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Jackson accuser arrested by the FBI

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Illinois

* Bad things happen when the feds start nosing around your business. The chances that they’ll find something are pretty good, and if the feds want you, they’ll get you. Just ask Raghuveer Nayak…

Raghuveer Nayak, a figure in the U.S. Senate seat scandal that helped bring down Rod Blagojevich, was arrested at his Oak Brook home this morning and charged with paying bribes and kickbacks to doctors for sending patients to his string of surgery centers.

Nayak was charged with mail fraud, interstate travel in aid of racketeering and filing false income tax returns in a 19-count indictment, according to the U.S. attorney’s office. Prosecutors are seeking $1.8 million in “alleged fraud proceeds,” including forfeiture of Nayak’s Oak Brook home, his Rogers Park One Day Surgery Center and his Lakeshore Surgery Center.

Between 2000 and 2010, Nayak allegedly paid hundreds of thousands of dollars to physicians who would refer patients to Nayak’s medical centers, the indictment alleges. “The physicians deceived their patients by not disclosing that they were being paid for making referrals to Nayak’s facilities,” the indictment charges.

In one kickback scheme, Nayak paid one person, identified only as “Individual A,” more than $2 million in checks drawn on his surgery centers’ accounts. In return, “Individual A” gave Nayak cash equaling about 70 percent of the value of the checks, according to the indictment.

* Background…

The Sun-Times had reported in 2010 that Nayak, who was a close Jackson family friend and campaign contributor, told federal authorities Jackson directed him to approach the Blagojevich camp with a $6 million offer.

He also told authorities he secretly paid to fly a female friend of Jackson to Chicago from Washington, D.C., at Jackson’s request.

Jackson subsequently apologized for his relationship with the woman, whom he described as a “social acquaintance,” but the congressman remained steadfast in his denial that he never directed anyone to offer Blagojevich money in exchange for the Senate seat. […]

Nayak and Jackson Jr. also were longtime friends, though Nayak has been a thorn in the side of the congressman since Blagojevich’s arrest in 2008.

Nayak was the unidentified emissary of Jackson cited in the criminal complaint against the then-governor, which said Blagojevich believed Nayak was offering $1.5 million in exchange for appointing Jackson to Obama’s former Senate seat.

Jackson has denied the allegation.

In 2010, the Sun-Times reported that Nayak had cooperated with investigators and told them that it was Jackson who directed him to talk to Blagojevich and offer him not $1.5 million but $6 million in exchange for the Senate seat. Nayak said the conversation was between himself and Jackson, with no one else present, and took place while Nayak was in Washington, D.C., during an October 2008 trip.

So, if he was cooperating with the feds on Congressman Jackson and now the feds have scooped him up, should we then infer that the Jackson thing is over and the feds have decided to just bust Nayak for other stuff?

posted by Rich Miller
Wednesday, Jun 20, 12 @ 10:26 am

Comments

“Man is conceived in sin and born in corruption and he passeth from the stink of the didie to the stench of the shroud. There is always something” - Robert Penn Warren, All the King’s Men

Comment by ZC Wednesday, Jun 20, 12 @ 10:32 am
So this leaves you wondering when the US Attorney’s office will be knocking on Juan Ochoa’s door. Hosted last fundraiser for RB before he was arrested (among many others).

Comment by Statesman Wednesday, Jun 20, 12 @ 10:33 am
should we then infer that the Jackson thing is over and the feds have decided to just bust Nayak for other stuff………..
Yup, Nayak obviously made it all up. Nothing to see here folks, move along

Comment by Anonymous Wednesday, Jun 20, 12 @ 10:34 am
Not at all.

The Feds just kick started the process to put a bargaining chip (a BIG one) in place. Right out of the Stu Levine playbook.

This one is gonna be fun to watch.

Comment by Judgment Day Wednesday, Jun 20, 12 @ 10:34 am
Looks like we’ll be back on top the “Corruption Index” before you know it.

Comment by Leave a Light on George Wednesday, Jun 20, 12 @ 10:40 am
hot fun in the summertime!

Comment by amalia Wednesday, Jun 20, 12 @ 10:44 am
Just because the feds sniff around doesn’t mean you’re due for indictment.You have to be in violation of law.Unfortunately in Illinois power groups,there plenty of that to be found.

Comment by Jimbo Wednesday, Jun 20, 12 @ 10:44 am
Over for Jackson. Nayak is now too tainted to be a credible witness for the prosecution.

Comment by vole Wednesday, Jun 20, 12 @ 10:44 am
–The Sun-Times had reported in 2010 that Nayak, who was a close Jackson family friend and campaign contributor, told federal authorities Jackson directed him to approach the Blagojevich camp with a $6 million offer.–

Curious that he’s indicted now, considering he apparently flipped on Trips two years ago. Did the federales not consider him credible?

Comment by wordslinger Wednesday, Jun 20, 12 @ 10:50 am
That Jimbo at 10:44 is an impostor. Pick another handle buddy. Please.

Comment by Jimbo Wednesday, Jun 20, 12 @ 11:05 am
sorry for the stupid question but with patrick fitzgerald stepping down, who is the chief making the calls on this stuff and how/will that in anyway impact their work until a successor is confirmed?

Comment by Shore Wednesday, Jun 20, 12 @ 11:12 am
Agree with Judgement Day…you want his total cooperation and this is the best way to get it in the US Attorney’s mind.

Comment by Niles Township Wednesday, Jun 20, 12 @ 11:14 am
…or maybe they’re after another target.

Comment by House of Pain Wednesday, Jun 20, 12 @ 11:15 am
They may still be after him…just using the Nayak stuff as leverage to make sure he cooperates to their satisfaction.

Comment by titan Wednesday, Jun 20, 12 @ 11:51 am
===just using the Nayak stuff as leverage===

Meh. As a commenter above noted, the feds just undercut the rest of his credibility with this arrest. I doubt they’re still gonna use him against Jackson, but we’ll see.

Comment by Rich Miller Wednesday, Jun 20, 12 @ 12:10 pm
To believe Jackson’s denial, one would have to believe that his biggest fundraiser would make the offer to Blago without letting JJJ know. Seems implausible to me.

Comment by reformer Wednesday, Jun 20, 12 @ 12:17 pm
Unless the Feds can tie Jackson to any of these charges against Nayak, he’s done. Nayak’s as dirty as Rezko, the prosecution can’t use him against Jackson.

Comment by Wensicia Wednesday, Jun 20, 12 @ 12:43 pm
” Nayak’s as dirty as Rezko, the prosecution can’t use him against Jackson.”

Unless they can tie Nayak (the biggest fundraiser) tightly to Jackson, in which case some of the dirt rubs off on him

Comment by titan Wednesday, Jun 20, 12 @ 12:52 pm
1. Nayak clearly isn’t cooperating, because he was arrested. If he were actually cooperating and they wanted to charge him, he would have been invited to surrender through counsel.

2. When Fitzgerald is formally gone, Gary Shapiro, the longtime First Assistant will likely serve as interim U.S. Attorney until a new U.S. Attorney is confirmed (in 2013?).

Comment by Anonymous Wednesday, Jun 20, 12 @ 12:58 pm
the bits in the article are pretty awful as is. I’m all for going after such activity with or without some corrupt pol going down. the allegations are very bad for the health of patients.

Comment by amalia Wednesday, Jun 20, 12 @ 3:45 pm
Somewhere in the bowels of a federal center in Colorado a man is thinking mistrial…..or, maybe not!

Comment by LINK Wednesday, Jun 20, 12 @ 4:02 pm
I find it interesting most of the media is missing Nayak’s involvement with Aurora and Mayor Tom Weisner, which started before this other corruption. My guess is the Feds are going to use Nayak to go after Weisner. Anyone who knows Aurora realizes corruption has been at an epidemic level since Weisner became mayor.

OpenlineBlog has been investigating Nayak since 2006. They have this incredibly damning photo of Nayak and Weisner with Gerry Galloway, who worked for Quinn and Weisner as well as being a hack for others:

http://openline.blogspot.com/2012/06/raghuveer-nayak-weisner-blago-campaign.html

Comment by Bobby Wednesday, Jun 20, 12 @ 4:26 pm