*** 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
- Frank Sobotka - Thursday, Dec 18, 08 @ 9:51 am:
This has probably been pointed out; but the governor’s financial woes might not have been so great if he had chosen to live in the Governor’s Mansion instead of his other house, with it’s (currently) 3/4 million note(s)..
- VanillaMan - Thursday, Dec 18, 08 @ 9:53 am:
Sorry - but it all sounds like good news to me.
Blagojevich was not a bookie.
Emanuel did talk to Blagojevich personally.
We won’t be paying Rod’s legal fees.
Emanuel is not jumping into the House race.
There will be a new Tollway Chief.
Our former casino point-man is heading to jail.
Gensen is already on record to saying one thing and writing another.
The money Blagojevich raised for his campaign, can no longer be used for his legal fees.
- Downstate weed chewing hick - Thursday, Dec 18, 08 @ 9:55 am:
Geez, even the Mob doesnt want to be associated with the Guy.
- Ravenswood Right Winger - Thursday, Dec 18, 08 @ 9:58 am:
I am curious as to the legal burden of proof that the feds must meet to freeze Blago’s account.
- Pot calling kettle - Thursday, Dec 18, 08 @ 9:59 am:
Downstate: you stole my line! LOL
- How Ironic - Thursday, Dec 18, 08 @ 10:02 am:
The mob indicated they like his track suit, but the hair was a bit of a distraction.
- From the Sidelines - Thursday, Dec 18, 08 @ 10:11 am:
At least the governor has found one character witness.
- Belle - Thursday, Dec 18, 08 @ 10:16 am:
RRW - don’t forget that the first group Fitz thanked after the arrest was the IRS Criminal Investigations Division. IRS made a case on Capone when no one else could.
- Bill Baar - Thursday, Dec 18, 08 @ 10:18 am:
Too bad others can’t be as refreshingly straightforward about their conversations, or lact of them, with the Gov as Mr. Abbinanti.
- please don't hurt me, but... - Thursday, Dec 18, 08 @ 10:40 am:
Could you make a case that the Governor deserves to have the State pay for his impeachment defense? I mean, heaven forbid, what if he is not convicted? In that case, if the accusations are found to be meritless, couldn’t he make a legitimate case that this was part of his official duty and should therefore be covered by the taxpayers?
Not to mention — supposing, for argument’s sake, that we had a Governor who was unpopular because he was clean and uncorruptable. Couldn’t the General Assembly wield the threat of impeachment as a form of extortion, with the idea that if he didn’t play ball he’d be bankrupted by an impeachment defense?
Obviously, not the issue here.
- Ghost - Thursday, Dec 18, 08 @ 10:43 am:
Raven, the over simplified version is they have to show the prsence of ill gotten gains in the pot of money. They can then freeze the whole kit and kaboodle.
- Pat collins - Thursday, Dec 18, 08 @ 10:44 am:
freeze the money
If I were his lawyer, I’d send an “estimate” and ask to be paid that NOW.
Actually, I would have wanted the money in my account before I took the case……
- Cassandra - Thursday, Dec 18, 08 @ 10:47 am:
The IDOT guy sounds pretty competent.
I suspect competent and employable agency heads and their deputies will begin to leave unless they get a strong signal from Quinn that they are safe in the event he takes over. They may leave anyway. Who wants to put “high-level state of Illinois employee” on their resumes these days.
The others, the less competent, will stay on while uttering platitudes along the line of not wanting to desert the people of Illinois. They will have to be evicted.
- wordslinger - Thursday, Dec 18, 08 @ 10:54 am:
The Revenge of Rod? Maybe some of his peeps have figured out how to play the unnamed source game with the Emanuel story. True or not, it forces a denial and gives the story another day in the news cycle.
It was such a mistake for the Obama camp to talk to the Blago folks. They know the guy. The dude has had the U.S. Attorney on him for years. Rod may have interpreted an overture as sympathy to his position or a willingness to deal.
Obama has no much on his plate, they should have left this one of 100 Senate seats alone. These are not ordinary times and this is no ordinary governor.
- trafficmatt - Thursday, Dec 18, 08 @ 10:55 am:
I’ve known Jeff Dailey personally and professionally for about a dozen years. Jeff is an absolute class act. I wish him all the best.
- incredulous - Thursday, Dec 18, 08 @ 11:05 am:
I’m not sure that I agree that a deal (and I’m sure there wasn’t one) is the only issue for Rahm. If a deal was offered and Rahm turned in down but didn’t alert the FBI, then there is an ethical (though not a legal)issue. Also, I find it odd that there are discrepancies between the US Attorney’s sources and administration sources on the degree of contact (e.g. number of contacts, direct contact w/Blago, etc.) If the reports from the Fed sources are true, it suggests that Rahm may have tried to minimize his role when talking to whoever was charged with Obama’s investigation. That would not be a good thing.
- Redbright - Thursday, Dec 18, 08 @ 11:24 am:
I seriously doubt that the endorsement by a political party led by Joe Berrios (and previously headed by BigNuts Beavers) will be that helpful in the 5th CD. If I were a candidate, I’d hope that my opponents got that nod. I know many Dem activists in that area and each will make an independent decision about the candidates.
- Cassandra - Thursday, Dec 18, 08 @ 11:30 am:
I have no problem with one pol talking to another pol about their recommendations for a Senate seat vacancy, but why Ms. Jarrett. She is no doubt a nice, smart lady but there are thousands of nice, smart ladies in Illinois and many of them have much more experience in the political arena. Her primary qualification seems to have been that she is a close pal of Obama’s. That’s not enough for me. And that’s why Rahm’s 21 conversations seem smelly to me, even if they weren’t illegal. Business as usual, not change we can believe in.
Same old same old. Rewarding your friends.
- Phineas J. Whoopee - Thursday, Dec 18, 08 @ 11:36 am:
Maybe they should establish a Tollway Director of the month award. If you are employee of the month of December then you get to be Director for the month of January-and so on. This could justify a revolving door policy and stop corruption by limiting the lack of time to close the deal.
- Six Degrees of Separation - Thursday, Dec 18, 08 @ 11:54 am:
Maybe they should establish a Tollway Director of the month award
Thanks. Where’s my $15,750?
- award time - Thursday, Dec 18, 08 @ 1:19 pm:
2008 “The Year I Didn’t”
Blago: “I didn’t do anything illegal”
Rezko: “I didn’t corrupt any state board.”
Quinn: “I didn’t say I wanted a special election for the US Senate Seat.
Brian McPartlin: ” I didn’t hand out no-bid contracts at the Tollway”
Jeff Dailey” ” I didn’t work at the Illinois Tollway”
Ed Genson: ” I didn’t get paid yet”.
- Captain America - Thursday, Dec 18, 08 @ 1:22 pm:
I think it’s a little unfair to deprive the Governor of the material means to defend himself by freezing the funds needed to pay his lawyers.No one is going to make the governor a beneficiary of a pro bono defense effort that George Ryan enjoyed. Impeach him , but let him defend himself with his ill-gotten gains
- fedup dem - Thursday, Dec 18, 08 @ 1:42 pm:
So who is in charge of the Tollway Authority now?
- Ghost - Thursday, Dec 18, 08 @ 2:57 pm:
CA, it is also unfair if the Gov obtained money illegaly to allow him to benefit from his criminal conduct by using the money to pay for his lawyer.
- Six Degrees of Separation - Thursday, Dec 18, 08 @ 3:34 pm:
So who is in charge of the Tollway Authority now?
The staff can operate on institutional momentum for now. There is a Tollway board of directors, headed by John Mitola, that meets and makes or confirms all the important decisions.
http://www.illinoistollway.com/portal/page?_dad=portal&_schema=PORTAL&_pageid=133,1483556
- Sick - Thursday, Dec 18, 08 @ 5:07 pm:
I’ve know Jeff Dailey for a while too. He is a nice man that was in over his head as Chief Engineer.
- wordslinger - Thursday, Dec 18, 08 @ 6:53 pm:
I don’t know Jeff Dailey, but I suspect he’s a pretty smart guy. The federal Big Heat is coming that way. Why stick around and defend something you weren’t responsible for?
I did marginal contract business for the Tollway Oasis renovations years ago, with the Wilton Partners, and the Tony Rezko and Chris Kelly, and the campaign contributions, and the phony bids for the vendors, and the Panda Express, blah, blah blah.
Not subtle, not ingenious. Arrogant, amateurish. Actually, I think that experience re-ignited my interest in state goverment and brought me to Cap Fax.
The feds could have moved on that front years, ago, but they had higher priorities. But now Tony’s talking, and it’s a slam dunk if they want it.
- Six Degrees of Separation - Thursday, Dec 18, 08 @ 8:05 pm:
Word-
This Crain’s article explains a lot about Dailey’s leaving, and the investigation of possible ulterior motives in the tollway’s proposed $1.8 billion renovation program.
http://feeds.feedburner.com/~r/ChicagobusinesscomBreakingNews/~3/489019527/news.pl
- anon again - Thursday, Dec 18, 08 @ 10:20 pm:
doe anyone know who the contractor on the tollway project is and do they have ties to current or past IDOT uppers
- Down State - Friday, Dec 19, 08 @ 4:57 am:
Thanks “Pot Calling Kettle” - but isn’t it the truth? I have people calling me from “down under” asking me what is going on over here! “First it’s your Federal Government and now it’s your state”. Yes, Illinois is even the laughing stock of the world, not to mention our economic situation which is affecting everyone else. I don’t know what “the powers to be” in Chicago needs to do but whatever, they need to do it fast and get rid of this guy. This is beyond laughable. It’s my understanding he didn’t want to live in Springfield but takes his private jet back and forth. Maybe he can sell it and help pay for his legal fees. Or wait - plane pool with Pelosi or Gore as they fly around in THEIR private jets.