Rod Blagojevich

How Damning Is The Burris Transcript?

Zachary Roth | May 28, 2009, 12:12PM

So what to make of the transcript of that phone call, released earlier this week, between Roland Burris and Robert Blagojevich, brother of the disgraced former Illinois governor?

The crux of the conversation -- which took place in mid November, before the then-governor's arrest -- involves Burris explaining to Blagojevich frere that he'd very much like to hold a fundraiser for the governor and otherwise help him politically, and is also interested in being named to Barack Obama's vacant Senate seat. But he's afraid of how things would look if he raised money for Blago, then got the Senate appointment. So he mulls organizing a fundraiser "in the name of" his law partner, for appearances' sake.

Read more »

PERMALINK | COMMENTS (36) | RECOMMEND RECOMMEND (7)
Topics: Barack Obama, Rod Blagojevich, Roland Burris

Rod Blagojevich

Report: Burris Promised To Write Check To Blago

Zachary Roth | May 26, 2009, 5:50PM

The Blago-Burris affair has been simmering away quietly in the background for the last few months. And today brought some interesting news, via the Chicago Sun-Times.

Burris' lawyer said that last November -- about a month before Blagojevich picked him to fill Barack Obama's Senate seat -- Burris promised Blago's brother he'd write a check to the then-governor's campaign.

Read more »

PERMALINK | COMMENTS (4) | RECOMMEND RECOMMEND (5)
Topics: Rod Blagojevich, Roland Burris

Rod Blagojevich

The National Pay-To-Play Scams: What, No Chicago Connection?

Moe Tkacik | May 8, 2009, 1:37PM

Do the expanding pension scandals have a Chicago connection?

The pay-to-play probes currently scrutinizing controllers of public pursestrings from New York to New Mexico to Alabama have so many parallels to the sweeping Illinois investigation that turned Gov. Rod Blagojevich into a reality show candidate, we're kind of surprised they haven't overlapped more.

For one, they both revolve around questionable public pension fund investments and "swaps" contracts. In Illinois, the probe began with questions about millions of dollars in consulting and "finder's" fees collected by Republican lobbyist Bob Kjellander for directing a $500 million teacher pension fund investment to a Carlyle Group hedge fund and convincing another state pension fund to bet on an interest rate swap that generated big fees for Bear Stearns. Some of those fees, according to last month's indictment of Blagojevich, wound up in Blago's own bank account.

But back in 2004, when CDR Financial Products, one of the main consulting firms being under investigation in the scheme, tried to set up shop in Chicago, it got nowhere.

Read more »

PERMALINK | COMMENTS (3) | RECOMMEND RECOMMEND (2)
Topics: Rod Blagojevich

Rod Blagojevich

Judge: Blago Trial Won't Start For Two Years

Zachary Roth | April 16, 2009, 1:47PM

Those of you eager to see Blago getting his day in court may be waiting a long time.

At a hearing today, U.S. District Judge James B. Zagel said that the former Illinois governor's trial "will take six months, and likely will not begin for two years," reports CBS.

Read more »

PERMALINK | COMMENTS (1) | RECOMMEND RECOMMEND (0)
Topics: Pat Fitzgerald, Rod Blagojevich

CDR

The New Mexico Corruption Probe: CDOs, Swaps And "Inappropriate Clothing"

Moe Tkacik | April 10, 2009, 12:27PM

The SEC has stepped into the corruption probe in New Mexico that saved Gov. Bill Richardson the hassle of amending years of tax returns. The new angle involves one of those enticing "toxic derivatives" deals we can't stop reading about, although there's a sexual harassment component, too.

Frank Foy used to manage the state teachers' pension fund, and in 2007 he says he got a call from a guy from a Chicago investment adviser -- and soon-to-be Richardson donor -- named Vanderbilt Capital Advisors. He told the Santa Fe Reporter he was too swamped to meet with him:

"This guy calls me up and says, 'I want to talk to you about a CDO.' I said, 'Call me back in a month. I don't have time to screw with it, dude,'" Foy recalls. "He didn't like that answer."

Soon after, Foy told the Reporter, he got a call from [Foy's Richardson-appointed boss Bruce] Malott. "He said, 'You were very rude to Pat Livney. I think he has a good investment and you ought to talk to him.'...I'd never been called by the chairman before. I thought, 'This stinks.'"

The investment was the lowest-rated slice of a collateralized debt obligation -- called the "equity tranche", presumably because like a stock its value can go all the way to zero. (Which it -- surprise! -- essentially did, after paying out about $4 million in interest payments to the fund, according to State Investment Officer Gary Bland.) Vanderbilt's CDO was the most toxic brand of the sort of "toxic" securities dragging down bank balance sheets right now; most banks, according to this handy primer on CDOs, didn't attempt to sell them to investors. But Livney, a former head trader of asset-backed securities at JP Morgan, nabbed a $90 million investment from the teachers' pension fund, despite what Foy claims were his strenuous objections. Malott, Foy says, told him the investment had been ordered by Bill Richardson's chief of staff. Shortly thereafter, a female employee accused Foy of sexually harassing her, and he was demoted.

Read more »

PERMALINK | COMMENTS (5) | RECOMMEND RECOMMEND (7)
Topics: Bill Richardson, CDR, Rod Blagojevich

CDR

Blago's Risky Bet On Derivatives

Moe Tkacik | April 6, 2009, 2:51PM

The Rod Blagojevich pay-to-play scandal may seem like an anachronistically simple big city machine politics scandal next to the ever-widening web of inscrutably interrelated financial scams comprising the on-going financial crisis. But in brokering deals with public coffers, at least, Blago liked "exotic" derivatives as much as the next hedge fund guy.

In January 2004, the Illinois pension obligation program was $36 billion in the hole, the most indebted state pension program in the country. So Blago decided to refinance, taking advantage of the era's superlow interest rates to float $10 billion in "exotic" new bonds in the country's biggest pension bond offering on record. Bond Buyer named it the Midwest Deal of the Year at the time -- not just for its "complex" pricing but its use of derivatives, which had just been legalized by the state legislature the year earlier. It was the start of a new trend, the trade publication noted:

Since Gov. Rod Blagojevich took office in January 2003 faced with a nearly $5 billion budget deficit, his finance team - which includes former financial advisory professional John Filan and quantitative analyst and investment banker David Abel - has turned to more sophisticated techniques to manage state finances. Supporters have called them creative, while critics have labeled them dangerous.

The deal alone netted investment banks $35 million in fees, including $8 million for the lead underwriter Bear Stearns, which in turn delivered a $809,000 consulting fee to a firm called Springfield Consultants run by lobbyist Robert Kjellander. The fee caused much furor in the Illinois statehouse when Bear Stearns disclosed it in an SEC filing, especially after initial probes launched by the state Inspector General revealed the firm could not produce any evidence that Kjellander, a prominent GOP lobbyist and friend of Karl Rove, had done anything to earn the fee.

The investigation swung into high gear when a hospital president named Pamela Davis got an unsettling phone call at her house from a Bear Stearns executive:

Back in 2003, Davis was trying to get approval for a new medical office building from the Illinois Health Facilities Planning Board. A night or two before a hearing was to be held, Davis recalled, something strange happened. A business acquaintance of hers, Nicholas Hurtgen, then a managing director of the Chicago office of Bear Stearns, called her at home and told her that unless she agreed to use a certain contractor she should pull her building request, because it wasn't going to be approved.

She ignored the warning and went off to the board hearing, where she was surprised to find that her request was denied. "I was humiliated," she said. "They were mean. So I walk off, and then a different guy comes up to me and he says, 'We told you to pull your project. Call me.' And right then I decided to call the F.B.I."

The FBI wouldn't confirm or deny Davis' story to the New Yorker, but she says she spent seven months secretly recording conversations with Hurtgen and his cronies, eventually filing a sealed federal whistleblower lawsuit alleging that Hurtgen, a former protege of former Wisconsin governor and Bush cabinet member Tommy Thompson, was part of a massive pay-to-play scheme that somehow linked the bond offering to the hospital.

The details are still unclear, but some of that $809,000 allegedly made its way back to Tony Rezko, who in turn split the bounty with three friends -- one of whom was Blago, according to last week's indictment, which refers to Kjellander as a "lobbyist" according to the Chicago Tribune:

Read more »

PERMALINK | COMMENTS (1) | RECOMMEND RECOMMEND (8)
Topics: Bill Richardson, CDR, Rod Blagojevich

Pat Fitzgerald

Feds: Blago Tried To Shake Down Rahm

Zachary Roth | April 3, 2009, 4:23PM

One of the more interesting new details in the Blagojevich indictment was the allegation that the former Illinois governor held up the state funds for a publicly supported school, in an effort to pressure an unnamed congressman who supported the school to have his brother hold a fundraiser for Blago.

Who, we wondered, was the congressman? And who was his brother?

Read more »

PERMALINK | COMMENTS (12) | RECOMMEND RECOMMEND (16)
Topics: Pat Fitzgerald, Rod Blagojevich

Pat Fitzgerald

Feds Pull Out RICO On Blago, Team

Zachary Roth | April 2, 2009, 6:42PM

The indictment of Rod Blagojevich and his associates includes one RICO conspiracy count. From the DOJ's press release:

The RICO conspiracy count alleges that Blagojevich personally, the Office of the Governor of Illinois and Friends of Blagojevich were associated and, together, constituted the "Blagojevich Enterprise," whose primary purpose was to exercise and preserve power over Illinois government for the financial and political benefit of Blagojevich, both directly and through Friends of Blagojevich, and for the financial benefit of his family members and associates. Blagojevich and Kelly, the only RICO conspiracy defendants, allegedly conspired with Monk, Cellini, Harris, Robert Blagojevich, Rezko and previously convicted cooperating defendant Stuart Levine, to conduct the Blagojevich Enterprise through a pattern of multiple acts of mail and wire fraud, extortion, attempted extortion and extortion conspiracy, and state bribery.

Read more »

PERMALINK | COMMENTS (3) | RECOMMEND RECOMMEND (2)
Topics: Pat Fitzgerald, Rod Blagojevich

Pat Fitzgerald

Feds: Blago And Cronies Were Scheming To Make Money From The Start

Zachary Roth | April 2, 2009, 6:18PM

Here are the major new allegations contained in the indictment of Rod Blagojevich, his brother Robert Blagojevich, and four associates (from a very detailed DOJ press release (pdf)):

[B]eginning in 2002 and continuing after Blagojevich was first elected governor, Blagojevich and Monk, along with Kelly and previously convicted co-schemer Antoin "Tony" Rezko, agreed that they would use the offices of governor and chief of staff for financial gain, which would be divided among them with the understanding that the money would be distributed after Blagojevich left public office.

And:

[I]n 2003, Blagojevich, Monk, Kelly, Rezko and other co-schemers implemented this agreement by directing lucrative state business relating to the refinancing of billions of dollars in State of Illinois Pension Obligation Bonds to a company whose lobbyist agreed to provide hundreds of thousands of dollars to Rezko out of the fee the lobbyist would collect, and Rezko in turn agreed to split the money with Blagojevich, Monk and Kelly.

And:

After it became public that Kelly and Rezko were under investigation and ceased playing a significant role in raising campaign funds, Blagojevich personally continued to trade his actions as governor for personal benefits, including, for example, delaying a state grant to a publicly-supported school while trying to leverage a U.S. Congressman, who supported the school, or the Congressman's brother, to hold a campaign fundraiser for Blagojevich.

And:

[I]n an interview on March 16, 2005, Blagojevich lied to FBI agents when he said that he maintains a separation, or firewall, between politics and state business; and he does not track, or want to know, who contributes to him or how much they are contributing to him.

PERMALINK | COMMENTS (14) | RECOMMEND RECOMMEND (5)
Topics: Pat Fitzgerald, Rod Blagojevich

Rod Blagojevich

Blagojevich Indicted

Zachary Roth | April 2, 2009, 6:06PM

Chicago Breaking News Center reports:

Former Gov. Rod Blagojevich, his brother Rob and Christopher Kelly, a former top fundraiser for Blagojevich, were all indicted today on corruption charges, the U.S. attorney's office in Chicago announced.

Also charged in the indictment were Lon Monk, a lobbyist and former Blagojevich chief of staff; John Harris, also a former chief of staff to Blagojevich; and William Cellini, a Springfield insider for decades.

Will bring you more from the indictment itself...

PERMALINK | COMMENTS (4) | RECOMMEND RECOMMEND (2)
Topics: Lobbyists, Pat Fitzgerald, Rod Blagojevich

Allen Stanford

Six Degrees Of Allen Stanford

Zachary Roth | February 18, 2009, 2:24PM

Here at TPMmuckraker, the more we think about the Allen Stanford saga, the more it seems like a kind of harmonic convergence of recent high-profile muck.

The emerging story's range of ties -- some incidental, some more substantive -- to some other high-profile scandals of the past few years, from Bermard Madoff to Jack Abramoff to Rod Blagojevich -- is pretty striking.

First, Madoff.

It's not just that questions about the pace of the SEC's Stanford investigation -- including whether the agency's decision to bring charges yesterday was prompted in part by recent news reports -- have to be considered in light of the SEC's well-documented missteps on the Madoff case.

It's also that, according to the SEC complaint, Stanford's investors were exposed to losses via Madoff -- but falsely assured them they weren't.

From the complaint:

In a December 2008 Monthly Report, the bank told investors that their money was safe because SID "had no direct or indirect exposure to any of [Bernard] Madoffs investments."

But, contrary to this statement, at least $400,000 in Tier 2 was invested in Meridian, a New York-based hedge fund that used Tremont Partners as its asset manager. Tremont invested approximately 6-8% of the SIB assets they indirectly managed with Madoffs investment firm.

Pendergest, Davis and Stanford knew about this exposure to loss relating to the Meridian investment. On December 15, 2008, an Analyst informed Pendergast, Davis and Stanford in a weekly report that his "rough estimate is a loss of $400k ... based on the indirect exposure" to Madoff'.

As for Abramoff, we reported yesterday that a bevvy lawmakers with ties to the crooked lobbyist or a history of other ethical problems - including then-GOP members of Congress Bob Ney, Katherine Harris, Tom Feeney, and John Sweeney, as well as current Rep. Charlie Rangel -- went on a 2005 junket to Antigua that was funded by an organization with close links to Stanford.

Indeed, until yesterday, that organization, the Inter-American Economic Council, had photographs from the trip -- showing Harris, Feeney, and pals hobnobbing in splendor with Antiguan dignitaries -- posted on its website. It's since removed them, but not before we saved them. You can see the slideshow here.

And there's also another congressional angle which, though not on a par with the Abramoff sleaze, nonetheless appears to reflect the cynical money-for-access culture that has characterized Washington politics in recent years:

In 2002, as we reported yesterday, after lobbying from Stanford's firm, the Democratic-controlled Senate killed a bill designed to bolster efforts to catch financial fraud. During that cycle, Stanford's company had given an eye-popping $800,000 to the Democratic Senatorial Campaign Committee. And according to campaign finance records examined by TPMmuckraker, it had also given generously to key Democrats on the Senate Banking committee: $8000 to Chuck Schumer, $6000 to Chris Dodd, and $1000 to then-chair Paul Sarbanes.

So there's that.

What about Blago?

Well, it turns out that, according to lobby disclosure reports examined by TPMmuckraker, one of Stanford's paid lobbyists in 2002 -- the year that the firm was lobbying on the anti-financial-fraud bill -- was John Wyma. One form lists Wyma and his team's work as "Helping them address legislature (sic) which involves financial services companies."

In case you'd forgotten, Wyma used to be one of Blagojevich's closest aides, before cooperating with Pat Fitzgerald's investigation by secretly recording conversations with the then governor.

The two were apparently think as thieves at one time. The Chicago Tribune reported at the time of Blago's arrest:

The governor routinely reported exchanging personal gifts and often appeared at Wyma-sponsored fundraisers where Wyma's clients hobnobbed with the governor before turning over checks for his campaign fund.

Now all we need is a link to the U.S. Attorney firings, and we'll be all set.

PERMALINK | COMMENTS (8) | RECOMMEND RECOMMEND (4)
Topics: Allen Stanford, Bernard Madoff, Bob Ney, Charles Rangel, Jack Abramoff, Katherine Harris, Rod Blagojevich, Securities and Exchange Commission, Stanford Financial Group, Tom DeLay

Roland Burris

Burris' Day: Two Perjury Probes, and Calls For Resignation

Zachary Roth | February 18, 2009, 8:53AM

Yesterday was not a good day for Roland Burris.

First, he admitted that, contradicting the impression he had left over the weekend, he had tried to raise money for Rod Blagojevich after a conversation with the then-governor's brother. (That acknowledgement came on the heels of an affidavit Burris filed earlier this month which itself contradicted his sworn testimony to the legislature about conversations with Blagojevich's circle.)

Then, we learned that two investigations have been launched into the new senator's shifting explanations. One is described by the Chicago Tribune as "a perjury review," being conducted by John Schmidt, the local prosecutor in Springfield, and a Republican. Schmidt said he was acting on a request from Illinois Attorney General Lisa Madigan.

And the Senate ethics committee opened its own probe into the perjury question yesterday, The Hill confirmed.

Then late last night, the Tribune and the Washington Post went live with editorials calling on Burris to resign.

Like we said, not a good day.

PERMALINK | COMMENTS (54) | RECOMMEND RECOMMEND (8)
Topics: Rod Blagojevich, Roland Burris, Senate Ethics Committee

Roland Burris

Burris Now Admits He Tried To Raise Money For Blago

Zachary Roth | February 17, 2009, 1:18PM

This is getting kind of ridiculous. Roland Burris has now admitted he tried to raise money for Rod Blagojevich, at the request of the former governor's brother.

The Chicago Tribune reports:

U.S. Sen. Roland Burris has acknowledged he sought to raise campaign funds for then-Gov. Rod Blagojevich at the request of the governor's brother at the same time he was making a pitch to be appointed to the Senate seat previously held by President Barack Obama.

Burris' latest comments in Peoria Monday night were the first time he has publicly said he was actively trying to raise money for Blagojevich. Previously Burris has left the impression that he always balked at the issue of raising money for the governor because of his interest in the Senate appointment.

In comments to reporters after appearing at a Democratic dinner, the senator several times contradicted his latest under-oath affidavit that he quietly filed with the Illinois House impeachment panel earlier this month. That affidavit was itself an attempt to clean up his live, sworn testimony to the panel Jan. 8, when he omitted his contacts with several Blagojevich insiders.

Here's the transcript of Burris' comments.

PERMALINK | COMMENTS (71) | RECOMMEND RECOMMEND (21)
Topics: Barack Obama, Rod Blagojevich, Roland Burris

Rod Blagojevich

Burris Contradicts Sworn Testimony On Talking To Blago's Office

Zachary Roth | February 16, 2009, 2:03PM

Over the weekend, the Rod Blagojevich mess got even messier.

The Chicago Sun-Times reported on Saturday that Sen. Roland Burris admitted, in a signed affidavit, to having talked with several Blagojevich aides about the open U.S. Senate seat. That admission appears to contradict Burris' sworn testimony last month before the Illinois legislature.

In the affidavit, filed February 5th with a Democratic state lawmaker overseeing the impeachment proceedings, Burris acknowledged that he had talked about the seat to Robert Blagojevich, the governor's brother, as well as several other of the governor's advisers. Those conversations, according to the affidavit, occurred in October and November of last year -- both before and after the seat became available thanks to Barack Obama's presidential election victory. Burris wrote that Robert Blagojevich had asked Burris to make a political contribution to the governor -- which Burris says he did not do.

That appears to contradict Burris' testimony last month in front of state legislators, when he said that the only conversation he had had about the seat with a member of the governor's circle had been over the summer with Lon Monk, a former top aide to Blagojevich. That testimony occurred while Burris was fighting an active campaign to be sworn in as a U.S. senator, after Blagojevich had picked him for the seat.

At a press conference yesterday, Burris said he hadn't mentioned the other conversations in his testimony because he hadn't been asked a direct question about Robert Blagojevich. "At no time did I ever make any inconsistent statement," Burris said.

But according to the Associated Press, the transcript of Burris's testimony shows that he was specifically questioned about Robert Blagojevich, and consulted with his lawyer before responding.

There are also questions about the actions of State Representative Barbara Flynn Currie, the Democrat chairing the impeachment panel. Currie has said she received the affidavit shortly after Burris submitted it February 5th, but, believing it to be routine, she didn't read it or show it to others on the committee.

Illinois Republicans are now calling for a perjury investigation into Burris. As for Democratic leaders in the U.S. Senate, who could ultimately hold the key to Burris' fate, they seem to be taking a wait-and-see approach. A spokesman for Senate Democratic chief Harry Reid told the AP, "Senator Reid is reviewing the affidavit and will await any action by Illinois legislative leaders after they review the matter."

But in the short term, it's not clear what can be done. According to one expert who spoke to the AP, the state legislature could pass a bill calling for a special election, arguing that Burris' appointment was only temporary. But whether such a bill would gain sufficient support to pass isn't known.

Blago's fall was pretty quick. But cleaning up the mess he left may take a lot longer.

PERMALINK | COMMENTS (5) | RECOMMEND RECOMMEND (4)
Topics: Barack Obama, Rod Blagojevich, Roland Burris

Pat Fitzgerald

Report: Fitzgerald To Stay On

Zachary Roth | February 10, 2009, 6:30PM

When a new president comes in, he usually replaces all 93 US attorneys with his own nominees. But, in what could be bad news for Rod Blagojevich, at least one high-profile US Attorney won't be asked to step down, it looks like.

NBC News reports that Patrick Fitzgerald, the no-nonsense U.S. attorney for Chicago, will stay on under President Obama, despite being a Bush appointee.

Fitzgerald is preparing an indictment against the former Illinois governor. He also served as the special prosecutor in the Valerie Plame leak case, in which Scooter Libby was convicted of perjury.

The new administration has asked all the US the current Republican-appointed U.S. attorneys to stay on in the short term, while it decides which to retain. But it has already made a decision on Fitzgerald, it appears.

The suggestion to keep Fitz, who has been in the job since 2001, was made by Sen. Dick Durbin, who's close to Obama. Durbin's suggestion was "positively received," according to DOJ officials, as well as aides to Durbin.

The decision is not unexpected, since replacing Fitzgerald while he's in the midst of a high-profile and long-running probe of his state's former governor, would likely have generated an outcry.

PERMALINK | COMMENTS (14) | RECOMMEND RECOMMEND (14)
Topics: CIA, Pat Fitzgerald, Rod Blagojevich, Scooter Libby, U.S. Attorneys, Valerie Plame

Rod Blagojevich

Fitzgerald Asks For Extension On Blago Indictment

Zachary Roth | December 31, 2008, 12:43PM

US Attorney Patrick Fitzgerald has asked for a 90-day extension to bring an indictment against Illinois governor Rod Blagojevich.

In a motion filed today in U.S. District Court, Fitzgerald said that the length, scope, and complexity of the investigation, combined with the intrusion of the holiday season, has prevented him from meeting the January 7 deadline. The probe, writes the prosecutor, began in 2003 and "involves multiple potential defendants" and thousands of intercepted phone calls.

The move means that we likely won't learn much more from Fitzgerald about Blagojevich's alleged crimes until at least March. So speculation is likely to continue.

We'll have the motion for you soon...

Late Update: Here it is.

PERMALINK | COMMENTS (11) | RECOMMEND RECOMMEND (7)
Topics: Barack Obama, Pat Fitzgerald, Rod Blagojevich

Jesse Jackson Jr.

Jackson Has Been Talking To Feds About Blagojevich Since The Summer

Zachary Roth | December 16, 2008, 4:00PM

Looks like Jesse Jackson has been cooperating with Pat Fitzgerald's probe of Rod Blagojevich for longer than we knew.

The Associated Press reports:

A spokesman for Rep. Jesse Jackson Jr. tells The Associated Press the congressman has been talking to federal investigators about his dealings with Gov. Rod Blagojevich (bluh-GOY'-uh-vich) since summertime.

Spokesman Rick Bryant wouldn't give details of those discussions Tuesday morning.

But a report from WLS-TV in Chicago cites unidentified sources as saying Jackson has told investigators Blagojevich wouldn't appoint Jackson's wife as state lottery director because Jackson wouldn't donate $25,000 to the governor's campaign fund.

Jackson has admitted to being "Senate Candidate 5" identified in the charging document against the Illinois governor. Blagojevich says in a recorded conversation that an "emissary" from Candidate 5 proposed a "pay to play" deal for Barack Obama's vacated Senate seat.

Late update: In fact, Jackson's cooperation may have gone on for much longer than that. CNN reports:

Rep. Jesse Jackson, Jr. has served as an informant to the U.S. attorney's office in Illinois, two sources close to Jackson tell CNN.

Jackson has served as an informant for more than a decade and has relayed information relating to embattled Gov. Rod Blagojevich since 2006, the sources said.

PERMALINK | COMMENTS (8) | RECOMMEND RECOMMEND (3)
Topics: Barack Obama, Jesse Jackson Jr., Pat Fitzgerald, Rod Blagojevich

Rod Blagojevich

Report Identifies Zell Financial Adviser

Zachary Roth | December 12, 2008, 4:53PM

Since the complaint against Rod Blagojevich was made public Tuesday, we've been wondering about the identity of the "Tribune Financial Adviser" who is said to have met with John Harris, the governor's then chief of staff, about the possibility of firing Tribune editorial writers who had been critical of Blagojevich.

Now the Tribune itself is reporting that it's Nils Larsen, a Tribune exec and managing director of the Equity Group, a private investment group started by Tribune CEO Sam Zell. Larsen has been interviewed by the FBI, adds the paper.

Larsen had been at the top of our list of suspects. The complaint says that the person is someone mentioned in media reports as a top financial adviser to Zell, who played a major role in Zell's purchase of the Tribune Company.

And Larsen appears to fit the bill. Consider this paragraph from a profile in Chicago Business last year:

Mr. Larsen, 37, is a managing director at Equity Group Investments LLC, Chicago billionaire Sam Zell's private investment firm -- and the company that will lead Tribune Co. when it goes private later this year. He's been Mr. Zell's point man in arranging and negotiating $11.2 billion in financing for the deal, scoping the future of Tribune's 23 television stations and running the sale of the Chicago Cubs.

We called Larsen yesterday to ask if he was the financial adviser named in the charging documents, but he didn't respond. He didn't respond to the Tribune either, and neither did Zell.

The paper adds that the feds have also issued a subpoena to the Tribune Company (probably wasn't hard for them to get the scoop!), seeking memos that might shed light on the governor's apparent efforts to get the editorial writers fired.

PERMALINK | COMMENTS (1) | RECOMMEND RECOMMEND (12)
Topics: Rod Blagojevich, Sam Zell

Barack Obama

Report: Rahm And Blago Talked About Senate Seat

Zachary Roth | December 12, 2008, 12:03PM

Did Rahm Emanuel speak to Rod Blagojevich about the governor's plans to fill the Senate seat left open by Barack Obama?

That's what a Fox affiliate in Chicago has reported, based on "a source familiar with the investigation" into the Illinois governor.

Fox Chicago News reports that Emanuel, the Chicago congressman who was appointed shortly after the election to be Obama's White House chief of staff, had "multiple conversations" about the issue with the governor himself and with Blagojevich's chief of staff, John Harris -- who this week was charged along with his boss.

The source said it was likely that these conversations were recorded, since they took place after the federal wiretaps had begun.

Of course, it would not be surprising if Emanuel had spoken to the governor about options to fill the seat. Fox Chicago said that the source didn't say whether those conversations involved any quid pro quo or dealmaking.

Obama yesterday pledged to canvass his staff about conversations with Blagojevich's office over the seat, and disclose what he finds out soon. Obama said that none of his staff had discussed any kind of deal for the seat.

PERMALINK | COMMENTS (42) | RECOMMEND RECOMMEND (14)
Topics: Barack Obama, Rahm Emanuel, Rod Blagojevich

Barack Obama

Axelrod: Jarrett Withdrew From Senate Contention Because Obama Wanted Her In WH

Zachary Roth | December 12, 2008, 11:18AM

Looks like David Axelrod is trying to push back against talk that Valerie Jarrett, a close friend and adviser to Barack Obama, may have abruptly pulled out of the contest for the president-elect's Senate seat because she had an idea of how the governor was approaching the task of filling the seat.

Bloomberg reports that Axelrod, Obama's top strategist, told an audience last night at Harvard's Kennedy School of Government:

[Obama'] preference was always that she serve in the White House, and ultimately he expressed that to her and said look, 'I just need you,' and that's why she made that decision.

Jarrett withdrew from contention days after a Nov. 10 conference call where, according to charging documents filed by prosecutors, Blagojevich talked about appointing "Senate Candidate 1" in exchange for his wife getting a corporate board appointment. Soon afterwards, Jarrett was announced as a White House adviser to Obama.

The Chicago Tribune has identified Jarrett as Senate Candidate 1.

Axelrod added:

No one in their wildest imagination could have imagined the scenario that ensued. There's a vacancy, the governor, apparently, in the complaint of the government had some ideas about what to do with it. We were not involved in that discussion or any discussion of that nature.

PERMALINK | COMMENTS (0) | RECOMMEND RECOMMEND (7)
Topics: Barack Obama, Rod Blagojevich

Jesse Jackson Jr.

Report: Businessmen Said They Were Raising Money For Blago To Get Senate Seat For Jackson

Zachary Roth | December 12, 2008, 10:57AM

This doesn't look great for Jesse Jackson Jr.

The Chicago Tribune reports:

As Gov. Rod Blagojevich was trying to pick Illinois' next U.S. senator, businessmen with ties to both the governor and U.S. Rep. Jesse Jackson Jr. discussed raising at least $1 million for Blagojevich's campaign as a way to encourage him to pick Jackson for the job, the Tribune has learned.

At a luncheon meeting on October 31, Nayak and Rajinder Bedi told many of the attendees that they were organizing a fundraiser for Blagojevich, and that the purpose of the event was to get Jackson named to the Senate seat, two sources tell the Trib.

The meeting led to a fundraiser last Saturday which was attended by Jesse Jackson's brother, a former business partner of one of the businessmen, Raghuveer Nayak.

One source told the paper that he overheard Nayak and Bedi discussing plans with another politically active Indian-American businessman.

Raghu said he needed to raise a million for Rod to make sure Jesse got the seat," the second businessman said. "He said, 'I can raise half of it, $500,000.' The idea was that the other two would help raise the rest.

Nayak and Bedi are politically active in Chicago's Indian-American community. Nayak has raised money for Blagojevich and contributed to Jackson. Bedi is an aide to Blagojevich, who the governor is said to call "my Sikh warrior."

Speaking to a local Fox affiliate outside his home this morning, Jackson responded to the Trib's report.

He called Nayak a "great man" and a" family friend, but then said: "I'm confident that no one on my behalf made a single offer to anyone for anything. I wouldn't accept the position if it were offered under those circumstances."

Jackson continued:

I had not met with Governor Blagojevich in four years until I was granted a meeting on Monday, where I presented the governor with my credentials. What I was unaware of was that the governor was pitting Candidate 1 against Candidate 5, against Candidate 2, against Candidate 3, trying to exact (sic) something out of everyone in the process.

Jackson's own lawyer has all but confirmed that Jackson is Candidate 5. In the charges filed Tuesday against Blagojevich, the governor says he was approached by an "emissary" from Candidate 5, proposing a "pay to play" arrangement for the Senate seat.

PERMALINK | COMMENTS (7) | RECOMMEND RECOMMEND (3)
Topics: Barack Obama, Jesse Jackson Jr., Rod Blagojevich

Barack Obama

Obama Pledges Openness On Blago Contacts

Zachary Roth | December 11, 2008, 11:34AM

If any of Barack Obama's aides talked to Rod Blagojevich about the Senate seat the president-elect left open, we may be about to find out who it was, and what was said. And that's a lot better than we've been used to over the last few years.

At an appearance moments ago to announce his healthcare team, Obama led off by telling reporters that he has asked his team to gather the facts about contacts with the governor on the subject. "What I want to do is to gather all the facts about any staff contacts that may have taken place" between the governor's office and the transition team, he said. In response to a question, he added that he would present the findings publicly in the next few days.

But Obama said he is "absolutely certain" that if such contacts took place between his team and the governor's office, they would not have included discussion of any kind of "deal" for the seat.

Obama also repeated that he himself never spoke to the governor about the seat. "I did not speak to the governor about these issues," he added.

It's worth noting that Obama's pledge to canvass his staff and present what he's found stands in contrast to the approach taken by President Bush after news reports suggested that a member of his team had improperly leaked the name of a covert CIA operative. Bush at first pledged to get to the bottom of the matter, but soon appeared uninterested in quickly doing so, or in disciplining those members of his administration -- Karl Rove, Scooter Libby, and Richard Armitage -- who were ultimately found to have been the culprits.

We should wait to see if Obama fully delivers on his pledge to reveal what he's found, but so far, he seems to be approaching the issue with greater openness than his predecessor.

PERMALINK | COMMENTS (19) | RECOMMEND RECOMMEND (5)
Topics: Barack Obama, Rod Blagojevich

Jesse Jackson Jr.

Blitzer: Fitz Doesn't Have Jackson On Tape

Zachary Roth | December 10, 2008, 5:25PM

On CNN within the last hour, Wolf Biltzer slipped in some interesting and potentially important news about what federal prosecutors might and might not have on Jesse Jackson Jr., who today was all but confirmed by his lawyer to be Senate Candidate 5.

Talking to legal analyst Jeffrey Toobin, Blitzer said that according to law enforcement sources, Pat Fitzgerald's office does not have recordings of Jackson himself speaking to Rod Blagojevich as part of the US Attorney's investigation into the governor.

If true, that would be significant, because the indictment filed yesterday against the governor quotes him telling an aide that an "emissary" from Jackson approached the governor and proposed a "pay-to-play" deal in regard to the open US Seante seat that Blagojevich has the power to fill.

If Fitzgerald doesn't have evidence of Jackson himself talking about any such deal, it would appear to lessen the chances that Jackson will be charged.

Of course, there are some caveats here. We've been unable to get more details on Blitzer's report, and haven't seen it corroborated elsewhere.

And even if true, Blitzer's report doesn't exlcude the possibility that Fitzgerald has a recording of an aide to Jackson -- perhaps the "emissary" to whom Blagojevich referred -- talking about the alleged deal.

Still, this is worth trying to learn more about...

PERMALINK | COMMENTS (11) | RECOMMEND RECOMMEND (6)
Topics: Jesse Jackson Jr., Pat Fitzgerald, Rod Blagojevich

Barack Obama

Jackson: I Did Nothing Wrong

Zachary Roth | December 10, 2008, 4:40PM

Rep. Jesse Jackson Jr. just gave a press conference adamantly denying any wrongdoing in connection with the Blagojevich charges.

"I reject and denounce pay-to-play politics, and have no involvement whatsoever in any wrongdoing,"Jackson said.

He added: "I did not initiate or authorize anyone at any time to promise anything to Governor Blagojevich at any time."

Jackson continued: "I spoke to the US Attorney's office and they shared with me that ... I am not accused of any misconduct."

Jackson said he met with the governor Tuesday (he meant Monday, it appears) to discuss the Senate seat, as was reported at the time, but that he believed he was in consideration on the merits.

He closed with an effort to associate himself with civil-rights history, saying he wanted to be judged "on the content of my character."

Earlier today, Jackson's lawyer all but admitted that Jackson is Senate Candidate 5. In the indictment filed against Blagojevich, the governor claims that an "emissary" from Candidate 5 approached him about a "pay to play" deal for the open Senate seat that Blagojevich has the power to fill.

PERMALINK | COMMENTS (4) | RECOMMEND RECOMMEND (1)
Topics: Barack Obama, Jesse Jackson Jr., Rod Blagojevich

Jesse Jackson Jr.

Jackson's Lawyer: I "Assume" He's Candidate 5

Zachary Roth | December 10, 2008, 3:59PM

In a televised press conference this afternoon, Jesse Jackson Jr.'s lawyer all but confirmed that his client is Senate Candidate 5 -- as we suspected from the start.

Asked whether he believes that Jackson is Candidate 5, James Montgomery said: "I do." He added: "He did not specifically tell me that, but I can assume it from our conversation."

Montgomery said that Jackson is guilty of no wrongdoing, and that both Montgomery and Jackson have been told by law enforcement that Jackson is not a target of the investigation. And he said that he and Jackson are scheduled to meet with US Attorney Pat Fitzgerald on Friday or Monday.

Just to remind you, in the indictment filed against Rod Blagojevich, the governor claims that an "emissary" from Candidate 5 approached him about a "pay to play" deal for the open Senate seat that Blagojevich has the power to fill.

PERMALINK | COMMENTS (3) | RECOMMEND RECOMMEND (5)
Topics: Barack Obama, Jesse Jackson Jr., Rod Blagojevich

Jesse Jackson Jr.

Report: Jackson Jr. Is Candidate Five

Zachary Roth | December 10, 2008, 11:49AM

ABC News is reporting that Rep. Jesse Jackson is "Senate Candidate 5". The report is attributed to "federal law enforcement sources."

The charging documents in the Rod Blagojevich case quote the governor telling an aide that an "emissary" from Candidate 5 contacted him and proposed a "pay to play" arrangement in regard to the US Senate seat left open by Barack Obama, which Blagojevich has the authority to fill.

The governor also says he thinks he might be able to get something "tangible, up front" from Candidate 5 in return for the appointment.

Jackson Jr. said this morning he was contacted by federal prosecutors who "asked me to come and share with them my insights and thoughts about the selection process."

Asked whether he was Candidate 5, Jackson Jr. said "I don't know," but added that he had been told he was not a target of the investigation.

We suggested yesterday that Jackson Jr. might be Candidate 5.

PERMALINK | COMMENTS (21) | RECOMMEND RECOMMEND (6)
Topics: Barack Obama, Jesse Jackson Jr., Rod Blagojevich

Rod Blagojevich

Blago Lawyer: Gov "Didn't Do Anything Wrong"

Zachary Roth | December 9, 2008, 6:04PM

Rod Blagojevich's lawyer has said the governor has no plans to resign and will be vindicated, Politico reports.

The attorney for Illinois Gov. Rod Blagojevich said the governor will be vindicated and he has no plans to resign.

"He didn't do anything wrong," attorney Sheldon Sorosky told reporters after Blagojevich was arraigned. "A lot of this is just politics."

Blagojevich should be in the office Wednesday, Sorosky added.

So, reporters asked, he does not intend to resign?

"Not that I know of, no," said Sorosky, who added that the governor was "surprised" by the day's events.

PERMALINK | COMMENTS (19) | RECOMMEND RECOMMEND (3)
Topics: Barack Obama, Rod Blagojevich

Rod Blagojevich

CREW To Blago: "Resign Immediately"

Zachary Roth | December 9, 2008, 2:37PM

In what is likely the start of a trend, Citizens for Responsibility and Ethics in Washington (CREW), the DC-based good government group, has released a statement calling on Blagojevich to resign as Illinois governor.

It's fair to say that if the allegations in the charging documents are true, the governor has shown neither responsibility nor ethics.

PERMALINK | COMMENTS (13) | RECOMMEND RECOMMEND (3)
Topics: Barack Obama, Rod Blagojevich

Barack Obama

Blago: Senate Candidate 5 Wanted To Trade Campaign Cash For Seat

Zachary Roth | December 9, 2008, 2:10PM

We don't know for sure who Senate Candidate 5 is. But we'll likely find out. So it's worth understanding what his or her (though it appears to be his) alleged role in the affair is.

For Candidate 5, the most damaging passage in the document is this:

On December 4, 2008, ROD BLAGOJEVICH spoke to Advisor B and informed Advisor B that he was giving Senate Candidate 5 greater consideration for the Senate seat because, among other reasons, if ROD BLAGOJEVICH ran for re-election Senate Candidate 5 would "raise money" for ROD BLAGOJEVICH, although ROD BLAGOJEVICH said he might "get some (money) up front, maybe" from Senate Candidate 5 to insure Senate Candidate 5 kept his promise about raising money for ROD BLAGOJEVICH. (In a recorded conversation on October 31, 2008, ROD BLAGOJEVICH described an earlier approach by an associate of Senate Candidate Five as follows: "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.")

That last part, in which the governor says he was approached by an "emissary" from Candidate 5 proposing a pay-to-play deal for Barack Obama's vacated Senate seat, is the key. Though it's worth noting, of course, that Blagojevich hardly has a reputation for honesty.

There is also this passage:

Later on December 4, 2008, ROD BLAGOJEVICH spoke to Fundraiser A. ROD BLAGOJEVICH stated he was "elevating" Senate Candidate 5 on the list of candidates for the open Senate seat. ROD BLAGOJEVICH stated he might be able to cut a deal with Senate Candidate 5 that provided ROD BLAGOJEVICH with something "tangible up front." ROD BLAGOJEVICH noted he was going to meet with Senate Candidate 5 in the next few days. ROD BLAGOJEVICH told Fundraiser A to reach out to Individual D, an individual who ROD BLAGOJEVICH is attempting to obtain campaign contributions from and who, based on intercepted phone calls, ROD BLAGOJEVICH believes to be close to Senate Candidate 5. ROD BLAGOJEVICH told Fundraiser A to tell Individual D that Senate Candidate 5 was very much a realistic candidate for the open Senate seat, but that ROD BLAGOJEVICH was getting "a lot of pressure" not to appoint Senate Candidate 5. ROD BLAGOJEVICH told Fundraiser A to tell Individual D that ROD BLAGOJEVICH had a problem with Senate Candidate 5 just promising to help ROD BLAGOJEVICH because ROD BLAGOJEVICH had a prior bad experience with Senate Candidate 5 not keeping his word. ROD BLAGOJEVICH told Fundraiser A to tell Individual D that if Senate Candidate 5 is going to be chosen to fill the Senate seat "some of this stuffs gotta start happening now . . .right now. . . and we gotta see it. You understand?"

ROD BLAGOJEVICH told Fundraiser A that "you gotta be careful how you express that and assume everybody's listening, the whole world is listening. You hear me?" ROD BLAGOJEVICH told Fundraiser A to tell Individual D if there is "tangible political support (campaign contributions) like you've said, start showing us now." Fundraiser A stated he will call Individual D on the phone to communicate ROD BLAGOJEVICH's message. ROD BLAGOJEVICH responded that "I would do it in person. I would not do it on the phone." ROD BLAGOJEVICH told Fundraiser A to communicate the "urgency" of the situation to Individual D.

So it certainly seems clear that the governor believed Candidate 5 would play along -- though that's not proof that he was correct in that assumption.

PERMALINK | COMMENTS (21) | RECOMMEND RECOMMEND (12)
Topics: Barack Obama, Rod Blagojevich

Barack Obama

Looks Like AG Madigan Is Candidate 2

Zachary Roth | December 9, 2008, 1:35PM

Senate Candidate 2 appears to be Illinois Attorney General Lisa Madigan.

From the charging document:

On November 6, 2008, ROD BLAGOJEVICH talked with Spokesman. ROD BLAGOJEVICH told Spokesman to leak to a particular columnist for the Chicago Sun-Times, that Senate Candidate 2 is in the running for the vacant Senate seat. According to ROD BLAGOJEVICH, by doing this, he wanted "to send a message to the [President-elect's] people," but did not want it known that the message was from ROD BLAGOJEVICH.

Thereafter, ROD BLAGOJEVICH and Spokesman discussed specific language that should be used in the Sun Times column and arguments as to why Senate Candidate 2 made sense for the vacant Senate seat. A review of this particular Sun Times column on November 7, 2008, indicates references to the specific language and arguments regarding Senate Candidate 2 as a potential candidate for the Senate seat, as discussed by ROD BLAGOJEVICH and Spokesman.

So let's look at that November 7 item. Written by Michael Sneed and headlined: "Tipsville", it reads (via Nexis):

The latest from Blagoville: Is Gov. Rod Blagojevich toying with tossing Barack Obama's U.S. Senate seat to Illinois Attorney General Lisa Madigan, who wants Blago's job?
- It's his pick . . . and it would get rid of a rival.
- It may endear him to powerful House Speaker Mike Madigan, Lisa's dad, who is Blago's political foe.
- It would enable Gov. Blago to choose a new Illinois attorney general.
- Hmmm: Even though this sounds like looneyville . . . stay tuned.

It's worth making clear: Candidate 2 is not accused of wrongdoing.

PERMALINK | COMMENTS (7) | RECOMMEND RECOMMEND (4)
Topics: Barack Obama, Rod Blagojevich

FBI

Blago To FBI: "Is This A Joke?"

Zachary Roth | December 9, 2008, 12:41PM

An FBI agent just said at a press conference that when Blagojevich was woken by a phone call from the FBI this morning, informing him that agents were coming to arrest him, he asked: "Is this a joke?"

Here's the video:

PERMALINK | COMMENTS (13) | RECOMMEND RECOMMEND (10)
Topics: FBI, Rod Blagojevich

Barack Obama

Fitzgerald: "The Conduct Would Make Lincoln Roll Over In His Grave"

Zachary Roth | December 9, 2008, 12:25PM

At a press conference to announce the charges against Blagojevich, Pat Fitzgerald said:

But the most cynical behavior in all this -- the most appalling -- is the fact that Governor Blagojevich tried to sell the appointment to the Senate seat vacated by President-Elect Obama. The conduct would make Lincoln roll over in his grave.

Here's the video:

It's good to have America's favorite prosecutor back on the scene.

PERMALINK | COMMENTS (19) | RECOMMEND RECOMMEND (15)
Topics: Barack Obama, Pat Fitzgerald, Rod Blagojevich

Barack Obama

Is Jesse Jackson Jr. Candidate 5?

Zachary Roth | December 9, 2008, 12:06PM

Is Senate Candidate 5, who appears to have been particularly willing to play ball with Blago, Rep. Jesse Jackson Jr?

The unnamed candidate appears to be a man. From the charging documents:

Rod Blagojevich told Fundraiser A to tell Individual D that Rod Blagojevich had a problem with Senate Candidate 5 just promising to help Rod Blagojevich because Rod Blagojevich had a prior bad experience with Senate Candidate 5 not keeping his word. (our itals)

That rules out Valerie Jarrett -- already assumed to be Candidate 1 -- Tammy Duckworth, Lisa Madigan, and Rep. Jan Schakowsky.

There's also this from the charges:

On December 4 ... ROD BLAGOJEVICH noted he was going to meet with Senate Candidate 5 in the next few days.

Now look at this from the Chicago Tribune on December 6:

Jackson, the South Side and south suburban congressman, said Blagojevich's office is looking to set up a meeting between him and the governor, who has the sole power of filling the vacancy.

"Every indication, I believe, is in the next four or five days a meeting will take place," Jackson said.

And indeed, Jackson and Blagojevich met yesterday.

And as of December 3, National Journal reported at the time, he had already met with Rep. Luis Gutierrez as well as some of the female candidates.

That's a long way from proof that Candidate 5 is Jackson. But it's at least suggestive.

PERMALINK | COMMENTS (7) | RECOMMEND RECOMMEND (11)
Topics: Barack Obama, Jesse Jackson Jr., Rod Blagojevich

Rod Blagojevich

Blagojevich's Wife: "Hold Up That Fucking Cubs Shit ... Fuck Them"

Zachary Roth | December 9, 2008, 11:26AM

From page 44 of the Blagojevich charges, about the deal the Tribune company was seeking on behalf of the Cubs:

During the call, Rod Blagojevich's wife can be heard in the background telling Rod Blagojevich to tell Deputy Governor A 'to hold up that fucking Cubs shit ... fuck them'"

Guess she's a White Sox fan.

PERMALINK | COMMENTS (11) | RECOMMEND RECOMMEND (19)
Topics: Rod Blagojevich

Barack Obama

Blago Thought Zell Promised To Go After Trib Ed Board

Zachary Roth | December 9, 2008, 11:16AM

Is Sam Zell, the Tribune Company owner, implicated in the charging documents of Rod Blagojevich?

From Fitzgerald's statement:

According to the affidavit, intercepted phone calls revealed that the Tribune Company, which owns the Chicago Tribune and the Chicago Cubs, has explored the possibility of obtaining assistance from the Illinois Finance Authority (IFA) relating to the Tribune Company's efforts to sell the Cubs and the financing or sale of Wrigley Field. In a November 6 phone call, Harris explained to Blagojevich that the deal the Tribune Company was trying to get through the IFA was basically a tax mitigation scheme in which the IFA would own title to Wrigley Field and the Tribune would not have to pay capital gains tax, which Harris estimated would save the company approximately $100 million.

Intercepted calls allegedly show that Blagojevich directed Harris to inform Tribune Owner and an associate, identified as Tribune Financial Advisor, that state financial assistance would be withheld unless members of the Chicago Tribune's editorial board were fired, primarily because Blagojevich viewed them as driving discussion of his possible impeachment. In a November 4 phone call, Blagojevich allegedly told Harris that he should say to Tribune Financial Advisor, Cubs Chairman and Tribune Owner, "our recommendation is fire all those [expletive] people, get 'em the [expletive] out of there and get us some editorial support."

On November 6, the day of a Tribune editorial critical of Blagojevich , Harris told Blagojevich that he told Tribune Financial Advisor the previous day that things "look like they could move ahead fine but, you know, there is a risk that all of this is going to get derailed by your own editorial page." Harris also told Blagojevich that he was meeting with Tribune Financial Advisor on November 10.

In a November 11 intercepted call, Harris allegedly told Blagojevich that Tribune Financial Advisor talked to Tribune Owner and Tribune Owner "got the message and is very sensitive to the issue." Harris told Blagojevich that according to Tribune Financial Advisor, there would be "certain corporate reorganizations and budget cuts coming and, reading between the lines, he's going after that section." Blagojevich allegedly responded. "Oh. That's fantastic." After further discussion, Blagojevich said, "Wow. Okay, keep our fingers crossed. You're the man. Good job, John."

In other words, the Tribune company wanted a deal that would save them millions. Harris, the governor's aide, told them that if they removed the paper's ed board, the governor would play ball. In response, Harris got the impression that Zell had received the message and would do what Blagojevich wanted. The governor was pleased.

Late Update: Here's a statement from the Tribune Company, denying the charge.

PERMALINK | COMMENTS (5) | RECOMMEND RECOMMEND (6)
Topics: Barack Obama, Rod Blagojevich, Sam Zell

Barack Obama

Feds: Obama Wouldn't Play Ball With Blago

Zachary Roth | December 9, 2008, 11:05AM

From Fitzgerald's statement:

In a conversation with Harris on November 11, the charges state, Blagojevich said he knew that the President-elect wanted Senate Candidate 1 for the open seat but "they're not willing to give me anything except appreciation. [Expletive] them."

Looks like Obama wouldn't pay to play.

PERMALINK | COMMENTS (42) | RECOMMEND RECOMMEND (56)
Topics: Barack Obama, Rod Blagojevich

Barack Obama

Jarrett Is Senate Candidate One

Zachary Roth | December 9, 2008, 10:53AM

From the Fitzgerald statement:

On November 12, Blagojevich spoke with SEIU Official who was in Washington. This conversation occurred about a week after Blagojevich had met with SEIU Official to discuss the Senate seat, with the understanding that the union official was an emissary to discuss Senate Candidate 1's interest in the Senate seat. During the November 12 conversation, Blagojevich allegedly explained the non-profit organization idea to SEIU Official and said that it could help Senate Candidate 1. The union official agreed to "put that flag up and see where it goes," although the official also had said he wasn't certain if Senate Candidate 1 wanted the official to keep pushing her candidacy. Senate Candidate 1 eventually removed herself from consideration for the open seat. (itals ours)

Both Valerie Jarrett, a friend and adviser to Barack Obama, and Tammy Duckworth, an Iraq vet who runs the Illinois Veteran Affairs Department, have been mentioned as candidates for the seat.

There appears to be no allegation of wrongdoing by Senate Candidate 1.

Late update: The charges themselves say:

By this time, media reports indicated that Senate Candidate 1, an advisor to the President-elect, was interested in the Senate seat if it became vacant, and was likely to be supported by the President-elect.

So it's Jarrett.

PERMALINK | COMMENTS (3) | RECOMMEND RECOMMEND (3)
Topics: Barack Obama, Rod Blagojevich

Barack Obama

Blago on Senate Seat Authority: "I've Got This Thing And It's [Expletive] Golden"

Zachary Roth | December 9, 2008, 10:42AM

A great nugget from the Fitzgerald statement:

Later on November 5, Blagojevich said to Advisor A, "I've got this thing and it's [expletive] golden, and, uh, uh, I'm just not giving it up for [expletive] nothing. I'm not gonna do it. And, and I can always use it. I can parachute me there."

PERMALINK | COMMENTS (0) | RECOMMEND RECOMMEND (1)
Topics: Barack Obama, Rod Blagojevich