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Merry Fitzmas!

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* My Sun-Times column today was written after yesterday’s indictment of Chris Kelly…

After his pal Tony Rezko was indicted by the feds last year, Gov. Blagojevich was asked if he was absolutely sure that his close friend Chris Kelly would escape indictment himself.

‘’Yeah. Yes. They’re two different people, by the way, and it’s a different relationship. Chris and I are much closer. Chris is the head of my political campaign. That’s someone I talk to a lot more frequently. I’m confident, yes.'’

Kelly was indicted Thursday.

The governor befriended Kelly on his way up the political ladder, and the two men talked just about every day for years, often several times a day. Kelly raised a ton of campaign cash, and Blagojevich eventually entrusted Kelly with running his campaign fund. Blagojevich has repeatedly disavowed all knowledge that Kelly was even the least bit crooked. How you can know somebody that well and not have so much as an inkling that he’s not completely on the up-and-up is astounding, to say the least.

But here’s the meat of the story…

Back in 2003, during his first term, Blagojevich gave Kelly a huge governmental assignment: The governor told Kelly to work out a gaming expansion deal.

It turns out that Kelly is something of an expert when it comes to gambling. He has never run a casino, but he loves to bet on sports. According to the indictment, Kelly placed ‘’millions of dollars'’ in wagers with Illinois bookies. In case you’re wondering, that would not be legal.

We don’t know whether the governor and Kelly ever talked about the millions Kelly bet through sports bookies. The governor and Kelly both have said that their conversations often focused on sports, so you’d think Kelly might occasionally grouse about his losses or gloat over his winnings with his good friend. […]

In essence, Blagojevich put the town drunk in charge of deciding who gets a new liquor license.

And now we have a new gaming expansion plan pushed by the governor. Go read the whole thing to see how I sum up its prospects.

* Kass makes a good point about how Kelly’s use of Illinois bookies could mean that the governor’s friend has mob ties…

The last bookie who insisted he was completely independent of the Outfit was Hal Smith. His body was found in the trunk of his car. He’d been stabbed and strangled in February 1985. Since then, the completely independent bookie movement kind of fizzled.

* The Sun-Times, meanwhile, takes a look at the Nick Hurtgen re-indictment…

[F]or the second time, the governor is identified in a federal corruption indictment — this time as “Public Official A,” a source close to the investigation said.

Former investment banker P. Nicholas Hurtgen allegedly told a hospital executive “Official A” wanted hospital projects steered to a preferred contractor, and that the desire to reward that contractor was “all about money” for political campaigns, Hurtgen’s indictment alleges. The governor’s office issued a forceful denial, claiming not to be that public official.

But, regardless of that denial and Fitzgerald’s admonishment, this much is clear: The indictments of Hurtgen, Christopher G. Kelly and Abdelhamid “Al” Chaib leave Blagojevich facing a world of political, financial and potentially criminal trouble.

* More coverage…

* Tribune Editorial: Merry Christmas, Governor

* Close pal of gov indicted - Blagojevich’s onetime gambling adviser accused of wagering millions, using business to avoid taxes

* Blagojevich fundraiser, adviser indicted in corruption investigation

* Blagojevich friend is indicted

* Governor’s adviser indicted by feds - Christopher Kelly allegedly dodged income tax, paid gambling debts from illegal cash transfers

* Feds indict friend of governor - Blagojevich donor’s tax-fraud charges tied to gambling

* McQueary: Gov’s pal nabbed for greed

…Adding… From the Tribune today…

A federal influence-peddling probe into the administration of Gov. Rod Blagojevich has expanded to include allegations that a prominent Joliet pharmacist solicited campaign contributions in exchange for promises of regulatory favors

posted by Rich Miller
Friday, Dec 14, 07 @ 10:18 am

Comments

I hope the feds are making plans to protect Chris Kelly because I’ll bet there are some very worried people right now. Cut whatever deal is neccesary and get him into some type of protection program.

Comment by Garp Friday, Dec 14, 07 @ 10:24 am
Everything with Kass is about mob ties.

Its like Lou Dobbs and immigration.

Comment by GoBearsss Friday, Dec 14, 07 @ 10:30 am
I enjoyed looking at the house, on realtor.com.

Blago and his pals are, like, SOOO tacky.

Comment by Cassandra Friday, Dec 14, 07 @ 10:36 am
I lived in Joliet for the first 18 years of my life, which weren’t that long ago. My parents still live there and are very active in both the business and cultural communities…

…and I never heard of this Bhatt guy ’til the investigations.

For some reason, I find the phrase “prominent Joliet pharmacist” funny, though I don’t doubt that it may be true.

Comment by the commuter once known as So Ill Friday, Dec 14, 07 @ 10:36 am
======How you can know somebody that well and not have so much as an inkling that he’s not completely on the up-and-up is astounding, to say the least.========
You would be surprised at how much people don’t know about somebody they are really close to. Especially when it comes to gambling. Also, I use to be an accountant, many years ago, and I can tell you first hand how surprised you would be on how people handled their taxes. Some of the most self-rightous people are the most agressive when it comes to paying uncle sam.

Comment by Anon Friday, Dec 14, 07 @ 10:47 am
Are they going to eventually find something on the governor? Especially the way things seem to be going.

Comment by Levois Friday, Dec 14, 07 @ 11:15 am
Two things: Why wasn’t Patti Blagojevich given the contract to sell “close friend” Chris Kelly’s house? Is it because she only collects commissions (aka campaign donations) and doesn’t really sell houses? Second: The best quote in all this comes from Jay Stewart likening (Unindicted Official) A-Rod’s predicament to a game of “Battleship,” although I did like your “Town Drunk” analogy Rich.

Comment by The Mad Hatter Friday, Dec 14, 07 @ 11:21 am
I thought at one time “Official A” was possibly being attached to a Springfield businessman’s name. Now are they saying “Public Official A” as opposed to “Official A”?

Comment by Hard Working Taxpayer Friday, Dec 14, 07 @ 11:33 am
These indictments will bring even greater pressures on Blago. Be sure, I’am not accusing him of any wrong doing, but , do think he is under the microscope.

Based upon his past history, Blago will become even less rational, making it harder to fashion a transportation bailout or capital improvement plan.

I don’t think anything will happen with regards to the transportation and capital plan until at least January, 2008

Comment by MOON Friday, Dec 14, 07 @ 11:59 am
So just exactly what has this Governor done for “the people” of Illinois? What has he done to encourage more businesses to come here, to get college grads to stay here, to encourage productive growth to come? Are businesses lining up saying “gee, we could expand in Tennessee but it’ll really be great to move to Illinois”? Who are we encouraging to come here? Productive, job-creating small business? Trucking companies? The Olympics? Our Governor is showing all how he solves problems (?), how he leads and works with all kinds of people…. If he can’t work with legislators from his own party, can’t figure out a solution to CTA rail funding with a mayor from his own party…. what CAN he do? If he can’t function without surrounding himself with a [now] indicted inner circle…. if he didn’t recognize that many of his inner circle were misbehaving and attracting the attention of a federal US prosecutor, then what CAN he do?

By the time this all unwinds, we will have an even greater mess to clean up. Do we really deserve this?

How would Fitz’ activities, the CTA mess, budget fights look in a video ad for “Come and relocate in Illinois”?

Comment by North of I-80 Friday, Dec 14, 07 @ 1:05 pm
The wolves are on the steps and headed for the front door. I don’t know how long Fitz is going to take to accumulate good solid evidence to do an indictment on the Governor, but he will probably be looking at Brian Daly, Joe Cini, Lon Monk, Joe Handley, just to mention a few. Somebody is going to sing!!

Comment by WARDOG Friday, Dec 14, 07 @ 1:18 pm
I would like other posters with longer memories and perhaps better knowledge of state government to enlighten me on this topic.
Supposedly this is the same pattern the feds used on Ryan — go after his associates and friends first, get them to testify and make deals, keep moving to closer associates and then finally go after the man himself.
My questions are: 1) what figures in Ryan’s administration are most closely comparable to Kelly and Rezko; 2) when were they indicted; 3) from the answer to #2, how long was it until Ryan himself was indicted?

Comment by Anonymous Friday, Dec 14, 07 @ 1:35 pm
- Anonymous -
Fawell, Warner come to mind. The whole process was like a Chinese Water Torture - it just dragged on and on. They seem to thrive on infinitesimal detail which helps their charges stick. They really are not ever in a hurry.

Comment by A Citizen Friday, Dec 14, 07 @ 1:40 pm
All these indicted guys beginning to remind of that recent movie called Smokin’Aces. When a Las Vegas performer-turned-snitch named Buddy Israel (Actor Jeremy Piven) decides to turn state’s evidence and testify against the mob, it seems that a whole lot of people would like to make sure he’s no longer breathing.
Only in Illinois folks!

Comment by Life Imitates Art Friday, Dec 14, 07 @ 1:56 pm
- Anonymous -
Go to the Chicago Sun-Times and in the left column is “George Ryan Trial” - you will find all the players and timelines you want from start to current/finish.

Comment by A Citizen Friday, Dec 14, 07 @ 2:05 pm
Something interests me that I haven’t heard mentioned much. Bookies that handle betting at the level we hear described aren’t the bartender at the corner tavern. Are the feds going to give those guys a pass to get at Kelly? If I’m a real criminal, what am I willing to say about some citizen to get off the hook? To me something stinks there, but maybe I’m premature.

Comment by steve schnorf Friday, Dec 14, 07 @ 2:37 pm
It’s a good question, Steve, but the feds do have some bookie types in their protection program, so it might possibly be one of those guys.

Comment by Rich Miller Friday, Dec 14, 07 @ 2:39 pm
We need state employed Bookies as part of the expanded gambling. In ten years we will be legitimate crooks!

Comment by A Citizen Friday, Dec 14, 07 @ 3:53 pm
Think about all the great Tollways. I mean those Oasis provide great jobs…Hurtgen’s company Kight E/A designs and builds them then Rezkos buddy’s put in the Subway sandwisch shops. Just think about all the value they’ve added…to there own pockets.

Hurtgen’s indictment only covers the hospital thing but there might be more including Knight E/A, and the Teachers Retirement Fund (Bear Stearns had a ashare of that business). The question is did Hurtgen get a slice of that too…The sand is getting quicker.

Comment by hogs in wisconsin Friday, Dec 14, 07 @ 3:54 pm
A couple of points on the Kelly indictment:
The Feds have been all over this guy for several years..all they have on him is some tax issues. Most folks with his kind of money would also be indicted if the Feds looked at them for 3 years.
Rich–your use of “38 years” though accurate is also misleading, if you look at how the Feds do sentencing 38 years is the absolute high end and how they arrive at that number is never used in an actual sentencing by a judge.
As Rich said it could have been MUCH worse.

Comment by deep woods Saturday, Dec 15, 07 @ 7:19 am