Rod Blagojevich federal fraud cases

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Federal Fraud Scandal
Embattled Illinois Governor Rod Blagojevich (left) has been under federal investigation by United States Attorney Patrick Fitzgerald (right) for over three years.
Sister project Wikinews has related news: Governor of Illinois arrested on suspicion of corruption

The Rod Blagojevich federal fraud cases began with the simultaneous arrests of Illinois Governor Rod Blagojevich and his Chief of Staff John Harris at 6:15 AM on December 9, 2008, at their homes by deputies of the United States Marshals Service on behalf of the Federal Bureau of Investigation (FBI).[1][2] Blagojevich and Harris were each charged with one count of conspiracy to commit mail and wire fraud and one count of soliciting bribes. The case was related to pay to play solicitation for the nomination to replace former United States Senator Barack Obama, the President-elect of the United States, but extended well beyond that issue.[3] United States Attorney Patrick Fitzgerald noted that there had been no evidence of wrongdoing by President-elect Obama.[4] The cases are part of a broader federal investigation by Fitzgerald code-named Operation Board Games that had been going on for three years in which 15 people have been charged by Fitzgerald.[1][5]

Blagojevich has become the sixth (seventh if including Joel Aldrich Matteson) Illinois Governor to have been arrested or indicted,[6] and he could become the third (fourth, including Dan Walker) jailed since 1971.[7] Fraud involving the nomination to replace Obama was the most notable charge against Blagojevich. Blagojevich has also been charged with attempting to extort the owners of the Tribune Company to fire editors at the Chicago Tribune. In addition, he was charged with abusing his power over the release of US$8 million of state funds to Children's Memorial Hospital under the belief that he might be able to obtain a $50,000 campaign contribution from one of its executives.[1][4] In total, prosecutors allege Blagojevich sought graft in the form of $2.5 million in campaign contributions by the end of the 2008, with the majority deriving from companies and individuals who have received state contracts or appointments.[8]

On December 12, 2008, Illinois Attorney General Lisa Madigan filed a motion with the Illinois Supreme Court to declare the Governor "unable to serve." In the motion, Madigan asked the Illinois high court to strip Blagojevich of his gubernatorial powers and grant an injunction to prevent him from serving as governor of Illinois.[9][10] On December 15, Speaker of the Illinois House of Representatives Mike Madigan, who is Lisa's father, announced that on December 16 he would begin impeachment proceedings by convening a bipartisan investigatory committee composed of House members. The committee will conduct an immediate review of particulars to present to the entire Illinois House of Representatives for them to vote on whether the Illinois Senate should commence with impeachment proceedings.[11] Also, on December 15, the House decided not to take any action to strip the Governor of his power to appoint a nominee for a vacant Senate seat, and they adjourned until January 12, 2009.[12]

Contents

[edit] Background

Blagojevich's congressional photo

Blagojevich had been under investigation for corrupt activity for several years.[5] Just before the 2008 United States general elections on November 4, 2008, Federal investigators were granted authority to tape Blagojevich's conversations in order to protect against a tainted nomination selection process.[13] The Chicago Tribune reported this and on December 8, 2008, in a press conference, Blagojevich claimed "whether you tape me privately or publicly, I can tell you that whatever I say is always lawful and the things I'm interested in are always lawful."[13] He further stated that "I should say if anybody wants to tape my conversations, go right ahead, feel free to do it. I appreciate anybody who wants to tape me openly and notoriously, and those who feel like they want to sneakily, and wear taping devices, I would remind them that it kind of smells like Nixon and Watergate."[13] When asked his thoughts on being the subject of federal tapings Blagojevich said "I don't believe there's any cloud that hangs over me. I think there's nothing but sunshine hanging over me."[14] These comments came before a December 8 meeting between Blagojevich and Jackson regarding the Senate seat.[13]

Prior to the current scandal, Blagojevich imagined himself as a contender for the 2016 United States presidential election, but was content to pursue an interim position as a United States Cabinet member, Ambassador or high profile corporate titan. His statutory power to nominate a senatorial replacement for President-elect Obama was something that he viewed as convertible currency of the form that could assure this future. Soon after the election it was very clear to Fitzgerald from his wire taps that Blagojevich would imminently broker the nomination, which necessitated the arrest.[1] The Washington Post reports that according to Patrick Collins, a former prosecutor who had helped convict George Ryan, Blagojevich's predecessor as governor, now that the affidavit has been filed the prosecution has 30 days to obtain an indictment from a grand jury.[15]

[edit] Obama Senate replacement

Following Blagojevich's arrest, United States Senator Richard Durbin issued a statement regarding the prospective gubernatorial appointment to replace United States President-elect Barack Obama in the Senate: "No appointment by this governor, under these circumstances, could produce a credible replacement".[16] Barack Obama, through Robert Gibbs who serves as his Director of communications, requested that Blagojevich resign.[17] Durbin urged the Illinois General Assembly to quickly set a special election to replace Obama.[18] Illinois Senate President Emil Jones has stated that he would call a session to pass a legislation to establish a special election to fill the vacancy.[19] Michael Madigan, Speaker of the Illinois House of Representatives, said that he is prepared to call the Illinois House of Representatives into session on Monday December 15.[20] The legislature will be considering legislation that would transfer the Governor's statutory authority to appoint a Senatorial replacement to the voters of Illinois. If such legislation is enacted, the replacement could be from either party since the electorate will be deciding rather than a Democratic Governor.[21] Both chambers of the Illinois General Assembly have significant Democratic majorities. Durbin noted that Illinois has a need to call a 2009 House of Representatives special election to replace Rep. and White House Chief of Staff-designate Rahm Emanuel in the Illinois's 5th congressional district.[19] The next regularly scheduled election dates are the 2009 municipal elections which have a February 24 primary election date and an April 7 general election date.[22]

Reportedly, Blagojevich was seeking the following in exchange for an appointment:[23][24]

  • A substantial salary for himself at either a non-profit foundation or an organization affiliated with labor unions.
  • Placing his wife on paid corporate boards where he speculated she might garner as much as $150,000 a year.
  • Promises of campaign funds — including cash up front.
  • A cabinet post or ambassadorship for himself to Serbia.

If the Illinois General Assembly passes any legislation to change the balance of power in the nomination process, Blagojevich's signature would be required to enact it. As long as he remains Governor after receiving the bill he would have 60 days to decide whether he wants to approve the bill, veto it, return the bill to the legislature.[15] The Illinois General Assembly convened on December 15 for a special session to consider attempting to call a special Senatorial election.[25] However, the Democrats decided against immediate consideration of stripping the Governor's power and adjourned until January 12, 2009. The factors that contributed to the delayed consideration were the Illinois Democratic Party's fear of losing the seat to a Republican through the electoral process, the multi-million dollar cost of a special election, and the assurance by the United States Senate Majority Leader that the Senate would not seat a Blagojevich designate.[12] As the current Governor, Blagojevich, currently retains his statutory power to appoint a nominee.[12]

[edit] Obama's involvement

There has been extensive curiosity in how much President-Elect Obama knew about Blagojevich's corrupt nominating interests and when he might have known anything. In a December 11 press conference, Obama stated that he, his staff and his transition team were not involved in any corrupt activity and that his administration has been exonerated by the affidavit. He stated that not only has he never engaged the governor on the topic of his Senate seat, but "I am confident that no representative of mine would have any part in any deals related to this seat."[26] His administration compiled a summary of who might have known what at various times. Emanuel is supposedly a code named individual who was named a half dozen times in the affidavit. Emanuel has refused to confirm these rumors.[27]

"They're not willing to give me anything except appreciation. Fuck them."
—Rod Blagojevich[4]

Blagojevich was heard on tape seemingly vindicating President-Elect Obama of involvement in the scheme surrounding Obama's former U.S. Senate seat in what Blagojevich thought was a private conversation. While Blagojevich was aware that Obama would have preferred Senate Candidate #1 (Valerie Jarrett), the Obama–Biden Transition Project was unwilling to participate in efforts to trade favors with Blagojevich in exchange for nominating Jarrett for the U.S. Senate seat.[4]

In addition to curiosity about Obama's direct communication, there has been public speculation on the role of Emanuel in any communications with the governor's office, especially by Republicans. The common belief is that although it is generally acknowledged that Emanuel has communicated with the office about who might be appointed to the Obama seat, nothing unethical or inappropriate had transpired.[25]

On December 15, the Obama Transition team confirmed that its internal review documented no inappropriate contact between the Obama staff and Blagojevich or his staff.[28][25] The official statement December 15 from Dan Pfeiffer said "That review affirmed the public statements of the president-elect that he had no contact with the governor or his staff, and that the president-elect's staff was not involved in inappropriate discussions with the governor or his staff over the selection of his successor as U.S. senator."[28][25] However, Fitzgerald requested that the review not be released until the week of December 22 in order to avoid hampering his investigation.[28][25]

[edit] Replacing Blagojevich

Resignation Requests
(left to right) President-Elect Barack Obama, U.S. Senator Dick Durbin, Illinois Lieutenant Governor Pat Quinn and outgoing Democratic National Committee Chairman Howard Dean are among those who have called for the resignation of the Governor.

Blagojevich appeared before U.S. Magistrate Judge Nan R. Nolan, in the U.S. District Court for Northern Illinois, and afterward was ordered to be released on a $4,500 signature bond that he'll forfeit if he doesn't appear in court. He was also ordered to surrender his passport and his firearm owner's identification card. He then returned to work where his office issued a statement saying the "allegations do nothing to impact the services, duties or function of the State."[8] On December 13 and 14, Blagojevich met with an attorney, Ed Genson, for a total of ten hours.[29] Genson will be speaking on behalf of Blagojevich at hearings by the Illinois House of Representatives' Special Committee on Impeachment, and he has stated that the Governor will not resign.[30]

On December 11, 2008, John Fritchey, a Democratic member of the Illinois House of Representatives, circulated a letter to the Illinois House Democratic Caucus to outline options for moving beyond the crisis caused by the criminal allegations related to Governor Blagojevich. In the letter, Fritchey mentioned the scenarios to replace Governor Blagojevich: (1) voluntary resignation of Blagojevich as Governor of Illinois, (2) filing of a Rule 382 motion by Illinois Attorney General Lisa Madigan with the Illinois Supreme Court to seek a judicial ruling that Blagojevich is unable or unwilling to carry out his gubernatorial duties and (3) introducing a motion in the Illinois House of Representatives to begin impeachment proceedings against Governor Blagojevich.[31]

[edit] Resignation

Blagojevich has faced calls from members of both parties to resign. On December 9, Lieutenant Governor Pat Quinn said in a news conference that Blagojevich should temporarily step aside from his office.[32] On December 10, he went further and called for Blagojevich to resign, and also raised questions about his mental health.[33] If Blagojevich did so, Quinn would become the 41st Governor of Illinois.[32] The state's other top elected officials—Attorney General Lisa Madigan, Comptroller Dan Hynes, Treasurer Alexi Giannoulias and Secretary of State Jesse White—have also called for Blagojevich to resign.[34][35][36]

On December 10, Barack Obama called for Blagojevich's resignation.[37] He reiterated this in a press conference the next day, saying that he does not think Blagojevich "can effectively serve the people of Illinois" and that his former Senate seat "belongs to the people." He also stated that to his knowledge, "no representatives of mine" had engaged in any dealmaking with the governor.[38] Outgoing Democratic National Committee Chairman Howard Dean has also called for the governor to step down.[39]

On December 10, 2008, the 50 remaining senators in the Democratic Caucus of the U.S. Senate signed a letter calling for Blagojevich to resign and demanding that he not appoint a replacement for Obama. The letter also mentioned that, if Blagojevich appoints a successor to Obama in the U.S. Senate, the U.S. Senate will be "forced to exercise [its] Constitutional authority under Article I, Section 5, to determine whether such a person should be seated"—seemingly indicating that any Blagojevich-appointed replacement would not be allowed to serve.[21][40][41] The letter was circulated by Senate Majority Leader Harry Reid.[40] Reid has indicated that the Senate might not seat a Blagojevich appointment because such an individual "would be under a cloud of suspicion."[15] Earlier, Illinois' remaining Senator, Majority Whip Dick Durbin, urged the state legislature to quickly set a special election to fill Obama's vacant Senate seat, saying that any appointment by Blagojevich would not be legitimate.[42]

Illinois Senate Minority Leader Frank Watson, Illinois Congressman John Shimkus, Colorado Governor Bill Ritter and many Illinois state legislators also called for Blagojevich to resign.[43][44]

If Blagojevich were to plead guilty to the charges, he would automatically have to resign, as the Illinois Constitution does not allow convicted felons to hold office.[45]

In an inteview with the Chicago Sun-Times, Quinn added clarification to his earlier statement about the possibility of Blagojevich stepping aside. It is an option in which the Governor would give up his powers while keeping the title and presumably his paycheck. According to Quinn "The governor can voluntarily step aside. I would become the acting governor. He would still retain the title. … That might be something they're exploring."[29]

Mike Madigan has neither made a statement calling for a resignation nor a statement supporting an impeachment. In his role as Speaker of the Illinois House of Representatives, it is possible that he will be presiding over a House debate related to its vote to determine the propriety of impeachment. As a result, he has remained neutral on both issues on purpose.[46][47]

[edit] Legislative impeachment

There is growing support for impeaching the governor and removing him from office as well.[48][16] Jan Schakowsky, a Democrat representing Illinois's 9th congressional district, called for impeachment proceedings to begin should Blagojevich not resign promptly.[19] According to the affidavit, Blagojevich had previously attempted to have Chicago Tribune writers fired for discussing his possible impeachment.[49] On December 15, the sixth day after the scandal broke with no resignation by the Governor, the Illinois House voted 113-0 to begin impeachment proceedings.[12] Also on December 15, Illinois House Speaker Madigan began proceedings to evaluate impeachment by forming a committee of inquiry within the Illinois House of Reprentatives composed of 12 Democrats and 9 Republican members of the Illinois House:[11]

It is my intention to appoint a special committee to begin immediately an investigation into the governor's conduct in office and to undertake the preparatory work that is a prerequisite to an impeachment proceeding in the Illinois House

—Michael Madigan[11]

Madigan further stated that "We have given the governor six days to resign."[25] He also has stated that the committee will commence its review on December 16 and work every day except Christmas Day, Christmas Eve, New Years Day, and New Years Eve until they have completed their report. Blagojevich, personally or through any legal counsel he may employ, will be able represent himself in an appearance before the committee. The Illinois House will decide whether to file impeachment charges after the committee completes its review. The Illinois Senate will then rule on the impeachement charges. Quinn said the impeachment process could be completed before the commencement of the new Illinois General Assembly on January 14.[28] Illinois House Majority Leader Barbara Flynn Currie is the chairperson of the Special Committee on Impeachment.[30][50] If the Illinois House votes that the Illinois Senate should hold impeachment hearings, the Illinois Supreme Court Chief Justice Thomas Fitzgerald would preside over the hearing instead of the Illinois Senate President, according to the Illinois Constitution.[51]

Madigan has stated that the Impeachment committee will not only consider the pending criminal charges. Other possible wrongdoing during Blagojevich's six-year reign such as abuse of power, taking action without legal authority, ignoring state laws and defying lawful requests for information from the General Assembly will also be considered for review.[30] Currie has confirmed that the panel’s lines of inquiry will be official misconduct, abuse of power, actions without legal authority, failure to follow state law and failure to respond to requests for information from the administration. She further stated that among the controversial actions under review by the committee will be the Blagojevich administration's purchase of a flu vaccine that was never distributed and his unilateral decision to send a $1 million grant to a private school that was damaged when the historic Pilgrim Baptist Church was destroyed by fire. She also warned that the panel's interest in investigating alleged criminal activities surrounding Blagojevich may be affected by how much cooperation is forthcoming from federal investigators. Madigan has stated that a formal written information request is being submitted to Fitzgerald.[52]

[edit] Judicial fitness ruling

Illinois Attorney General Lisa Madigan, who is considered to be a 2010 Illinois Governor candidate,[25] began legal proceedings in the Illinois Supreme Court to have Blagojevich declared "unfit to serve" in case Blagojevich does not resign.[53] She initially indicated she would only do so as a last resort if the General Assembly failed to impeach the governor.[54][55][56]

However, on December 12, she filed a motion with the Illinois Supreme Court asking it to declare Blagojevich unable to serve and name Lieutenant Governor Quinn as acting governor. In effect, Madigan asked the Illinois high court to temporarily suspend Blagojevich's powers. Failing that, Madigan sought a temporary injunction barring Blagojevich from appointing a replacement for Obama. She said that given the nature of the charges, the situation was too severe to wait for the legislature to act.[57] The brief states that Blagojevich could "irreparably damage this State's interests" if he were allowed to remain in office while the charges are pending. It also states that Blagojevich is presently unable to provide effective leadership due to potential questions about the legitimacy of his decisions.[53]

In addition, citizens groups led by John Bambenek have filed their own action after announcing their intentions on December 11, 2008 which likely precipitated the suit by Attorney General Madigan. [58]

[edit] Identity of Obama replacement candidates

Candidates
(left to right) United States Representatives Jesse Jackson, Jr., Luis Gutierrez, Jan Schakowsky, Illinois Attorney General Lisa Madigan and Illinois Department of Veterans Affairs Director Tammy Duckworth were considered as replacement candidates to fill the vacancy in the Senate.

During the federal investigation leading up to the arrest, the Federal Bureau of Investigations used wire taps at both the Governor's campaign offices and his home phone.[8]

The affidavit used aliases to refer to the six individuals Blagojevich was considering appointing to the Senate.[59][60]

The affidavit said that a representative of Senate Candidate 5 had proposed having the candidate raise up to $1 million for Blagojevich's campaign in exchange for being appointed to the Senate.[54][60] There was speculation by some that one of the candidates identified as Senate Candidate 5 is the next most prone to criminal action of those not already arrested.[61] Reports only show communications between Blagojevich and a representative of Senate Candidate 5 however.[62]

ABC News reported that federal law enforcement officials identified Jesse Jackson, Jr. as Senate Candidate 5.[54] Jackson, who was asked for an interview by federal agents, denied that anyone on his behalf had offered anything for the Senate seat.[54] Jackson claims not to be a target of an investigation, but admits to being questioned.[62] Informally, Jackson denied any wrongdoing to the members of the press stationed outside of his office on December 10.[63] Later, in a televised press conference, his lawyer confirmed his belief that Jackson is Senate Candidate 5, but that Jackson has done nothing wrong.[64][65] Immediately thereafter, in his own news conference, Jackson confirmed that he is a subject and not a target of the investigation.[66] On December 16, a Jackson spokesperson confirmed special federal investigators have been questioning him since the summer.[30] Also WLS-TV reported December 15 that Jackson has notified investigators that Blagojevich refused to appoint Sandi Jackson, his wife, as state lottery director because Jackson refused to donate $25,000 to the governor's campaign fund.[30]

The affidavit says that Blagojevich knew "that the President-elect want[ed] Senate Candidate 1 for the Senate seat," but Blagojevich was upset that "they're not willing to give me anything except appreciation, so fuck them".[67] The Washington Post identified Senate Candidate 1 as Valerie Jarrett.[67]

Other prospects for the Senate seat, including Rep. Danny Davis and Illinois Attorney General Lisa Madigan, said that they had not been contacted by federal authorities.[54] Since Quinn and Madigan are both 2010 Governor candidates, if Quinn attains the statutory power of the governorship, he could appoint Madigan to the Senate.[68] Madigan confirmed that she is Senate Candidate 2 in the indictment.[54] The affidavit also describes Senate Candidate 4 as being "a Deputy Governor of the State of Illinois."[69] An anonymous source has described Louanner Peters as being Senate Candidate 4.[70] On 10 December 2008, Illinois Deputy Governor Bob Greenlee resigned, with his lawyer saying the reason for the resignation should be obvious.[71] Reportedly, Greenlee (who appears to be Deputy Governor A) was the colleague who advised Blagojevich to pursue the cabinet position of Secretary of Energy because it is the one that "makes the most money." Deputy Governor A is also named in the affidavit as the person who supposedly attempted to coerce the Chicago Tribune on Blagojevich's behalf.[72] There is no confirmation whether Greenlee is Senate Candidate 4, the unnamed deputy governor. Schakowsky, Luis Gutierrez, Jones and Illinois Department of Veterans Affairs Director Tammy Duckworth were also under consideration, and could be one of the other unidentified candidates.[8]

The 76-page FBI affidavit included extensive detail of various acts by the governor including a November 10 call between Blagojevich, his wife, Harris, and a group of advisers in which Harris had formulated an agreement with the Service Employees International Union. Harris proposed that Blagojevich would appoint a new senator who would be helpful to the president-elect in exchange for a job as head of the union-formed group Change to Win. The union would receive an unspecified favor from Obama later under the plan.[8]

Although Blagojevich's corruption is widely reported to have been under federal investigation for years, Howard Fineman reportedly has sources that claim Jackson attributes the Obama replacement fiasco to Obama's neutral stance on who to replace him with. According to his source, Jackson feels if Obama had endorsed Jackson, Blagojevich would have selected Jackson. However, Obama's interest in having Jarrett selected left the door open to all the shenanigans.[73]

[edit] References

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[edit] External links

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