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* 7:02 pm - The governor came out, read a brief statement and walked away. We’ll have video in a minute.
* 7:27 pm - For video of the governor’s statement, click on the pic…
* 7:30 pm - Text of the governor’s statement…
“Thanks for coming. It is nice to see you. I have a brief statement.”
“Tony Rezko is a friend and was a supporter. On a personal level, I deeply sad for what’s happened to Tony. I am profoundly sad for his children and for his wife Rita. My heart goes out to all of them. The jury’s decision is yet another reminder that ours is a system of government ruled by laws and not by men. I respect the decision of the jury.”
“As for me, I will continue to get up every single day to work as hard as I possibly can for the people, starting tomorrow where I hope to meet with the legislative leaders so that we can balance the budget in a way that’s fair and helps people and to pass a capital construction program that will stimulate our economy and create more than 500,000 jobs. Thank you.”
* Related…
* Analysis: After Rezko, could Blagojevich be next?
* Pat Quinn: “If you’re in-charge of the state of Illinois, elected by the people, and you see the verdict on 16 of these counts, it’s important for the governor to answer the questions of the people and the taxpayers. That’s what I think accountability is all about, and I think it’s time for the governor to come forward and answer questions.”
* Barack Obama: “I’m saddened by today’s verdict. This isn’t the Tony Rezko I knew, but now he has been convicted by a jury on multiple charges that once again shine a spotlight on the need for reform. I encourage the General Assembly to take whatever steps are necessary to prevent these kinds of abuses in the future.”
* Patrick Fitzgerald press conference
* Rezko jury talks
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And some of the bad news for Blagojevich…
Wednesday, Jun 4, 2008 - Posted by Rich Miller
* Tony Rezko was acquitted in the $1.5 million campaign contribution shakedown scheme, but he was convicted on two counts based on Joe Cari’s testimony…
Count 4, Wire fraud: A phone call between Levine and trial witness Joe Cari about a consultant to be used by investment firm JER Partners. Cari was in Hong Kong at the time.
Count 6, Wire fraud: A phone call from Cari to JER Partners in which Cari threatens that JER would lose its retirement system allocation unless the firm hired a consultant.
* The governor’s office had claimed Cari was not credible, but the jury thought he was. Here’s the relevant Cari testimony pertaining to Blagojevich…
A veteran Democratic fundraiser testified [April 14th] that Gov. Rod Blagojevich once offered to give him his pick of contracts and state business in exchange for help building a nationwide political money machine as a prelude to a presidential run.
The governor said “that there were contracts, legal work, investment banking work and consulting work to be awarded to people who helped,” Joseph Cari recalled as he took the stand in the federal corruption trial of Blagojevich insider Antoin “Tony” Rezko.
The allegations by Cari, once a finance chairman for the Democratic National Committee, were the most explicit accusations of pay-to-play politics leveled against Blagojevich at a trial where he is not even the defendant.
But federal agents continue to investigate allegations that his administration illegally swapped jobs and board appointments for campaign cash. And now Cari’s allegations suggest that the governor was personally willing to trade lucrative state business for political donations.
Not good at all.
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* Judge Leo Zappa ruled today that the governor can, indeed, set the time and date of special sessions. The governor had sued Speaker Madigan over the issue.
A spokesperson for Madigan said the judge didn’t find fault with anything Madigan did (Madigan held some special sessions at different times than the governor had ordered), but I haven’t seen the ruling yet so I have no real idea of exactly what happened. More in a bit.
*** UPDATE *** OK, I have it now. Click here to read the opinion.
*** UPDATE 2 *** From the opinion…
Clearly, the drafters of the 1970 Constitution could not envision that an extraordinary act (Special Sessions Act) which gives the sitting Governor the power to convene both house of the Legislative Branch of government, would be used unilaterally and in an abusive and capricious fasion. Unfortunately, the current Governor’s aggressive use of his extraordinary power does not ahve a bearing on the statutory construction of the Act. This is really not about the current Governor or Speaker. This is about hte authority of the Executive Branch over the Legislative branch in setting dates and times to convene both House of the Legislative branch on special extraordinary matters…
* More…
…this court hereby rules that [the governor] has the right to set the date and time for both Houses of the Legislature to convene for special sessions upon the filing of a Proclamation with the Secretary of State.
* The judge appeals to reason…
A high degree of reasonableness and cooperation must be applied in these settings. The House has a fluid calendar, and there are numerous unforeseen circumstances which can occur making the House or Senate’s strict compliance a problem at times.
* Judge Zappa scolds the guv…
The Governor needs to open meaningful lines of communicattion between himself and the Speaker. This would alleviate the problems of setting dates and times for his Special Sessions and alleviate conflicts due to the scheduling of other House business… It is not the role of the judicial branch to serve on an ongoing basis as a truant officer assigned to police errant or tardy members of the Legislature. Perhaps the Legislature should look at the Special Sessions Act to determine what if any action is needed.
* And continues…
This order is not intended to give either the Governor or Speaker Madigan an advantage in their ongoing rift. Throughout Illinois histoy, until now, this State’s leaders have collaborated on special legislative sessions without resort to the judiciary. This Court can only hope the parties to this case will see fit to implement this order in a professional manner so as to carry out their important work on behalf of the People of the State of Illinois.
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* This was not a good day for Gov. Rod Blagojevich, of course, but the claim that got some of the most media play, that Rezko tried to extort a $1.5 million campaign contribution for Blagojevich, was found to be not credible by the jury. Rezko was found not guilty on that count. Here’s some background…
That charge alleges Rezko tried to extort a $1.5 million campaign donation for Blagojevich from Thomas Rosenberg, a movie producer and a principal in the real-estate management firm Capri Capital. Prosecutors argued Rezko was part of a scheme to force the donation or a bogus finder’s fee from Rosenberg by stalling a $220 million investment that Capri was in line for from the Teachers’ Retirement System.
In his testimony, Rosenberg said he was never explicitly told to pay a fee to free up the teachers’ fund allocation.
In his closing argument last month, Rezko attorney Joseph Duffy said: “I don’t know how you have an attempted extortion where nobody asks the intended victim for anything.”
…Adding… I wrote about this charge back in February. I wasn’t much impressed with the US Attorney’s case on this particular charge, so I went on record back then. You can read that issue of Capitol Fax by clicking here.
…Also… As a commenter mentioned below, while the verdict on this particular charge is a bit of good news for the governor, it ain’t gonna be so great if Rezko flips on Blagojevich to keep himself out of prison for the rest of his life.
*** UPDATE 1 *** I’m told by a Chicago TV station that the governor is not expected to comment on this until after 6:30 tonight, which would be after the newscasts. Stay tuned for more.
*** UPDATE 2 *** The Trib puts some of the Blagojevich angle into perspective…
The fact that lawyers in Rezko’s trial mentioned the governor of Illinois 41 times during closing arguments alone doesn’t mean he knew anything of Rezko’s crimes. The feds have accused Blagojevich of no illegality whatsoever, and he consistently has maintained his innocence. But the governor’s excuse for not answering questions about Rezko trial testimony—There’s a pending court case!—is now moot. The governor is free to speak and should do so.
Fairly or not, that testimony has left a governor who vowed to clean up state government himself accused of scandal. Time and again he essentially was described as the prize doll in marathon games of pay-to-play: Fork over enough money to Blagojevich’s political coffers and you win his favor.
Three convicted political insiders have testified to Blagojevich’s alleged role in private meetings about the purchase of state jobs and state business with campaign contributions. Each of the three said the governor made it clear that people who raised money for his campaign would profit from his influence.
Read the whole thing.
*** UPDATE 3 *** Check back at 6:30 tonight because it looks like we’ll have live video coverage of a planned gubernatorial press conference. I’ll post the link if we get it.
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* 2:48 pm - From the US Attorney’s office…
Forwarded from the Court:
Everyone:
The Rezko jury has reached a verdict. The judge will read the verdict at 3:45 pm. Thank you.
* 3:01 pm - WBBM Radio should be carrying it live. Click here to listen.
* 3:05 pm - Watch it live at around 3:45 or so right here, courtesy of CBS 2. Just click on the CBS 2 image to watch it live…
* 3:20 pm - To better follow along at home or office, here is the jury’s verdict form, and here is a brief explanation of each count.
Also, the US Attorney’s Rezko page is here, and their press room page is here.
* 3:44 pm - We’re maxed out on two servers. Hopefully, the problem will be fixed soon, but there’s not much we can do at the moment.
We’re gonna go down for a few minutes while we reboot and add memory.
Goodness gracious. Sun-Times and Trib both crashed during this event.
* 4:19 pm - * From the Tribune…
Count 1: Mail fraud. Scheme to extort $375,000 from Glencoe Capital of Chicago in exchange for $50 million investment from the state Teachers’ Retirement System (TRS). Guilty
Count 2: Mail fraud. Scheme to extort $375,000 from Glencoe Capital. Guilty
Count 3: Wire fraud. Scheme to extort $250,000 from LLR Partners of Pennsylvania in exchange for $25 million TRS investment. Not Guilty
Count 4: Wire fraud. Scheme to extort $850,000 from JER Partners of Virginia in exchange for $85 million TRS investment. Guilty
Count 5: Wire fraud. Scheme to extort $850,000 from JER Partners. Guilty
Count 6: Wire fraud. Scheme to extort $850,000 from JER Partners. Guilty
Count 7: Mail fraud. Scheme to extort $250,000 from Sterling Financial of Northbrook in exchange for $25 million TRS investment. Guilty
Count 8: Mail fraud. Scheme to extort $250,000 from Sterling Financial. Guilty
Count 9: Wire fraud. Scheme to extort $4 million from Investors Mortgage Holding of Arizona in exchange for $200 million TRS investment. Not Guilty
Count 10: Wire fraud. Scheme to extort $4 million from Investors Mortgage Holding. Not Guilty
Count 11: Mail fraud. Scheme to extort $1.5 million bribe in exchange for approval by the Illinois Health Facilities Planning Board of a new Mercy Hospital in Crystal Lake. Guilty
Count 12: Mail fraud. Scheme to extort $1.5 million in exchange for approval of Mercy Hospital. Guilty
Count 13: Wire fraud. Schemes to extort $1 million from Stockwell Capital of Chicago, $4 million from Investors Mortgage Holding and $1.5 million to $2.2 million from Capri Capital of Chicago. Guilty
Count 14: Wire fraud. Schemes to extort $4 million from Investors Mortgage Holding and $1.5 million for the Mercy Hospital approval. Guilty
Count 15: Wire fraud. Schemes to extort $850,000 from JER, $4 million from Investors Mortgage Holding, $1.5 million to $2.2 million from Capri Capital and $1.5 million for the Mercy Hospital approval. Guilty
Count 16: Attempted extortion. Scheme to extort $1.5 million to $2.2 million from Capri Capital. Not Guilty
Count 17: Aiding and abetting bribery. Scheme to extort $375,000 from Glencoe Capital. Guilty
Count 18: Aiding and abetting bribery. Scheme to extort $250,000 from LLR Partners Not Guilty
Count 19: Aiding and abetting bribery. Scheme to extort $1 million from Stockwell Capital. Not Guilty
Count 20: Aiding and abetting bribery. Scheme to extort $850,000 from JER Partners Guilty
Count 21: Aiding and abetting bribery. Scheme to extort $4 million from Investors Mortgage Holding. Not Guilty
Count 22: Aiding and abetting bribery. Scheme to extort $1.5 million to $2.2 million from Capri Capital. Not Guilty
Count 23: Money laundering. Scheme to extort $375,000 from Glencoe Capital. Guilty
Count 24: Money laundering. Scheme to extort $375,000 from Glencoe Capital. Guilty
* 5:13 pm - Rezko surrendered to authorities and was taken to jail, even though his sentencing wasn’t scheduled until September…
Rezko, who is scheduled for sentencing in September, surprised even his attorney by opting to begin serving his time immediately.
“I didn’t choose that. Mr. Rezko chose if he was convicted to immediately start serving,” said Joe Duffy, Rezko Defense Attorney. “That was just the desire he expressed to us, and it was his decision.”
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AP runs impeachment story
Wednesday, Jun 4, 2008 - Posted by Rich Miller
* The Associated Press takes note of all the “I-Word” talk…
It started as political banter. But now the idea of trying to impeach Governor Rod Blagojevich could be closer than ever to becoming reality. […]
Some lawmakers fear the governor could be asking for more impeachment talk if he brings legislators back to town and they repeat another summer of special sessions and fighting. […]
House Democrats say special sessions alone wouldn’t trigger impeachment but acknowledge the sessions could provide an avenue to pursue it.
The special sessions wouldn’t trigger impeachment. Being in town for an indeterminate length of time after the Rezko verdicts are handed down, however, very well could.
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Caption contest!
Wednesday, Jun 4, 2008 - Posted by Rich Miller
* Chicago made the final four…
As predicted, Chicago made the first cut today in its bid to host the 2016 Olympics.
* A press release received this morning shows how the Olympics can be used as leverage….
Action Now and community residents will call for Mayor Richard M. Daley, City Council members, and the Chicago 2016 Committee to join them on an Olympic 2016 Trash Tour.
A guided bus tour of Washington Park and surrounding neighborhoods will shed light on the garbage issues facing Chicago’s South Side and the need to clean up garbage-filled streets, lots, and alleys in order to strengthen the city’s 2016 Olympic Bid.
“Community cleanup is essential for Chicago to compete with the other world class cities vying for the 2016 Summer Games,” says Denise Dixon, Executive Director, Action Now. “We are inviting city leaders and the Chicago 2016 Committee to join us on a Trash Tour of the community so they can see first hand the challenges that the community and city face to truly compete with other cities.”
* And, with that in mind, a caption contest…
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Notes to subscribers and readers
Wednesday, Jun 4, 2008 - Posted by Rich Miller
* I had a brain freeze this morning. The leaders meeting is tomorrow, not today. Sorry about that.
* In case you’re interested, I’ve been adding stories all morning to the Obama thread below, so you might want to check it out.
* A Chicago memorial gathering is planned for Larry McKeon…
Saturday, June 14, 2008 11:00 a.m.
Truman College Community Room
1145 W. Wilson Ave.
Chicago, Illinois
All Are Welcome
Casual Attire - RSVP is not required, but is appreciated.
In lieu of flowers, donations may be made to:
Ravenswood Bank
McKeon Memorial Community Fund
2300 W. Lawrence Ave.
Chicago, IL 60625
For more information or to RSVP Contact: McKeonFriends@gmail.com
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Question of the day *** UPDATED x1 ***
Wednesday, Jun 4, 2008 - Posted by Rich Miller
* From the Sun-Times…
We heard something different from Gov. Blagojevich on Monday.
Instead of railing against legislators for passing a grossly unbalanced budget Saturday — the expected response, given the governor’s habit of demonizing — Blagojevich struck a conciliatory tone.
He called for a meeting Thursday with the state’s four legislative leaders, where he says hopes to hammer out a compromise on a budget that he says is $2 billion in the red.
In the demented world we call Springfield, that’s called progress.
This page has no illusions a resolution will be reached on Thursday. But civil discussion between adults, rather than the backstabbing and squabbling we’ve come to expect in Springfield, is the right place to start.
* From Chicago Public Radio…
House Speaker Michael Madigan is not expected to attend the [leaders meeting tomorrow]. That’s drawn criticism from a member of his own caucus. Evanston Representative Julie Hamos says she wishes Madigan was more engaged in these issues.
HAMOS: I don’t know how hard he tried this year to sit down with all the leaders, because he didn’t apparently go to any of the meetings.
* The Question: Should Speaker Madigan put aside his distrust, dislike or whatever and meet with the governor and the other legislative leaders on the budget, the capital plan, and anything else? Explain.
*** UPDATE *** From Greg Hinz…
…letting one jerk provoke you into acting like a jerk only creates two, um, jerks. Lots of good Democrats — like, say, Attorney General Lisa Madigan, the speaker’s daughter — will find their career path more difficult if their party is known for advancing only vendettas, not public needs.
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Unfinished business
Wednesday, Jun 4, 2008 - Posted by Rich Miller
* The Tribune has a pretty good roundup today of some unfinished legislative business…
TRANS FATS - The Senate approved a measure restricting food with trans fats in school cafeterias but it didn’t get a vote in the House. […]
TEEN WAGES - An attempt to amend the state’s minimum wage law to remove the provision that allows workers under 18 to be paid 50 cents below the regular minimum wage stayed put in the Illinois Senate. […]
MEDICAL MARIJUANA - A plan stalled in the Senate to legalize marijuana as an alternative medicine for people with debilitating illnesses like AIDS or cancer who use marijuana to ease their symptoms. […]
INTERNET BETTING - The General Assembly couldn’t reach a final agreement on setting up a system to encourage Internet betting on horse races run in Illinois. […]
CIVIL UNIONS - Rep. Greg Harris failed to collect enough support for legislation to allow same-sex couples to form civil unions. The bill gives same-sex couples the same the rights as married couples to estate benefits, child custody or adoption, property ownership.
There was a lot more left on the table, of course, but that wasn’t a bad piece at all.
* Crain’s has another one…
The Metropolitan Pier and Exposition Authority, which runs McCormick Place and Navy Pier, said Tuesday it’s inevitable it will need state sales tax money to cover debt payments after the Illinois General Assembly adjourned for the summer without passing a refinancing bill.
The authority, known as McPier, has been lobbying lawmakers to approve a refinancing plan that would lower the agency’s debt payments by stretching out the payment schedule. The Illinois Senate approved a bill in April, but the measure languished in the House and was not called for a vote before the General Assembly adjourned last weekend.
After a meeting Tuesday, McPier officials said they hope the House will act on the bill when the legislature returns to the state capitol late in the year or during any special sessions called by Gov. Rod Blagojevich.
However, passage of the bill won’t forestall the use of state sales tax revenue for the agency’s debt payments because the refinancing could not be completed before the agency’s debt payments come due in July, McPier officials said.
I’m positive we’ll be seeing more stories like this in the future. Were there any bills important to you that didn’t make the final cut?
* Somewhat related…
* Income loss turns into schools’ gain
* NIU officials ‘cautiously optimistic’ about state funding for Cole Hall
* Illinois Works Letter
* Legislative Leaders to Meet With Governor on Budget
* Pankau predicts budget veto
* IDOT gets back on track
* llinois scrapes up roadkill removal money
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The bunker mentality strikes again
Wednesday, Jun 4, 2008 - Posted by Rich Miller
* The secrecy demands of this administration never cease to amaze me…
Gov. Rod Blagojevich’s administration claims hundreds of advocates favor his state budget ideas. But it’s releasing just four responses it received to a taxpayer-funded effort aimed at building broad support for his plan.
The four endorsement forms, titled “I Support Governor Blagojevich’s Plan to Jump-Start the Economy and Protect Illinois Families,” were released by the Department of Human Services in response to an Associated Press request under the Freedom of Information Act.
Other state agencies, including the governor’s office, cited privacy concerns for withholding documents in response to the AP’s request, refusing to even acknowledge contacting anyone for support or receiving completed endorsement forms.
But when asked whether Blagojevich was disappointed with just four responses, spokeswoman Abby Ottenhoff said the administration received 1,500 signed forms supporting the governor’s economic stimulus ideas, including a $34 billion construction plan. She did not provide any documentation to support the claim.
Ottenhoff said the forms weren’t made public because the people filling them out did not give permission to release them. But state law requires public documents that contain private information be released with the confidential data blacked out, which was done on three of the four forms released by DHS.
It almost doesn’t matter what it is, if you want information out of this administration you’re just out of luck. The laws are pretty clear on these things, but the Blagojevich people will either cite far-fetched loopholes or just make stuff up when they deny the requests. I’ve been thinking lately of filing a FOIA to see how many FOIA requests have been rejected or granted, but that would probably be rejected as well.
The bottom line here, is that they’re spending tax money, but are refusing to say how they’re doing it.
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Metered internet?
Wednesday, Jun 4, 2008 - Posted by Rich Miller
* Could this be in our future?
You’re used to paying extra if you use up your cell phone minutes, but will you be willing to pay extra if your home computer goes over its Internet allowance? Time Warner Cable Inc. customers — and, later, others — may have to, if the company’s test of metered Internet access is successful.
On Thursday, new Time Warner Cable Internet subscribers in Beaumont, Texas, will have monthly allowances for the amount of data they upload and download. Those who go over will be charged $1 per gigabyte, a Time Warner Cable executive told the Associated Press.
Metered billing is an attempt to deal fairly with Internet usage, which is very uneven among Time Warner Cable’s subscribers, said Kevin Leddy, Time Warner Cable’s executive vice president of advanced technology.
Just 5 percent of the company’s subscribers take up half of the capacity on local cable lines, Leddy said. Other cable Internet service providers report a similar distribution.
* As Jeff Jarvis points out, “Time Warner could end up charging customers more for watching a movie than the service selling the movie, whether that is iTunes or Netflix.”
That’s just ridiculous.
Jarvis adds…
I happen to know that cable companies were making roughly 40 percent margins on the internet access a few years ago. Since then, bandwidth costs to them have been going down but those savings have not been passed onto customers. Meanwhile, equipment and marketing costs are being amortized. So I’m betting the margins are only getting better. Their poor-mouthing is disingenuous at best.
* Not only that, but the Intertube infrastructure has plenty of available bandwidth. It’s not like the system is hopelessly clogged, creating a shortage situation that needs to be remedied with use pricing. Also notice that Time Warner isn’t giving the 95 percent of low usage customers a price break.
This is a crock, and it could be heading our way…
Comcast Corp.is considering a cap of 250 gigs/month. The problem to date has been that cable companies have not told customers their caps or their recourse (witness the throttling of Dave Winer by cutting him off).
[Hat tip: Billy Dennis]
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