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This just in… Ata to plead guilty *** Ata admits getting job via Blagojevich contribution *** Alleges direct quid pro quo with governor *** Feds outline scope of Blagojevich probe ***

Tuesday, Apr 22, 2008 - Posted by Rich Miller

*** Click here to read the plea agreement… And Click here for the superceding information statement ***

* 3:21 pm - The prosecutorial noose tightens around Rezko

A former top official in Gov. Blagojevich’s administration plans to plead guilty this afternoon to charges tied to a loan-fraud scheme involving Tony Rezko.

Ali Ata, 56, of Lemont, is expected to plead guilty to making false statements to a federal law enforcement officer and a tax-related count. Ata is a former executive director of the Illinois Finance Authority. […]

While executive director of the state finance agency, Ata signed a letter bearing the agency’s name to help Rezko fraudulently secure $10 million in loans, prosecutors charged. They said he did so at the request of Rezko to make it appear that an investor had partial state backing for a deal to acquire two groups of Rezko’s Papa John’s pizza restaurants in Chicago and Milwaukee. […]

Ata gave $65,000 to Blagojevich’s gubernatorial fund and thousands more when Blagojevich was in Congress. In January 2004, Blagojevich appointed him to a $127,000-a-year post as executive director of the Illinois Finance Authority. Though Ata left that post about a year later, after a critical audit, he soon was awarded a $55,200-a-year contract to be a consultant for the agency - a three-year deal he declined to sign after the Chicago Sun-Times raised questions about a foreclosure case he did not disclose when the governor hired him.

*** 3:56 pm *** Ata’s guilty plea includes this language…

[Ata admits lying to the FBI when he said] he did not receive anything for his political contributions to the campaign of Public Official A, whereas as defendant then knew such statement and representation was false, namely, that in fact he did receive something for those contributions, specifically employment with a state agency, namely a position as Executive Director with the Illinois Finance Authority with an annual salary of approximately $127,000.

Translation: Ata admits - and the feds insist - that he paid for his job via a campaign contribution to Gov. Rod Blagojevich.

Read the plea agreement by clicking here.

*** 3:59 pm *** Ata is taking us right inside Rezko’s office, where we find Governor Rod Blagojevich

In or about August 2002, defendant Ata held a small fund-raising event for Public Official A that Public Official A attended. In advance of that fund-raising event, defendant Ata committed to Antoin Rezko that he would raise $25,000 at that event, which he eventually did, personally contributing at least approximately $5,000.

Later that year, Rezko approached the defendant for additional monetary support. Defendant Ata agreed to contribute $25,000 in additional monies to the campaign of Public Official A.

The defendant, subsequently and by prior arrangement with Rezko, brought a check in this amount to Rezko’s Rezmar offices on Elston Avenue in Chicago. After he arrived at the Rezmar offices, the defendant was greeted by Rezko to whom he handed the check in an envelope.

Rezko, carrying the check, ushered the defendant into a conference room where he met with Rezko and Public Official A. Rezko placed the envelope containing the defendant’s $25,000 check to Public Official A’s campaign on the conference room table between himself and Public Official A and stated to Public Official A that the defendant had been a good supporter and a team player and that the defendant would be willing to join Public Official A’s administration. Public Official A expressed his pleasure and acknowledged that the defendant had been a good supporter and good friend. Public Official A, in the defendant’s presence, asked Rezko if he (Rezko) had talked to the defendant about positions in the administration, and Rezko responded that he had.

*** 4:01 pm *** And here we get the quid pro quo

In or about July 2003, Rezko asked the defendant to make an additional $50,000 contribution to the campaign of Public Official A. The defendant agreed to contribute the same amount as he had previously, namely $25,000. The defendant made this contribution on or about July 25, 2003 by check payable to Public Official A’s campaign. The defendant gave this check to Rezko. Thereafter, the defendant had a conversation with Public Official A at a large fund-raising event at Navy Pier.

During this conversation, Public Official A told defendant that he had been a good supporter, indicated that Public Official A was aware that the defendant had made another substantial donation to Public Official A’s campaign, and told the defendant that Public Official A understood that the defendant would be joining Public Official A’s administration. The defendant responded that he was considering taking a position, and Public Official A stated that it had better be a job where the defendant could make some money.

[Emphasis added.]

*** 4:03 pm *** From someone who was at the hearing today…

“As the prosecutor read more and more of the plea, the jaws in the courtroom inched closer and closer to the floor. These aren’t even material to Rezko’s current charges.”

*** 4:17 pm *** Take a look at the superceding information statement about Ata and you find this statement of fact from the feds…

There was a federal criminal investigation into allegations of mail fraud, bribery, political corruption, and other criminal activities in connection with the granting of state jobs and the appointment of officials to agencies and boards and commissions of the State of Illinois. It was material to the investigation to learn what influence, if any, Antoin Rezko had in the making of appointments to positions with the State of Illinois, and whether campaign contributions to political office holders and candidates were required in order to obtain positions with the state.

That pretty much shows us where they’ve been going. And none of it is good for Gov. Blagojevich.

*** 4:32 pm *** The Tribune really needs to change its headline: “Ex-director of Illinois Finance Authority admits getting post after paying Rezko”

Ata did hand the money to Rezko, but the cash went to the governor’s campaign fund, and the governor was aware of the contributions and the appointment.

  93 Comments      


Various stuff

Tuesday, Apr 22, 2008 - Posted by Rich Miller

* For the first time ever, Capitol Fax is an official sponsor of the annual House vs. Senate softball game. It’s my favorite evening of the year, so I’ve thought for a while about signing up as a sponsor. I was informed yesterday that I was accepted.

This year’s game will be Wednesday, May 14 at Springfield’s Lincoln Park. The start time is 5:30pm. See you there.

* Nothing else has worked for the Chicago Republican Party, so maybe this might…

Go over and check out the party’s site in all its glory. [I saw this earlier on another blog, but now I can’t remember where it was. Sorry for no h/t.]

* Buried deep in this critical piece of Democratic congressional candidate Colleen Callahan, was this nugget, written by a member of the Legislative Affairs Committee for the Peoria Area Association of Realtors

For example, a primary concern of the Realtor industry is that, as independent contractors, we lack the ability to obtain group coverage for health care - a major problem for those with pre-existing conditions. As a result, 60% of Realtors lack health insurance.

Interesting.

* Attorney General Lisa Madigan: Grandma Alice’s cheese enchiladas…

Nutrition information per serving: 688 calories, 53% of calories from fat, 40 g fat, 15 g saturated fat, 59 mg cholesterol, 57 g carbohydrates, 25 g protein, 1,599 mg sodium, 5 g fiber

* Regular commenter Jacob Schulz has posted a new “in your face” campaign ad…


  23 Comments      


Protected: SUBSCRIBERS ONLY - Edgar audio; DuPage; Greens; Wilhelmi; Black (Use all caps in password)

Tuesday, Apr 22, 2008 - Posted by Rich Miller

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Question of the day

Tuesday, Apr 22, 2008 - Posted by Rich Miller

* Does Earth Day mean anything to you today? Explain.

  25 Comments      


Local lobster hiring examined

Tuesday, Apr 22, 2008 - Posted by Rich Miller

* I’m not sure that this bothers me all that much

With a looming meltdown of the Chicago Transit Authority atop the 2007 legislative agenda, transit agencies spent the most in Springfield: nearly $700,000.

The transit system was facing a fiscal meltdown, so dumping money into lobbyists is a natural reaction for anyone under siege.

* Here’s where that number came from…

The Illinois Campaign for Political Reform found that local governments and public agencies in Illinois paid $5 million to lobby state government over the course of a year.

The group identified 110 government bodies that hired contract lobbyists. The contracts went to 65 different lobbying firms in a 12-month period ending June 30, 2007. […]

Cynthia Canary, the non-profit group’s director, called the $5 million a significant outlay in public funds but a fraction of the money special interests spend to pass or kill legislation and to influence the actions of the executive branch.

Emphasis added to make a point. It does look like a lot of cash, but it isn’t in the grand scheme of things.

* The more important question is whether these local governments got anything for their outlays, either in the budget, or through special legislation. That wasn’t looked at by ICPR, but the Post-Dispatch did check out one contract between the Madison County Regional Office of Education and former Rep. Steve Davis

“The state representatives that represent our region are great people,” but can’t realistically be expected to keep up with every issue facing schools in Madison County, said Robert Daiber, who heads the Edwardsville-based Office of Education.

He credits Davis for helping convince lawmakers to maintain hundreds of thousands of dollars worth of state special-education funding that had been slated to end. “That’s well-invested money” in the lobbying contract, Daiber said.

* ICPR had a reason for doing the research…

The voluminous research released Monday by the Illinois Campaign for Political Reform found discrepancies in the required reporting and suggested state lobbying laws be tightened.

* But at least one of those “discrepancies” wasn’t. According to the State Universities Retirement System, they did fully disclose their lobbying contract, contrary to what ICPR reported.

* One of the reforms pushed by ICPR as a result of this study was restricting “revolving door” lobbying - requiring a waiting period of six months to a year before a legislator could begin lobbying. Yet there weren’t really any horrible revelations that I saw in the report which would buttress that demand.

Still, I do commend the hard work by ICPR staff with filing all those FOIA requests with local governments and crunching the numbers. It’s good to have this info about how tax dollars are being spent as reforms are drafted.

Read the full report for yourself.

  7 Comments      


Rauschenberger vs. Obama

Tuesday, Apr 22, 2008 - Posted by Rich Miller

* Former state Sen. Steve Rauschenberger has been a designated attack dog against Barack Obama as of late. Here he is quoted in yesterday’s Wall Street Journal

“Barack was one of the smartest people I ever worked with, but he was more interested in moving up,” says Republican Steven Rauschenberger, who served with Mr. Obama in the state senate. “I never thought he was very engaged in the state senate, because he didn’t think that much of it.”

* Let’s take these one at a time. As Rob accurately notes, Rauschenberger spent the last few years of his own state Senate career trying desperately to get out - with no luck. He ran for US Senate in 2004 and was thumped in the GOP primary by Jack Ryan. He then turned right around and ran for governor, dropped out, and ran for lt. governor and was trounced again in the primary by Joe Birkett. And he won the top job at NCSL after promising insiders that he wouldn’t run for governor, which he did. Pot, kettle, etc.

* When Rauschenberger was in the majority, he did take his responsibilities fairly seriously. He was often quoted in the media on budget issues, for example, and he was a champion of a modernized sales tax, which went nowhere. It’s not difficult to believe that Rauschenberger was more involved than Obama was, but until his final few years, he was more involved than most everyone.

* Rauschenberger was also on Fox News recently and blasted Obama for switching his votes after the voting closed. The LA Times reported several weeks ago that Obama switched his vote six times.

Rauschenberger said of the vote switching: “Generally, it’s people, in my opinion, who are politically ambitious.”

Last week, I was flitting back and forth between the House and Senate and heard at least six instances in one day where members asked that their votes be switched. This is an extremely common occurence.

Rauschenberger pointed to a riverboat vote where Obama was getting pressure from both sides and Obama voted “Yes” but said he hit the wrong button and should be voted a “No.” Rauschenberger claimed: “It’s very difficult in those charged votes to believe that someone pushed the wrong color button.”

But I’ve seen this a kabillion times, too, and so has Rauschenberger. People are sometimes away from their desks and staff hit the wrong button, or they just goof. Six times in eight years ain’t much. Let’s say Rauschenberger is right on that one boat bill. That’s once in eight years. Not exactly a pattern.

* Rauschenberger also claimed that Obama “wasn’t a reformer” on Jeff Berkowitz’s show, mainly because he endorsed John Stroger over Forrest Claypool for county board president primary race and that nobody has been convicted of crimes due to the Obama/Dillard ethics bill.

Obama didn’t endorse John Stroger over Claypool. Instead, he was neutral and announced the day before the election that he was voting for Claypool. And I doubt that Rauschenberger’s fellow Republican Sen. Dillard thinks that ethics bill was worthless.

* If you have the time, watch the Berkowitz interview. Rauschenberger claims he doesn’t know where Obama is on issue after issue, but the conservative Berkowitz points out where he’s wrong time and time again. It looks to me like sour grapes on Rauschenberger’s part.

Again, Rauschenberger makes a few very good points, but overall his message seems, well, “bitter.”

  46 Comments      


Blagojevich attacks Dems on health care, slashes funding for nutrition education

Tuesday, Apr 22, 2008 - Posted by Rich Miller

* You’ve probably heard about this already…

Blagojevich was asked multiple times by reporters Monday whether the [Rezko] trial is making it difficult for him to do his job.

* Instead of answering the questions, the governor turned on the House Democrats

“When you consider the dynamics, I think we’ve made a lot of progress. It could be a heck of a lot more harmonious, though, if those Democrats in the House stand for what they say they’re for.”

* And…

“We wish the General Assembly and especially the House would be less obstructionist and be more willing to embrace health care for children, health care for working families,” Blagojevich said.

* But how concerned is he really about the health of children and working families? Only on the stuff he cares about, apparently

A state program that helps educate Illinois’ poor is one of many state programs on the chopping block, as Gov. Rod Blagojevich considers withholding promised dollars to fill a $750 million hole in the Illinois budget.

More than 1 million of Illinois’ food stamp-eligible residents take advantage of University of Illinois Extension’s Food Stamp Nutritional Education Program. […]

“There isn’t anyone else in the state that does what we do,” said program Director Robin Orr, who leads the University of Illinois Extension program that serves 535,000 people in 97 of Illinois’ 102 counties. “In a budget that’s already passed, I have no idea why you don’t release money.”

So, let’s see, offering health insurance to people knowing that many doctors won’t accept it because the state is so slow in paying (and pays so poorly) is priority number one, even though he can’t get his program through either chamber of the General Assembly. But funding an existing program that helps more than a million people learn better nutrition, and, therefore, live healthier lives to begin with, is just too expensive to keep around.

Perfect.

* Meanwhile, Fritchey has some choice words for the governor’s latest attack…

Suffice it to say that it doesn’t bode well for a productive, let alone timely, session if the Governor is already in demonizing mode, which he apparently is.

* And this was just posted at CDOBs

At 2pm today, Judge James Epstein is set to hear a motion requesting compliance with the Preliminary Injunction against Governor Blagojevich issued last week.

The Healthcare and Family Services Defendants have yet to take the
necessary steps to comply with the injunction previously issued. Judge Epstein will consider a contempt action to compel compliance with his previous order.

* Other stuff…

* EIU raises tuition almost 12 percent for students entering school next fall

* Blagojevich no friend to 4-H’ers across the state

* Lake County Extension Foundation begins drive to offset state reduction

* Stop the bullying; release extension, conservation funds

  50 Comments      


Morning Shorts

Tuesday, Apr 22, 2008 - Posted by Kevin Fanning

* Ford Heights loses police dept.

* State questions Welch’s use of campaign funds

* State’s attorney: Officer targeted Stanford mayor in traffic stop

* Firm owner accused of scamming $1 million

* Inverness Man and His Engineering Firm Indicted in IDOT Fraud

* We can’t turn our backs on the violence ravaging our city

* Daley rips CTA over Blue Line response

* Daley’s man Grrr . . .

* Cook County health chief gone

* $100 million for museum?

* The Call for a Constitution Convention

* Governor’s plan to add inmates at Thomson prison has skeptics

Union officials say they aren’t convinced the switch would save money, and they worry that inmates with families in the Chicago area wouldn’t get visits because of the longer distance between Joliet and Thomson, which is located about 150 miles west of Chicago.

* Suburbs are key to Democratic victory

* Rauschenberger vs. Obama: Rounds 3&4

* Quote of the Day: Irony, thy name is Rauschy

* Fat cats of politics scratch for an edge

History suggests an uphill battle. Wealthy candidates often fare poorly in the electoral field, despite occasional exceptions like New Jersey’s Democratic Gov. Jon Corzine or Sen. Maria Cantwell (D-Wash.), both of whom pumped millions into their campaigns. In 2006, 28 congressional candidates spent $1 million or more of their own money on their campaigns. Just four are in Congress today.

* Rezko cohort details fee scam

* Rezko trial: Loren chokes up on stand

* Ex-pension fund attorney tells jurors of ‘mistake’

* Witness calls insiders ’stupid’

* Attorney on stand at Rezko trial recalls corruption on pension board

* Testimony: Rezko attended fundraiser for President Bush

  6 Comments      


Protected: SUBSCRIBERS ONLY - Today’s edition of Capitol Fax

Tuesday, Apr 22, 2008 - Posted by Rich Miller

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* Reader comments closed for the weekend
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* Was the CTU lobby day over-hyped?
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