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Governor covers up legal fees, changes story from 2006

Wednesday, Jan 23, 2008 - Posted by Rich Miller

* More trouble for the guv, but there’s something important about this story that the Tribune misses…

Gov. Rod Blagojevich, whose administration has been beset by myriad investigations, disclosed almost $1 million in new legal bills Tuesday, on top of the $1.1 million he’s already paid to a prominent Chicago firm.

The governor’s campaign spokesman reported $965,352 in legal fees for 2007, bringing Blagojevich’s total tab to more than $2 million in billings for Winston & Strawn. The legal spending comes after federal investigators began ramping up their probes into alleged wrongdoing involving state hiring, contracting and board appointments in 2006.

The Trib’s number for 2007 is inaccurate. Blagojevich paid another $163,770 to Winston & Strawn in January of last year, plus a couple of other smaller legal tabs to Hinshaw & Culbertson and Robbins Schwartz Nicholas Lifton & Tay.

* But here’s the rub: Blagojevich didn’t report a half million dollars in legal bills until six months after he was supposed to…

Blagojevich’s campaign did not state $555,255 of the legal tab on campaign records until about six months after the information was legally required to be made public.

Campaign spokesman Doug Scofield said the delay was due to negotiations over the bill and he doesn’t expect to receive penalties for the late filing. The amount is listed in campaign records as an unpaid debt, but Scofield said there is money to cover the bill.

* The trouble with Scofield’s explanation is that it’s the exact same excuse they used when they reported a Winston & Strawn debt back in the summer of 2006

A campaign spokeswoman said the debt represented charges the campaign is questioning

So, in 2006, they went ahead and reported a legal debt and said the reason they hadn’t paid it was because they disputed the bill.

In 2007, they didn’t report a debt because they say they disputed the legal bill, but then they reported it in 2008 once the bill was straightened out.

One explanation for two completely opposite actions, and it’s all bull.

* I’ve explained what I think happened to subscribers today. But I’ll speculate further here that the governor was also embroiled in a knock-down, drag-out fight with Speaker Madigan last July 31st, when the D-2 was filed. Disclosing his gigantic Winston & Strawn legal tab would’ve been highly disadvantageous to the governor’s position.

* Either way, the guv ought to be severely fined for not reporting a very large bill that was submitted to his campaign fund. The bills come in every month, and whether you agree with them or not, they’re supposed to be reported.

I know he likes to ignore the Constitution and the law and all that, but he needs to be called to account on this one.

But, let’s move along…

$2 million in legal fees? Over a million dollars in the past year alone? What the heck?

I couldn’t agree more with the BGA

“Despite the governor’s rhetoric of ‘There’s nothing here,’ these [campaign] filings show there is at least $1 million worth of something for somebody to look at,” said Jay Stewart, executive director of the Better Government Association.

* By the way, after subtracting the money he owes Jim Thompson, the governor’s campaign fund is left with about $1 million in cash.

That’s half what Lisa Madigan now has in her account, and $700,000 less than Dan Hynes has in his.

       

26 Comments
  1. - Squideshi - Wednesday, Jan 23, 08 @ 8:01 am:

    I think more than anyone, Rich must realize that we’re far beyond the point where we can expect to get anything of significant truth and substance from the Governor’s camp; and I don’t mean this as a drive by cheap shot–this is a issue of significant importance–people have no idea what this Governor is actually doing, regardless if they support him or not!


  2. - the patriot - Wednesday, Jan 23, 08 @ 8:32 am:

    One word, “retainer.” At least Blago’s attorney’s are smart enough to know that once the indictment is public, they will freeze his funds like they did ole George. They need to inflate the bill now to cover the cost of taking the case through trial because he will soon not have access to his money.

    Kudos to Rod for not putting the money in the campaign fund. Does anybody really believe he is not getting quid pro quo for the no bid contracts anymore. Of course he is, he is just socking the money away in hopes the feds won’t find it.

    If he only spent as much time on the legislative process as he does scamming for cash, we could get something done.


  3. - scoot - Wednesday, Jan 23, 08 @ 9:24 am:

    See this is exactly why I love Capitol Fax!!!!!…this news makes my day. Thanks Rich


  4. - VanillaMan - Wednesday, Jan 23, 08 @ 9:36 am:

    Blagojevich will not tell us the truth and we should not even bother asking him any questions. He is worse than a lame duck governor - he is an untrustworthy lame duck waiting for the feds to pick him up.

    Every time the media presses for a response to a question he can’t spin for a win, he spouts out crap that only antagonizes us further.

    Do us all a favor and let his stay at home without any news coverage. He has reduced himself to a level where he only creates news when he makes delusional statements unfit to print.


  5. - K to the 3 - Wednesday, Jan 23, 08 @ 9:38 am:

    Can anyone say Governor Quinn?


  6. - If It Waks Like a Duck... - Wednesday, Jan 23, 08 @ 9:52 am:

    Where is Bill’s rebuttal?


  7. - Anonymous - Wednesday, Jan 23, 08 @ 10:15 am:

    Why can’t there be a well organized mass rally at the Capitol whose simple message is “Governor Resign”. Prominent among the attendees should be the large bi-partisan group of legislators, who may have the actual opportunity to truly represent the feeling of millions of consituents. Nothing else seems to do any good, so why not at least get some frustration out?


  8. - Dan S, a Voter - Wednesday, Jan 23, 08 @ 10:30 am:

    Give me a date and time, I’ll make my own sign.


  9. - Macoupin County - Wednesday, Jan 23, 08 @ 10:52 am:

    I’ll be there too, with bells on!


  10. - Truthful James - Wednesday, Jan 23, 08 @ 11:19 am:

    I say again — he his headed for the Senate should Barack Obama be elected to national office. Either he or Governor Quinn will make the appointment.

    Out of State, out of sight, out of mind (ours, not his)


  11. - the patriot - Wednesday, Jan 23, 08 @ 11:36 am:

    Wake Up! There will be no movement to remove this governor from office. Mike Madigan wants to keep him right where he is. Mike wants to pay the martyr while laying foundation for Governor Lisa. If they dump Blago, they have to run against Governor Quinn.

    The ignorant Dems will allow Mike and Lisa to drag this along 3 more years and then elect her for doing nothing. The feds won’t act fast enough, and she doesn’t have the moxy or intellect to indict him herself, which by the way, is what she hammered Jim Ryan for!


  12. - granny - Wednesday, Jan 23, 08 @ 12:24 pm:

    this is stinkier than bus transportation for senior citizens - just hold your nose and enjoy the ride!


  13. - Willie Stark - Wednesday, Jan 23, 08 @ 12:30 pm:

    Patriot: wrong. “Moxy?” Lisa Madigan did the right thing and got out of the feds way when it was clear they were both investigating Rod for the same abuses. I don’t think you have to worry about whether or not Patrick Fitzgerald is aiming for Blagojevich. It’s pretty clear he is. Your point would only make sense were that not the case.


  14. - The Mad Hatter - Wednesday, Jan 23, 08 @ 12:53 pm:

    The fund had $15.5 million two years ago and now it’s broke. Hmmm. Either Judy put up a better fight than we all thought she did or money is mysteriously disappearing from the campaign fund. I lean toward the latter, having watched the $10 BILLION (Unindicted Official) A-Rod borrowed during his first term to shore up the state pension plan also mysteriously disappear.


  15. - Michelle Flaherty - Wednesday, Jan 23, 08 @ 4:14 pm:

    FYI, Rod hammered Jim Ryan for allegedly doing nothing about George, not Lisa. She was running against Joe Birkett.


  16. - Little Egypt - Wednesday, Jan 23, 08 @ 4:23 pm:

    I find it most interesting that Blago has been known to have a large positive balance of funds in his campaign account and now he is down to $1M. There has not been much publicity about campaign fundraising. Winston & Strawn is not doing Blago’s work pro bono like they did for George. So have the big money supporters deserted Blago, has the fundraising come to a complete stop or a slow crawl, and if Blago is socking money away somewhere else to keep the Feds from getting it out of the campaign fund, where could he be putting it? I’d bet my right arm he is diverting funds to somewhere, based on GRyan’s prior experience of having the campaign funds frozen by Fitz. But are there really any deep pockets still supporting this guy or have they all left the building? Which should be a huge neon sign proclaiming Blago is NOT going to run for this office again.


  17. - No More Card Tricks - Wednesday, Jan 23, 08 @ 4:44 pm:

    I lost my state job because of this joker of a governor.
    But he get’s away with this!


  18. - zatoichi - Wednesday, Jan 23, 08 @ 5:12 pm:

    So what is the W&S hourly rate? These bills gotta make for some great bonus checks for the Big Jim crowd. Pays for that nice house and car. At the same time, if I had given money to any politician for campaign stuff and it ends up paying legal bills that have litle to do with actual campaign costs, I would be pretty damn upset. My checkbook would close.


  19. - steve schnorf - Wednesday, Jan 23, 08 @ 6:05 pm:

    Seems like everyone hates someone today


  20. - some former legislative intern - Wednesday, Jan 23, 08 @ 6:17 pm:

    So, the bottom line is, anyone that contributes to the Governor now is giving money to Winston and Strawn for the Governor’s legal problems.

    I still want my $250 back from ‘02.


  21. - el Conquistador - Wednesday, Jan 23, 08 @ 7:37 pm:

    You gave $250 to Blago? How do you live with yourself?


  22. - Gregor Samsa - Wednesday, Jan 23, 08 @ 8:48 pm:

    Does Winston and Strawn have a branch office in the Caribbean, by any chance? Barbados, Caymans, any place like that?

    I have to stop reading Grisham so much, I guess.

    Gov pays way over standard rate for “legal consultations”.
    Waits till the heat’s off.
    Legal counsel then makes a number of large donations to the campaign fund. “For old time’s sake”.

    Unfortunately, I don’t see how the law firm can hide the transfers and not report anything to the IRS. There would be too much of a paper trail, I should think.


  23. - A Citizen - Wednesday, Jan 23, 08 @ 9:24 pm:

    Stock Alert - If you are holding any stock in “blagjevich and friends” prudent investment advisers advise Sell, Sell, Sell!


  24. - Disgusted - Wednesday, Jan 23, 08 @ 10:26 pm:

    If we all band together, can we make a citizens’ arrest??? I’m betting on a Cayman Islands account, too.


  25. - insomnia - Thursday, Jan 24, 08 @ 12:18 am:

    This is my favorite:

    Trump, Donald J.
    Occupation: CEO/President
    Employer: Trump Enterprises 725 5th Ave
    New York, NY 100222519 $2,000.00
    11/19/2007 Individual Contribution
    Friends of Blagojevich


  26. - Bookworm - Thursday, Jan 24, 08 @ 8:38 am:

    With apologies to Dean Martin, “Everybody hates somebody sometime….”


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