Chicago Tribune Editorial - Big questions for Blagojevich
Chicago Tribune Editorial - Big questions for Blagojevich
Copyright © 2006, Chicago Tribune
Published October 12, 2006
U.S. Atty. Patrick Fitzgerald has a record of not letting the political calendar influence when his office unveils criminal indictments. But by laying out Wednesday what he called a "pay-to-play scheme on steroids," Fitzgerald has created a list of crucial questions that Gov. Rod Blagojevich needs to answer as the Nov. 7 election fast approaches.
Fitzgerald's allegations are as breathtaking as they are serious. A 65-page federal indictment he unsealed Wednesday charges one of Blagojevich's top fundraisers with demanding millions of dollars in undisclosed kickbacks from investment companies that wanted to do business with the state's $30 billion teacher pension system. If what the feds allege to have occurred on Blagojevich's watch proves true, former Gov. George Ryan ought to wonder why he and all his corrupt cronies didn't have more imagination.
The accusations rest on the Justice Department's charge that businessman Antoin "Tony" Rezko "used his relationship with certain state of Illinois officials" to influence the actions of two state regulatory boards. Those boards make decisions that have major financial implications for investment firms and health-care corporations. With his clout, Rezko and his co-schemers--including previously indicted businessman Stuart Levine--allegedly could extort millions from the companies that had business before those two boards.
Or as Fitzgerald put it in a press release: "This indictment describes a frenzy of corrupt scheming, particularly in April and May 2004, in which political insiders sought to manipulate the activities of two state boards to fleece investment firms and individuals. [Rezko and Levine] and their associates put the word out loud and clear: You have to pay to play in Illinois."
Until now, Blagojevich has responded with Ryan-like aplomb when asked about Levine's previously alleged misconduct. The governor has said he didn't "have any specific recollection" on how he reappointed Levine to posts on the Illinois Teachers' Retirement System and the Illinois Health Facilities Planning Board. The governor has said he spent only "seconds" on some appointments to state boards, devoting more time to selecting his Cabinet officers.
Not good enough now--if ever. Tony Rezko has long had a relationship with Blagojevich. Rezko and the governor's wife, Patti, shared a business relationship that started in 1997 and endured until it came to light in 2005. That's when the Tribune reported that Patti Blagojevich had earned more than $38,000 in 2004 from real-estate transactions involving Rezko.
The governor needs to level with voters--or risk whatever menacing conclusions they draw. Among the questions he faces:
- Who are the "certain state of Illinois officials" with whom Rezko allegedly had so much clout that he could influence appointments to state boards? In short, who was waltzing to Tony Rezko's tune?
- The list of potential names on that dance card can't be a long one. In the early Blagojevich years, who in the governor's office--other than the governor himself, of course--had the authority to suggest formal appointments to state boards whose decisions had huge financial impacts?
Did any staff member ever express concern to Blagojevich that Rezko was exerting influence over his appointment process?
- The indictment essentially alleges that Rezko and some unnamed individual preserved Levine's power to steer teacher pension system investment decisions by opposing a proposed consolidation of that fund with two others. What's that all about? Who, if Fitzgerald is correct, derailed the proposed consolidation--which, as the prosecutor suggested Wednesday, presumably would have created money-saving efficiencies to benefit state government?
- The indictment says Levine and Rezko agreed to tell one investment firm that it wouldn't receive a $220 million allocation from the teacher pension fund unless it met one of two conditions: Either the company had to pay $2 million to Rezko and Levine via a middleman, or it had to make a $1.5 million political donation to an unnamed public official. Who could that public official be? And was anyone else aware of such an extortion scheme--which federal agents supposedly thwarted in 2004?
- Another question for the governor: What does this indictment say about your famed 2002 campaign pledge to end "business as usual" in Illinois if voters chose you as their governor?
The election is 26 days away. Governor Blagojevich, the Justice Department has leveled allegations against your close friend and fundraiser.
Please answer the questions.
Copyright © 2006, Chicago Tribune
Published October 12, 2006
U.S. Atty. Patrick Fitzgerald has a record of not letting the political calendar influence when his office unveils criminal indictments. But by laying out Wednesday what he called a "pay-to-play scheme on steroids," Fitzgerald has created a list of crucial questions that Gov. Rod Blagojevich needs to answer as the Nov. 7 election fast approaches.
Fitzgerald's allegations are as breathtaking as they are serious. A 65-page federal indictment he unsealed Wednesday charges one of Blagojevich's top fundraisers with demanding millions of dollars in undisclosed kickbacks from investment companies that wanted to do business with the state's $30 billion teacher pension system. If what the feds allege to have occurred on Blagojevich's watch proves true, former Gov. George Ryan ought to wonder why he and all his corrupt cronies didn't have more imagination.
The accusations rest on the Justice Department's charge that businessman Antoin "Tony" Rezko "used his relationship with certain state of Illinois officials" to influence the actions of two state regulatory boards. Those boards make decisions that have major financial implications for investment firms and health-care corporations. With his clout, Rezko and his co-schemers--including previously indicted businessman Stuart Levine--allegedly could extort millions from the companies that had business before those two boards.
Or as Fitzgerald put it in a press release: "This indictment describes a frenzy of corrupt scheming, particularly in April and May 2004, in which political insiders sought to manipulate the activities of two state boards to fleece investment firms and individuals. [Rezko and Levine] and their associates put the word out loud and clear: You have to pay to play in Illinois."
Until now, Blagojevich has responded with Ryan-like aplomb when asked about Levine's previously alleged misconduct. The governor has said he didn't "have any specific recollection" on how he reappointed Levine to posts on the Illinois Teachers' Retirement System and the Illinois Health Facilities Planning Board. The governor has said he spent only "seconds" on some appointments to state boards, devoting more time to selecting his Cabinet officers.
Not good enough now--if ever. Tony Rezko has long had a relationship with Blagojevich. Rezko and the governor's wife, Patti, shared a business relationship that started in 1997 and endured until it came to light in 2005. That's when the Tribune reported that Patti Blagojevich had earned more than $38,000 in 2004 from real-estate transactions involving Rezko.
The governor needs to level with voters--or risk whatever menacing conclusions they draw. Among the questions he faces:
- Who are the "certain state of Illinois officials" with whom Rezko allegedly had so much clout that he could influence appointments to state boards? In short, who was waltzing to Tony Rezko's tune?
- The list of potential names on that dance card can't be a long one. In the early Blagojevich years, who in the governor's office--other than the governor himself, of course--had the authority to suggest formal appointments to state boards whose decisions had huge financial impacts?
Did any staff member ever express concern to Blagojevich that Rezko was exerting influence over his appointment process?
- The indictment essentially alleges that Rezko and some unnamed individual preserved Levine's power to steer teacher pension system investment decisions by opposing a proposed consolidation of that fund with two others. What's that all about? Who, if Fitzgerald is correct, derailed the proposed consolidation--which, as the prosecutor suggested Wednesday, presumably would have created money-saving efficiencies to benefit state government?
- The indictment says Levine and Rezko agreed to tell one investment firm that it wouldn't receive a $220 million allocation from the teacher pension fund unless it met one of two conditions: Either the company had to pay $2 million to Rezko and Levine via a middleman, or it had to make a $1.5 million political donation to an unnamed public official. Who could that public official be? And was anyone else aware of such an extortion scheme--which federal agents supposedly thwarted in 2004?
- Another question for the governor: What does this indictment say about your famed 2002 campaign pledge to end "business as usual" in Illinois if voters chose you as their governor?
The election is 26 days away. Governor Blagojevich, the Justice Department has leveled allegations against your close friend and fundraiser.
Please answer the questions.
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