legislative candidates could make in favor of impeachment. Blagojevich's administration has been under a federal corruption investigation for years. Madigan was co-chair of Blagojevich's re-election campaign but more recently has been one of the governor's harshest critics. He often has refused to meet with Blagojevich or return his phone calls. "I've had a chance to get to know Mr. Blagojevich over six years, so I was not surprised," Madigan said Monday of the federal allegations. "In light of what we've all seen ... how can anyone be surprised?" However, Madigan did not join the chorus of officials calling for Blagojevich's resignation or indicate whether he thinks the governor should be impeached, saying he should remain neutral because he would preside over any impeachment debate. If Blagojevich resigned, the power to appoint a new senator would go to Democratic Lt. Gov. Patrick Quinn. Madigan's daughter, Illinois Attorney General Lisa Madigan, has asked the state Supreme Court to remove Blagojevich from office, arguing that he is unfit to serve. Madigan said Sunday she expects word on whether the court will hear her request "probably just in a few days." Lisa Madigan is considered one of the top Democratic candidates for governor in 2010. Renowned Chicago criminal defense attorney Ed Genson said Monday that if he's hired by Blagojevich he would represent the governor in any potential impeachment proceedings as well as his federal corruption case. Genson told The Associated Press he would know later Monday whether Blagojevich will retain him. Michael Madigan made his announcement as lawmakers were preparing to meet to discuss legislation that would set a special election to fill Obama's Senate seat, stripping Blagojevich of the power to appoint the post. Blagojevich hasn't ruled out the possibility of signing such a bill, Guerrero said. While the special election was the stated purpose of Monday's legislative gathering, the day's early focus on impeachment came as no surprise. David Dring, spokesman for House Minority Leader Tom Cross, had said Republicans would step up pressure on Democrats to remove Blagojevich, perhaps raising the issue on the House floor if necessary. The GOP also planned television ads pressuring Democrats to approve a special election to replace Obama. Illinois Republican Party chairman Andy McKenna told reporters the ads would "make the point that this is the people's seat, and the people deserve a special election." Meanwhile, Rep. Danny K. Davis said Monday he had talked to Blagojevich three times since Obama's election to express his interest in Obama's U.S. Senate seat. He said the governor never made untoward suggestions. The governor said things like "Oh Danny, you're one of the best, you're a great guy, you do great work plus you are serious about the needs of people and you know you're on the list. You're on the list,'" said Davis, who added he would run for the seat if there were a special election. Davis said he didn't believe he is mentioned in the federal complaint against Blagojevich, which didn't identify potential candidates by name. Associated Press writers Deanna Bellandi and Don Babwin and Charles Rex Arbogast contributed to this report from Chicago. Union
Linked to Corruption Scandal The New York Times The Service Employees International Union has long boasted that it is on the cutting edge of the labor movement. But it found itself badly embarrassed this week when it was linked by name to Gov. Rod R. Blagojevich’s maneuvering to secure some financial gain from picking the next Senator from Illinois. The federal criminal complaint filed against Mr. Blagojevich said his chief of staff, John Harris, had suggested to a service employees’ official that the union should help make the governor the head of Change to Win, the federation of seven unions that broke away from the A.F.L.-C.I.O. The complaint said Mr. Blagojevich was seeking a position that paid $250,000 to $300,000 a year. In exchange, the complaint strongly suggested, the service employees union and Change to Win would help persuade Mr. Blagojevich to name Valerie Jarrett, President-elect Barack Obama’s first choice, as the state’s new senator. And the union would get help from the Obama administration, presumably for its legislative agenda. Several union officials in Chicago and Washington said that the service employees official approached by Mr. Harris was Tom Balanoff, the president of the union’s giant janitors’ local in Chicago and head of the union’s Illinois state council. Mr. Balanoff, one of the union officials closest to Mr. Obama, is widely seen as an aggressive, successful labor leader, who has helped unionize thousands of janitors not just in the Chicago area but also in Texas. Reached by telephone on Tuesday, Mr. Balanoff said, "I can’t comment on anything right now." The Illinois branch of the service employees issued a statement on Wednesday night saying, "We have no reason to believe that S.E.I.U. or any S.E.I.U. official was involved in any misconduct." It added that the union and Mr. Balanoff "are fully cooperating with the federal investigation." Greg Denier, Change to Win’s spokesman, said the federation "had no involvement, no discussion, no contact" with Mr. Blagojevich or his staff. "The idea of a position at Change to Win was totally an invention of the governor, and his stance has no basis in reality," Mr. Denier said. Mr. Denier noted that the presidency of Change to Win was an unsalaried position. The federation’s president, Anna Burger, is the service employees’ secretary treasurer and receives only her S.E.I.U. salary. Service employee officials said that the criminal complaint does not allege that the unnamed "S.E.I.U. official" did anything wrong. All he did, they said, was listen to Mr. Blagojevich and his chief of staff and ferry some messages for them. A senior service employees official who insisted on anonymity because prosecutors have asked union officials not to talk said his union was one of many that backed Mr. Blagojevich and has received favors from him. But he said that it was understandable that Mr. Blagojevich would ask the service employees for favor because it was so powerful and was seen as one of the unions closest to Mr. Obama. Patrick Gaspard, the former political director of the service employees’ huge New York health-care affiliate, 1199, was political director of Mr. Obama’s campaign. If Mr. Blagojevich was going to approach a union to help land a cushy job after leaving the Illinois governorship, it probably made sense for him to approach the service employees, the nation’s fastest growing union. With more than 1.8 million members nationwide, it is the largest union in Illinois, was an early and generous backer of his gubernatorial ambitions and received some important favors from him. In 2005, the governor issued an executive order that enabled the service employees to unionize 49,000 in-home child care providers who were paid through state and federal funds. Afterward, the service employees negotiated a 39-month contract that raised the child-care providers daily rates by 35 percent on average and provided them with health coverage. With Mr. Blagojevich evidently hoping to trade favors with President-elect Obama, the service employees seemed like a sensible intermediary because it was widely seen as doing more to elect Mr. Obama than any other union. The service employees’ political action committee spent at least $26 million on Mr. Obama’s behalf in this year’s presidential campaign, making it by far the largest single PAC donor in the campaign. The service employees union was by far the top overall donor to Mr. Blagojevich’s 2006 re-election campaign, with records showing it donated more than $900,000, or about 5 percent of his total campaign funds. Michelle Ringuette, a service employees’ spokeswoman, said the political contributions were not unusual. "Many unions make donations to political candidates," she said, "in the interest of making sure we have elected officials who represent the interest of working families, men and women who get up and go to work every day." The service employees’ president, Andy Stern, is often seen as the nation’s most powerful union official, serving as both a dynamo and lightning rod for the labor movement. He led the schism from the A.F.L.-C.I.O., and now he is seeking to lead an effort to persuade Mr. Obama to enact two major pieces of legislation in his first 100 days: universal health coverage and the Employee Free Choice Act, a law that would make it far easier for workers to unionize. Mr. Stern was embarrassed early this year when Tyrone Freeman, an official he appointed to run a large, home-care workers’ local in Los Angeles, was suspended and later banned for misappropriating hundreds of thousands of dollars in funds. Mr. Freeman was found to have improperly directed union funds to his wedding, his wife’s company, even to membership in a private cigar club. Mr. Stern has named a panel of experts to develop a tougher ethical code for the union. Case Confirms Rezko Is Talking With Prosecutors By Joe Stephens and Carrie
Johnson A footnote to the 76-page criminal complaint and affidavit charging Illinois Gov. Rod Blagojevich (D) with soliciting bribes confirms what has long been rumored -- that a former longtime friend and fundraiser for President-elect Barack Obama is talking to federal prosecutors in hopes of a reduced sentence. Antoin "Tony" Rezko's offer to provide authorities with evidence of others' wrongdoing is "not complete," and prosecutors are working to corroborate the claims he has made so far, the footnote said. Rezko, a 53-year-old developer, was convicted in June of 16 criminal counts, including fraud, money laundering and abetting bribery. He is in custody awaiting sentencing. Prosecutors depicted Rezko at trial as a fixer for Blagojevich and the man to see to secure a high-level appointment with the governor's administration. Rezko had been a longtime fundraiser for Blagojevich and other Illinois politicians, including Obama. Obama was not implicated in the months-long trial, and he has said that Rezko sought no favors from him. At a news conference on Tuesday, Patrick J. Fitzgerald, U.S. attorney for the Northern District of Illinois, went out of his way to dampen speculation about Obama. "I should make clear, the complaint makes no allegations about the president-elect whatsoever," Fitzgerald said. "We make no allegations that he's aware of anything, and that's as simply as I can put it. . . . "There's no reference in the complaint to any conversations involving the president-elect or indicating that the president-elect was aware of it. And that's all I can say." Legal experts said it was unusual for a prosecutor to make such a blanket statement while an investigation was continuing. "That carries a great deal of weight," said Jan Witold Baran, a Washington lawyer who represents politicians on ethical complaints and campaign finance matters. "It is really unusual for a U.S. attorney to say someone is not implicated. "Could evidence pop up in the future to the contrary? Sure, it's possible. Is it likely? I think that, based on what he said yesterday, the answer is no," Baran added. The ongoing investigation is sure to present political complications for the Obama Justice Department, because advisers close to the president-elect are referenced in the criminal complaint and will be interviewed by federal prosecutors, legal analysts said. A lawyer for the Obama transition team did not return calls or e-mails yesterday. Fitzgerald was appointed U.S. attorney by President Bush, but he is a political independent. Obama could retain Fitzgerald, lending an element of continuity to the Blagojevich case and insulating himself somewhat from accusations that he is seeking to remove a dogged prosecutor from a case targeting Illinois Democrats. Rezko's reappearance in the headlines in recent years has been of continuing use to Obama's political opponents -- including Sens. Hillary Rodham Clinton (D-N.Y.) and John McCain (R-Ariz.), both of whose presidential campaigns pointed out that Obama shared a long history with the Chicago developer. Over Obama's political career, Rezko raised contributions for him and introduced him to powerful aldermen. Rezko even offered real estate advice when Obama bought an expensive house on Chicago's South Side. The two met in the early 1990s. Obama has said he was finishing his studies at Harvard Law School when Rezko and his business associates first contacted him about a job possibility in development. Obama declined a job offer from Rezko, instead accepting a position at a small Chicago law firm that would later represent Rezko's company and whose senior partner would in time go into business with Rezko. A few years later, Obama entered politics. Records list three checks arriving on his first day of fundraising for the Illinois Senate. Two of them, totaling $2,000, came from companies associated with Rezko. Over time, the businessman and Obama began meeting regularly for lunch and dinner, occasionally with their wives. After he joined the U.S. Senate in 2005, Obama took Rezko on a tour of a six-bedroom house in an upscale Chicago neighborhood. Rezko recommended that Obama buy the home and, on the day Obama closed the deal, Rezko's wife closed on an adjoining lot. The Rezkos resold a portion of their lot to Obama to expand his yard. Lawyers in the Blagojevich case said information provided by Rezko and others who testified at Rezko's trial could form the backbone of several additional charges against the governor. Blagojevich's wife, Patricia, had worked on real estate deals with Rezko. Nearly half of the criminal complaint unsealed Tuesday deals with allegations that members of the Blagojevich administration offered access to jobs and state contracts in exchange for campaign cash. Neither Blagojevich nor his chief of staff, John Harris, was immediately charged with involvement in those alleged schemes. Several of the fundraisers testified at Rezko's criminal trial this year. Fitzgerald said authorities did not "rely upon" information from Rezko in the complaint. Joseph Duffy, a defense attorney for Rezko, did not return calls yesterday. Obama
Calls on Governor in Senate Seat Scandal to Quit Suzanna Goldenberg President-elect Barack Obama has distanced himself from the Illinois governor Rod Blagojevich, who has been arrested on corruption charges Link to this video The governor accused of trying to sell Barack Obama's seat in the Senate faced growing pressure to resign yesterday as the president-elect called on him to step aside. The call from Obama came as Rod Blagojevich turned up for work as usual 24 hours after the FBI arrested him at his home and accused him of setting a new low in corruption for his haggling over the price of a Senate seat. Blagojevich, a Democrat, was released on bail later on Tuesday. "Under the current circumstances, it is difficult for the governor to effectively do his job and serve the people of Illinois," Obama's spokesman, Robert Gibbs, said in a statement. It was the most expansive statement to date from Obama on the scandal, which yesterday widened beyond the figure of Blagojevich to Jesse Jackson Jr, a son of the civil rights leader, who wanted the president-elect's old Senate seat. A lawyer for Jackson, a congressman and ally of Obama, acknowledged that he was the man identified as Senate Candidate 5 in the FBI wiretaps. Senate Candidate 5 is the only one of the contenders for Obama's seat alleged to have acted improperly, news reports said yesterday. Jackson was adamant he had done nothing wrong. The Obama camp and others are pressing for the Illinois legislature to move ahead on ordering a special election for the Senate seat - and preventing Blagojevich from making what would now be seen as a scandal-tainted appointment. Congress is also trying to head off any chance that Blagojevich could exercise his authority as governor to appoint Obama's successor. The Senate majority leader, Harry Reid, told reporters he would not seat anyone appointed by the governor. Dick Durbin, the senior senator from Illinois, who has been one of Obama's closest allies in Washington, sent a letter to Blagojevich calling on him to "search your heart and summon the strength to put your state and your nation above any personal considerations". Meanwhile, 50 elected officials in Illinois have backed a committee that would investigate how to impeach the governor. There is no allegation of any wrongdoing against Obama - who says he had no contact with Blagojevich - or any of the advisers, consultants and fundraisers who held conversations with the governor which were secretly recorded by the FBI. But the scandal could be politically toxic as the FBI broadens its investigation beyond Blagojevich to the other figures with whom the governor came into contact. The Republican national committee moved yesterday to capitalise on the scandal, with an email calling on Obama to make public any contacts his transition team had with Blagojevich. The authorities are expected to interview a number of political figures in Chicago and Washington, including Jackson. At a press conference in Washington, Jackson insisted he had committed no wrongdoing, and that he had been told by the FBI he was not a target of investigation. "I never sent a message or an emissary to the governor to make offers plead my case or propose a deal about a United States Senate seat, period," he said. "I thought, mistakenly, that the governor was evaluating me and other Senate hopefuls based on our credentials and qualifications." The congressman said he met Blagojevich for 90 minutes on Monday afternoon, after not meeting for four years, to make his case for the Senate seat. According to the FBI affidavit in the case, emissaries for Senate Candidate 5 offered Blagojevich up to $1m for the Senate seat. Describing the offer in an October 31 conversation recorded by the FBI, Blagojevich said: "We were approached 'pay to play'. That you know, he'd raise me 500 grand. An emissary came. Then the other guy would raise a million, if I made him [Senate Candidate 5] a senator." Following his release, Blagojevich went about his duties yesterday, his 52nd birthday. The governor denied wrongdoing, and had no immediate plans to resign. "He is still the sitting governor of Illinois," Patrick Fitzgerald, the US attorney who released the charges against Blagojevich, told reporters on Tuesday.
Obama's Relationship
With Emil Jones--
Almost every mention of Obama's relationship with Jones features the word "complicated"--by which most reporters seem to mean that, while Obama generally kept his distance from crusty machine pols like Jones, he realized he couldn't advance in Illinois politics without Jones's help, so he held his nose and embraced him when necessary. That's part of the story. But, if you'll forgive the word, the relationship is actually much more complicated. It's certainly true that Obama has a longstanding wariness of machine hacks, which once even extended to Jones himself. Back in his organizer days, Obama pulled together a rally of sorts outside Jones's office--Jones himself eventually came outside to see what the fuss was about--and, in his first book, Obama refers to a very-slightly fictionalized version of Jones as a "ward heeler." It's also true that political calculation partly accounts for Obama's rapprochement with Jones once he joined the state legislature. In one widely-reported conversation after Democrats retook the state senate in 2002, making Jones the chamber's president, Obama approached his adversary-cum-patron and announced: "You have the power to make a United States Senator." "Do you have anybody in mind?" Jones responded. "Yeah, me," said Obama. Obama's former senate colleagues told me there were two ways Jones made this happen. First, he made Obama the point person on a wave of legislation that moved through the senate in 2003--bills on health care and taxation that had been bottled up during the years of Republican rule. This gave Obama a record of accomplishment he could run on statewide. Second, Jones used his political muscle to help Obama raise money and bring key interest groups aboard. The latter was almost more important, because one of Obama's opponents in the Democratic primary was Dan Hynes, the state comptroller and the son of a longtime Chicago pol. Hynes' family connections made him the favorite to pocket the endorsements of the state's major unions. But with Jones in his corner, Obama was able to snatch up a few endorsements, and, critically, keep the AFL-CIO from taking sides in the race. But that's at best half the story. As Obama would discover, Jones was more than a typical ward heeler. And Obama's affection for him was more than that of the ambitious reformer forced to court a few dodgy characters on the road to higher office. First, Jones. Almost everything in the man's biography would have predicted he'd resent a young idealistic reformer from Hyde Park by way of Harvard Law School. That was certainly the reaction of most of Obama's black colleagues in the state senate, many of whom considered Obama over-educated, arrogant, and condescending. (In one famous episode, unearthed by Obama biographer David Mendell, Obama nearly came to blows with a West Side pol named "Hollywood" Rickey Hendon after Hendon accused him of blocking funding for a project in his district.) But my sense, again from talking to former state senate colleagues, is that Jones was actually pretty keen on Obama from the get-go. Jones was quick to recognize the promise of Obama's academic credentials and even took a measure of racial pride in them. Early on, he dispatched an aide named Dan Shomon to help Obama navigate the media. (Obama's response, Shomon once told me: "I do my own press.") And he would frequently flag Obama down in Springfield, during which time the two men would banter with a clear fondness for one another. At one point during his Springfield days, Obama began participating in weekly poker games with three white senate colleagues--Terry Link, Larry Walsh, and Denny Jacobs. Jones never joined the game himself. But he'd frequently drop by Link's house on poker night for half an hour, just to check in on his protege. Rituals like this inspired Link and Walsh to think of Jones as a kind of father figure to Obama, they later told me. (Jones also seemed to see Obama as a valuable link between the senate's black caucus and some of the more conservative white Dems from suburban and downstate areas.) For his part, Obama's relationship with Jones seems to have genuinely softened his thinking on machine politics, at least so far as it concerned delivering for people who would otherwise go without. Late in Obama's state senate career, Jones held an education bill hostage until it provided additional funding for a mostly black high school on Chicago's south side. It was the kind of inside manuever goo-goos typically denounce as a racial shakedown, and you can imagine the young Obama doing the same. Instead, Obama praised Jones, telling The Chicago Tribune that "if you talk to him, you see it's grounded in the sense that, for years, a predominantly African-American institution was short-changed by the state. ... He's playing the insider game to make sure money is going to these projects." Obama elaborated on his more nuanced views of Jones's political style when I interviewed him about a year ago:
Of course, he
went on to say that the moment for Jones's brand of politics was
over. Which brings us back to the theme we started with: The two men
have a genuinely complicated relationship. Though it now looks as if
Jones isn't Senate Candidate 5, it would hardly be surprising if
Obama didn't want to bequeath him his Senate seat. But that doesn't
mean Obama has only viewed their relationship instrumentally all
these years. What "complicated" should mean in this case is that
Obama respects Jones and feels warmly toward him--but nonetheless
sees him as the past. Come to think of it, that sounds like a father
figure to me. Last night, I reported on speculation about the identity of "Senate Candidate 5" of whom Gov. Blagojevich said he might be able to cut a deal that would provide him (Blago) something "tangible up front." That something, according to Blagojevich's taped comments, was $1 million. The speculation focused on two African-American politicians, Rep. Jesse Jackson, Jr. and Illinois State Senate leader Emil Jones, with Jones perhaps the more likely according to some. Now, ABC News is reporting that sources point to Rep. Jackson as the real Senate Candidate 5. Jackson himself says that federal investigators have asked him to "come in and share. . .insights and thoughts about the selection process." Jackson adds that he does not know whether he is Senate Candidate 5 but that he has been told he is not a target of the investigation. Whether that is true or not, he will become one quickly if this prosecutor thinks Jackson's "insights and thoughts" are not truthful. Just ask Scooter Libby. Some of the speculation had favored Emil Jones over Jackson because Jackson does not have the same reputation as a fundraiser. However, that's not to say that Jackson necessarily is without access to funds. It's important to remember, though, that the reference to Senate Candidate 5 is just Blagojevich talking, not the gospel. To comment on this post, go here. Illinois
Governor Blagojevich By: Michael Conlon and
Andrew Stern Chicago - Illinois Gov. Rod Blagojevich was arrested on corruption charges on Tuesday, including trying to sell the U.S. Senate seat vacated by fellow Democrat President-elect Barack Obama, federal prosecutors said. While Obama has long distanced himself from the governor - who has been under investigation over issues for months - Blagojevich's arrest was likely to be an embarrassment to the president-elect, who takes office on Jan. 20 The case shines a light once again on old-style corruption in the Chicago political caldron from which Obama emerged. "The breadth of corruption laid out in these charges is staggering," U.S. Attorney Patrick Fitzgerald, the federal prosecutor, said in a statement. Blagojevich was also accused of threatening to withhold state assistance to the Tribune Company in connection with the sale of the Chicago Cubs' baseball home, Wrigley Field, in order "to induce the firing of Chicago Tribune editorial board members sharply critical" of him. The 51-year-old Blagojevich and his chief of staff, John Harris, were charged in a federal complaint with conspiracy to commit mail and wire fraud and solicitation of bribery. Both were taken into custody at their homes in Chicago. In Illinois, the governor selects a successor when there is a mid-term vacancy in the U.S. Senate. Obama resigned from the Senate soon after winning the Nov. 4 presidential election. "For Sale" Sign In his statement, Fitzgerald said the charges "allege that Blagojevich put a 'for sale' sign on the naming of a United States senator; involved himself personally in pay-to-play schemes with the urgency of a salesman meeting his annual sales target; and corruptly used his office in an effort to trample editorial voices of criticism." Blagojevich allegedly was caught on court-authorized wiretaps during the last month. He was seeking a "substantial" salary for himself at a nonprofit foundation or union affiliated organization, a spot on a corporate board for his wife, promises of campaign cash, as well as a cabinet post or ambassadorship in exchange for his Senate choice, an FBI affidavit said. It was unclear what would happen now to the selection of a successor to Obama, although the spot would be certain to go to a Democrat. Democrats, with independent allies, will hold at least 58 seats in the 100-seat Senate when the new Congress convenes in early January. A Minnesota Senate seat is still undecided. Blagojevich, in his second term, is the latest in a string of Illinois governors to run afoul of the law. His immediate predecessor, George Ryan, is in jail following a federal corruption conviction. "Many, including myself, thought that the recent conviction of a former governor would usher in a new era of honesty and reform in Illinois politics," Robert D. Grant, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation, said in a statement. "Clearly, the charges announced today reveal that the office of the Governor has become nothing more than a vehicle for self-enrichment, unrestricted by party affiliation and taking Illinois politics to a new low." Hefty Prison Term Possible If Blagojevich is convicted, each mail and wire fraud charge carries a maximum sentence of 20 years in prison while each bribery charge carries a maximum sentence of 10 years in prison. Each count carries a maximum fine of $250,000. Blagojevich was born in Chicago to a working-class Serbian immigrant family, working odd jobs and in a meatpacking plant to get through college. He was elected to the Illinois state House in 1992 and later won a seat in the U.S. Congress that had been held by another politician who ran afoul of the law, Dan Rostenkowski. He became Illinois' first Democratic governor in nearly 30 years when he replaced Ryan in 2003, on a platform of reform. But his popularity has descended to an all-time low after wrangles with fellow Democrats in the state legislature, some of whom had threatened him with impeachment. -------- Reporting by Michael Conlon and James Vicini, Kyle Peterson and Karen Pierog in Chicago, editing by Jackie Frank and Frances Kerry.
Illinois
Governor Arrested for Plotting By Mike Robinson Illinois Gov. Rod Blagojevich was arrested Tuesday on charges of conspiring to get financial benefits through his authority to appoint a U.S. senator to fill the vacancy left by Barack Obama's election as president. According to a federal criminal complaint, Blagojevich also was charged with illegally threatening to withhold state assistance to Tribune Co., the owner of the Chicago Tribune, in the sale of Wrigley Field. In return for state assistance, Blagojevich allegedly wanted members of the paper's editorial board who had been critical of him fired. A 76-page FBI affidavit said the 51-year-old Democratic governor was intercepted on court-authorized wiretaps over the last month conspiring to sell or trade the vacant Senate seat for personal benefits for himself and his wife, Patti. The affidavit said Blagojevich discussed getting a substantial salary for himself at a nonprofit foundation or an organization affiliated with labor unions. It said that Blagojevich also talked about getting his wife placed on corporate boards where she might get $150,000 a year in director's fees. He also allegedly discussed getting campaign funds for himself or possibly a post in the president's cabinet or an ambassadorship once he left the governor's office. "I want to make money," the affidavit quotes him as saying in one conversation. U.S. Attorney Patrick J. Fitzgerald said in a statement that "the breadth of corruption laid out in these charges is staggering." "They allege that Blagojevich put a for sale sign on the naming of a United States senator," Fitzgerald said." Among those being considered for the post include U.S. Reps. Danny Davis and Jesse Jackson Jr. Blagojevich also was charged with using his authority as governor in an attempt to squeeze out campaign contributions. His chief of staff, John Harris, also was arrested. Corruption in the Blagojevich administration has been the focus of a federal investigation involving an alleged $7 million scheme aimed at squeezing kickbacks out of companies seeking business from the state. Federal prosecutors have acknowledged they're also investigating "serious allegations of endemic hiring fraud" under Blagojevich. Political fundraiser Antoin "Tony" Rezko who raised money for the campaigns of both Blagojevich and Obama is awaiting sentencing after being convicted of fraud and other charges. Blagojevich's chief fundraiser, Christopher G. Kelly, is due to stand trial early next year on charges of obstructing the Internal Revenue Service. Blagojevich took the chief executive's office in 2003 as a reformer promising to clean up former Gov. George Ryan's mess. Ryan, a Republican, is serving a 6-year prison sentence after being convicted on racketeering and fraud charges. A decade-long investigation began with the sale of driver's licenses for bribes and led to the conviction of dozens of people who worked for Ryan when he was secretary of state and governor Rezko Tie Links Obama and Blagojevich
President-elect Barack Obama’s ties to indicted Illinois Democratic Gov. Rod R. Blagojevich run primarily through Chicago slum lord and felon Tony Rezko. Rezko served as the political godfather for both Blagojevich and Obama, helping both to rise in Chicago and Illinois politics. Obama himself has credited Rezko with helping to his political career. Rezko raised hundreds of thousands of dollars for both politicians. A 76-page FBI affidavit released today after the arrest of Blagojevich and his chief of staff, John Harris, says Blagojevich conspired "to sell" the Illinois Senate seat vacated by President-elect Barack Obama. U.S. Attorney Patrick Fitzgerald called the effort to barter the seat the "most sinister and appalling" of a long list of accusations against Blagojevich. Blagojevich, as governor, is responsible for naming Obama’s replacement. Rezko has had extensive ties to both men: Rezko’s Ties to Obama According to the Chicago Sun-Times, the two met in 1990 while Obama was still attending Harvard Law School. Rezko offered Obama a job, but Obama declined. In 1995, Obama billed 32 hours for work done on behalf of Woodlawn Preservation and Investment Corp., a company involved in a low-income housing partnership with Rezko. He also wrote letters supporting the proposed development. Rezko was Obama’s second largest individual contributor when he began his run for an Illinois state Senate seat in 1995. Two Rezko companies contributed $2,000 to Obama’s campaign, and Rezko and wife Rita reportedly worked on Obama’s campaign. In the first half of 1997, according to a report by Newsmax Contributing Editor Kenneth R. Timmerman, two Rezko companies contributed $2,000 to Obama’s ongoing political operation. In the first half of 1998, Rezko provided Obama’s campaign food worth an estimated $457.70 as an "in-kind contribution." Rezko was one of Obama’s biggest contributors when he ran for U.S. Senate in 2003 and 2004, and Rezko was a member of Obama’s campaign finance committee, according to the Chicago Sun-Times. In June 2003, Rezko held a ritzy fund-raiser for Obama at his tony Wilmette mansion. Obama later said, "Rezko was not my largest fundraiser but a significant fundraiser." According to Reuters, Obama said Rezko raised as much as $250,000. Top 10 Stupidest Moves By Illinois Gov. Rod BlagojevichJust to be clear - what the Illinois governor has been accused of is absolutely breathtaking. Rod Blagojevich's activities and behavior in his alleged "pay-to-play" scheme and attempts to literally sell Barack Obama's Senate seat are crazy even in comparison to past political scandals. I heard one politico on CNN say today, "it's just – even by the standard of American politics – incredible."  FBI special-agent-in-charge Robert Grant said: "I can tell you one thing, if it [Illinois] isn't the most corrupt state in the United States, it's certainly one hell of a competitor." Somebody may want to go back and take another look at what this guy did while he served in the U.S. House for six years, and in the Illinois Legislature prior to that. I'm guessing this cat didn't just start his lowly ways this year. Here are the Top 10 stupidest things Blagojevich - who has been arrested by the feds but is now out on $4,500 bail - did or said while the feds were watching and listening: 10. Talked about his schemes when he knew he was under investigation by the feds for various bribery schemes. On one recording, Blagojevich warned one person not to use the phone and saying, "The whole world is listening. You hear me?" Duh. 9. Committed his crimes in the Northern District of Illinois, Special Prosecutor Patrick Fitzgerald's domain. Yes, this is the same guy who prosecuted the leak of CIA worker Valerie Plame's name to the press, and Scooter Libby. He's known for leaving no stone unturned. 8. Of all the things you ask for in return for appointing someone to the Senate seat the president may want, you ask for the post of secretary of Health and Human Services? 7. Swore like a sailor to anyone who would listen, it seems. That never looks good when someone's listening in. "The bleeps are not really bleeps," Fitzgerald said during a press conference as he ran through some of the more expletive-filled things Blagojevich was caught on tape saying. Here's a classic: On one recording, an advisor and consultant are telling Blagojevich that he has to "suck it up" for two years and do nothing and give this "motherf***er [the President-elect] his senator. F*** him. For nothing? F*** him." Blagojevich says he will put "[Senate Candidate 4]" in the Senate "before I just give F***ing [Senate Candidate 1] a F***ing Senate seat and I don't get anything." Rod, would you kiss your wife with that mouth? Yes, especially when she seems just as bad as him. Patti Blagojevich is heard on the background in that call telling her husband to tell a deputy governor "to hold up that f***ing Cubs s***. . . f*** them" - referring to the Tribune/Cubs scandal. 6. Told people he was considering appointing himself to Obama's Senate seat, telling his deputy governor that if "they're not going to offer me anything of value, I might as well take it." Ri-ight. Because no one would think there was anything shady about that. 5. Thought that Obama would play his game. Blagojevich allegedly was overheard complaining at one point that Obama's people are "not going to give me anything except appreciation." He added: "(Expletive) them." Did he really think that "No Drama Obama," who clearly didn't take any BS in his campaign, was really going to be cowed by his demands or pressured into anything? "The conduct would make Lincoln roll over in his grave," Fitzgerald said. 4. Taking the job of governor in the first place, especially if all he wanted was money. His governor salary is $177,412 a year. The FBI said Blagojevich expressed frustration at being "stuck" as governor. "I want to make money," he was heard saying. Well, public service isn't always the way to go - especially if you're a blackmailing, potty-mouthed, world-class jerk (so people say, anyway). 3. Tried to shake down the CEO of Children's Memorial Hospital for $50,000. At one point, the governor awarded $8 million in funding to that hospital, but he allegedly wanted a $50,000 personal contribution from the CEO in return for his generosity. But that donation never came. Blagojevich then was heard via wiretap checking to see whether or not he could pull back the funding for the hospital. That's a low blow, Rod. You're definitely not getting any sympathy when you tried a scam that would ultimately effect kids. 2. Schemed to bribe a newspaper - a newspaper that reports on your screwups. If the Tribune Company wanted to sell Wrigley Field, Blagojevich allegedly said, then certain editors at the Chicago Tribune needed to be fired. Tribune editors say they never got any pressure from their parent company to skew any reporting. Tribune Co. says the company acted "appropriate at all times." Editor Gerould Kern said in a statement: "The Chicago Tribune investigated allegations of misconduct involving Illinois Gov. Rod Blagojevich independent of the U.S. attorney's criminal probe. As a standard practice, our reporters contact individuals involved in these stories for confirmation and comment prior to publication. Consequently, we contacted the U.S. attorney's office in the course of our reporting." 1. Thinking he could get away with it. When are these guys going to learn - you always get caught. Maybe if Blagojevich only tried to shake down one or two people, he could have stayed under the radar. But this guy was allegedly trying to bribe nearly every one under the sun. Did he really think nobody was going to squeal?
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