*** UPDATE *** More fallout…
The chairman of the Illinois State Toll Highway Authority board today directed his agency’s inspector general to review the process by which the $1.8 billion congestion-relief program came to fruition to ensure it was not tainted.
The program — which calls for the construction of interchanges and carpool lanes — was mentioned in the criminal complaint against Gov. Rod Blagojevich, who allegedly was trying to use it to motivate an unnamed highway contractor to make $500,000 in campaign contributions.
[ *** End of Update *** ]
* Bad news for the guv…
Federal prosecutors will try to freeze the money in Democratic Gov. Rod Blagojevich’s campaign account, according to a letter defense attorney Edward Genson said the political fund received this week.
If prosecutors are successful, the move would severely hamper Blagojevich’s ability to pay huge legal bills as he fights corruption charges in what could be a long-running court battle. The governor has been charged with two criminal counts in federal court, but has not been indicted yet.
Blagojevich considered moving money out of the fund to try to avoid having prosecutors seize it, authorities alleged in court documents last week.
* More from the Sun-Times…
The “Friends of Blagojevich” fund hasn’t been frozen yet, but sources said the letter alone will have a crippling effect on the governor’s ability to move money out of the fund because of the possibility that prosecutors would later seize the money.
As of June 30, the date of his latest campaign-finance report, Blagojevich had about $3.6 million in his campaign war chest. He’s been on a major fund-raising swing since then, though any money he’s raised might already have been spent on legal fees or other expenses.
There’s precedent for freezing Blagojevich’s fund. In 2002, prosecutors got a judge to freeze $1 million in then-Gov. George Ryan’s campaign fund before Ryan was indicted. They charged that the Ryan fund was a criminal enterprise and said they wanted to make sure it had money available to pay possible restitution costs. Ryan was convicted of corruption charges and is serving six and a half years in prison.
* The attempt to freeze the campaign fund may have prompted Ed Genson to ask for state funds to pay for the governor’s impeachment defense. The Sun-Times tells us about AG Madigan’s rejection of that request…
Attorney General Lisa Madigan rejected late Wednesday a request by Gov. Blagojevich to have taxpayers pay for his defense in impeachment proceedings and at his criminal trial.
The governor’s lawyer, Edward Genson, contended that Madigan, as the state’s chief law enforcement officer, has a duty to represent the governor. But she can’t do so because of a conflict of interest related to her unsuccessful push for the state Supreme Court to declare the governor unfit for office.
Madigan’s chief of staff Anne Spillane, fired back, saying “This assertion is meritless” in a letter to David Ellis, House Speaker Michael Madigan’s general counsel. […]
That provision of the law, she said, “therefore cannot entitle the governor to legal representation at the State’s expense in the proceedings before the House of Representatives. […]
The governor’s lawyer later told the Sun-Times it was never his intent to have the state pay for the governor’s criminal defense despite sending a letter to Madigan Tuesday that made that request, and which prompted Spillane’s response.
“That would be stupid,” he said.
Yeah, it would’ve been.
* Meanwhile…
The attorney for a key confidant to Gov. Rod Blagojevich said Wednesday that he is not cooperating with investigators as part of a coming plea deal.
Chris Kelly, a former top fundraiser and adviser to Blagojevich, is set to plead guilty Jan. 16 to tax fraud charges stemming from illegal gambling debts. Kelly served as the governor’s point man on casino regulation.
Kelly’s attorney, Michael Monico, said after a court hearing Wednesday that cooperation with investigators “will not be part of the agreement.”
Yet, Monico sidestepped questions about whether Kelly was cooperating at all.
* More fallout…
The new Illinois Tollway chief is out after less than a month on the job.
Jeffrey Dailey’s resignation on Wednesday comes at a tumultuous time in state government following last week’s arrest of Gov. Rod Blagojevich on federal corruption charges that included trying to sell President-elect Barack Obama’s vacant seat in the U.S. Senate.
Among other things, Blagojevich also is accused of allegedly linking work on a $1.8 billion Chicago-area tollway construction project to political contributions from a contractor. That episode referenced in the criminal complaint happened before Dailey was on the job.
Dailey “wants the opportunity to pursue opportunities in the engineering or transportation fields,” said Tollway spokeswoman Joelle McGinnis.
* This report appears to be based on the governor’s words…
President-elect Barack Obama’s incoming chief of staff Rahm Emanuel had a deeper involvement in pressing for a U.S. Senate seat appointment than previously reported, the Sun-Times has learned. Emanuel had direct discussions about the seat with Gov. Blagojevich, who is is accused of trying to auction it to the highest bidder.
Emanuel talked with the governor in the days following the Nov. 4 election and pressed early on for the appointment of Valerie Jarrett to the post, sources with knowledge of the conversations told the Sun-Times. There was no indication from sources that Emanuel brokered a deal, however.
A source with the Obama camp strongly denied Emanuel spoke with the governor directly about the seat, saying Emanuel only spoke with Blagojevich once recently to say he was taking the chief of staff post.
But sources with knowledge of the investigation said Blagojevich told his aides about the calls with Emanuel and sometimes gave them directions afterward. Sources said that early on, Emanuel pushed for the appointment of Jarrett to the governor and his staff and asked that it be done by a certain date.
If he didn’t cut a deal with the governor, then there’s really no “there” there.
* And Ald. O’Connor may not get Emanuel’s backing for the 5th District vacancy…
On Wednesday, O’Connor acknowledged he had not yet lined up the support he needs to win the Democratic endorsement, in part because Emanuel is standing on the sidelines.
“The problem is, they’re in the middle of a very serious situation and this is less important [by] comparison,” O’Connor said, referring to the transition process.
Measuring his words carefully to avoid alienating Emanuel, the alderman said: “He could clear the field, but I’m not asking him to do that at this time.”
[Emanuel] has told Democratic ward bosses that he would like to reclaim the seat after a few years as chief of staff.
He was believed to be leaning toward O’Connor, in part, because the alderman might be amenable to giving up the seat at some point.
* But here’s a spot of good news for the governor. “Bobby the Boxer” denies claims by Robert Cooley that Blagojevich was a bookie who paid street taxes…
Cooley told the I-Team that in the 1980’s Mr. Blagojevich was paying mob protection money, known as a street tax, to North Side outfit soldier Robert Abbinanti, once nicknamed ‘Bobby the Boxer.’
“My name is Bob Abbinanti. You did a report yesterday with Robert Cooley pertaining to Mr. Blagojevich stating that I was a bookmaker and that I took a street tax from him in the late 80’s,” said Abbinanti.
In a phone call to ABC7, Mr. Abbinanti denied having been Blagojevich’s mob handler 25 years ago.
Abbinanti admits having run outfit gambling rackets with Marco ‘The Mover’ D’amico and that he was convicted with top mob gambling bosses for which he spent six years in the federal penitentiary.
“I don’t know what Rod Blagojevich did or has done but I do know one thing. I never met the man. I never spoke to the man. I never had any business personal or in any way with him and you know what, it’s just an injustice,” said Abbinanti.
* Related…
* New Illinois tollway chief resigns