* One of the more interesting revelations in yesterday’s prosecution proffer on Rod and Rob Blagojevich was how cash was funneled to the First Lady…
Starting in the Fall of 2003, top Blagojevich fundraiser Tony Rezko cooked up several ways to make it look like he was putting Patti to work as a real estate broker, money she didn’t earn.
In August 2003, Rezko’s company paid Patti $14,369, made to look like a commission on the sale of property Rezko owned.
From October 2003 to May 2004, Rezko paid Patti a whopping $96,000, or $12,000 a month as a retainer for her services. Then, in January 2004, Rezko made a separate $40,000 payment to Patti Blagojevich, supposedly for sale of a West Loop property.
Not long after depositing that $40,000 check, Patti Blagojevich allegedly wrote a check for more than $38,000 to pay for renovations to the Blagojevich home.
In all, she got $150,369 from Rezko, but what did she do to earn that money? Prosecutors contend she did practically nothing.
Background…
The Sun-Times disclosed the remodeling work in 2007, pointing out that a Rezko company, Chicago Construction Services, oversaw it. “The renovations . . . were paid for by the Blagojeviches through their personal checking account,” Rod Blagojevich’s then-spokesman told the Sun-Times in 2008.
Indeed they were, prosecutors say.
Mark Brown adds his two cents…
Do you remember how former Gov. Rod Blagojevich reacted when the news media first started questioning his wife Patti’s business dealings, in particular how she had collected real estate broker commissions from the sale of properties involving his political pals?
I sure do.
“Sexist,” complained the governor. “Neanderthal,” he roared.
How dare anyone suggest that Patti Blagojevich’s financial success was anything other than the result of her own accomplishments as an independent businesswoman.
More…
The situation was so stinky that, according to the proffer, “Mr. Blagojevich was concerned that there might be the perception that his wife was a ghost payroller if she did not go into Rezko’s office.”
So, Patti Blagojevich was told to show up. “The problem with that approach however,” the proffer says. “was that Blagojevich’s wife was taking care of their infant daughter.”
* Keep in mind when reading the stuff about Congressman Jesse Jackson, Jr. that this is Blagojevich talking. He’s a professional liar, so take it with a grain of salt. Still, it ain’t good for the congressman…
Thwarted in efforts to trade the Senate appointment for an Obama cabinet post, ambassadorship or a million-dollar job, Blagojevich turned his attention back to the ambitions of U.S. Rep. Jesse Jackson Jr., the proffer says.
One recorded conversation has the former governor describing Jackson as the only one left who “wants it badly and desperately and he’s the only one who’s willing to, like, offer stuff.”
It was one of a series of Dec. 4, 2008, calls in which Blagojevich described his disdain for Jackson, but his appreciation of the $1.5 million Jackson supporters had promised in campaign cash in exchange for appointing Jackson.
* The former governor was pretty darned craven…
* To advisers about snagging a presidential Cabinet post: “So [Valerie Jarrett’s] holding Health and Human Services, and I’m holding a U.S. Senate seat. OK? She’s holding hers with two hands, just kind’a clinging to, you know, little pieces of it. Me, I’ve got the whole thing wrapped around my arms, mine, OK? . . . I’m willing to trade the thing I got tightly held to her for something she doesn’t hold quite as tightly.”
* Brown takes a look at the upcoming trial…
As an aside, let me mention that from my reading of the government filing, I don’t believe prosecutors envision a speaking role for Rezko at Blago’s trial.
Although Rezko is known to have been cooperating with authorities since going to prison, all the government’s assertions about matters related to him appear to be based on testimony that would be provided by other witnesses. This may be due to the fact Rezko has offered numerous and conflicting accounts about his dealings with Blagojevich and complained that he was being unfairly pressured by prosecutors, all of which would make him a lousy prosecution witness.
Prosecutors appear to be planning to rely instead on a former chief financial officer of Rezko’s company to supply key details about his arrangements with Patti Blagojevich.
* Cellini…
Bill Cellini’s connections to fundraisers for former Gov. Rod Blagojevich at one point left the politically powerful Springfield developer a “nervous wreck,” a new court document says. […]
The charges relate to an alleged attempt by Blagojevich fundraisers Antoin “Tony” Rezko and Christopher Kelly, along with Stuart Levine, then a member of the Teachers’ Retirement System board, to get a $1.5 million donation to Blagojevich’s campaign or a $2 million finder’s fee from a principal in a firm that wanted to manage TRS funds.
Cellini spoke to the would-be money manager, Thomas Rosenberg, but to no avail, the document says.
In a May 8, 2004, call to Levine that was recorded by investigators, Cellini allegedly said Rosenberg was angry about what he saw as a shakedown.
“Cellini told Levine about how Rezko and Kelly had been ‘essentially hammerin’ people’ to make political contributions in order to win State of Illinois contracts, how Cellini was a ‘nervous wreck’ about it, and how Cellini and Levine needed to talk with Rezko and Kelly about Rosenberg’s threats,” the document says.
In the end, the investment firm got its allocation without having to pay the finders fees or campaign contributions.
- Leave a Light on George - Thursday, Apr 15, 10 @ 11:04 am:
Representative J cubed should be grateful the feds stepped in and arrested the Gov. when they did. His supporters and Gov. F-bomb would have had the new Senator in enough hot water to get indicted.
- Yellow Dog Democrat - Thursday, Apr 15, 10 @ 11:10 am:
When your insider dealings and shakedowns are making Bill Cellini shudder, you’ve really established a new threshold.
Its like having Paris Hilton tell you you need to dial back on the booze.
- 47th Ward - Thursday, Apr 15, 10 @ 11:12 am:
I’ve been having a tough time understanding who all of the initials are in the proffer. Rich, have you considered doing a post to identify those referred to by initials? Deputy Gov A, Former Advisor A, Individual N, etc.?
I hope that’s not out of line — and I’m certainly not trying to cause trouble for anyone, just trying to understand how it all went down. I realize that just because a person is referred to in the proffer doesn’t mean they are accused of anything, but knowing who these people are would clear up a lot of questions.
- train111 - Thursday, Apr 15, 10 @ 11:14 am:
One interesting tidbit I took away from the proffer.
Blagojevich and the others in his inner circle were a bunch of schmucks–that was obvious from day 1. I never supported or voted for the guy despite having voted in every Dem primary since 1994.
That being said, the good thing from this, is that there were several people listed in the proffer who wouldn’t play Patty-cake (pun intended) with the governor. There were people who saw through his game and wouldn’t want to get involved.
Seems to me that RRB though he was a whole lot bigger than he really was. Seems that he though that he could deal with alot of people who simply considered him a total goofball and wanted nothing to do with him.
Welcome to realtiy Rod–You thought that you were something big–but those with their heads in the game saw right through your act!!! (and for that matter still do–and no I don’t count the worthless lackey media all stumbling over themselves to get your story.)
train111
- Secret Square - Thursday, Apr 15, 10 @ 11:18 am:
“Its like having Paris Hilton tell you you need to dial back on the booze.”
Or to borrow a phrase from Jon Stewart, also in relation to Blago: “It’s like Amy Winehouse saying you need to go to rehab.”
- Stooges - Thursday, Apr 15, 10 @ 11:23 am:
The ex-Gov is so incredibly dim it is hard to imagine how he finds his way home each day. He tells Harris and his brother to be careful when on the telephone because the world is listening, yet he never thinks his office phone may be tapped, or someone could be wearing a wire? I also like how he would rehearse his conversations with his cohorts before he approached people with the shakedown. There are only so many ways to ask for money without asking for money.
- Heartless Libertarian - Thursday, Apr 15, 10 @ 11:24 am:
“Its like having Paris Hilton tell you you need to dial back on the booze.”
How about… Its like having Wilt Chamberlain tell you, you need to lay off the women.
- Vote Quimby! - Thursday, Apr 15, 10 @ 11:24 am:
==considered doing a post to identify those referred to by initials==
You may have to buy Rich’s book for that…
The proffer details disgusting behavior, and confirms what we suspected: Blago had no desire or skill to lead Illinois. How’s the ‘upward trajectory’ looking now?….
- Cosmic Charlie - Thursday, Apr 15, 10 @ 11:28 am:
It is all very interesting reading but there still isn’t a whole lot of new stuff in there. I think the government has a tough job ahead of them on some of these charges. Based upon what I know now, and I acknowledge that is not nearly all of the G’s evidence, Blago will get off on some of these charges. It saddens me to say that.
- Park - Thursday, Apr 15, 10 @ 11:28 am:
Wonder what the national media is doing with this new information. Won’t make us look any better.
No discussion here yet on the “Labor Union Official” mentioned in the proffer. Is that Balanoff? Feds interviewed him soon after Blago was busted. Understand he’s been a frequent visitor to the White House. Justice must know about his information, so his continued ties to the administration must mean he’s not considered part of the conspiracy. That or someone’s not paying attention.
Yeah, I know this is just speculating. Just sent two checks out….one to fed, one to Illinois. Guess I feel like I’ve got the right for a day or so.
Finally, I agree JJ Jr. is very very lucky that the Tribune couldn’t wait. Wasn’t that East Indian fundraiser set for the following weekend? Pretty damm close to taking the last fatal step.
- 47th Ward - Thursday, Apr 15, 10 @ 11:34 am:
===You may have to buy Rich’s book for that…===
Good point. Or I can just wait for the trial. But I hate waiting.
- ABCBoy - Thursday, Apr 15, 10 @ 11:35 am:
===
How dare anyone suggest that Patti Blagojevich’s financial success was anything other than the result of her own accomplishments as an independent businesswoman.
===
Speaking of which….who was the real estate broker that received commission from the Rezko/Obama land deal where they purchased two lots and then sub-divided the corner lot and sold a fraction of it to Rezko or his wife?
Patti Blago
- PFK - Thursday, Apr 15, 10 @ 11:37 am:
> there were several people listed in the proffer
> who wouldn’t play Patty-cake
Adding to train111, it seems Blago was constantly being reminded by his staff that what he wanted to do was illegal — if the Feds really have that on tape, that’s going to sink Blagojevich.
When staffers suggested he appoint someone based on merits to the Senate and good things might happen as a result, the way Rod and Patty practically laughed that off make them come across as absolute sociopaths. He’s not going to get away with a “this was just standard political horse trading” argument if the feds play that for the jury.
- Park - Thursday, Apr 15, 10 @ 11:38 am:
Cosmic, you’re right about Blago possibly skating. Could happen in any Jury trial. But I’m not overwhelmed by his counsels’ talents and ND Ill. juries are going to be a tougher to con. If Blago testifies, he may be able to sway a few. But a good cross-examination could destroy all that good will. My guess is he goes down big time and gets a couple decades of time out.
- CircularFiringSquad - Thursday, Apr 15, 10 @ 11:39 am:
Anyone else note that the document does not tell us that the Tribune brainstrust race down Dearborb street and reporting the shocking efforts by Blagoofd & Co to the appropriate law enforcement agency. To quote TribMouthPiece Terry Holt “the story speaks for itself”
- Vole - Thursday, Apr 15, 10 @ 11:40 am:
In their choice of mates, the first lady and Blago could not tell the wildflowers from the weeds. Seems like both of them saw the guv. office as the platform vs. a step to attaining wealth and elite status. Most politicians take the longer road to lucre — being half way competent while in office, bringing home the bacon, and then running the revolving doors, lobbying, consulting, making speeches, etc. They put the greed on simmer instead of on high.
- siriusly - Thursday, Apr 15, 10 @ 11:52 am:
47 - the only one I could decipher was Cong. A was clearly Rahm - powerful brother who could host a fundraiser - AUSL was in that district
Otherwise I agree with you, its hard to track what’s going on without knowing the names. But I seem to remember Rich has a policy of not naming those who aren’t completely obvious or otherwise published
- GA Watcher - Thursday, Apr 15, 10 @ 11:55 am:
ABCBoy: What’s your source for your post that Mrs. Blagojevich was the real estate broker who received the commission from the Oabama/Rezko deal?
- Interested Observer - Thursday, Apr 15, 10 @ 11:56 am:
And, Patti goes scott free? From what I read in the proffer, she’s just as culpable and should face her day in court as well. I’m a mom, and I know what is right and what is wrong - if I break the law I know the ramifications. I can’t believe that anyone who thinks that just because she has younger children that she should be out of judicial harms way.
- Bill - Thursday, Apr 15, 10 @ 12:14 pm:
ydd,
Paris doesn’t drink.
- shore - Thursday, Apr 15, 10 @ 12:24 pm:
You wrote last week about how Illinois gets screwed on bringing dollars back home and presumably that was when the state had hitters like lahood and hastert doing the state’s bidding.
After kirk leaves, the state will have one appropriator in jesse jackson in the house and obviously only senator durbin on senate approps.
For down the road when obama is gone this does not bode well for the state and it might be smart to start elevating people-schock perhaps getting kirk’s slot on approps especially if jackson is going to see his career crushed by this.
- dupage dan - Thursday, Apr 15, 10 @ 12:26 pm:
I’m not sure what is more breathtaking - Did Dick Mell know his future son-in-law was this craven or was he proud that RB was some kind of block chip? Did Patti realize how stupid RB is or is she so dim he seemed to be much brighter? And, howsabout all those staffers, etc? Did Kelly, et al, have NO CLUE that this business was so easy to trace back to them? Did they think they were covered due to RB’s corruption acumen? The honest mind can’t grasp this.
Maybe RB is hoping that come the trial he’s gonna lay the blame on the smarter person in the room - Patti? “Hey, I’m just the dutiful husband saying, ‘yes, dear’, to my pants wearing wife”. I wouldn’t put it past him. You read some of the proffer and Patti comes off as a full partner or senior partner in this scheme.
I want to hear from the RB apologists out there. Their explanations for this are getting more interesting as time goes on.
- VanillaMan - Thursday, Apr 15, 10 @ 12:26 pm:
Keep in mind when reading the stuff about Congressman Jesse Jackson, Jr. that this is Blagojevich talking. He’s a professional liar, so take it with a grain of salt.
I totally agree - what Blagojevich says…a grain of salt.
Now - why was Jesse Jackson Junior campaigning for an appointed US Senate seat coincidentially when the Fed’s timeline show that some of his representatives were offering Blagojevich “stuff”?
Why did he do that campaign bus tour? Why did Congressman Jesse Jackson Junior take those elaborate, and as I had noted at that time - bizzare - actions? By doing this, Jackson’s involvement isn’t just talk or hearsay anymore. The Congressman acted out a set plan of actions across Illinois that was distinctly out of the ordinary - it made no political sense. You just don’t campaign for an appointed seat like you are running for office.
Yeah - it all looks bad, but not just based on what The Impeached One says about the Congressman, but it also looks bad because of what the Congressman did.
I can take Blagojevich’s comments with a grain of salt, but there still is Lot’s Wife that Congressman Jackson needs to explain.
- VanillaMan - Thursday, Apr 15, 10 @ 12:45 pm:
Let me lay it out. If Jesse Jackson Junior was appointed by Governor Blagojevich to fill Obama’s US Senate seat, wouldn’t then-Senator Jackson claim that it was his statewide bus tour campaign that persuaded the Governor to give JJJ the nod when question arose?
- Pat Collins - Thursday, Apr 15, 10 @ 12:45 pm:
When your insider dealings and shakedowns are making Bill Cellini shudder
Maybe it was not the dealing and such, but rather the crude and blatant way that it was being done?
Perhaps his “Fed-dar” was pinging hard….
- Boone Logan Square - Thursday, Apr 15, 10 @ 12:54 pm:
I still wonder why Patti Blagojevich isn’t facing criminal charges. Maybe the prosecutors felt proving conspiracy was too difficult? Based upon both the proffer and media reports from the time, she certainly seems like an active, willing, aware participant in her “employment.”
- The Mad Hatter - Thursday, Apr 15, 10 @ 12:58 pm:
Rich, could you go back and restore all the comments I made months ago that you deleted about Patti’s bogus real estate adventures? That way I don’t have to repeat them myself. Thanks.
- Responsa - Thursday, Apr 15, 10 @ 1:19 pm:
The transcripts sure do made Rod and Patti seem like soul mates. One wonders how different each of their lives might have turned out had they not found each other.
- Quinn T. Sential - Thursday, Apr 15, 10 @ 2:20 pm:
In addition, there is no requirement that each member of the venture share a criminal intent for the co-conspirator rule to apply to statements that members made in furtherance of the conspiracy.
These two rules are based on the very nature of the coconspirator doctrine:
Conspiracy as a crime comprehends more
than mere joint enterprise. It also includes other elements, such as a meeting of the
minds, criminal intent and, where required by statute, an overt act. . . . CHECK
The co-conspirator exception to the hearsay rule, on the other hand, is merely a rule of
evidence founded, to some extent, on concepts of agency law. It may be applied in
both civil and criminal cases. . . . Its rationale is the common sense appreciation that
a person who has authorized another to speak or to act to some joint end will be held
responsible for what is later said or done by his agent, whether in his presence or not.
So the queston begs; who are the “emmissaries” for JJJ, were they live, or Memorex, and if on Memorex, what have they offered up when whistled in for a chat with the USAO.
If their testimony is permissable as not being hearsay; and none of them have yet testified under oath, then the question is what will they testify to; and will there be another superceding indictment.
I can’t believe that any legal professional consulted on behalf of an emissary would not have advised an immunity deal over being included in a future criminal complaint.
Depending how it might be couched, their testimony could overcome the hearsay prohibition AND result in their eligibility for the lightning for indictment in the conspiracy as part of the criminal scheme.
- ABCBoy - Thursday, Apr 15, 10 @ 3:10 pm:
===
ABCBoy: What’s your source for your post that Mrs. Blagojevich was the real estate broker who received the commission from the Oabama/Rezko deal?
===
Just tried looking it up 3 minutes, and found no reputable source. Consider the claim rescinded.
===
When your insider dealings and shakedowns are making Bill Cellini shudder…Maybe it was not the dealing and such, but rather the crude and blatant way that it was being done?
===
See, I’ve got to think that this is the case. We see pols make money through the revolving door ALL the time at the state & federal levels. Rham made millions as an “investment banker” after the Clinton years. GOPers make bank as lobbyists for energy or pharma companies. U of C Hospitals created a position for Michelle Obama doubling her salary once Barack became US Senator and earmarked millions to the hospital—and when Michelle left the position it was never filled again….
All sides do it. But somehow, everybody is is more subtle about it. Maybe they don’t overtly say anything? They just “deliver the goods” and HOPE that when they leave office, private industry will “take care of them”?
Heck, even when folks are in office, at the state level, they get away with making millions. Madigan, Cullerton, etc. all make bank off of tax appeals at the county or city level, etc.
At the end of the day, I think the difference is either:
1) Blago was ham-handed about it while others were/are more subtle, OR
2) Others are just as blatant & crass, but they all stick within some social norm where they aren’t pissing off any Machine or establishment. Like Kass might call the “combine” wherein as long as GOP insiders don’t blow the whistle on Madigan & Daley, then they won’t blow the whistle on them. It was only when Blago stepped away from Mell’s protection and also stepped on Madigan’s toes that the Democratic machine decided to take down one of it’s own…
- VanillaMan - Thursday, Apr 15, 10 @ 3:44 pm:
Rich, could you go back and restore all the comments I made months ago that you deleted about Patti’s bogus real estate adventures? That way I don’t have to repeat them myself. Thanks.
Don’t you wish that could happen? Lord, I would like to see what I posted during the first months of the Blagojevich Administration to discover when I first started smelling a rat.
- Just Wondering - Thursday, Apr 15, 10 @ 3:44 pm:
=I still wonder why Patti Blagojevich isn’t facing criminal charges. Maybe the prosecutors felt proving conspiracy was too difficult? Based upon both the proffer and media reports from the time, she certainly seems like an active, willing, aware participant in her “employment.”=
They are using her to squeeze Rod. There is still time for her to be indicted. Being the stand up guy he is, he will go down saying he’s innocent and Patti will end up joining him.
- Returning Dog - Thursday, Apr 15, 10 @ 4:51 pm:
Yesterday’s post made Kelly sound like Jimmy the Gent (DeNiro) in Goodfellas after the Lufthansa heist…pissed that everyone was spending money after being told not to; ie “(Rezko’s) withdrawal of the money would somehow alert the authorities”.
I would wager that would be Cellini’s avenue of objection as well.
- steve schnorf - Thursday, Apr 15, 10 @ 7:29 pm:
I’ve spent a whole lot of time thinking about this whole thing as it started to develop over the past 7 years. I knew several of the players, not well, but more than just one or two “Hellos” in a crowded room or something. I’ve said before I liked most of them I knew. Nice enough guys, always willing to talk or take a meeting, certainly didn’t seem like thugs or mobsters, the Governor himself with a wonderful, self deprecating sense of humor.
No one in that Administration even remotely suggested me ever doing anything inappropriate much less illegal. I served on a Board and once or twice inquired about re-appointment. No one wanted a contribution or anything.
What in the world happened here? The conversations you read about being taped or whatever sound unbelievable. No such conversations ever took place in Governor’s offices or high level staff meetings or anywhere else to my knowledge with Governor’s I worked for.
Talk of getting out of the job, or what we can get for this or that, or holding up state grants to not-profits who didn’t contribute. It just seems bizarre.
I can’t figure it out. The only remote explanation I can think of is that maybe they got to Springfield believing that’s how things actually were done here, and thought they were just carrying on past practices, business as usual. What a shame. So many people’s lives ruined, careers destroyed.
- Suspicious Activity Report - Thursday, Apr 15, 10 @ 8:20 pm:
Betcha Dick Mell has been cashing in his political capital.
- WindyCityGardener - Thursday, Apr 15, 10 @ 8:49 pm:
I know this will be hard to believe. But Rod never cared about money. He loved the power money bought(political office). But I don’t think he ever dreamed of being rich.
But he surrounded himself with people who had other motives. He was out of his league.
Patti on the other hand wanted the best that money could buy. And she pushed Rod to get it. Rod was and is still very naive.
This does not excuse what he did. But he will never admit how dumb he was. He should have never been governor.
I’m still shocked how many people voted for him. And that my friends is the fault of Illinois voters. They voted for the smile, charm and hair. There never was any substance.
- 47th Ward - Thursday, Apr 15, 10 @ 9:55 pm:
===The only remote explanation I can think of is that maybe they got to Springfield believing that’s how things actually were done here, and thought they were just carrying on past practices, business as usual. What a shame. So many people’s lives ruined, careers destroyed
Steve, I think your work for previous governors represents true public service and as a citizen and taxpayer, I’m grateful to you and people like you who believe government service is an honorable profession. Sincerely.
But Stuart Levine and Bill Cellini got to Springfield many years before Rod and his guys did. From what I’ve read in the proffer, Levine was the guy who taught Rezko and Kelly how it was done.
Like I said, I have no doubt that this was all kept from you, because you’d object like some of the individuals named in the proffer apparently did. I was actually pleased to learn that Rod was told no occasionally by some of the people he surrounded himself with.
Did Rod and his conspirators bring *more* corruption to Springfield? It sure looks like they did, it’s clear that was Rod’s intention. I chalk that up to their dream to run the state the same way the city of Chicago is run — for the benefit of the insiders.
And WindyCityGardener, I think your analysis is pretty accurate, but Rod certainly cared about money. If not to become wealthy perhaps, then definitely as a way to keep score in his game.
It’s going to be a great book Rich. Retain the movie rights and see if Tim Matheson is available for the lead.
- justfedup - Thursday, Apr 15, 10 @ 11:50 pm:
ABCBOY — I agree with your analysis; can’t help thinking of Miriam Santos and that one buried statement in the Sun Times as to a “coach” being with her when she made those phone calls. Quinn T.– the most intriguing thing for me in this mess is those emissaries. It’s wrong to consider/take a bribe, but not to offer? Recently heard the emmissaries are sweating bullets.