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Did Jackson offer to raise $5 million for appointment?

Monday, Apr 13, 2009 - Posted by Rich Miller

* The Sun-Times has another scoop, and this could be a big one

Former Gov. Rod Blagojevich’s camp was told last year that U.S. Rep. Jesse Jackson Jr. (D-Ill.) would raise up to $5 million in campaign cash for the ex-governor if he was appointed to President Obama’s U.S. Senate seat, the Chicago Sun-Times has learned. The overture came from at least two members of the local Indian community who approached the Blagojevich fund-raising team last fall, sources say.

Details…

The first came from Rajinder Bedi, a state employee who acted as a conduit to the Indian community for Blagojevich, sources say. Bedi met with the governor’s brother, Robert, to tell him that a longtime fund-raiser and wealthy health care businessman, Raghuveer Nayak, would help organize fund-raising within the Indian community and that Jackson would raise money as well.

Then, at an Oct. 31 planning luncheon at the India House restaurant in Schaumburg, Nayak delivered a similar message to Robert Blagojevich, the Sun-Times has learned. Nayak allegedly identified himself to the Blagojevich camp as a representative of Jackson, sources say.

At some point, signals were crossed in communicating the dollar amounts, though, leaving Rod Blagojevich to believe, according to the criminal complaint against him, that he would be paid $1.5 million should he appoint Jackson to fill Obama’s seat.

But the offer was really supposed to be $5 million raised by Jackson, as well as up to $1 million from the Indian community, sources said.

Jackson has said he met with Nayak about the Senate seat, but has told the Sun-Times in the past: “I pray for him and I am confident I didn’t ask him to do anything that is suggested in the complaint that would violate the law.”

He’d better hope he didn’t.

* The Sun-Times also looks at a $40,000 realtor fee that Tony Rezko allegedly steered to Patti Blagojevich, even though Rezko wasn’t directly involved with the property. Here’s the timeline

• • On Dec. 30, 2003, a company called 1101 W. Lake LLC — owned by developer Sean Conlon and two partners — sold two floors of the building for $1.36 million to a company called Lake & Aberdeen LLC.

• • Lake & Aberdeen was headed by Brian F. Hynes, a Chicago lawyer and lobbyist who had done legal work for Rezko.

• • Another Lake & Aberdeen owner was Kevin F. Flynn. At the time, Flynn was chief executive of Emerald Casino Inc., the company that had been seeking final state approval to build a casino in Rosemont.

• • Around the time of the alleged payment to Patti Blagojevich in January 2004, Rezko held an option to lease a hotel site in Rosemont that could have become a gold mine if a Rosemont casino was built.

• • Also around the time, Flynn’s company was at odds with state gambling regulators, who accused Emerald of having ties to organized crime that ultimately would help scotch Emerald’s casino plans.

So Flynn potentially stood to gain if the Illinois Gaming Board changed course and dropped its objections to Flynn’s company. And Rezko potentially stood to gain had a casino gone to Rosemont.

* Meanwhile

Congressman Danny Davis lobbied for a Senate appointment last fall - before then-governor Rod Blagojevich was arrested for, among other things, allegedly trying to profit from that appointment.

Now Davis is mulling a run in next year’s election for Senate, and he compares the decision to a battle with nature.

DAVIS: You know, you may want the honey. But are you willing to walk into a bee hive to try and get it? [laughs]

I cannot believe that Davis would actually make this run. He’s also talking about possibly running for county board president, so maybe he is looking at moving on, or maybe he’s just musing. Thoughts?

* Related…

* Congressional panel lacks teeth in ethics probe

* Illinois GOP: Chairman says 2006 gubernatorial primary ‘was not constructive’

* 2010 GOP slate in the making?

* Davis Urges Burris to ‘Hurry Up’ and Announce 2010 Plans

       

15 Comments
  1. - wordslinger - Monday, Apr 13, 09 @ 8:46 am:

    Lots of good stuff here.

    – On the Trips Senate seat, it’s interesting to speculate who the Sun-Times is wired to here. Obviously, it’s someone different than the feds — and that someone is rolling over on him, and probably his brother, big time.

    –Did Rezko and the Blagos really think that laundering bribes and kickbacks through real estate broker fees was diabolically ingenuous? But, I guess until Fitz came to town, it was probably SOP, along with insurance.

    –Danny Davis talks about every office. But I doubt if he would risk the safe congressional payday to move up.


  2. - Anonymous - Monday, Apr 13, 09 @ 9:27 am:

    One of Rezko’s attorneys, Brian Hynes, is very close to Mike Madigan.


  3. - Anon - Monday, Apr 13, 09 @ 10:13 am:

    I don’t know how close Brian Hynes is to Mike Madigan, but I know he raised money for Jesse Jackson Jr’s mayoral “campaign.” His name was on last week’s Sun Times’ list of Blagojevich fundraisers, too. And per the Sun Times (again), his records were one of the many requested by a grand jury subpoena a couple of months back.

    His name seems to be coming up in a lot of seemingly different threads of the various investigations.


  4. - Anonymous - Monday, Apr 13, 09 @ 10:27 am:

    “I am confident I didn’t ask him to do anything that is suggested in the complaint that would violate the law.” That sure is a tortured “denial” if you parse it out. He could have said - “I did not ask him to do any of the things detailed in the complaint, I am unaware of anyone doing so on my behalf and am unaware of him having done the things he is alleged to have done.” But he wraps it with “I am confident”; “I didn’t ask him to” and “that would violate the law”. This is not looking good at all - he’s choosing his words too carefully for someone has nothing to hide.


  5. - Macbeth - Monday, Apr 13, 09 @ 10:32 am:

    I’m only reacting to what I’m reading, but the sense I’m getting — especially after the stories about Jackson’s 5mil and the Patti/Rezko connection — is that the “Blagojevich Enterprise” — and its various offshoots — is massive, absolutely massive.

    The corruption here — and the (alleged) corrupt networking so that more corruption can take place — seems vast with no apparent end in sight.

    I can’t believe much of what I’ve read lately — the scheming to “split up the loot” and stuff — but maybe this is one instance where truth is far, far weirder — and far worse — than any fiction.


  6. - Anonymous45 - Monday, Apr 13, 09 @ 10:50 am:

    Rich-

    Off topic, but I must ask…On Doors and Don Harmon, why print this article just as Cullerton is just beginning his Senate Presidency…is this going to be a rather short tenure?

    I am scratching my head as to why this story was published maybe ten years prior to the next Senate President’s ascendacy…or not.

    What do you say?


  7. - MOON - Monday, Apr 13, 09 @ 11:00 am:

    ANON 9:27

    Sometime ago Hynes was close to Madigan. However Hynes burned those bridges at least 10 years ago. They are not at all close.


  8. - WTF - Monday, Apr 13, 09 @ 11:01 am:

    Agree with Macbeth — the corruption is massive. What we’re seeing in the papers only scratches the surface.

    Still, it’s troubling that Gov Quinn hasn’t done more to weed out the BlagOperatives. For instance, why is Rajinder Bedi still employed by the state? If Quinn is serious about reform, he simply must not waste any more time before he cleans house.


  9. - Anon - Monday, Apr 13, 09 @ 11:04 am:

    No may Davis runs for senate. There is just no way. It would take to much work and fundraising that Davis just won’t do. He doesn’t have to do anything now and will get elected forever…


  10. - ConservativeVeteran - Monday, Apr 13, 09 @ 11:30 am:

    The IL GOP leaders have a history of supporting losers. In Dec. 2007, Chairman McKenna and the IL GOP State Central Committee endorsed Dr. Sauerberg. He won his primary, but, in the general election, he received 33%. Before the 2006 primary, many party leaders endorsed then-Treasurer Topinka. She won her primary, and, in the general election, she got 38%. In 2004, when Jack Ryan resigned, from the U.S. Senate race, the IL GOP SCC nominated Alan Keyes. In the general election, he got 27%.

    From now on, republican primary voters should remember that, if the IL GOP endorses a statewide candidate, before the primary, the voters should choose a different candidate.


  11. - Six Degrees of Separation - Monday, Apr 13, 09 @ 12:21 pm:

    Only $5M for a senate seat? That’s a steal compared to how much I spent.

    And an embarrassment, of getting nothing for your money.


  12. - Shore - Monday, Apr 13, 09 @ 1:38 pm:

    Andy McKenna’s done an awful job. A state party that’s had its tail kicked needs more competition not less, more new ideas, more debate over how we start to win elections. That so called divisive primary between Hillary and Obama turned out awful for dems didn’t it? My guess is that he’s really trying to keep a conservative challenger away from Kirk if and when he chooses to get in the Senate game, since McKenna is his top state ally.


  13. - Quinn T. Sential - Monday, Apr 13, 09 @ 2:42 pm:

    I think Rich may have suffered a “senior moment” when he forgot to make mention of the role of Chris Kelly in this vignette on Rezko, Hynes, and Kevin Flynn.

    Some may recall that according to a federal lawsuit filed by Jeanette Tamayo against Mr. Blagojevich and two of his top aides, Tamayo was threatened with retaliation and punishment if she didn’t support a casino license for Rosemont.

    “I received communications indicating what should happen with the gaming board and when I declined to cooperate with what I thought were unlawful or inappropriate requests, then my salary was not paid,” said Tamayo.

    Tamayo said “attempts to influence the outcome of the casino licensing investigation” were led by Chris Kelly who wasn’t even a state employee. He was Blagojevich’s chief fundraiser.

    “He [Kelly] appeared at typically private meetings between the litigation counsel involved in the emerald casino cases and said ‘I’m here. I represent the governor. I’m here to carry out his interests and this is what you are going to do’. He was not a lawyer. He was not on the state payroll. He just appeared as a representative of the governor and communicated or expressed that he was communicating the governor’s wishes” said Tamayo.}

    You might want to conjure up that genie on your official PACER Ouija Board and scan the filings in that file.


  14. - Chicago Cynic - Monday, Apr 13, 09 @ 7:42 pm:

    No way Danny Davis ever runs for statewide office. He’s way too lazy and could never raise the $$. As for county board, what’s the point. Todd’s running for reelection. Preckwinkle is running for Todd. Those two will split up the black vote and Claypool is likely to be the beneficiary. If Davis joins, then it’s even easier. So why give up a safe seat to make a race for County Board Prez when he could never possibly win?


  15. - Beowulf - Tuesday, Apr 14, 09 @ 9:01 am:

    Jessie Jr.’s reply sounded “less than sure” that he was not in some sort of hot water in this latest “pay to play” soap opera. Jessie Jr. would have “emphatically” denied being involved if he was innocent. But, I guess that this is no big surprise since he is just another one of our typical “what’s in it for me” political types.


Sorry, comments for this post are now closed.


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