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Untitled Document
Attorneys: Illinois gov. cited in corruption probe
December 21, 2007
 
CHICAGO (AP) — In a court document released Friday by federal prosecutors, Gov. Rod Blagojevich boasted that he "could award contracts, legal work and investment banking" to encourage campaign fundraising, according to attorneys close to a corruption investigation.

Blagojevich is not quoted by name but is referred to as "Public Official A" in the document prosecutors issued for the trial of one of the governor's former top fundraisers, but attorneys who asked not to be named due to grand jury secrecy said Blagojevich is "Public Official A."

Blagojevich has been accused of no wrongdoing in the investigation. His spokeswoman, Abby Ottenhoff, dismissed the suggestion that the governor was "Public Official A."

"Based on the description in the filing, it is not the governor," she said.

The document is a so-called Santiago proffer outlining what prosecutors say was a scheme by real estate developer Antoin "Tony" Rezko and others to defraud the state. If U.S. District Judge Amy J. St. Eve agrees the document indicates such a scheme was afoot, prosecutors will be able to present testimony that otherwise would be ruled out as hearsay at the trial for Rezko.

Rezko has pleaded not guilty to scheming to collect millions of dollars in kickbacks from companies seeking to do business with the state.

According to the document, "Public Official A" once met with Joseph Cari, former finance chairman of the Democratic National Committee and said "he had a lot of ways of helping his friends." Cari, who has pleaded guilty to attempted extortion in the Rezko investigation, is now a government witness.

"Public Official A also informed Cari that he could award contracts, legal work and investment banking to help with fundraising," the document said.

The conversation ended with the public official noting that "Rezko and "Co-Schemer B would follow up with Cari," the document said.

"Co-Schemer B" is a Chicago roofing and consulting millionaire Christopher Kelly, who headed fundraising for both of Blagojevich's successful campaigns for governor, according to a person with knowledge of the investigation who would not speak for attribution because grand jury material is secret.

Kelly pleaded not guilty Friday to charges of making false tax statements and structuring a bank transaction in illegal fashion to avoid the scrutiny of federal regulators.

The governor's spokeswoman denied the alleged conversation in the document ever occurred. "This administration does not do business that way," she said.

But among other things, the document said that "Public Official A" appointed millionaire campaign contributor Stuart Levine to the Illinois Health Facilities Planning Board — something Blagojevich did.

Rezko is due to go to trial Feb. 25 on charges of conspiring with Levine and others to shake down money-management firms seeking business with the $30 billion state fund that pays the pensions of 225,000 retired downstate and suburban school teachers.

Levine, who pleaded guilty to mail fraud and money laundering in October 2006, was originally appointed to the 11-member board of the Illinois Teachers Retirement System by Gov. George Ryan, Blagojevich's predecessor.

Ryan had corruption problems of his own and is currently serving a 6½-year racketeering and fraud sentence in federal prison.

Copyright 2007 The Associated Press. All rights reserved.

 

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