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Trial testimony: Obama prevented some really big problems

Friday, Jun 11, 2010 - Posted by Rich Miller

* The allegation yesterday at Rod Blagojevich’s trial that then-Senate President Emil Jones agreed to kill an ethics bill in exchange for an appointment to the US Senate doesn’t really surprise me. It sickens me, but it doesn’t surprise me, considering how I’ve watched both of those guys pretty closely over the years.

Blagojevich wanted the ethics bill killed because it was specifically designed to dry up his campaign cash. The bill prohibited anyone with a state contract over a certain size to contribute to the statewide official who was responsible for the contract. Blagojevich’s fundraising machine focused heavily on contractors, including (but definitely not limited to) road contractors. So, Blagojevich used his amendatory veto to rewrite the bill to include contribution bans to legislators as well. That’s when the Jones deal went down…

“Emil Jones agreed not to call a vote if Rod named him to Obama’s Senate seat,” Monk said.

The agreement fell through when Obama called Jones personally and asked him to call the bill to a vote, so it wouldn’t negatively impact Obama’s campaign in 2008, Monk said he learned.

After Obama asked, Jones decided to call a vote on the bill, which would make it illegal for individuals or companies getting state business to make donations, Monk recalled. He said the Blagojevich camp believed Jones had reneged on the deal.

The House voted to override Blagojevich’s veto of the bill 110 to 3, and the Senate eventually voted 55 to 0 to do the same.

If it hadn’t been for Barack Obama, we could’ve had Emil Jones as our Senator. You think Roland Burris’ appointment caused an explosion? If Jones got the seat, the resulting explosion would’ve been thermonuclear because the media would’ve taken it right back to the President-elect, rightly or wrongly. Jones, remember, was often described as Obama’s “political godfather.” The mess would’ve been enormous.

* Speaking of legislative leaders, I don’t think anyone else has covered this aspect of how Stu Levine got introduced to Rod Blagojevich. One of the people who recommended him was House GOP Leader Tom Cross, according to testimony yesterday…

The prosecution asked Monk about Stuart Levine. He said Rezko introduced him to Levine at Rezko’s office and recommend Levine be appointed to two boards: TRS and the Illinois Health Facility Planning Board, which decides where and when hospitals can be built.

Monk said Levine was not the only person Rezko recommended be appointed to the facilities board, and Monk passed on all the recommendations to Blagojevich. Blagojevich wanted to appoint Levine because Levine was a big Republican, and would show Blagojevich was above party politics. Levine had received an honor from a foreign country, was also recommended by State Rep. Tom Cross and Kelly and seemed smart and reputable enough that Blagojevich followed through on Rezko’s recommendation.

Monk says Rezko wanted Levine appointed to TRS quickly because of an issue that Rezko was interested in.

* Back to the fundraising. After Barack Obama called Emil Jones and the Senate overrode the governor’s amendatory veto of the ethics bill, Blagojevich had until December 31st, 2008 to raise as much money as he could from state contractors. It didn’t go well, though, and the governor started to freak out…

The voices of the Blagojevich brothers are filling the courtroom for the first time as secret FBI recordings are played with Lon Monk on the stand.

Jurors can hear an animated and irritated Rod Blagojevich who is pushing his brother hard to get to $4 million.

Rod Blagojevich is snapping at his brother, telling him to keep hitting people up.

“In terms of having money in the bank, it’s going to be close,” Rod says. “We’ve got to somehow get there…get to that $4 million.”

Rod tells Rob to keep calling people and ask: “Can you send us $5,000, can you find us whatever, follow me?”

Rod tells his brother on the recording to hit up anyone and everyone: the Pritzkers, Sam Zell, Blair Hull.

* As we know by now, Blagojevich also tried to tie a $5 billion Tollway construction program to a $500,000 campaign contribution…

Monk said in the fall of 2008, the then-governor hoped the tollway plan would “incentivize” Krozel to make a large contribution before a new ethics law banning such donations went into effect at the end of that year, Monk said.

“We need to get $500,000 from him,” Monk recalled Blagojevich saying.

Monk said Blagojevich regularly asked about the matter, and Monk checked in with Krozel but didn’t specifically ask for $500,000 because he “didn’t feel like it” and didn’t think it was reasonable in a down economy.

Blagojevich announced a $1.8 billion tollway plan that fall but held off on an even bigger expenditure because he thought Krozel should be able to bring in money from members of his group, Monk told the jury.

Here’s one reason why the contributions never arrived…

As Monk checked up on progress, [contractor Jerry Krozel] said he hit a snag.

“I’m not going to be able to raise money from my members right now because they had been served subpoenas from the U.S. Attorney’s office,” Monk said.

* Blagojevich wanted cash so much that he even believed Kurt Granberg ought to pony up for his long-promised job running DNR…

Lon Monk testified about a deal Blagojevich claimed he had made with former state Rep. Kurt Granberg to name him director of the Illinois Department of Natural Resources in exchange for the balance of the Democratic lawmaker’s campaign fund.

“If he was going to retire,” Monk said of Granberg. “We [decided we] should check on the amount of money in his campaign fund, because he doesn’t need that anymore if he is going to come for state, and we should check his cash balance and ask him for it.”

Granberg never paid Blagojevich’s campaign, even though Blagojevich held up the appointment until almost the very last minute of his governorship.

* And Kristen McQueary shows how all this proves at least one count against Blagojevich…

The tapes and another full day of admissions from Monk revealed the full extent of Blagojevich’s money-raising obsession. He knew everything - who was giving how much and when, and he would sulk and pout when donors held off.

So much for Blagojevich beating Count 24, a “making false statements” charge based on a 2005 interview Blagojevich gave to federal investigators. During it, he claimed a “firewall” existed between the campaign and government sides of his administration to ensure there was no conflict. One side had no idea what the other was doing.

But based on Monk’s testimony, the only firewall that existed apparently was lodged in Blagojevich’s brain, blocking the truth from exiting his mouth.

* Campaign money wasn’t everything. There was also the Blagojevich personal bank account to think of…

Monk said Rezko didn’t seem to be interested in what work Patti Blagojevich did for his company. All he cared about was “that he hire Patti and she do something and he be able to pay her a salary,” he told jurors.

It was preferred that Patti Blagojevich be placed on a retainer, as opposed to being paid by commission, which would require the actual sale of property for her to be compensated, Monk said.

In a conversation with a lawyer then representing Blagojevich and his wife, Monk said, it was made clear that Patti Blagojevich would actually have to at least show up at Rezko’s firm on a regular basis. That presented a dilemma, Monk said. “She was not only the governor’s wife and had certain duties there, (but) she was a stay-at-home mom for two little girls,” Monk said.

Prosecutors contend Patti Blagojevich did no work for approximately $150,000 from Rezko, while the former governor’s criminal-defense lawyers have argued she earned the money for her real-estate work.

* Roundup…

* Blagojevich trial: Talk of Jesse Jackson Jr. on tapes

* Jurors get an earful of Blago

* Monk details Blagojevich’s drive for cash

* Aide: Blagojevich said he made deal for Obama seat

* Monk: Blagojevich Had a Deal With Emil Jones

* Obama Phone Call Derailed Blagojevich Senate Deal

* Blagojevich trial: Kurt Granberg

* Blagojevich: Corrupt plotter or honest victim?

* Zorn: Blago’s best defense will be no defense

* VIDEO: Roe Conn Talks Blago

* VIDEO: Defense Atty. Steve Greenberg on the Blago Trial

* Blagojevich in Shadow of Famous Capone Trial

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*** UPDATED x1 *** “Nastiest Senate race in the country”

Friday, Jun 11, 2010 - Posted by Rich Miller

* The outlook for the Illinois US Senate race by Chris Cilliza at the Washington Post…

Combine Kirk’s problems and those of Giannoulias, which are still significant and majorly problematic even though they haven’t gotten much attention of late, and you have a recipe for what we believe will be the nastiest Senate race in the country this fall.

The take by MSNBC’s First Read isn’t much different…

This does have the feel of a race to the bottom.

I have those same feelings.

* Meanwhile, Lynn Sweet followed up on Congressman Mark Kirk’s claims that the White House was involved with leaking the Department of Defense memo which raised concerns about Kirk’s “partisan political activities during his last two tours of active duty.” You’ll recall that this was the heart of the Kirk campaign’s response…

“This raises grave concerns and questions about who gained access to Kirk’s confidential records. The document in question should be viewed for what it is — a baseless political ploy by partisans bent on defending a U.S. Senate seat at any cost.”

From Sweet’s column…

With no evidence, the Illinois GOP Senate campaign of Rep. Mark Kirk accused the Obama White House of leaking information about Kirk’s military record, a charge White House senior adviser David Axelrod said Thursday is not true.

“Obviously, Congressman Kirk has some problems that are of his creation and he can’t download them on us,” Axelrod told me. “I assure you that everyone here has plenty to do. No one is trafficking in revelatory records about him.” […]

On Thursday, I asked the Kirk campaign if they had any more information to back up their leak accusation — in the wake of the White House denial and Welch saying the leak came from inside the Kirk operation.

The statement sent over from Kirk’s operation did not address the leak controversy. Here it is: Said Kukowski, “Congressman Kirk has served honorably for 21 years as a Navy Reserve intelligence officer.

“The Fitness Report from his service in Afghanistan is documented proof that the congressman not only did nothing wrong — he performed exceptionally in service to our country. In the end, Alexi Giannoulias cannot distract voters from his calls to raise taxes, increase spending and continue the failed policies that led our state into economic ruin.”

Not exactly a response.

And what about that initial claim by the Kirk campaign? First, they expressed “grave concerns” about who gained access to the congressman’s records and seemed0 to blame the White House. From Terry Welch, who broke the story…

The memo was sent to me from someone who received it from inside Kirk’s own camp. Suggesting it came from administration officials or political operatives is baseless. I have backed up every single statement I’ve made about Mark Kirk, but he has chosen to respond to substantive and substantiated claims I have made with unsupported accusations. […]

If Kirk’s campaign wants to accuse me of colluding with someone in his opponent’s campaign or in the administration, he better bring some proof. The truth is Kirk has a leaky campaign.

* It’s the Kirk campaign’s second react sentence which bothers me the most, however…

“The document in question should be viewed for what it is — a baseless political ploy by partisans bent on defending a U.S. Senate seat at any cost.”

That’s some pretty bold talk about an official memo issued by Deputy Under Secretary of Defense Gail McGinn. If you check McGinn’s bio, she started at the Department of Defense in 1988, under a GOP administration. She rose to her current position in 2002, also under a Republican administration, and has a long list of government service awards.

My own opinion is that the Kirk campaign tried to piggyback on the national kerfuffle over the White House allegedly offering jobs or slots to Democrats to keep them out of primaries. It hasn’t worked at all, and probably will only backfire, which may be why the Kirk campaign backed off when pressed by Lynn Sweet. Kirk’s initial reaction was just way too far over the top and couldn’t be sustained.

*** UPDATE *** Oops. I forgot to post this odd story…

Someone has jerked the “Kirk For Senate” sign from the window of the Lincoln Square campaign headquarters of Adam Brown. […]

Even though City Councilman Brown, who is running for state representative against incumbent Democrat Bob Flider, is the high profile candidate being promoted at the office, a few Republicans are quick to remind everyone within earshot that it is the Republican headquarters, and not just Brown’s headquarters.

Now, about that sign. Who took it out of the window is not exactly known, but the Macon County’s Republican Party head honcho, Jerry Stocks, is said to be upset with Congressman Mark Kirk’s “misstatements” about his military service. The “misstatements” have soured a lot of Republicans on Kirk’s candidacy to replace Senator Roland Burris in the November election, and left them wondering what the difference is between a “misstatement” and a “lie”.

Yikes. This scandal not only hurts Kirk with the media, but it also goes right to his base. Not good at all.

38 Comments

*** UPDATED x2 *** Blagojevich reprimanded by judge

Thursday, Jun 10, 2010 - Posted by Rich Miller

*** UPDATE 1 *** If you’re not reading the Sun-Times’ Blago Blog, you’re just not informed…

Rod Blagojevich, Tony Rezko, Chris Kelly and Lon Monk used code names for themselves “when talking about the four of us making money,” Monk said — “1, 2, 3, 4.”

Monk said in 2007 or 2008, when he and Blagojevich were alone in Blago’s office, they discussed an FBI investigation.

Blagojevich told Monk not to ever talk about the “1, 2, 3, 4″ reference.

Monk on the stand silently mimicked Blagojevich’s actions, putting up his fingers one at a time, then running a single finger across his throat.

Blagojevich is clearly upset, unsettled in his chair. He leaned forward and stared right at Monk. But at Monk’s gesture, Blagojevich sat back hard in his chair and appeared to mutter something.

*** UPDATE 2 *** Barack Obama killed two birds with one stone, according to Lon Monk’s testimony today…

Monk told the court that Blagojevich told him he had made a deal with then-Illinois Senate President Emil Jones not to call a vote on a proposed ethics bill that would have limited campaign contributions to the governor. Monk said that Blagojevich felt the bill wasn’t fair, as it only targeted the state’s executive branch, and was also concerned that its specific restrictions would greatly hinder Blagojevich’s fundraising.

Jones had the power to stymie the ethics bill by not calling it for a vote. In exchange for Jones’ cooperation, Monk testified, Blagojevich told Monk that he had promised to appoint Jones to Barack Obama’s U.S. Senate seat if Obama won the presidency. Monk said he was “surprised.”

However, Monk said that John Harris, Blagojevich’s chief of staff, told him that Obama had called Jones and urged him to call the bill. Ultimately Jones did, and the state Senate voted to override Blagojevich’s amendatory veto. The bill passed and became law on January 1, 2009.

[ *** End of Updates *** ]

* Judge Zagel is running a tight ship…

Prosecutor Reid Schar started the morning by complaining that Blagojevich was gesturing inappropriately to people in the courtroom. Schar said jurors were distracted by his gesturing.

He said Blagojevich made it “audibly clear in his displeasure continuously looking over, gesturing to people in the pews.”

Schar said it was “not proper decorum. It’s clearly distracting.”

Blagojevich, sitting down, frowned.

Zagel told him to stop. “By and large it’s for their own benefit,” he said.

* The defendant’s wife will have to leave for a bit…

Patti #Blagojevich is told she has to leave court during some Monk testimony. that’s b/c Patti will testify for defense later.

* Mark Brown sees a gaping hole in Lon Monk’s testimony…

Reluctant or not, Monk is an essential part of the government’s case — a co-conspirator who puts Blagojevich in the room when the alleged insider schemes to make money off state government were first hatched.

But the nagging problem I see is that there were only four people total in that room.

One of them — Christopher Kelly — is dead, a suicide victim who had no interest in being the one to corroborate Monk’s story. Another, Tony Rezko, is not expected to be a prosecution witness because he has a credibility gap that probably makes anything he’d have to say useless, his penchant for deception a matter of detailed public record.

Without Rezko, that seems to make it Monk’s word against Blago’s because, again as far as I know, there’s no paper trail to help prove the governor was in on the plotting. […]

The various ideas were supposed to produce hundreds of thousands of dollars for the four men to divide equally, but Monk and Blagojevich wouldn’t get their share until after Blagojevich left office.

Monk says Blagojevich attended these meetings on how to use his position to make money, paid attention to the discussion, and that it was understood that he would have to “take certain actions as governor to help the plans.” But he says no specific actions were ever discussed.

It’s not that I have a hard time believing this really happened. It’s just that I have a hard time seeing how the government proves it. At best, maybe it makes some of the other crimes of which Blagojevich is accused easier to understand.

* And Ted Cox chronicles the scene outside…

It’s not a media circus surrounding the Blagojevich corruption trial so much as it’s a carnival midway with freaks, geeks and barkers all trying to attract attention.

Go read the whole thing.

* Roundup…

* Former Blagojevich Aide To Resume Testimony

* Monk has his say in court at Blago trial

* Lon Monk Testifies of Plans to Turn State Power to Cash

* Longtime friend outlines Blagojevich’s role in hatching allegedly illicit deals

* Blagojevich Aide Talks About Emanuel, Bear Stearns

* Blagojevich trial: Former top aide Monk takes stand

* Former Blago Aide: What We Did Was Wrong

* Blagojevich conspiracy began in 2003, Monk testifies

* Betrayed by a Friend

* Former Staff Member Bob Arya Talks About the Blagojevich Trial

* A tattoo tribute to Blagojevich

* Sneed: Rod’s biographer: Book ‘em

* The Governor and the Columnist

* Constable: Finally under the spotlight he craves, Blago tries to slip into shadows

* Every day, a sideshow before the Blagojevich trial starts

* Kass: Democrats not only party in trough with Blago

* Former Wheaton couple follows Blagojevich

38 Comments

Not the media’s finest hour

Thursday, Apr 29, 2010 - Posted by Rich Miller

* Sometimes, bad things happen when pundits follow the mindless herd…

[President Obama is] not coming home to show his love for Alexi Giannoulias…

The Quincy visit comes less than a week after Broadway Bank closed, giving the impression that Obama is wiping the flailing Senate candidate off his shoe.

He’d better give his old friend another hug for all the viewers in Iowa, Missouri — and Illinois.

Just more silliness from people who’ve been reading too much into the crackpot DC tea leaves. White House reporters even demanded to know earlier yesterday whether Obama would mention Giannoulias in his speech.

The Chicago press corps was all atwitter…

Just hours earlier, Giannoulias had been facing questions in Chicago about whether Giannoulias’ late invitation to the event constituted a “snub” after months of bad press about the collapse of Giannoulias’ family’s Broadway Bank.

“There’s a lot of rumors and innuendo, but the White House is supportive of this campaign because they know we’ll stand up for Wall Street reform, move this country forward,” Giannoulias said.

They even mocked Giannoulias…

Reporter: “Do you need a hug from Obama today?”

* Well, as it turns out, Giannoulias did get a hug from Obama…

And a shout-out…

When Obama was introducing the Quincy mayor and Illinois officials, he gave a shout-out, referring to Giannoulias as the “soon to be senator.” Right before the speech, Giannoulias met briefly with Axelrod, Reggie Love, Obama’s body man, and Marv Nicholson, chief of advance (the latter two are part of the basketball bunch).

And then commenced a noisy round of gear-shifting…

Yet there was no mistaking the political implications for Giannoulias and his relationship with the White House as Obama closed out a two-day three-state campaign-style Midwest tour with a town hall event at the Oakley Lindsay Civic Center.

Obama mentioned Giannoulias’ name during his remarks. Later, the president gave a departing good-luck hug to Giannoulias, his former basketball playing buddy. Obama has been close with Giannoulias, providing a vital endorsement in getting Giannoulias elected state treasurer four years ago.

Prior to Obama taking the stage, White House Senior Adviser David Axelrod summoned Giannoulias out of his seat in the audience for a private backstage meeting. Axelrod said it involved “catching up” with the candidate.

A White House background sheet on the day’s activities, noting the elected officials from Illinois planning to attend the event, listed Giannoulias at the top, even though in ranking and seniority the state treasurer is last among the statewide offices.

Crrrrreeeeeeeeekkkkk…

Forget the man hug. Forget the announcement that Alexi Giannoulias is Illinois’ “next Senator.”

President Obama’s greatest gift to Giannoulias during his speech in Quincy was the speech itself. Obama ripped into Wall Street, using many of same anti-investment banking tropes Giannoulias has been employing in his campaign against Mark Kirk.

Funny…

The national press corps is already in place, I noticed they had a grand buffet set up for them. Nothing for local regional press.

Instead of going off the rails, the pampered Heathers should’ve been listening to this guy all along…

“Giannoulias and Obama are friends and he’s friendly with people around him,” Paul Green said. “It’s a no-brainer. He will support him when it counts.”

And this was a presidential understatement…

“Now, part of the problem is, is that when I travel now it kind of causes a ruckus.”

Oh, and one more thing. I never wrote this…

Rich Miller of Capitol Fax points out that he called the election even earlier: nearly a year ago, when Lisa Madigan refused to run for the Senate.

What I wrote was: “I’ve personally had this race in the ‘lean Republican’ column…” That’s not a prediction of a Mark Kirk win. I gotta wonder why that part of the piece wasn’t quoted.

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