Capitol Fax.com - Your Illinois News Radar

This just in… Judge outs Blagojevich as “Public Official A” * Obama’s name likely to come up at Rezko trial * Obama campaign responds ***

Posted in:

Illinois

*** Read the judge’s ruling by clicking here ***

* 6:12 pm - Blagojevich can’t deny it any longer…

For months, federal prosecutors have alleged that Antoin “Tony” Rezko tried to extort a $1.5 million contribution to the campaign of “Public Official A” from a Hollywood producer seeking investment business from the state.

And for months, Gov. Rod Blagojevich has repeatedly denied he was “Public Official A.”

But a week before Rezko’s much-anticipated trial, a federal judge revealed that Blagojevich was to have been the recipient of the $1.5 million campaign contribution at the center of the alleged extortion plot. […]

In another ruling, the judge allowed testimony at trial about an allegation that Rezko offered the relative of a politically connected developer a post on the state’s banking board in exchange for a $25,000 donation to Blagojevich’s campaign fund. […]

Later Monday, a federal appeals court in Chicago sided with prosecutors that Rezko should remain jailed pending trial.

* 6:16 pm - Obama’s name is getting dragged in as well…

In a nine-page ruling this afternoon, U.S. District Judge Amy St. Eve said she would allow federal prosecutors to present evidence about a portion of a $375,000 finder’s fee that a Rezko associate, Joseph Aramanda, obtained through an alleged kickback scheme orchestrated by Rezko.

She also ruled that prosecutors can ask questions about how some of the $375,000 allegedly was used “to make a political contribution” in Aramanda’s name “because Rezko had already donated the maximum amount by law and he could not make the contribution himself.”

The ruling does not identify Obama as the recipient of that contribution. But sources have identified Obama as the “political candidate” who prosecutors say received a $10,000 contribution from Aramanda — at Rezko’s direction — during his 2004 run for U.S. Senate. Obama has donated that contribution to charity.

…Adding… A little history…

[Blagojevich spokeswoman Abby Ottenhoff] dismissed the suggestion that Public Official A was Blagojevich, saying, “Based on the description in the filing, it is not the governor.”

* 6:57 pm - The Sun-Times has updated its story to include Obama’s response…

Informed of the judge’s ruling, Obama presidential campaign spokesman Bill Burton said, “We had no knowledge of any straw donations and have returned any of the donations about which we have any reasonable question.

“By now it is well established that Sen. Obama is not involved in the matters at issue in the [Rezko] trial.”

posted by Rich Miller
Monday, Feb 25, 08 @ 6:13 pm

Comments

We finally get what we knew all along about Blago — or at least what logically had to be the case given the facts that were out there.

As for the Obama connection, it ought to be a non-issue if it is handled with any skill at all. A Rezko buddy gave Obama money; Obama discovered it was dirty money; Obama donated it to charity. And it wasn’t as though Obama’s election margins were remotely close.

Comment by Angry Chicagoan Monday, Feb 25, 08 @ 6:28 pm
The Obama connection won’t be enough to keep him from the nomination - but the Republicans are going to have plenty of material as the trial progresses.

Comment by phocion Monday, Feb 25, 08 @ 6:32 pm
Other than the first letter of the alphabet, what was the description given, Abby?

Comment by Public Mouthpiece A Monday, Feb 25, 08 @ 6:49 pm
Apparently, Public Official A was described as “…a well-respected office-holder held in high esteem by all who know him…” So, you can see the confusion.

Comment by Pot calling kettle Monday, Feb 25, 08 @ 6:54 pm
Pot:

You crack me up!!

Comment by Just Asking Monday, Feb 25, 08 @ 6:56 pm
LOL No wonder Abby had no idea it was Rod!

Comment by jwscott72 Monday, Feb 25, 08 @ 6:59 pm
Poor SpinSiters first theyvhave to defend The Speech…Now POA… Maybe it time for Capt Fax to hold the long awaited Golden Horseshoe Awards Banquet

Comment by DumberThan You Think Monday, Feb 25, 08 @ 7:29 pm
Abby, Abby, Abby give it up….up until now we all just thought you were a good trooper repeating what your boss told you to say. You’ve crossed the line this time.

Comment by downhereforyears Monday, Feb 25, 08 @ 7:31 pm
I guess Dick Mell knew what he was talking about.

Comment by Truth Monday, Feb 25, 08 @ 8:11 pm
{As part of this, the government sets out an approximate $809,000 money transfer from Bear
Stearns that Rezko purportedly directed to Robert Kjellander who, in turn, transferred $600,000 of the funds to Aramanda. The government argues that Aramanda thereafter paid out approximately $450,000 to four separate Rezko assignees, and sets forth elaborate evidence as to why each of the recipients was a Rezko assignee.}

{Defendant argues that this evidence “is a needless and lengthy detour that will result in a mini-trial of Rezko’s relationship with four individuals who otherwise have nothing to do with this case and would otherwise not testify, as well as an airing of the entirety of Aramanda’s finances.” (R, 323-1, Resp. To
Motion for Admission of Other Acts, at 13.)

(The Court agrees. Any probative value from this complex proof is substantially outweighed by the danger that it will confuse or mislead the jury and cause undue delay at trial. See Senffner, 280 F.3d at 764.

Accordingly, the government’s motion is denied as to Aramanda’s transaction with Kjellander.}

Does this mean that the motion is denied as to defendants involvement in this transaction with Individual K?

How is it that Bear Stearns is taking direction as to its fee payments from someone not even employed by their client (the State of Illinois). If not perhaps the government will re-file its motion to limit the extent of its evidence as to the defendants directions to Bear Stearns and the defendants authority to do so. Bear Stearns would certainly not direct such funds without a written agreement in place; in advance of the transaction, and perhaps Bear Stearns can provide some documentation and testimony as to their part in this transaction.

As to Aramanda

{Kjellander acknowledged he made a $600,000 loan to the Rezko associate whom Kjellander called an acquaintance. “I did nothing improper, and I don’t believe anyone is accusing me of anything improper in making that loan,” Kjellander said.}

No doubt when questioned about the transfer of those monies Individual K was asked to produce a loan document related to this transaction, which included it’s interest rate, and repayment terms and schedule. The terms and conditions of this “loan” were no doubt consistent with otherwise commercially availble loan terms for Aramanda, such that no preferential treatment was being afforded.

Have any of the loan covenants been violated, or are the payments current, or is this loan in default?

If it is in default, surely legal actions have been initiated to foreclose on the loan and recover all principal and interest monies due to the lender.

The lender no doubt holds sufficient collateral for this loan, which should make foreclosure an easy process.

Have any other “acquaintences” of Individual K applied for, or been granted such “loans” on similar terms and conditions to the loan in queston? If not, does this suggest an isolated incident, or perhaps a pattern of loan discrimination on the part of the lender?

Comment by Law & Order Monday, Feb 25, 08 @ 8:20 pm
Is it just coincidence that the Senate called off tomorrow’s session the same day that the Governor is finally outed as Public Official A?

Comment by More Java Monday, Feb 25, 08 @ 8:33 pm
St. Eve said last week that with the trial days away, “there should be no more secrets.”

Well said, Your Honor.

With that in mind, perhaps “the Governor formerly known as Public Official A” can start answering some questions for once.

When did you learn that the Republican National Committeeman was going to receive an $809,000 “consulting fee” in conjunction with your administration’s bond business? Who is the individual in your administration that approved that payment?

Comment by Arthur Andersen Monday, Feb 25, 08 @ 8:59 pm
What has been revealed is the further details of an ALLEGATION — it is not proof, it is not fact, it has not been subject to cross-examination.

People who find themselves where Levine and Rezko are will say all kinds of things if they think it will help.

The governor says he didn’t participate in these schemes so therefore his response is credible — since he didn’t do the things alleged, the description of POA cannot be him.

Comment by Little Egypt Native Monday, Feb 25, 08 @ 9:09 pm
The contribs shouldn’t be a big deal, but don’t forget that article about the FBI mole who logged “numerous” visits from Blago and Obama and witnessed a Blago aid taking a fist full of cash. Something from that line of questioning could derail The Obama Show.

Comment by Bud Man Monday, Feb 25, 08 @ 9:47 pm
POA may not have known the dirty details, but anyone expecting a $1.5 million campaign contribution knows both what is happening and who is behind it, and if it is proven that the shake-downs occurred, POA is just as guilty as the rest.

Comment by More Java Monday, Feb 25, 08 @ 10:09 pm
The two contributions are among a total of $157,835 in Rezko-linked donations that Obama has given away.

Rezko made these contributions for the sake of good government.

The recipients had no idea.

Only the slow witted buy this stuff.

Comment by True Observer Monday, Feb 25, 08 @ 10:18 pm
Governor outed as official “A” after months of denial and stubborn resistance to unveil info about the subpoenas.

In other news, water is wet, and the sun will come up in the eastern sky sometime in the morning.

Was Rod expecting a bunch of underlings to jump up and yell: “I’m Spartacus!” “No, I’M Spartacus!” and take the bullet for him? At this point probably half his staff is wired for sound so they can return all the favors he’s done.

Welcome everybody to the TRUE March Madness: Rezko trials, part one.

Hmmm, might make a nice capfax t-shirt logo…

Comment by Smoking on the balcony Monday, Feb 25, 08 @ 10:22 pm
The March Madness will be followed by an April Fool…

Comment by Gregor Monday, Feb 25, 08 @ 10:22 pm
Wow, bad day for my buddy Bill. This is something everyone knew and acknowledged. What I will never understand, however, is anyone taking a job that requires you to spend your integrity in exchange for a pretty nice paycheck - specifically referring to POA’s press people.

Comment by Little Egypt Monday, Feb 25, 08 @ 10:31 pm
And no, I’m not Little Egypt Native. Everyone knows there’s no natives down here.

Comment by Little Egypt Monday, Feb 25, 08 @ 10:33 pm
What will be interesting to see at trial is whether POA Blago was briefed, knew about what was going on, or made decisions. That really is the outstanding question.

I think the skeptic inside of me still wants more. Something that would convince it that this wasn’t just Rezko trying to game the system for his own advantage.

Comment by John Monday, Feb 25, 08 @ 11:07 pm
Blagojevich is spending as much money as George Ryan did on attorneys (I am referring to the time when Gorgeous George emptied his war chest trying to delay, deny and defer the investigations — he had serious cash to burn at one time), but still wants to deny he is “Official A.” That’s incredible.

I do not see Obama suffering much fallout from this mess unless there is something else that we have not heard yet. He has more damage control to do about his being photographed in Moslem attire. The clothing he was wearing was not native dress common to all Africans or Kenyans. It is preferred by Sunni Moslems. This will probably blow over too. Reagan’s teflon coating may have been surpassed by Obama’s.

Comment by Honest Abe Monday, Feb 25, 08 @ 11:13 pm
Since now a federal judge on Monday made it crystal clear that “A” stands for Rod Blagojevich in the public corruption case against the governor’s indicted fundraiser, Antoin “Tony” Rezko.
Isn’t it time for the Feds to freeze up Blagojevich’s campaign coffers?

Comment by Opie Tuesday, Feb 26, 08 @ 12:20 am
Obama is likely to escape this trial with only minimal damage in the short term (meaning against Clinton.) But this trial holds seeds of long-term danger for him.

Avoiding linkage to the Chicago Machine is something Obama has been able to avoid, in part because he has been running against fellow Democrats who have no desire to offend Mayor Daley. (The other part is that the Rezko stuff has been very thin to date.)

It won’t be so easy against the Republicans, who could care less about Mayor Daley.

If witnesses do indeed testify to “numerous” visits by Obama to Rezko’s offices, this thing is going to grow legs. It would raise a question of whether Obama was quite so unknowing and quite so oblivious about the contributions, especially after his admitted lack of judgment about Rezko on the house deal. Charity contributions will not answer those questions. Voters will hear plenty about it right through to November.

We will all just have to see how the trial turns out. He may get a clean bill of health.

Comment by Anon Tuesday, Feb 26, 08 @ 12:49 am
Agree?

“And if Mike Royko were alive, one has to believe that despite agreeing with his politics, Royko would have been relentless in taking Obama down, hammering away in his own inimitable style at the influence selling, the sweetheart deals, the pay for favors, and all the rest of this sleazy mess.”

http://rightwingnuthouse.com/archives/2008
/02/26/will-dirty-chicago-politics-be-the-undoing-of-obama/

Comment by Bud Man Tuesday, Feb 26, 08 @ 12:54 am
Don’t assume you can channel Mike Royko. The dead should be left dead.

Comment by Rich Miller Tuesday, Feb 26, 08 @ 12:56 am
Sometimes he’s relevant:
“It’s been my policy to view the Internet not as an ‘information highway,’ but as an electronic asylum filled with babbling loonies.” -Mike Royko

Comment by archpundit Tuesday, Feb 26, 08 @ 1:45 am