WILLIAM F. CELLINI, SR., INDICTED FOR ALLEGED ROLE IN DEFRAUDING TEACHERS RETIREMENT SYSTEM WITH REZKO, LEVINE AND OTHERS
CHICAGO –A longtime political insider in Springfield was indicted today on federal corruption charges for allegedly conspiring with two Chicago businessmen and others to obtain political contributions for a certain public official by shaking down an investment firm that was seeking a $220 million allocation from the state Teachers Retirement System (TRS.) The defendant, William F. Cellini, Sr., was charged in a four-count indictment returned by a federal grand jury, announced Patrick J. Fitzgerald, United States Attorney for the Northern District of Illinois.
Cellini, 73, of Springfield, had longstanding relationships and influence with TRS trustees and staff members and was associated with Commonwealth Realty Advisors, Inc., a real estate asset firm that managed hundreds of millions of dollars on behalf of TRS, according to the indictment. He also raised significant funds for Public Official A, among others. He was charged with one count each of conspiracy to commit mail fraud, extortion conspiracy, attempted extortion and soliciting a bribe. He will be arraigned at a later date in U.S. District Court.
Cellini’s alleged crimes – essentially conspiring with others to force Capri Capital, also a real estate investment firm, and Thomas Rosenberg, a principal and part owner of Capri, to raise or donate substantial political contributions for Public Official A – were the subject of testimony earlier this year at the trial of alleged co-conspirator Antoin “Tony” Rezko. Cellini was charged with conspiring with Rezko, former TRS trustee Stuart Levine, the pension fund’s outside lawyer Steven Loren and others between the spring of 2003 and the summer of 2005 to defraud TRS beneficiaries and the people of Illinois of Levine’s honest services as a TRS trustee. TRS, a public pension plan for teachers and administrators in public schools statewide except in Chicago, serves hundreds of thousands of members and beneficiaries and has assets in excess of $30 billion.
Cellini is the 13th defendant charged as part of Operation Board Games, an ongoing federal public corruption investigation of insider-dealing, influence-peddling and kickbacks involving private interests and public duties related to various state boards and non-profit organizations.
* More…
According to the indictment, in the spring of 2003, Cellini and Levine agreed to oppose a proposal to consolidate TRS with two other state pension plans because they feared their control and influence at TRS, as well as the profits received by Commonwealth Realty Advisors, would be threatened. Cellini and Levine further agreed to seek help from Rezko and Co-Conspirator A in defeating the consolidation plan, with all four eventually agreeing that Cellini would use his influence at TRS and Levine would use his trustee position to hire investment firms that made contributions for the benefit of Public Official A. Cellini, Rezko, and Co-Conspirator A knew that Levine agreed to use his influence and position at TRS to help firms that had made contributions for the benefit of Public Official A, even though Levine understood that those firms were being chosen based on their political contributions and not on their merit.
Between February and April 2004 – at the same time Commonwealth Realty Advisors obtained allocations totaling $220 million from TRS – Cellini, Levine, Rezko, and Co-Conspirator A allegedly conspired to use their influence and Levine’s position at TRS to prevent Capri Capital from receiving a planned $220 million allocation of TRS funds unless Rosenberg and Capri agreed to raise or donate a substantial amount of funds for the benefit of Public Official A. In early May 2004, after conversations with Levine, Cellini agreed to and did tell Rosenberg that Capri was not going to receive its $220 million allocation because Rosenberg had not made a significant political contribution for the benefit of Public Official A, the indictment alleges. Once Rosenberg understood the reason Capri was not receiving funds, Cellini and Levine agreed that Cellini would direct Rosenberg to talk with Levine to arrange making the necessary contributions, the charges state.
Cellini allegedly reported back to Levine that Rosenberg would not be extorted and threatened to expose their plan to law enforcement. Cellini, Levine, Rezko, and Co-Conspirator A allegedly agreed it was too risky to continue demanding money from Rosenberg and Capri or blocking the $220 million allocation. They further agreed that, although Capri would receive the pension funds for investment purposes, Capri and Rosenberg would not receive any further business from the State of Illinois, the charges allege. In late May 2004, just five days after Levine was confronted by federal agents, Levine and the TRS board voted to allocate $220 million to Capri.
As part of the conspiracy, Cellini, Rezko, and Co-Conspirator A also allegedly agreed to and did engage in secret communications with Levine, other TRS trustees and staff members, including TRS Staffer A, concerning official actions pending before TRS. Cellini was aware that Levine concealed from and failed to disclose to the TRS board the existence of these secret communications, the charges allege. In the summer of 2004, Cellini, Rezko, Co-Conspirator A, and others allegedly discussed moving TRS Staffer A from his position at TRS into another job with a different state entity in an effort to ensure that TRS Staffer A would not cooperate with the government. And, in or around the summer and fall of 2004, in an effort to conceal the conspiracy, Cellini, Rezko and others discussed the possibility of removing the U.S. Attorney for the Northern District of Illinois in an effort to stop any investigation into the co-conspirators and others, the indictment alleges.
Still, the connections between Blagojevich and Cellini run deeper than most people would think for the first Democratic governor in a quarter-century and a longtime GOP insider who is the treasurer of his county’s Republican Party.
During Rezko’s trial, the FBI identified the “Road Builders”–which Cellini has long been connected to as executive director of the Illinois Asphalt Pavement Association–as having bundled more than $400,000 for Blagojevich’s campaign. According to testimony at the trial, the money came from a fundraiser in October 2002 — less than a month before Election Day — at the Wyndham Hotel in Wood Dale.
The Tribune reported earlier this month that federal investigators had subpoenaed the Illinois Road and Transportation Builders Association for records related to Cellini’s involvement in the 2002 Blagojevich fundraiser.
After Blagojevich was elected, testimony at Rezko’s trial showed Cellini carried influence with many of the governor’s top advisers, including Rezko and Christopher G. Kelly. A few months after winning office, Blagojevich named Larry Trent as head of the Illinois State Police. A state police veteran, Trent worked seven years for Argosy Gaming Co., overseeing security and investigations. Argosy owned casinos in Joliet and Downstate Alton and was run by Cellini.
*** 3:06 pm *** Cellini’s attorney responds…
CHICAGO, October 30, 2008 – Attorney Dan K. Webb stated that his client Bill Cellini “is completely innocent of these charges, and he will fight this case because he has done absolutely nothing wrong. Bill has lived an exemplary life as a successful businessman and devoted husband and father, and he will not allow his reputation to be damaged by these unfair and unjust charges. Bill is confident that a jury will find him not guilty.
“A stronger version of these same allegations was presented to the Rezko jury, and the jury sent a strong message to the government – a not guilty verdict. The Rezko jury returned a not guilty verdict because the allegations were not supported by any credible evidence.
“We know from the Rezko trial that the victim of the alleged extortion plan, Tom Rosenberg, testified that Bill Cellini never asked him for any money and that Rosenberg never paid any money to Cellini or anyone else. In fact, Rosenberg admitted that he was the one who reached out to Cellini, a long time friend, for help with a matter Capri Capital, Rosenberg’s company, had pending before the Teachers’ Retirement System. Rosenberg admitted that Cellini did not reach out to him. And, in fact, Cellini did help Rosenberg as Rosenberg had requested.
“We also know from the Rezko trial that Stuart Levine had participated in numerous schemes over several years to extort money from Tom Rosenberg, and that Levine intentionally concealed those extortion schemes from Bill Cellini. Cellini was completely unaware of any of Levine’s schemes.
“When the Rezko indictment was returned, the government did not indict Bill Cellini on these allegations due to lack of evidence. The evidence the government subsequently presented at the Rezko trial demonstrated that Bill Cellini never asked Rosenberg for any money, for any political contribution, or for anything else. Further, the evidence demonstrated that Cellini never received any money or anything else from Rosenberg or from anyone.
“The evidence is the same today as it was then, and it is disappointing that this indictment has now been brought with no additional evidence.”
* I’ve been thinking lately that Barack Obama’s popularity in this state is just one reason that Illinois Republicans should be worried next Tuesday.
I’ve also been wondering whether the John McCain campaign’s attacks on Obama - be it the recent stuff about “socialism” or “communism” or the claim that he “pals around with terrorists,” or whatever - may be hurting the Republicans as well. Over 70 percent of Illinoisans voted for Obama in the US Senate race, after all, and most still have a very high opinion of him. And, yes, I know Obama was running against an out-of-state Martian. But voting for someone, regardless of his/her opponent, is a serious act of support.
* The Question: Do you think my latest thinking is accurate? Explain why or why not, please.
And, remember, DC talking points will be deleted. Use your brain, not someone else’s.
* Nate Silver has a “big picture” analysis of Illinois that seems just about right…
If the suburban Chicago vote is split roughly evenly between the two parties, then two things are guaranteed to happen. One, it will be a hotbed for Congressional races, as it is again this year.
But two, it allows the Chicago city vote to swamp the downstate, rural vote. The city proper has no more people than downstate — actually, slightly fewer — but when it goes for the Democrat by 50 or 60 points, and downstate goes for the Republican by 15 or 25 points, that gives the Democrat an insurmountable advantage.
* Now, onto some congressional races. The Sun-Times offers up an explanation for why Republican Congresscritter Peter Roskam has created a pro-Obama website…
Freshman Rep. Peter Roskam — who supports Republican John McCain over Obama — has launched ObamaVotersForRoskam.com. […]
Roskam’s spokesman said the Web site was appropriate because 30 percent of Roskam supporters are voting for Obama.
Rep. Peter Roskam, R-Wheaton, is putting out an urgent appeal for last-minute contributions, noting Mr. Obama’s 14-point lead in his west suburban district.
“While we’re pleased that Barack Obama continues to attract support from across party lines … he believes Congressman Roskam would continue President Bush’s failed policies and is supporting Jill Morgenthaler for Congress,” said Obama spokesman Justin DeJong. […]
The Obama quote says, “First of all, I am a member of the mutual admiration society with Senator Roskam. He is always terrific.” […]
After praising Roskam - typical form for Senate floor debate - Obama said, “Having said that, have I said that he’s wrong? I love him, but he’s wrong.”
The Tribune has a Roskam story today, but reports nothing new.
* Meanwhile, the Peoria Journal Star allowed Aaron Schock to completely get away with saying that his back-dating of a notary stamp was a “clerical mistake” when his own father testified that it was a deliberate act. Today, the newspaper goes after Colleen Callahan on this…
Half of the six people touted by Democratic congressional candidate Colleen Callahan’s campaign Monday as “Republican voters” who support her told the Journal Star they classify themselves more as independents.
Such a scandal.
* Wondering where to go to beat the early voting lines today? Here is a list of the least busy early voting wards in Chicago…
Barrington, Norridge, Elmwood Park, Cicero, Stickney, Alsip, Blue Island and Lemont
Not much of a suprise, especially in the city. White wards with big Latino populations and strong Latino wards have historically experienced much lower (or quickly fallling) turnout.
* On the other hand, there are a whole lot of Latinos in Kane County, which experienced its 40,000th early voter yesterday…
That is more than 10,000 ahead of the number of voters Kane County Clerk John Cunningham estimated would vote early — and at the time Rogers cast his ballot, there still was a day and a half of early voting left.
Late Wednesday, Cunningham and Deputy County Clerk Jay Bennett estimated the numbers could go as high as 47,000 voters by the end of today, the last day to vote early in Illinois. […]
The surprising number means about 19 percent of Kane County’s 214,000 registered voters already have voted.
A new report by the [\Illinois Coalition for Immigrant and Refugee Rights] says Illinois now has more than three-quarters of a million foreign-born citizens and that most live in Chicago’s suburbs. Hoyt says nearly one of every eight registered voters in Kane County is now Latino. […]
Sonia Sánchez, 18, is leading a nonpartisan get-out-the-vote canvass in her hometown, Aurora. That’s the largest city in Illinois’s 14th Congressional District, where Oberweis is running. And it’s grown more Latino over the years. The ICIRR is coordinating this canvass and others like it in battleground Congressional districts surrounding Chicago.[emphasis added]
Fired up about Barack Obama and fearing long lines on Election Day, black voters are turning out in droves in the south suburbs to cast their ballots early this year.
As of Wednesday, well over 8,000 votes had been cast in both Matteson and South Holland - more than in places such as Oak Park, Schaumburg, Oak Lawn and Evanston.
Out of the 44 early voting sites in suburban Cook County, only Wheeling and Orland Park had seen more traffic.
The numbers game: Gov. Rod Blagojevich’s favorability rating may be sinking, but a new poll shows it ain’t as bad as the Chicago Tribune reported.
• • To wit: Although a recent Trib poll claims Blago’s popularity has sunk to 13 percent, a new poll by the St. Louis Post-Dispatch pegs it at 32 percent.
I’m so happy that the governor’s people got somebody to write about that poll. They’ve been bugging me for a couple of days.
* But here’s the problem with the poll: It has consistently given Blagojevich higher job approval ratings than any other survey. The Tribune wasn’t the only other poll that showed Blagojevich’s numbers were low.
A recent poll commissioned by the Paul Simon Public Policy Institute had the governor’s job approval rating at 9.4 percent, far below the Tribune’s rating…
* Rasmussen’s latest poll had Blagojevich with an “excellent” job rating of zero and a “good” rating of 4.
* The Glengariff Group’s September poll had the governor’s approval rating at 23 percent, with almost 63 percent disapproving.
* That disapproval number is the key here.
The Post-Dispatch poll had Blagojevich’s disapproval rating at 66 percent, a number not mentioned by our friend at the Sun-Times. That’s horrible no matter what the approval rating is. The Tribune had his disapproval at 71 percent. Rasmussen’s disapproval rating was 65 percent. The PSI poll had a “poor” rating of 61 percent. And, as mentioned above, Glengariff’s disapproval rating was 63 percent.
So, the disapproval numbers are all pretty much the same. And they are all bad for the governor.
* But, what’s going on with the different approval ratings? The Post-Dispatch pollster offered an explanation…
The Research 2000 poll has historically ranked Blagojevich’s favorability higher than most others. Pollster Del Ali speculated that may be in part because his poll asks respondents to choose among several categories of negative and positive approval, which may prompt more nuance in the answers.
Maybe so. One of other pollsters, Rasmussen, includes “fair” in the job approval rating. That option allows respondents to cop out. Blagojevich’s disapproval or approval ratings could be higher than reported.
Still, when one pollster consistently shows widely different results on a question than other pollsters, you gotta figure he’s an outllier.
* This is also important: The Post-Dispatch poll has, like other polling, showed a downward trend for Blagojevich during the past several months. He’s down two points since Research 2000’s September survey, and ten points from January. So, whatever the case with the approval/disapproval numbers, even that poll shows a tanking chief executive.
* One final point.
Both the Tribune and Rasmussen had lower ratings for Blagojevich than for President Bush. The Simon poll didn’t test Bush’s numbers. The Post-Dispatch’s pollster tried to use those Bush numbers to undermine the other polling…
Ali also questioned the lowest rankings of some other polls. “I find it hard to believe a Democrat in a Democratic state would be less popular than (President) George Bush,” he said.
But Ali overlooks the fact that Bush surely still has some stalwart supporters among the state’s Republicans, while folks in both parties seem to hate the governor. After all, the stalemate in Springfield is between Democrats.
* This is more than a little strange. DuPage County Republican Party Chairman Sen. Dan Cronin boosted Democrat Paul Vallas for Cook County Board President this week…
“I think he is genuinely interested,” Cronin said, noting he talks to him often enough to have his number in his cell phone.
Cronin backing a Democrat is one thing, but Cronin doesn’t live in Cook and he has his own problems to deal with in DuPage.
But Sen. Cronin also said something else worthy of note…
Cronin said he intends to make some moves to strengthen the GOP in neighboring Cook County. When asked if [Tony] Peraica was part of those plans, he flatly said “no.”
* Peraica, he of the now infamous midnight march on the County Building, doesn’t appear to have much interest in the job he’s currently seeking. Instead, just about everybody figures he’s trying to keep his name in the mix for the 2010 county board president campaign, or maybe even a statewide bid.
Even if he is completely wiped out next week (and that looks like a very real possibility), good luck keeping Peraica quiet. He appears to relish all the attention, even though it’s abundantly clear that he has a tin ear…
As Republican Tony Peraica and Green Party candidate Thomas O’Brien pleaded their cases inside the Chicago Urban League’s headquarters to be state’s attorney, a campaign van circled outside the building Wednesday night blasting a “Vote for Peraica” message.
“It’s ridiculous; especially in this building, there’s a lot of kids,” said neighborhood resident Leigha Hooper about the van using a loud speaker to broadcast its message. “You’re getting into people’s bedtime.” […]
Peraica, who had just participated in the candidate’s forum inside the league’s facility on the 4500 block of S. Michigan, said the van is usually silent during evenings and in residential neighborhoods.
But Mark Stevenson, Peraica van driver, dismissed neighborhood concerns.
“What’s wrong with it?” Stevenson said, ending the two hour broadcast at about 8:20 p.m. “It’s my right to do that.”
“And we need votes.”
Oh, yeah. That’s a great way to get those votes, dude. Turn it up!!! Maybe mix in a little AC/DC while you’re making your nighttime neighborhood cruises.
* And endorsements like this from the SouthtownStar will only encourage him…
Peraica, an Croatian immigrant orphaned at the age of 11, has consistently used his position as a county commissioner to rail against the status quo in Cook County. He promises to beef up the office’s pursuit of corruption cases while maintaining its focus on reducing crime.
* NEW: Thomson needs costly work before replacing Pontiac
The prison that will replace the soon-to-close Pontiac Correctional Center isn’t yet ready for inmates, according to a review of state purchasing orders.
Documents show that in the past 10 days, the Illinois Department of Corrections hired at least three companies to upgrade or repair the Thomson Correctional Center, which is set to replace Pontiac when the agency closes the 137-year-old facility Dec. 31.
In addition, the agency has hired a company to make upgrades to Lawrence Correctional Center in Sumner, which is being switched to a maximum-security facility as part of the closing of Pontiac.
In all, the last-minute construction work related to closing Pontiac and opening Thomson will cost taxpayers at least $424,000 — or more than 10 percent of what prison officials initially said would be saved by closing Pontiac.
Furious that Chicago taxicab fares are going down — not up — cabdrivers on Thursday gave Mayor Daley a two-week ultimatum: Support a 16 percent fare increase that takes effect Jan. 1 or risk a strike that could “paralyze” the city.
Attorney Flint Taylor has spent the last 20 years representing some of the alleged victims. Taylor says Attorney General Madigan and other government officials haven’t adequately handled the cases of about two dozen men.
TAYLOR: We call on Lisa Madigan to agree to prompt hearings for all torture victims who remain in prison as a result of confessions allegedly tortured from them by Burge and his men.
In an email statement, Madigan says she is reviewing cases individually to determine the most appropriate next step.
So far, Mr. Trump has lined up buyers for a bit less than $600 million of condo units and condo-hotel units in a residential market that has virtually seized up. Yet he owes lenders as much as $1 billion when the loans are due, according to public records and several people familiar with the project. He has closed around $200 million in sales so far, with roughly $380 million still in contract. The retail portion of the giant building is for sale, at a time of rising vacancies for retail space in Chicago and one of the worst eras for retailers in years.
“It’s a heck of a sleeper,” said political scientist Brian Gaines of the Institute of Government and Public Affairs at the University of Illinois. He said he was involved in a recent Illinois poll in which respondents weren’t even asked about the Senate race because “it wasn’t interesting enough.”
Mayor Daley wants to shrink the size of 80 more garbage collection crews — to one laborer on a truck instead of two. But he might not stop there.
The Streets and Sanitation Department is conducting a field test this week with a $200,000 truck that requires no laborers. It has a mechanical arm that picks up carts and dumps the trash in the side of the truck.
“If the guy has to get out of his truck, move cans into position, then pick ‘em up, time-wise it could be very ineffective,” O’Connor said.
He added, “It’s not new technology. It’s just whether our geography is amenable to this type of pick-up. Part of the thing in the city is having sanitation workers be able to pull the cart out of its enclave and get it to where it can be put into the truck. I’m not sure this articulated arm gets into all of those places.”
Chicago motorists caught yakking on cell phones while driving — and committing no other violation — will soon be able to hang onto their driver’s licenses and avoid the Traffic Court headache.
On Wednesday, a City Council committee traded the sledge hammer for a felt hammer, in hopes of increasing fines and reducing driver aggravation.
[Republican National Committee] spokesman Danny Diaz said he would not respond to questions from the Tribune, contending that the newspaper was biased against McCain.
Banished by the RNC?
Wow.
I’m starting to worry about a major Chicago-area earthquake caused by Colonel McCormick’s grave-spinning.
* More evidence that the world is coming to an end: Scott Kennedy is blogging.
In IL-10, the DCCC just poured in an impressive $929,279, bringing its total investment in the district to more than $2 million.
That’s not a thought, but it’s connected to this…
* Blogger wars can be so much fun. Larry cracks an inside joke about a rival blogger in his post about the above story. And another site has a Halloween costume suggestion…
Left wing blogger. This is the easiest idea. Don’t bathe for a month, sit behind your computer and babble incoherently.
* Speaking of babbling, Todd Stroger spoke today at the City Club…
“Contrary to popular belief, Cook County has not fallen into the lake.”
Not yet, anyway. When that McCormick quake hits, the whole town is gonna slide right into the drink.
“My father used to tell me that there would be good times and there will be bad times… But he never told me that there would be county commissioners who would make a career of using my name in every sentence, and as often as not tag my name to an outright misfact or misstatement.”
* Speaking and staying at the Union League Club has its advantages. A press conference by some Illinois Repubicans was held at the club yesterday, so I went, and was interviewed by ABC 7 about the “Rod & Todd” impact on the upcoming election. WBBM Radio was at the Paul Green/Rich Miller panel discussion earlier in the morning and filed this report…
A veteran observer of Illinois politics, Rich Miller, the editor and publisher of Capitol Fax, shared some of his thoughts on the upcoming election with members of the Union League Club of Chicago.
Miller believes the “Obama factor” will help Democrats in races throughout Illinois, but believes any bump from Obama could be weighed down by the “Rod Factor,” referring to Gov. Rod Blagojevich. […]
As for who Gov. Blagojevich would pick to replace Obama as Illinois U.S. Senator, if Obama becomes president, Miller won’t even venture a guess. He believes it will be whoever Blagojevich thinks can help him the most. But Miller says the governor is too unpredictable for him to know who that may be.
* The Question: Considering all factors, which replacement choice (assuming, of course, that Obama wins) would help Blagojevich the most? Explain.
Please, keep in mind that this is not about who the governor will or should pick. We’ve already discussed those points. Try to stay on topic. Thanks.
…Adding… The “help him the most line” was made by Paul Green, and I agreed with it. Credit where credit is due.
*** UPDATE *** Patterson asked Lucio Guerrero if the governor was having any discussions about the replacement. Guerrero responded via e-mail…
“We have decided to make it an American Idol style competition. We are going to give the candidates a few days at the spot and then the voters will call-in to pick their favorites. Rich Miller will play the part of Simon, Catie Sheehan can be Paula Abdul and you can be Randy Jackson. Does that work?”
* Oh, yeah, this’ll help a lot. I’m positive, even. From a press release…
Governor Rod R. Blagojevich today announced the creation of an inter-agency task force to ease the impact that the closure of Pontiac Correctional Center will have on the community, including businesses and local governments. The Task Force will pool all available and necessary state resources to preserve the economic well-being and quality of life for Pontiac and surrounding communities.
“I am creating this Task Force to develop real solutions and find ways to help the Pontiac community during this transition, and give them the help they need so people can support their families and pay the bills during these tough economic times,” said Governor Blagojevich. “By bringing together representatives from the state’s agencies and local leaders, we will be able to look at the issue in detail and utilize a wide array of resources to help the Pontiac community as it goes through this transition.”
Look, I’m not a big fan of using prisons for economic development, and the Pontiac prison is decades past its prime. But to knock the legs out from under a town by moving a prison that’s been there for over a hundred years and then making an empty gesture like this is truly insulting.
* Now, onto some even more troubling (and related) news.
Suspicion has been brewing for months that Gov. Blagojevich was sitting on dozens of pardon and commutation applications for fear that he might pardon the “wrong” person and that would come back to haunt him.
Ironically, at the same time, I’ve been hearing behind the scenes murmurs that the Department of Corrections’ parole office was deliberately refusing to revoke parole for offenders for fear of prison overcrowding (exacerbated by lack of staff) and jacking up the recidivism rate (which would create more press problems). These sources have insisted that a tragedy was imminent.
Well, we appear to have our tragedy, and it’s a doozy…
Busted for what police said was a rock of cocaine on the driver’s seat of his car, William Balfour could have been spending the past few months behind bars for a parole violation.
The 27-year-old felon was instead allowed to remain free and is now considered a suspect in the deaths of Oscar-winner Jennifer Hudson’s mother, brother and 7-year-old nephew.
On the day the victims were fatally shot and the young boy went missing, Balfour told his parole agent he had missed a meeting because he was baby-sitting, records show. […]
A parole supervisor declined to issue a warrant to revoke Balfour’s parole after the arrest, records show.
“Per supervisor … no warrant,” the report reads. “Agent to monitor offender, impose sanctions.”
Corrections Department spokesman Derek Schnapp said officials who reviewed the cocaine-possession case against Balfour determined “the evidence that was presented during that time wouldn’t have necessarily warranted a violation.” […]
However, a felony arrest usually is sufficient reason for corrections officials to revoke parole, said Thomas Peters, a Chicago criminal defense attorney who represents parolees.
This requires a full legislative investigation, with subpoena power. We need to know what’s really going on at the DoC. Now.
* Congressman Gutierrez’s self-professed love of quickie real estate deals has landed him back in the headlines…
U.S. Rep. Luis Gutierrez personally lobbied Mayor Richard Daley to back a controversial multimillion-dollar development for a campaign contributor who had just lent the congressman $200,000 in a real estate deal, a Tribune investigation has found.
Now the congressman’s unusual gesture of support is under federal scrutiny as authorities investigate how developers overcame city planners’ objections to convert the West Side industrial site into a more profitable residential and commercial development.
Authorities have obtained Gutierrez’s July 7, 2004, letter to Daley—written on U.S. House stationery—as part of their grand jury investigation into how zoning works inside City Hall, sources told the Tribune.
Gutierrez said there is no connection between the loan and his letter of support for the Galewood Yards project, which is not in his district. In a written statement, the congressman said his involvement was “extremely minimal” and “entirely appropriate.”
He said he has not been contacted by federal authorities.
The federal investigation comes as the Tribune’s “Neighborhoods for Sale” series documents an insiders’ game in which politicians rake in millions in campaign cash from developers and other real estate interests while often overriding concerns of homeowners and city planners. It is a system that has fundamentally reshaped the character of city neighborhoods.
* Gutierrez does provide a thorough response. Here is his reasoning for writing to Mayor Daley on behalf of the developer who had loaned him the cash….
“Any fair analysis of the Galewood Yards development would show that my involvement was extremely minimal. Though my involvement in Galewood Yards was extremely minimal, this was a positive development that was deserving of support. This development is adjacent to the 4th Congressional District, and my constituents would be directly affected by any plans or developments in this area.”
“Specifically, the Galewood Yards development included a Laborers International Union job training center that is currently under construction. It is specifically targeted to helping the community’s significant Latino and African American population. This was an important and virtually unprecedented development, as many jobs in the trade unions have often excluded minorities. Moreover, it is my understanding that half of the total land use of Galewood was dedicated for the purpose of job training, and that as a precondition for approval of the project by the City of Chicago, the developer was required to transfer the land for the training center without receiving any profit.”
“The development also included moderate income housing and a multiplex movie theatre that would bring needed jobs and economic development to the community. I supported a project that included affordable housing, job training and job creation for Latinos and African Americans on a parcel of land that had been unproductive for years.”
He also claimed the loan was at an above-market rate of 7 percent and that he lost money on the flip.
* Always remember when reading stories like these that smoke doesn’t necessarily translate into fire. For instance, the Tribune ran this letter to the editor about a big story it ran in a recent Sunday edition…
I would like to help clarify the facts regarding “Real estate success is scrutinized” (News, Oct. 19), a story about Illinois first lady Patricia Blagojevich and her relationship with North Star Investment Management. While Ms. Blagojevich was sponsored by our firm to take her licensing test that would allow her to become an investment adviser, she never did any work for our firm. North Star does not manage money for state pension funds and we have never pursued that kind of work.
We also want to apologize to her and to your readers for comments made by our chief compliance officer, Peter Contos. He misspoke when he suggested Ms. Blagojevich proposed bringing state pension fund business into our firm. She never proposed doing that or using any connection with the State of Illinois to benefit our company in any way.
—Peter Gottlieb, president, North Star
Investment Management, Chicago0
I’m not sure whom to believe, but the original story is here.
* As I attempted to explain to ABC 7 yesterday, Barack Obama’s presence at the top of the ticket isn’t guaranteeing success for all down-ballot Democrats. The reason? Rod Blagojevich…
Illinois Republicans are hoping that by reminding voters that Rod and Todd, as in Governor Rod Blagojevich and Cook County Board President Todd Stroger, are two of the state’s most unpopular Democrats. Those voters may be less likely to vote straight Democratic next Tuesday, even if they support the very popular Democrats at the top of the ticket, Obama and Sen. Dick Durbin. […]
“If you talk to anybody out there, they cannot predict with any kind of certainty what will happen in a huge Democratic year because of Rod Blagojevich,” said Rich Miller, Capitol Fax.
* Republican congressional candidate Marty Ozinga has been slammed hard by his Democratic opponent Debbie Halvorson for contributing to Blagojevich’s campaign fund. Ozinga has a new broadcast TV ad that fights back, quoting a recent Tribune editorial to make the case that Halvorson is the Blagojevich ally, not him…
* Republican Congresscritter Peter Roskam has already tied his Democratic opponent to Gov. Blagojevich (she was the guv’s homeland security chief), and he’s now wrapping himself around Barack Obama. Call it a twofer. From Lynn Sweet…
-I’ve heard that all the Illinois Republican House candidates in competitive districts are nervous because Democrat Barack Obama is pulling big leads throughout Illinois, even in GOP turf. Rep. Peter Roskam (R-Ill.) created “Obama Voters for Roskam” in order to lure ticket spliters. He is in a race with Democrat Jill Morgenthaler in the west suburban 6th District.
* Anyway, the reason I was interviewed by Channel 7 is because I was at a press conference yesterday where the House and Senate Republicans unveiled a new radio ad to remind voters of Rod Blagojevich and Todd Stroger before they vote. Listen to the ad by clicking here. And here’s the ad’s script…
Woman: You know, I wish Rod Blagojevich and Todd Stroger were on the ballot in next week’s election.
Man: You’re going to vote for them?
Woman: Vote for them?!? Look at the mess they’ve caused: Higher taxes and wasteful spending.
Man: Well, they haven’t done it alone. They’ve had a lot of help from Democrats in the state House and Senate.
Announcer: The state budget has skyrocketed under Blagojevich’s watch and he’s spending money we don’t have. Now these same Democrats are supporting a $3 billion income tax hike and even side with Todd Stroger’s sales tax. Blagojevich and the Democrats failed economic policies have driven 60,000 manufacturing jobs out of Illinois and unemployment is among the highest in the nation.
Woman: So why would we send another Democrat to Springfield”
Man: We can’t! Not if we want change.
Announcer: If you want to make real change in Springfield, vote Republican for state representative and state senator.
The ad strikes to the core of the Republican conundrum this election season: a potential tidal wave of voters turning out for Barack Obama who may be inclined to vote Democratic down ticket.
State Sen. Kirk Dillard of Hinsdale said Obama is expected to win some of the suburban areas where the GOP has highly contested races.
But he said voters need to know that Democratic votes down ballot “is giving a rubber stamp and is giving more power to the Chicago Democratic machine.”
* The governor can’t catch a break no matter what happens. The head of the Lincoln Library was just fired for alleged petty criminality, for crying out loud…
Less than a week after the disclosure of his arrests for shoplifting, Rick Beard was fired Tuesday as head of the Abraham Lincoln Presidential Library and Museum.
Gov. Rod Blagojevich decided to dismiss Beard and sent him a letter of termination, said David Blanchette, spokesman for the Illinois Historic Preservation Agency. IHPA director Jan Grimes called Beard to tell him the news.
Illinois taxpayers may soon be called on to bail out what is arguably the best-funded public pension plan in the state thanks to $3.6 billion in fund losses caused by the spiraling economy.
The Illinois Municipal Retirement Fund covers about 177,000 active employees of local governments and about 85,000 retirees. The good news for them is their retirement benefits are guaranteed no matter what the economy does.
Illinois’ most notorious criminals will soon have a new home if state prison officials carry out their plan to close Pontiac Correctional Center.
Fifteen inmates on Illinois’ death row will be shipped west to the state’s mostly unused prison in Thomson in January, marking the first time the state’s condemned unit has not been in Pontiac in decades.
The prison in Thomson, which was built in 2002 but never fully opened because of budget constraints, is ready to accept the prisoners, said Illinois Department of Corrections spokeswoman Januari Smith.
A budget watchdog group has come out in support of the Chicago Transit Authority’s proposed fare hike. The Civic Federation says the 25-50-cent increases are necessary to offset fuel costs, and to pay for free rides mandated by the state.
Nearly $900 million in property tax money was siphoned off into Cook County tax increment finance districts in 2007 — 11.5 percent more revenue than the previous year, according to a report produced by Cook County Clerk David Orr.
If TIF funds were collected as a separate taxing district, it would take in the second largest amount of property tax revenue in the county after the Chicago Public Schools, which gets $1.9 billion a year.
Chicago property tax revenue diverted from schools, parks, day-to-day city expenses and other local government operations to city development projects increased by about $55 million in 2007 to $555 million, an 11 percent jump from the previous year, according to a report released today by Cook County Clerk David Orr.
Some critics of tax increment finance districts, known as TIFs, say they are partly responsible for the city’s current budget shortfall, pegged at $469 million. To address the gap, Mayor Richard Daley has proposed layoffs and increased fees and taxes for 2009.
Pat Burke said he feels like his tax dollars are being “flushed down the toilet.”
How else to explain the city’s decision to install speed humps in June on a two-block stretch of North Paulina, only to tear them out this month, now that the street is being resurfaced?
* Motorola to switch to Google’s Android system, as layoffs loom
Motorola is reportedly preparing a new round of layoffs and changing its cell-phone software platform to Google Inc.’s Android operating system for its mid-tier and multimedia phones, according to unnamed sources in Wednesday’s editions of the Wall Street Journal.
The Schaumburg-based cell-phone giant has laid off 10,000 since early 2007.
Wednesday, Oct 29, 2008 - Posted by Capitol Fax Blog Advertising Department
[The following is a paid advertisement.]
Leading newspapers across the state are urging a no vote on the constitutional convention question on November 4th. They recognize a constitutional convention would be expensive and not solve the state’s problems, only serving to put a strong document at-risk and turn power over to the very people who’ve created the state’s problems.
Dysfunctional state needs leadership, not a convention - Rockford Register-Star, October 26
“The Illinois Constitution is a good machine that has been driven off the road by incompetent politicians.”
Leaders need changing, not the constitution - Southern Illinoisan, October 26
“The troubles with our state government have less to do with the constitution, created in 1970 and often cited as a model for other states, than with the faulty leadership of our state.”
Politics, not constitution, state’s problem, vote no - Moline Dispatch – Rock Island Argus, October 26
“We fear that those who will win the power to clean up the system are the ones who made the mess in the first place: politicians, political leaders and special interests.”
Don’t vote for a new constitutional convention - Chicago Sun-Times, October 9
Vote “no” on constitutional convention - Daily Herald, October 20
Vote no on con-con question - Pioneer Press, September 27
Everything is late today because, frankly, I overslept. I was apparently way tired from my several-day tour of suburban legislative districts.
Anyway, I was finally finished writing and about to get everything sent when the phone rang. I didn’t recognize the number, but thinking it was a subscriber complaining that s/he hadn’t yet received the Capitol Fax, I answered.
Caller: “Is this NewsChannel 20?”
Me: “No, ma’am, it’s not.”
Caller: “What is this?”
Me: [Click]
Morning Shorts and everything else will be posted soon.
