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The Sunday Paper Staff Blog

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Blagojevich, the unions and Obama

Just about the only thing this story doesn't have is a dead woman or a live goat.

According to a Department of Justice press release (see link below) Democrat Illinois Gov. Rod Blagojevich was preparing a soft-landing for himself with an organization called "Change to Win," which is affiliated with various unions including the Service Employees International Union (SEIU) while doing some alleged influence peddling, including soliciting bribes as well as seeking to have certain staffers of the Chicago Tribune fired. The DOJ points to conversations in which Blagojevich's chief of staff was instructed to pressure the Trib's financial advisor to see that they were fired. The Tribune's parent company filed for bankruptcy yesterday. 

On November 10, in a lengthy telephone call with numerous advisors that included discussion about Blagojevich obtaining a lucrative job with a union-affiliated organization in exchange for appointing a particular Senate Candidate whom he believed was favored by the President-elect and which is described in more detail below, Blagojevich and others discussed various ways Blagojevich could 'monetize' the relationships he has made as governor to make money after leaving that office...

Over the next couple of days – Election Day and the day after – Blagojevich was captured discussing with Deputy Governor A whether he could obtain a cabinet position, such as Secretary of Health and Human Services or the Department of Energy or various ambassadorships. In a conversation with Harris on November 4, Blagojevich analogized his situation to that of a sports agent shopping a potential free agent to the highest bidder. The day after the election, Harris allegedly suggested to Blagojevich that the President-elect could make him the head of a private foundation.

Later on November 5, Blagojevich said to Advisor A, "I’ve got this thing and it’s [expletive] golden, and, uh, uh, I’m just not giving it up for [expletive] nothing. I’m not gonna do it. And, and I can always use it. I can parachute me there," the affidavit states.

Two days later, in a three-way call with Harris and Advisor B, a consultant in Washington, Blagojevich and the others allegedly discussed the prospect of a three-way deal for the Senate 7 appointment involving an organization called "Change to Win," which is affiliated with various unions including the Service Employees International Union (SEIU).

And here are some excerpts:

"Illinois Gov. Rod R. Blagojevich and his Chief of Staff, John Harris, were arrested today by FBI agents on federal corruption charges alleging that they and others are engaging in ongoing criminal activity: conspiring to obtain personal financial benefits for Blagojevich by leveraging his sole authority to appoint a United States Senator; threatening to withhold substantial state assistance to the Tribune Company in connection with the sale of Wrigley Field to induce the firing of Chicago Tribune editorial board members sharply critical of Blagojevich; and to obtain campaign contributions in exchange for official actions – both historically and now in a push before a new state ethics law takes effect January 1, 2009. 

A 76-page FBI affidavit alleges that Blagojevich was intercepted on court-authorized wiretaps during the last month conspiring to sell or trade Illinois’ U.S. Senate seat vacated by President-elect Barack Obama for financial and other personal benefits for himself and his wife. At various times, in exchange for the Senate appointment, Blagojevich discussed obtaining:

  • A substantial salary for himself at a 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; and
  • A cabinet post or ambassadorship for himself.

Just last week, on December 4, Blagojevich allegedly told an advisor that he might “get some (money) up front, maybe” from Senate Candidate 5, if he named Senate Candidate 5 to the Senate seat, to insure that Senate Candidate 5 kept a promise about raising money for Blagojevich if he ran for re-election. In a recorded conversation on October 31, Blagojevich described an earlier approach by an associate of Senate Candidate 5 as follows: “We were approached ‘pay to play.’ That, you know, he’d raise 500 grand. An emissary came. Then the other guy would raise a million, if I made him (Senate Candidate 5) a Senator.”

On November 7, Blagojevich said he needed to consider his family and that he is “financially” hurting while talking on the phone about the Senate seat with Harris and an advisor, the affidavit states. Harris allegedly said that they were considering what would help the “financial security” of the Blagojevich family and what will keep Blagojevich “politically viable.” Blagojevich stated, “I want to make money,” adding later that he is interested in making $250,000 to $300,000 a year, the complaint alleges.


According to the affidavit, intercepted phone calls revealed that the Tribune Company, which owns the

10 mitigation scheme in which the IFA would own title to Wrigley Field and the Tribune would not have

to pay capital gains tax, which Harris estimated would save the company approximately $100 million.

Intercepted calls allegedly show that Blagojevich directed Harris to inform Tribune Owner and an associate, identified as Tribune Financial Advisor, that state financial assistance would be withheld unless members of the Chicago Tribune’s editorial board were fired, primarily because Blagojevich viewed them as driving discussion of his possible impeachment. In a November 4 phone call, Blagojevich allegedly told Harris that he should say to Tribune Financial Advisor, Cubs Chairman and Tribune Owner, "our recommendation is fire all those [expletive] people, get ‘em the [expletive] out of there and get us some editorial support." 

Read it for yourself here:
http://www.usdoj.gov/usao/iln/pr/chicago/2008/pr1209_01.pdf

 

 

by Stephanie Ramage | Tuesday, December 09, 2008 at 12:05 PM in Opinion | Comments (1) | Permalink

COMMENTS

Commentby Jesus | Friday, December 19, 2008, 4:19 AM

Illinois governor Rod Blagojevich may have seen his last payday in office – he’ll be lucky if he could even get a payday loan. However, it looks like he isn’t the only politician that’s been accused of being drunk with power. After several high profile scandals, the Australian parliament is considering a proposal that will make current and future members take a breathalyzer test while in session so they don’t drink and legislate. A member of one of the leading parties in Australia’s parliament was forced to resign his post in the wake of a scandal where he roughed up a female colleague after a Christmas party where he had become intoxicated, and after several other officials in Australia have been ousted out of their official seats for drinking related offenses, the issue was put in perspective. However, the public seems to agree with the idea. Public transportation operators believe that those who create the laws that govern should do so soberly, as they have to operate trains and buses soberly, in order for public safety. Of course, politicians worldwide enjoy a few swigs here and there, and many of them responsibly, but all should be careful. When it comes to your personal financial grounds, leave out the booze. You can soberly look into payday loans if your budget goes temporarily dry. Click here to read more on the <a title="Drunk Legislating may get some People's Paydays Cancelled in Australia" rev="vote-for" href="http://personalmoneystore.com/moneyblog/2008/12/12/drunk-legislating-may-get-some-peoples-paydays-cancelled-in-australia/">payday loan</a>.  

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