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New Kelly indictment jacks up pressure * Vrodolyak, ethics stories added *

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Illinois

Christopher Kelly, a former campaign manager to former Gov. Rod Blagojevich, received another federal indictment today, this time alleging he rigged roofing contracts with two major airlines to pay for gambling debts and a house, among other things.

The most recent indictment says he allegedly funneled more than $1.18 million in proceeds from fraudulent contracts (see U.S. Attorney Patrick Fitzgerald’s news release here). He’s the president and owner of a roofing firm, which allegedly rigged bids to steer $8.5 million in “inflated contracts” for roofing work done on American Airlines and United Airlines facilities at O’Hare International Airport. The scheme allegedly helped Kelly pay $383,000 in personal gambling debts, $700,000 for a personal loan to buy a house and $40,000 in personal expenses. The scheme also granted $450,000 to a president of the consulting firm allegedly involved in the activities.

Check this out…

Kelly was charged with 11 counts of mail fraud and six counts of money laundering.

Each count carries a maximum penalty of 20 years in prison and a $250,000 fine.

Yikes. That’s 220 years.

* The Sun-Times lede says it all…

The government all but lit an inferno under a former ally of ousted Gov. Rod Blagojevich on Thursday, searing him with a second indictment just three weeks after he pleaded guilty to a first.

* Kelly’s lawyer says his client is not cooperating with the feds…

Yet, former prosecutor Joel R. Levin, who helped put former Gov. George Ryan in prison and now is in private practice at Perkins Coie LLC, said it’s no secret that new charges give a new reason for Kelly to tell whatever he knows about Blagojevich.

“It just stands to reason that the higher penalties you’re facing, it just increases the incentive (to cooperate),” Levin noted.

More often than not, the tactic works for prosecutors.

“Obviously, there are some people who dig their heels in … but for most people, if the penalties they’re facing are severe enough, they are going to consider cooperation,” Levin said.

* Context…

Kelly is important to the government because he was, for years, the go-to guy for fund-raising under Blagojevich and extremely close personally to the governor. He could fill in the blanks on alleged older schemes and help verify information provided by another potential key witness — indicted businessman and onetime fund-raiser Tony Rezko.

Word around the campfire is that somebody very close to Rod Blagojevich ratted Kelly out on this one.

* This, of course, is the ultimate goal…

* Related…

* Blago fundraiser Kelly hit with fraud counts

* Blagojevich associate indicted

* Friend of Rod Blagojevich hit with new federal charges

* My Best Friend Blago

* Oops, I forgot to list these stories…

* Supporters, prosecutors make case on Vrdolyak

* Feds asking 41-month sentence for Vrdolyak

* Ex-Chicago Ald. Edward Vrdolyak’s ‘history’ merits stiff punishment, prosecutors say

* Farewell, Eddie

* And these…

* Patrick Quinn advocates reform in Illinois

* Ill. House begins cleaning up after Blagojevich

* Madigan says he’ll take responsibility on ethics

* AG Madigan blasts Blagojevich ’secrecy’

* Put some teeth in public information law, commission told

* Public needs this information now

* Football coach appointed to Ill. ethics panel

* Anti-Blagojevich actions continue

* SJ-R Opinion: Granberg has a chance to put ethics first

* Granberg: ‘I didn’t do this for the pension’

* Time to say goodbye to the ‘Chicago Way’

posted by Rich Miller
Friday, Feb 6, 09 @ 9:57 am

Comments

I wonder how fast Kelly can talk down his plea and shift the focus to our ex-governor? This will be interesting.

Comment by Fan of the Game Friday, Feb 6, 09 @ 10:04 am
What percentage of ethically challenged politicians gamble?

Seems to me there is correlation.

Comment by Carl Nyberg Friday, Feb 6, 09 @ 10:05 am
Is this the Chris of “I dont think he is talking to Chris” on the tape and if so, what does that suggest?

Comment by Downstate weed chewing hick Friday, Feb 6, 09 @ 10:07 am
…Kelly’s lawyer says his client is not cooperating with the feds…

Shrewd.

Comment by Clear Thinking Friday, Feb 6, 09 @ 10:09 am
Isn’t O’Hare Daley’s contract and patronage mecca?

Did da Mare “permit” this?

Comment by Anonymous45 Friday, Feb 6, 09 @ 10:11 am
What I find most interesting in this indicment is what is not mentioned in it. The City of Chicago, Department of Aviation owns O’Hare and has a major responsibility in regard to the awarding of these contracts.

The only thing I could see in this indictment regarding others was the phrase “and others known and unknown to the grand jury” when discussing this scheme.

There is either another shoe to drop on this one or lots of people are talking.

Comment by Phineas J. Whoopee Friday, Feb 6, 09 @ 10:14 am
You said: “Word around the campfire is that somebody very close to Rod Blagojevich ratted Kelly out on this one.”

I wonder if maybe that campfire talk is about John Harris. I’m sure he’d like to stay out of jail. I always wondered how he made that sudden and surprising jump from City Budget office to Governor’s to Chief of Staff. This indictment connects the dots in my mind at least because Harris used to work at Dept. of Aviation and has many contacts at O’Hare.

Comment by carbon deforestation Friday, Feb 6, 09 @ 10:18 am
Blackbird singing in the dead of night….

Comment by Yellow Dog Democrat Friday, Feb 6, 09 @ 10:19 am
Some guys can stand on their heads for 47 months. Kelly seemed willing to do that on the tax beef.

But the new indictment threatens him with some real hard time — the kind of time that gets certain people to wondering whether you can remain a stand-up guy.

He has to make a hard decision real soon, not only because of the time he’s facing, but for his own personal safety. You don’t gamble like that, and run up gambling debts like that, without doing business with people who would rather not take a chance on a chatterbox.

Comment by wordslinger Friday, Feb 6, 09 @ 10:36 am
Just proves the old saying, “birds of a feather flock together”.

Comment by sneaker Friday, Feb 6, 09 @ 10:36 am
Blago should have “run for President” sooner. With his tax problems Kelly could be Treasury Secretary right now.

Comment by carbon deforestation Friday, Feb 6, 09 @ 10:46 am
Wordslinger-truer words were never spoken.

Kelly isn’t your average, run of the mill corrupt political hack, he is a heavy weight water buffalo Chicago inside guy who makes lots of people shake in their shoes, which is why everybody was shocked when Blago put him up on the podium for his inaugeration. A neon for sale sign couldn’t have sent a clearer message.

As with any roofing project-Kelly should think of safety first.

Comment by Phineas J. Whoopee Friday, Feb 6, 09 @ 10:49 am
===But the new indictment threatens him with some real hard time===
They are also looking for forfeiture of his house. Ouch. That puts the pressure on through the family.

Comment by Anon Friday, Feb 6, 09 @ 11:12 am
Why is a college football coach on the ethics panel? I mean other than the fact that he shares the same name as a certain someone. Was Col. Sanders unavailable?

Comment by Scooby Friday, Feb 6, 09 @ 12:09 pm
I had to laugh the other night on Letterman when he asked Blago how things were going with his father-in-law? Blago said “He (Mell) is getting closer to his daughter and grandchildren.” Wasn’t it Mell who started this whole thing by accusing Kelly of selling jobs? I’m glad I’m not part of that big happy family (Blago/Mell). Sometimes big family gatherings can get a little testy but can you imagine Thanksgiving at that house?

Comment by Little Egypt Friday, Feb 6, 09 @ 12:45 pm
Not to be annoying, but aren’t the money laundering counts 20 years as well?

Wouldn’t that add up to 340 years of prison time? (Not that another 120 really changes anything for a guy, but still)

Comment by Chambananon Friday, Feb 6, 09 @ 4:26 pm
Good point.

Comment by Rich Miller Friday, Feb 6, 09 @ 4:31 pm
So Kelly is about 50 yrs old, and if he gets the maximum sentence (and serves “good time”), he’ll be roughly 237 yrs old when he gets out.

If I’m him, I’m spilling my guts about everything and everybody.

Comment by 47th Ward Friday, Feb 6, 09 @ 4:58 pm
Nobody ever gets the maximum sentence in a case like this, unless they killed somebody. But I guess the point of all these charges is that if he were to fight them all the way to a trial and get convicted on even ONE of them, he would be an old man before he got out. Two or more convictions and he could be pushing 100 before he sees the light of day again.

Comment by Bookworm Friday, Feb 6, 09 @ 5:09 pm
So how soon will we find out the songs Kelly is singing? Ah, to be a fly on that wall…

Comment by Lynn S Tuesday, Feb 10, 09 @ 12:29 am