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Edited on Wed Dec-10-08 08:20 PM by goodhue
AO 91 (REV.5/85) Criminal Complaint AUSAs: REID SCHAR (353-8897), CARRIE HAMILTON (353-4558), and CHRIS NIEWOEHNER (353-6117) 4444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444444 UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF ILLINOIS, EASTERN DIVISION UNITED STATES OF AMERICA UNDER SEAL V. CRIMINAL COMPLAINT ROD R. BLAGOJEVICH, and JOHN HARRIS I, the undersigned complainant being duly sworn state the following is true and correct to the best of my knowledge and belief. Count One From in or about 2002 to the present, in Cook County, in the Northern District of Illinois, defendants did, conspire with each other and with others to devise and participate in a scheme to defraud the State of Illinois and the people of the State of Illinois of the honest services of ROD R. BLAGOJEVICH and JOHN HARRIS, in furtherance of which the mails and interstate wire communications would be used, in violation of Title 18, United States Code, Sections 1341,1343, and 1346; all in violation of Title 18 United States Code, Section 1349. Count Two Beginning no later than November 2008 to the present, in Cook County, in the Northern District of Illinois, defendants ROD R. BLAGOJEVICH and JOHN HARRIS, being agents of the State of Illinois, a State government which during a one-year period, beginning January 1, 2008 and continuing to the present, received federal benefits in excess of $10,000, corruptly solicited and demanded a thing of value, namely, the firing of certain Chicago Tribune editorial members responsible for widely-circulated editorials critical of ROD R. BLAGOJEVICH, intending to be influenced and rewarded in connection with business and transactions of the State of Illinois involving a thing of value of $5,000 or more, namely, the provision of millions of dollars in financial assistance by the State of Illinois, including through the Illinois Finance Authority, an agency of the State of Illinois, to the Tribune Company involving the Wrigley Field baseball stadium; in violation of Title 18, United States Code, Sections 666(a)(1)(B) and 2. I further state that I am a Special Agent of the Federal Bureau of Investigation and that this complaint is based on the following facts: SEE ATTACHED AFFIDAVIT Continued on the attached sheet and made a part hereof: X Yes No Daniel W. Cain, Special Agent Federal Bureau of Investigation Sworn to before me and subscribed in my presence, December 7, 2008 at Chicago, Illinois Date City and State MICHAEL T. MASON, United States Magistrate Judge Name & Title of Judicial Officer Signature of Judicial Officer Northern District of Illinois )) UNDER SEAL County of Cook, City of Chicago ) AFFIDAVIT IN SUPPORT OF APPLICATION I, Daniel W. Cain, hereinafter referred to as “Affiant,” being duly sworn, state as follows: I. INTRODUCTION 1. I am a Special Agent with the Federal Bureau of Investigation (FBI) assigned to the Chicago, Illinois Field Division. I have been a Special Agent with the FBI for over twenty-two years. I am presently assigned to the West Resident Agency of the FBI's Chicago Field office. My duties include investigating corruption of public officials, mail fraud, wire fraud, and other white collar crimes. I have been involved in white collar crime investigations for a majority of my career as a Special Agent with the FBI. 2. I have participated in and am familiar with this investigation through interviews and analysis of reports submitted by other Special Agents of the FBI, the Internal Revenue Service (IRS), the U.S. Postal Inspection Service (USPIS), and the U.S. Department of Labor's Office of Inspector General (DOLIG); personal interviews conducted with witnesses; my review of consensually-recorded conversations; a review of pen register information, trap and trace information, and telephone toll record information; and a review of information derived from the interception of wire communications occurring to and from certain telephones. I also am familiar with information derived from the interception of oral communications occurring in the offices of Friends of Blagojevich, 4147 North Ravenswood 2 Avenue, Suite 300, Chicago, Illinois. In addition, I am familiar with testimony given during the trial of Antoin Rezko from March to May 2008. 3. This affidavit is submitted in support of an application for a criminal complaint and corresponding arrest warrants charging ROD R. BLAGOJEVICH (“ROD BLAGOJEVICH”) and JOHN HARRIS with: a. conspiring with each other and with others to devise and participate in a scheme to defraud the State of Illinois and the people of the State of Illinois of the honest services of ROD BLAGOJEVICH and JOHN HARRIS, in furtherance of which the mails and interstate wire communications would be used, in violation of Title 18, United States Code, Sections 1341, 1343 and 1346; all in violation of Title 18, United States Code, Section 1349; and b. being agents of the State of Illinois, a State government which during a one-year period, beginning January 1, 2008 and continuing to the present, received federal benefits in excess of $10,000, corruptly soliciting and demanding a thing of value, namely, the firing of certain Chicago Tribune editorial members responsible for widely-circulated editorials critical of ROD BLAGOJEVICH, intending to be influenced and rewarded in connection with business and transactions of the State of Illinois involving a thing of value of $5,000 or more, namely, the provision of millions of dollars in financial assistance by the State of Illinois, including through the Illinois Finance Authority, an agency of the State of 3 Illinois, to the Tribune Company involving the Wrigley Field baseball stadium; in violation of Title 18, United States Code, Sections 666(a)(1)(B) and 2. 4. Defendant ROD BLAGOJEVICH is the Governor of the State of Illinois. He was elected Governor in 2002 and was reelected Governor in 2006. 5. Defendant JOHN HARRIS is employed by the State of Illinois as the chief of staff to the Governor, ROD BLAGOJEVICH. 6. As officials of the State of Illinois, ROD BLAGOJEVICH and JOHN HARRIS each owe a duty of honest services to the State of Illinois and the people of the State of Illinois in the performance of their public duties. 7. Pursuant to Article VIII, Section 1(a) of the Constitution of the State of Illinois, public funds, property and credit shall be used only for public purposes. 8. Pursuant to the criminal laws of the State of Illinois (720 ILCS 5/33-3(c) and (d)), ROD BLAGOJEVICH and JOHN HARRIS each are prohibited from committing the following acts in his official capacity: (1) performing an act in excess of his lawful authority, with intent to obtain a personal advantage for himself or others; and (2) soliciting or knowingly accepting, for the performance of any act, a fee or reward which he knows is not authorized by law. 9. Pursuant to the criminal laws of the State of Illinois (720 ILCS 5/33-1(d)), ROD BLAGOJEVICH is prohibited from receiving, retaining, or agreeing to accept any property or personal advantage which he is not authorized by law to accept, knowing that 4 such property or personal advantage was promised or tendered with intent to cause him to influence the performance of any act related to the employment or function of his public office. 10. Friends of Blagojevich is a private entity organized and existing under the laws of the State of Illinois as a state-wide political campaign committee established on behalf of ROD BLAGOJEVICH to support his campaign efforts. 11. The Illinois Finance Authority (“IFA”) is a body politic and corporate created by Illinois law (20 ILCS 3501 et seq.), one of the statutory purposes of which is to “to accomplish and to carry out these policies of the State which are in the public interest of the State and of its taxpayers and residents.” Pursuant to Illinois law, the members of the IFA are appointed by the Governor of the State of Illinois and may be removed by the Governor for cause. The IFA is authorized by statute to accept state and federal funds for use in connection with the IFA’s purposes, and its operations are subject to audit by the Illinois Auditor General. Pursuant to Title 74 of the Illinois Administrative Code, Part 1100.250, “ he Governor of the State serves as the applicable elected representative for
purposes of the public approval requirement of the Tax Code.” According to a web site
maintained by the Illinois State Comptroller, the IFA received at least $493,750 in 2008 in
earmarked loan funds from the State of Illinois. In 2008, the State of Illinois received over
$10,000 in federal benefits.
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12. Because this affidavit is submitted for the limited purpose of securing a
criminal complaint and corresponding arrest warrants, I have not included each and every
fact known to me concerning this investigation.
II. SUMMARY OF PROBABLE CAUSE
13. Since approximately 2003, the government has been investigating allegations
of illegal activity occurring in State of Illinois government as part of the administration of
Governor ROD BLAGOJEVICH. As further detailed below, the investigation has developed
evidence that: (a) beginning not later than in or about 2002, ROD BLAGOJEVICH has
conspired with multiple individuals, including, beginning not later than in or about October
2008, JOHN HARRIS, to devise and participate in a scheme, which used and contemplated
the use of the mails and interstate wire communications, to defraud the State of Illinois and
its residents of the honest services of ROD BLAGOJEVICH and JOHN HARRIS by
corruptly using the office of Governor of the State of Illinois to obtain and attempt to obtain
personal gain, including financial gain, for ROD BLAGOJEVICH and third parties with
whom he is associated; and (b) beginning no later than November 2008, ROD
BLAGOJEVICH and JOHN HARRIS have corruptly solicited and demanded the firing of
Chicago Tribune editorial board members responsible for editorials critical of ROD
BLAGOJEVICH, intending to be influenced and rewarded in connection with State of
Illinois financial assistance in connection with the sale of Wrigley Field. The evidence
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demonstrates that the corrupt conduct undertaken included but was not limited to the
following:
a. Defendant ROD BLAGOJEVICH and at times defendant JOHN
HARRIS, together with others, obtained and attempted to obtain financial benefits for ROD
BLAGOJEVICH, members of the Blagojevich family, and third parties including Friends of
Blagojevich, in exchange for appointments to state boards and commissions, state
employment, state contracts, and access to state funds;
b. Defendants ROD BLAGOJEVICH and JOHN HARRIS, together with
others, offered to, and threatened to withhold from, the Tribune Company substantial state
financial assistance in connection with Wrigley Field, which assistance ROD
BLAGOJEVICH believed to be worth at least $100 million to the Tribune Company, for the
private purpose of inducing the controlling shareholder of the Tribune Company to fire
members of the editorial board of the Chicago Tribune, a newspaper owned by the Tribune
Company, who were responsible for editorials critical of ROD BLAGOJEVICH;
c. Defendants ROD BLAGOJEVICH and JOHN HARRIS, together with
others, attempted to use ROD BLAGOJEVICH’s authority to appoint a United States Senator
for the purpose of obtaining personal benefits for ROD BLAGOJEVICH, including, among
other things, appointment as Secretary of Health & Human Services in the President-elect’s
administration, and alternatively, a lucrative job which they schemed to induce a union to
provide to ROD BLAGOJEVICH in exchange for appointing as senator an individual whom
Minimization procedures were implemented 1 during the interception of conversations
at the Friends of Blagojevich offices and over phones. At times, these minimization
procedures were stricter than required under law so as to avoid intercepting certain
potentially privileged conversations.
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ROD BLAGOJEVICH and JOHN HARRIS believed to be favored by union officials and
their associates.
14. As detailed below, in early October 2008, the government obtained information
that ROD BLAGOJEVICH was accelerating his corrupt fund raising activities to accumulate
as much money as possible before the implementation of ethics legislation on January 1,
2009, that would severely curtail ROD BLAGOJEVICH’s ability to raise money from
individuals and entities conducting business with the State of Illinois. Based in part on the
recently obtained information, and as part of the investigation into ROD BLAGOJEVICH’s
corrupt fund raising efforts, in October 2008 the government obtained court approval to
intercept oral communications in certain locations in the offices of Friends of Blagojevich.
In addition, as part of its investigation, the government obtained court approval to intercept
wire communications on the home phone of ROD BLAGOJEVICH.1 Specifically:
a. On October 21, 2008, Chief Judge James F. Holderman signed an order
authorizing the interception of oral communications for a 30-day period in two rooms at the
Friends of Blagojevich office: the personal office of ROD BLAGOJEVICH and the
conference room. On the morning of October 22, 2008, the FBI began intercepting oral
communications in those rooms. On November 19, 2008, Chief Judge James F. Holderman
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signed an order authorizing the continued interception of oral communications in the two
rooms at the Friends of Blagojevich office for a second 30-day period.
b. On October 29, 2008, Chief Judge James Holderman entered an Order
authorizing the interception of wire communications to and from a landline telephone
subscribed to ROD BLAGOJEVICH’s home address and used by ROD BLAGOJEVICH and
others. The interception of wire communications to and from ROD BLAGOJEVICH’s home
phone began on the evening of October 29, 2008. On November 26, 2008, Acting Chief
Judge Matthew F. Kennelly signed an order authorizing the continued interception of wire
communications on ROD BLAGOJEVICH’s home phone for a second 30-day period.
15. The remainder of this affidavit first sets out certain information obtained prior
to the initiation of the court-authorized interceptions, relating to allegations that ROD
BLAGOJEVICH solicited and obtained campaign contributions in exchange for official
actions as Governor. Next, this affidavit details certain information obtained during the
course of the court-authorized interceptions and relating to the crimes alleged in the attached
criminal complaint. This information, in turn, is divided into sections relating to three topics:
(a) efforts to obtain campaign contributions in exchange for official actions by ROD
BLAGOJEVICH; (b) efforts to use state funds for the private purpose of inducing the
Tribune Company to fire Chicago Tribune editorial board members critical of ROD
BLAGOJEVICH by making their firing a condition of state assistance to the Tribune
Under the terms of the plea agreement, if Ata continues to 2 completely and truthfully
cooperate, the government will make a motion pursuant to 5K1.1 for a reduction from his 12-
18 month applicable guideline range. The plea agreement allows his counsel to ask for any
sentence, including probation. Other than his felony convictions in May 2008, Ata has no
criminal history.
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Company in connection with Wrigley Field; and (c) efforts to obtain personal financial
benefits for ROD BLAGOJEVICH in return for his appointment of a United States Senator.
III. FACTS ESTABLISHING PROBABLE CAUSE
A. Evidence Concerning the Solicitation and Receipt of Campaign
Contributions in Return for Official Acts by ROD BLAGOJEVICH Prior
to October 2008
1. Information Provided by Ali Ata
16. As described in more detail in the following paragraphs, Ali Ata testified under
oath in the spring of 2008 that Ata discussed with ROD BLAGOJEVICH a potential
appointment to a high-level position with the State of Illinois while a $25,000 donation check
to Friends of Blagojevich from Ata was sitting on a table in front of ROD BLAGOJEVICH.
Ata further testified that later, after Ata made another substantial contribution to Friends of
Blagojevich, ROD BLAGOJEVICH told Ata that he was aware of the donation, that he
understood that Ata would be joining his administration, and that Ata better get a job “where
can make some money.”
17. Ata is a businessman who, in May 2008, as part of a cooperation agreement
with the government, pled guilty to making false statements to the FBI and to tax fraud.2
Pursuant to his cooperation agreement, the government has interviewed Ata extensively
Rezko was a principal fundraiser for ROD BLAGOJEVICH. 3 His criminal trial
focused on allegations that Rezko and Stuart Levine, a member of the board of trustees of
the Teachers Retirement System and the Illinois Health Facilities Planning Board, engaged
in a scheme to defraud the State of Illinois of Levine’s honest services by demanding
kickbacks, as well as political contributions to the campaign of ROD BLAGOJEVICH, in
return for the exercise of Levine’s official influence. Relevant evidence presented at the
Rezko trial is summarized below.
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regarding a number of topics, including his knowledge of and involvement in fundraising for
ROD BLAGOJEVICH. In addition, Ata testified under oath at the criminal trial of Antoin
Rezko (the “Rezko Trial”) in May 2008.3 Portions of Ata’s testimony are directly relevant
to the current investigation. In summary, and in relevant part, Ata testified as follows during
the Rezko Trial:
18. In or about 2000 or 2001, at a meeting with Ata, ROD BLAGOJEVICH who
at the time was a member of the United States House of Representatives, told Ata that he was
contemplating a run for higher office and asked for Ata’s support. Ata agreed to support
him. Thereafter, Ata observed that Rezko was close to ROD BLAGOJEVICH and was very
involved in fund raising for ROD BLAGOJEVICH’s campaign, including overseeing Ata’s
own fund raising efforts on behalf of ROD BLAGOJEVICH.
19. In or about 2002, Ata had several conversations with Rezko regarding the
possibility of a high level appointment for Ata in state government should ROD
BLAGOJEVICH be elected. At Rezko’s direction, Ata put together a list of three state
agencies to which he would be interested in being appointed, including the Capital
Development Board.
Rezko, whose reliability 4 has yet to be fully determined, has confirmed to the
government in proffer sessions the essence of Ata’s testimony regarding Ata’s meeting with
ROD BLAGOJEVICH, but has a different recollection regarding the timing and chronology
(continued...)
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20. In or about August 2002, Ata held a small fund raising event for ROD
BLAGOJEVICH that ROD BLAGOJEVICH attended. In advance of that fund raising event,
Ata committed to Rezko that Ata would raise $25,000 at that event, which he eventually did,
personally contributing at least approximately $5,000.
21. Later that year, Rezko approached Ata for additional monetary support for
ROD BLAGOJEVICH. Ata agreed to contribute $25,000 in additional monies to the
campaign of ROD BLAGOJEVICH. Ata, subsequently and by prior arrangement with
Rezko, brought a check in this amount to Rezko’s offices on Elston Avenue in Chicago.
After he arrived at Rezko’s offices, Ata was greeted by Rezko to whom he handed the check
in an envelope. Rezko, carrying the check, ushered Ata into a conference room where he met
with Rezko and ROD BLAGOJEVICH. Rezko placed the envelope containing Ata’s
$25,000 check to ROD BLAGOJEVICH’s campaign on the conference room table between
himself and ROD BLAGOJEVICH and stated to ROD BLAGOJEVICH that Ata had been
a good supporter and a team player and that Ata would be willing to join ROD
BLAGOJEVICH’s administration. ROD BLAGOJEVICH expressed his pleasure and
acknowledged that Ata had been a good supporter and good friend. ROD BLAGOJEVICH,
in Ata’s presence, asked Rezko if he (Rezko) had talked to Ata about positions in the
administration, and Rezko responded that he had.4
4(...continued)
of certain events and only recalls asking Ata for one $25,000 check for ROD
BLAGOJEVICH. Rezko’s proffers have been substantial but are not complete and the
government’s efforts to fact check and corroborate Rezko’s proffered information are not yet
complete. Rezko has proffered with the government in hopes of receiving a recommendation
from the government for a reduced sentence. During the proffer sessions, Rezko at times has
provided accounts that differ from those of other witnesses, including Ata, but in broad terms
Rezko’s account incriminates ROD BLAGOJEVICH in a “pay to play” criminal scheme.
Because the government is not yet satisfied that Rezko’s accounts are full and complete, the
government is not relying on Rezko’s account for probable cause. The government simply
notes that while Rezko’s account varies at times from those of other witnesses, Rezko’s
account of ROD BLAGOJEVICH’s activity, on balance, would add to the probable cause
set forth herein, not subtract. Where Rezko’s proffered recollection differs significantly from
those of witnesses upon whose testimony the government is relying, this affidavit notes those
differences.
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22. After this meeting, Ata completed an application for a state appointment. In
or about early 2003, Rezko informed Ata that he was going to be appointed to head the state
Capital Development Board. Rezko subsequently informed Ata that this position was going
to someone else and that another position would have to be found for Ata. Later, Rezko
discussed an opportunity for Ata with the newly formed Illinois Finance Authority (“IFA”).
23. In or about July 2003, Rezko asked Ata to make an additional $50,000
contribution to the campaign of ROD BLAGOJEVICH. Ata agreed to contribute the same
amount as he had previously, namely $25,000. Ata made this contribution on or about July
25, 2003, by check payable to ROD BLAGOJEVICH’s campaign. Ata gave this check to
Rezko. Thereafter, Ata had a conversation with ROD BLAGOJEVICH at a large fund
raising event at Navy Pier. During this conversation, ROD BLAGOJEVICH told Ata that
Ata had been a good supporter, indicated that ROD BLAGOJEVICH was aware that Ata had
Cari testified pursuant to his obligations under a 5 written plea agreement entered into
with the government. In the plea agreement, Cari pled guilty to the attempted extortion of
JER, an investment company attempting to obtain a State of Illinois investment. In exchange
for his truthful cooperation, the government agreed to recommend at the time of Cari’s
sentencing that Cari receive a sentence of two and a half years in prison. The plea agreement
allows his counsel to ask for any sentence, including probation. Prior to pleading guilty to
attempted extortion, Cari had no criminal history.
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made another substantial donation to ROD BLAGOJEVICH’s campaign, and told Ata that
he understood that Ata would be joining his administration. Ata responded that he was
considering taking a position, and ROD BLAGOJEVICH stated that it had better be a job
where Ata could make some money.
24. Ata was surprised by this comment by ROD BLAGOJEVICH and said
something to Rezko about it the next time Ata saw Rezko. When Ata told Rezko that ROD
BLAGOJEVICH had said words to the effect of, “it had better be a job where you can make
some money,” Rezko responded that he was not surprised and had heard ROD
BLAGOJEVICH say things like that before.
2. Information Provided by Joseph Cari
25. As described in further detail in the following paragraphs, Joseph Cari testified
under oath at the Rezko Trial on April 15 and 16, 2008.5 Among other things, Cari testified
that he had a conversation with ROD BLAGOJEVICH in which ROD BLAGOJEVICH
informed Cari that ROD BLAGOJEVICH could use his power to award State of Illinois
contracts in order to generate campaign contributions. Cari further testified that he had
Like Rezko, Kelly was a principal campaign fundraiser 6 for ROD BLAGOJEVICH.
7 Stuart Levine was a Chicago-area businessman and an associate of Rezko and Kelly
who served on the Illinois Health Facilities Planning Board and the board of trustees of the
Teachers Retirement System of Illinois. Further information about Levine is provided below
at paragraph 31 et seq.
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similar conversations with Rezko and Chris Kelly6, who specifically offered him State of
Illinois work in exchange for Cari’s assistance with various fundraising matters. In
summary, and in relevant part, Cari testified as follows during the Rezko Trial:
26. Cari was a significant fundraiser for Democratic causes and was previously the
national finance chair for Vice President Al Gore’s 2000 presidential campaign. During his
testimony, Cari described meetings that he had with ROD BLAGOJEVICH, Chris Kelly,
Rezko, and Stuart Levine7. In particular, on approximately October 29, 2003, Cari, ROD
BLAGOJEVICH, Kelly, Levine and others rode on an airplane arranged by Levine to a
fundraiser in New York being hosted by Cari on behalf of ROD BLAGOJEVICH. During
the plane ride, Cari had a conversation with ROD BLAGOJEVICH. During the
conversation, Cari and ROD BLAGOJEVICH discussed Cari’s fundraising background and
work as a national fundraiser. ROD BLAGOJEVICH discussed his interest in running for
President of the United States. During the conversation, ROD BLAGOJEVICH informed
Cari that it was easier for governors to solicit campaign contributions because governors had
the ability to “award contracts” and give legal work, consulting work, and investment
banking work to campaign contributors. ROD BLAGOJEVICH informed Cari that Rezko
and Kelly were his point people in raising campaign contributions. Later in the conversation,
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ROD BLAGOJEVICH told Cari that there were State of Illinois contracts and other State of
Illinois work that could be given to contributors who helped ROD BLAGOJEVICH, Rezko,
and Kelly. Cari testified that ROD BLAGOJEVICH ended the conversation with Cari by
informing Cari that Rezko and Kelly would follow up with Cari in relation to the discussion
that had just occurred.
27. At one point during the October 29, 2003 New York fundraiser, Cari and
Levine had a conversation. Cari testified that during the conversation, Levine informed Cari
that there was a plan in place in the Blagojevich administration pursuant to which Rezko and
Kelly would pick consultants to do business with State of Illinois boards, and thereafter, the
consultants would be asked to make campaign contributions.
28. Cari also testified about a conversation he had with Rezko at Rezko’s office.
Levine was also present for the conversation. According to Cari, Rezko informed Cari that
Rezko had a close relationship with the Blagojevich administration and Rezko had a role in
picking consultants and law firms and other entities to get State of Illinois business. Rezko
informed Cari that Rezko called ROD BLAGOJEVICH’s chief of staff, Lon Monk, and
Monk would help implement Rezko’s choices for certain State of Illinois work. Rezko
informed Cari that, in exchange for raising money for ROD BLAGOJEVICH, the
Blagojevich administration would be financially helpful to Cari’s business interests.
29. On approximately March 5, 2004, Cari met with Kelly at a restaurant. Cari
testified that Kelly stated that Kelly was following up on Cari’s conversations with ROD
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BLAGOJEVICH, Rezko, and Levine. Kelly then requested Cari’s help in raising money on
a national level for ROD BLAGOJEVICH. Cari, as he had in the past, indicated he was not
inclined to assist ROD BLAGOJEVICH. In response, Kelly pushed Cari to assist ROD
BLAGOJEVICH and informed Cari that helping ROD BLAGOJEVICH would be good for
Cari’s business interests and that Cari “could have whatever wanted,” which Cari
understood to be a reference to getting Cari’s business interests whatever State of Illinois
work Cari wanted if Cari helped raise money on a national level for ROD BLAGOJEVICH.
The conversation ended shortly thereafter.
30. Cari testified that he eventually became involved in the attempted extortion of
JER, a real estate investment firm that was seeking an investment from the Teachers
Retirement System (“TRS”). Details regarding corruption at TRS involving one of its board
members, Stuart Levine, are set forth below. Based on his conversations with ROD
BLAGOJEVICH, Rezko, Kelly, and Levine, in which he was informed that consultants
would be inserted into State of Illinois transactions and then solicited for campaign
contributions, Cari believed that JER needed to hire a consultant. Cari testified that he
informed employees of JER that they needed to hire a consultant and that in Illinois the
“Governor and the people around the Governor” pick the consultants to be used on particular
deals. Cari informed JER employees that if they did not hire the consultant then JER would
not receive the money it was seeking from the State of Illinois. Ultimately, JER exposed the
attempted extortion and received money from the State of Illinois.
As noted above, Levine w 8 as charged in two separate indictments before pleading
(continued...)
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3. Information Provided by Stuart Levine
31. In approximately December 2003, the FBI began an investigation of allegations
that at least one member of the Illinois Health Facilities Planning Board (the “Planning
Board”), Stuart Levine, was soliciting bribes in exchange for board action. At the time,
Levine was a businessman who served on two state boards: the board of trustees of TRS, and
the Planning Board. As part of the investigation, the government sought and obtained court
authorization to record phone calls on multiple phones used by Levine.
32. On May 4, 2005, Levine was indicted in United States v. Levine, et al. 05 CR
408 (Grady, J.) on 28 counts of mail and wire fraud, extortion, bribery, and money
laundering. On August 3, 2005, Levine was indicted in United States v. Levine, et al., 05 CR
691 (St. Eve., J.) on 13 counts of mail and wire fraud, bribery, and attempted extortion. On
October 27, 2006, Levine pleaded guilty to Counts One and Twenty-Three of a superseding
indictment in Case No. 05 CR 691. As part of Levine’s plea agreement, the government
moved, on November 15, 2006, to dismiss the pending superseding indictment and
indictment against Levine in Case No. 05 CR 408.
33. Pursuant to his cooperation agreement, the government has interviewed Levine
extensively regarding a number of topics, including his knowledge of and involvement in the
corruption of Illinois state government and fundraising for ROD BLAGOJEVICH. In
addition, Levine testified under oath at the Rezko Trial.8 Portions of Levine’s testimony at
8(...continued)
guilty in Case No. 05 CR 691. In Levine’s plea agreement, Levine acknowledged that under
the Sentencing Guidelines he was facing a guidelines range of life imprisonment. As a result
of Levine’s plea, the government will recommend, assuming Levine’s continued complete
and truthful cooperation, that Levine be sentenced to a term of 67 months’ imprisonment.
In Levine’s plea agreement, Levine admitted to violating his duty of honest services to two
separate Illinois state boards by seeking and agreeing to accept kickbacks and payments
worth millions of dollars in exchange for using Levine’s influence and position on the state
boards to benefit numerous third parties. Levine further admitted in his plea agreement to
defrauding a medical school and a charitable organization which he controlled out of
additional millions of dollars. In addition to the crimes detailed in his plea agreement,
Levine committed additional crimes over the past approximately 20 years, including
instances of paying bribes, tax fraud, election fraud, structuring, and defrauding the estate
of a business associate. Levine has further admitted to using illegal narcotic drugs for
approximately 30 years up to and including 2004, including the repeated and regular use of
cocaine, crystal methamphetamine, ecstasy, and ketamine. Levine’s credibility was
vigorously challenged by defense counsel during the trial that ultimately led to Rezko’s
conviction.
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the Rezko trial are directly relevant to the current investigation. The remainder of this
section sets forth, in summary, and in relevant part, Levine’s testimony at the Rezko Trial,
except as noted where information is specifically identified as having been obtained from
other sources:
a. Levine’s Plane Ride with Blagojevich
34. According to Levine, in approximately late October 2003, after Levine was
reappointed to the Planning Board, he shared a private plane ride from New York to Chicago
with ROD BLAGOJEVICH and Kelly. Levine, ROD BLAGOJEVICH, and Kelly were the
only passengers on the flight. According to Levine, at the beginning of the flight, Levine
thanked ROD BLAGOJEVICH for reappointing him to the Planning Board. ROD
19
BLAGOJEVICH responded that Levine should only talk with “Tony” or
about the Planning Board, “but you stick with us and you will do very well for yourself.”
ROD BLAGOJEVICH said this in front of Kelly. According to Levine, Levine understood
from ROD BLAGOJEVICH’s manner of speaking and words that ROD BLAGOJEVICH
did not want Levine to talk to ROD BLAGOJEVICH directly about anything to do with the
boards, but that Levine should talk to Rezko or Kelly. Levine also understood that ROD
BLAGOJEVICH meant that Levine could make a lot of money working with ROD
BLAGOJEVICH’s administration. According to Levine, ROD BLAGOJEVICH did not
seem to expect a response from Levine, and Kelly then shifted the conversation to something
else.
b. Corruption of the Planning Board
35. As described more fully in the following paragraphs, Mercy Hospital, which
sought permission from the Planning Board to build a hospital in Illinois, received that
permission through Rezko’s exercise of his influence at the Planning Board after Rezko was
promised that Mercy Hospital would make a substantial campaign contribution to ROD
BLAGOJEVICH. Rezko later told a member of the Planning Board that Mercy Hospital
received the permit because ROD BLAGOJEVICH wanted the organization to receive the
permit.
36. Levine’s criminal activities included his abuse of his position on the Planning
Board to enrich both himself and Friends of Blagojevich. The Planning Board was a
9 Beck and Almanaseer testified pursuant to immunity orders.
20
commission of the State of Illinois, established by statute, whose members were appointed
by the Governor of the State of Illinois. At the relevant time period, the Planning Board
consisted of nine individuals. State law required an entity seeking to build a hospital,
medical office building, or other medical facility in Illinois to obtain a permit, known as a
“Certificate of Need” (“CON”), from the Planning Board prior to beginning construction.
37. Levine, as well as Planning Board members Thomas Beck and Imad
Almanaseer, testified under oath at the Rezko Trial.9 Beck testified that he asked Rezko to
reappoint him to the Planning Board and that Beck thereafter followed Rezko’s directions
regarding which CON applications Rezko wanted approved. Beck testified that it was his
job to communicate Rezko’s interest in particular CONs to other members of the Planning
Board, including Almanaseer, who were loyal to Rezko. Beck testified that he understood
that Rezko spoke for the Blagojevich administration when Rezko spoke to Beck about
particular CONs. Almanaseer testified that Beck instructed him that Rezko wanted
Almanaseer to vote a particular way and that Almanaseer should follow Levine’s lead in
voting on CONs. Almanaseer testified that before certain Planning Board meetings, he
received notecards from Beck indicating how to vote on certain CON applications. Beck
testified he provided these notecards to Almanaseer and certain other members of the
Planning Board to communicate Rezko’s directions about certain CON applications.
Rezko has admitted that he 10 manipulated the Mercy vote based on Mercy’s
agreement to make a contribution to ROD BLAGOJEVICH, which agreement he states was
communicated to ROD BLAGOJEVICH, but denies that Levine offered a personal bribe to
Rezko as well.
11 In connection with this investigation, Steven Loren pled guilty to interfering with
the due administration of the Internal Revenue Service. In exchange for his continued and
truthful cooperation, the government has agreed to move the Court for a 5K1.1 departure and
his counsel is free to seek any sentence, including probation. Loren has no other criminal
history. Pursuant to his cooperation agreement, Loren testified at the Rezko Trial.
21
38. During his testimony, Levine described a plan to manipulate the Planning
Board to enrich himself and Friends of Blagojevich. The plan centered on an entity
commonly known as Mercy Hospital (“Mercy”) that was attempting to obtain a CON to build
a new hospital in Illinois. Levine knew the contractor hired to help build the hospital. In
approximately November 2003, on behalf of the contractor, Levine checked with Rezko to
determine whether Rezko wanted Mercy to obtain its CON. Rezko informed Levine that
Mercy was not going to receive its CON. According to Levine, he asked Rezko whether it
would matter to Rezko if Mercy’s construction contractor paid a bribe to Rezko and Levine
and, in addition, made a contribution to ROD BLAGOJEVICH. Levine testified that Rezko
indicated that such an arrangement would change his view on the Mercy CON.10
39. Levine’s testimony regarding Rezko’s actions to change the Planning Board
decision concerning Mercy’s application for a CON based on contributions for ROD
BLAGOJEVICH is confirmed by attorney Steven Loren. Loren testified at Rezko’s criminal
trial and, before that, in the grand jury.11 According to Loren, in approximately December
2003, Levine informed Loren that Rezko was against the Mercy CON. According to Loren,
There was extensive testimony 12 regarding the irregularity of the vote at the Planning
Board meeting. In summary, during the vote, Levine got up from his seat and went to speak
to Beck and to Almanaseer. After these discussions, Almanaseer then changed his vote to
be in favor of Mercy receiving its CON. Beck then voted in favor as well and by a vote of
5 to 4, Mercy’s application for a CON passed.
22
Levine relayed to Loren a conversation between Rezko and Levine during which Levine
asked Rezko whether a political contribution to ROD BLAGOJEVICH would make a
difference for Mercy’s CON, and Rezko responded to Levine that such a contribution might
make a difference.
40. Thereafter, and confirmed by the testimony of Levine, Beck, and Almanaseer,
as well as recorded conversations, Rezko switched his directions to Beck and informed Beck
that Mercy was to receive its CON. According to Almanaseer, although he previously had
been told by Beck that Rezko did not want Mercy to receive its CON, he was later told that
there had been a change and that Rezko now wanted Mercy to receive its CON.
41. Mercy received its CON as a result of a controversial and irregular vote at a
public Planning Board meeting.12 The vote brought significant publicity to the Planning
Board and ultimately led to the disbanding of the Planning Board. Almanaseer testified
under oath in the grand jury that not long after the Planning Board vote on Mercy’s CON he
saw Rezko at a fundraiser. According to Almanaseer, he was still embarrassed about what
had occurred at the Planning Board vote on Mercy’s CON and Rezko’s role in the vote.
Almanaseer testified that he asked Rezko why Rezko had switched the vote on the Mercy
CON. According to Almanaseer, Rezko stated: “The Governor wanted it to pass.”
23
Almanaseer understood the reference to “Governor” to be a reference to ROD
BLAGOJEVICH.
c. History of Control at TRS
42. In addition to serving on the Planning Board, Levine was a member of the TRS
board of trustees. TRS is a public pension plan created by Illinois law for the purpose of
providing pension, survivor, and disability benefits for teachers and administrators employed
in Illinois public schools except in the City of Chicago. TRS manages over $30 billion in
assets on behalf of those individuals and the State of Illinois. The TRS Board of Trustees,
with assistance from TRS staff, votes on how to invest these assets.
43. Levine originally was appointed to the TRS Board in 2000. By the summer of
2001, Levine, working in concert with William Cellini, who had a significant interest in a
real estate asset management firm that had a long-standing business relationship with TRS,
had established effective control over the TRS board by forming and maintaining a group of
TRS trustees who consistently voted together on matters important to Cellini and Levine.
Levine testified at the Rezko Trial that he and Cellini were both powerful, long-standing
Republican operatives in the state of Illinois. ROD BLAGOJEVICH was the first
Democratic governor in the State of Illinois in over 20 years. Because of this, according to
Levine, Cellini and Levine had to take certain steps to ingratiate themselves with the new
Democratic administration.
44. Levine testified that among the steps Cellini took to ingratiate himself with
24
ROD BLAGOJEVICH was raising considerable money for ROD BLAGOJEVICH. Kelly
Glynn worked for Friends of Blagojevich from approximately May 2002 to August 2004 as
the organization’s Finance Director. Glynn testified under oath at the Rezko Trial and has
been interviewed by the government. Among other things, Glynn testified that she was
familiar with how Friends of Blagojevich tracked fundraising events and credited money
brought into Friends of Blagojevich. Glynn testified that a computer database was set up to
track donations to Friends of Blagojevich and the individuals responsible for obtaining those
donations. In particular, Glynn testified about a fundraising event that occurred in
approximately October 2002. Glynn testified that the event was organized and held by
Cellini with the attendees being primarily members of the Illinois Road and Transportation
Builders Association. Based on instructions from Chris Kelly, however, the Cellini event
was not tracked as a Cellini event in the Friends of Blagojevich database but, rather, was
listed as a Roadbuilders event in combination with, among others, Rezko.
d. The Accommodation with Rezko and Kelly
45. As set forth more fully in the following paragraphs, Levine and Cellini, in order
to keep their control over TRS, agreed to an accommodation with Rezko and Kelly that
Rezko and Kelly would use their influence with ROD BLAGOJEVICH to stop the
consolidation of TRS with other pension boards and, in exchange, Levine and Cellini would
assist investment firms named by Rezko and Kelly to receive TRS money because those
investment firms had made or would make political contributions to ROD BLAGOJEVICH.
Rezko has informed 13 the government that Cellini raised the issue of pension board
consolidation with Rezko and Chris Kelly and that Cellini was against the pension board
consolidation. Rezko has stated he is unaware if Kelly took any action regarding the pension
consolidation and that he did not personally take any action in relation to the pension board
consolidation. Rezko has stated he did not consider using TRS to solicit campaign
contributions.
25
46. In approximately the spring of 2003, a threat arose towards Levine’s and
Cellini’s control over the TRS Board. At that time, there were indications that the
Blagojevich administration would seek legislation consolidating TRS with two other Illinois
state pension boards.
47. Levine and Cellini were opposed to the proposal to consolidate the pension
boards because it might cause them to lose their control at TRS. According to Levine, in the
spring of 2003, Cellini told Levine that Cellini would talk to Rezko and Kelly about trying
to stop the pension consolidation plan. Cellini later told Levine that he had spoken with
Rezko and Kelly, and offered an accommodation to them. According to Levine, in exchange
for Rezko’s and Kelly’s help in stopping the consolidation proposal, Cellini said that Cellini
and Levine would use their influence on the TRS Board to help investment firms that Rezko
or Kelly recommended receive investments from TRS. Cellini said that Rezko and Kelly
agreed to the arrangement. Levine understood from Cellini’s description that Rezko and
Kelly would ask Levine and Cellini to help investment firms receive TRS money because
those investment firms had made or would make political contributions to ROD
BLAGOJEVICH.13
26
48. Levine’s testimony regarding the accommodation was corroborated by a
recorded call on April 12, 2004, in which Levine informed another individual: “You know
I sat down talked a long time ago I said if you can convince those guys and Kelly] to let us stay in place. . . We got a great machinery and if there’s an
accommodation you know we’ll certainly try to accommodate but if they just wanna stick
things in you know I’m gonna leave that’s no way to do that.”
49. According to Levine, Cellini told Levine that Rezko had informed Cellini that
Rezko and Kelly had met with ROD BLAGOJEVICH and other senior Illinois state officials
regarding the proposal to consolidate TRS and two other pension boards. According to
Levine, Cellini said that Rezko related that ROD BLAGOJEVICH was skeptical as to why
he should take the advice of Kelly over a senior state official on this topic. According to
Levine, Rezko asked Cellini, who asked Levine, to get some talking points as to why the
consolidation idea was a bad one. Levine ultimately obtained talking points from Steve
Loren, TRS’s outside counsel.
50. Ultimately, the proposal to consolidate the state pension boards was not
advanced in the Spring 2003 legislative session. According to Levine, Levine told Loren that
Kelly and Rezko had assured him that the administration was going to leave TRS alone.
According to Levine, around that time, Levine and Rezko agreed that there would be times
that Rezko or ROD BLAGOJEVICH needed to repay political contributors by helping those
people get investments from TRS. According to Loren, Levine told Loren that in exchange
27
for Rezko and Kelly’s support on the pension issue, Levine had agreed with Rezko and Kelly
that from time to time Rezko and Kelly would be allowed to direct the payment of placement
fees in TRS transactions. Loren understood this to mean that Rezko and Kelly would use
these placement fees as an incentive or reward to those who contributed to ROD
BLAGOJEVICH. Loren further understood that Rezko and Kelly would be able to steer free
money to the people whom they selected, and those people would get money without
providing any services in relation to TRS transactions.
51. According to Levine, there were occasions when Rezko or Kelly provided
names of funds or individuals to Levine. According to Levine, Levine brought those funds
or individuals to the attention of TRS staff and otherwise tried to help those funds or
individuals obtain TRS business. There were times, however, where Levine was unable to
arrange for TRS to invest in an entity suggested by Rezko or Kelly because the
recommendations did not meet the basic TRS investment criteria (e.g., TRS did not invest
in hedge funds at that time, so if Rezko or Kelly recommended a hedge fund, Levine could
not help that entity).
4. BLAGOJEVICH’s knowledge of the Attempted Extortion of Capri
Capital
52. As described in more detail in the following paragraphs, when an attempt by
Rezko, Levine, and others to extort a company doing business with the State of Illinois by
withholding $220 million in State of Illinois funds until the company made a substantial
campaign contribution to ROD BLAGOJEVICH failed, Rezko checked with ROD
According t 14 o Rezko, he recalls agreeing that Rosenberg would have to make a
campaign contribution to ROD BLAGOJEVICH, but is not sure whether a finder’s fee was
discussed.
28
BLAGOJEVICH before Rezko and others agreed that the company would not again receive
State of Illinois funds after it received the $220 million.
53. Capri Capital (“Capri”) was a real estate investment management firm that had
a long-standing relationship with TRS. In February 2004, Capri was expected to receive
$220 million from TRS to manage. Levine originally acted to stall the allocation in February
2004. Eventually, however, the $220 million allocation was going to proceed until Levine,
Rezko, Kelly, and Cellini conspired to extort Capri and Thomas Rosenberg, one of Capri’s
owners. In short, according to Levine, Levine and Rezko agreed that if Rosenberg wanted
to get the $220 million for Capri, Rosenberg was either going to have to make a $1.5 million
donation to ROD BLAGOJEVICH or pay Levine and Rezko a 1% fee.14 According to
Levine, and as confirmed on recorded conversations, both Kelly and Cellini joined the
attempted extortion and played roles in the attempted extortion. As part of the extortion,
Cellini informed Rosenberg that, in essence, Capri had not gotten its $220 million allocation
because Rosenberg and Capri had not donated to ROD BLAGOJEVICH. Rosenberg,
realizing he was being extorted, threatened to expose the extortion to law enforcement.
Thereafter, Levine, Rezko, Kelly, and Cellini backed off the extortionate threats, but agreed
that after the $220 million allocation, neither Capri nor Rosenberg would get any further
State of Illinois business.
29
54. Numerous conversations related to the extortion were captured on the courtauthorized
wiretaps on Levine’s phones. In particular, on a recorded May 1, 2004
conversation, Levine spoke with Dr. Robert Weinstein, a co-schemer in Levine’s criminal
activities. During the call, Levine told Weinstein about his more recent meeting with Rezko
and Kelly. Levine described how Rezko said that Rosenberg would “have a choice. . . . you
can raise a million and a half dollars for the fund raiser in June
. . . or you can work out somethin’ with .” During other
conversations, Levine and Cellini discussed Rosenberg’s reaction to learning that Rezko and
Kelly were stalling Capri’s $220 million allocation and that if Rosenberg did not want to deal
with Rezko in terms of paying money, then Rosenberg could walk away from the $220
million allocation.
55. On May 8, 2004, Cellini and Levine had a recorded phone conversation after
Rosenberg threatened to inform law enforcement about the attempted extortion of Capri for
a campaign contribution for ROD BLAGOJEVICH. During the conversation, Cellini told
Levine about how Rezko and Kelly had been “essentially hammerin’ people for contracts uh,
with with contracts for fundraising political contributions in order to win State of Illinois contracts],” how Cellini was a
“nervous wreck” about it, and how Cellini and Levine needed to talk with Rezko and Kelly
about Rosenberg’s threats.
56. According to Levine, and as confirmed on the recorded conversations, several
30
days later, Levine, Kelly, Rezko, and Cellini met (Cellini participated by phone). After
discussing Rosenberg’s threats, Rezko suggested that Rosenberg be given his $220 million
allocation but never get further business from the State of Illinois. Kelly, however, still
wanted to withhold the $220 million allocation.
57. On May 12, 2004, in a recorded conversation, Levine and Cellini discussed
their meeting with Rezko and Kelly. In addition, Levine told Cellini about another
conversation he had with Rezko. During Levine’s conversation with Rezko, Rezko again
advised Levine to solve the Rosenberg problem “with your head, not your heart.” Levine
noted to Cellini that “he other guy says smack’em over the head,” which Levine testified
was a reference to Kelly’s view that Rosenberg should be given a hard time in relation to the
$220 million allocation. Cellini responded by saying, “I think what their position is, or at
least Tony’s is, okay so he may have to get something here, but he ain’t gonna get anything
more .”
58. Later in the May 12, 2004 recorded call, Cellini asked Levine “did he tell you,
too, that the big guy said Rosenberg means nothing to him.” Levine testified that he
understood Cellini to be stating that Cellini had been told by Rezko that ROD
BLAGOJEVICH (the “big guy”) was aware of the extortion, that Rosenberg meant nothing
to ROD BLAGOJEVICH, and that Cellini was asking if Levine was told something similar
about ROD BLAGOJEVICH. Levine responded to Cellini in the affirmative. Levine further
testified that he, too, had a conversation with Rezko and Kelly regarding ROD
Rezko has proffered that it was Kelly 15 who informed ROD BLAGOJEVICH about
the circumstances of Rosenberg’s Capri allocation. As described below, numerous phone
conversations have been intercepted in which ROD BLAGOJEVICH engages in ongoing
criminal conduct. During certain of these conversations, including those of a clear criminal
nature, ROD BLAGOJEVICH denies his involvement in illegal activity, including
involvement in illegal activity with Rezko or in relation to the Capri transaction.
16 Individual A is a subject, but not a target, of the criminal investigation concerning
activities at the Illinois Health Facilities Planning Board. Individual A has no criminal
history and is not currently providing information to the government as part of any type of
cooperation agreement. Individual A’s attorney has indicated that Individual A hopes that
the government will provide Individual A with immunity in exchange for Individual A’s
truthful information. Individual A has declined the government’s requests to record inperson
meetings or telephone conversations with the subjects of the investigation.
31
BLAGOJEVICH’s knowledge of the extortion. Levine testified that Rezko stated that Rezko
had informed ROD BLAGOJEVICH of the extortion situation and that ROD
BLAGOJEVICH agreed that the $220 million allocation was the last business Rosenberg
would get from the State of Illinois.15
B. Evidence Concerning Corrupt Conduct by ROD BLAGOJEVICH and
JOHN HARRIS in and After October 2008
1. Evidence Concerning Efforts to Obtain Campaign Contributions
In Exchange for Official Acts
a. Information Obtained From Individual A
59. Since October 2008, the FBI has conducted multiple interviews with Individual
A, who is an associate of ROD BLAGOJEVICH and has assisted in campaign fundraising
for ROD BLAGOJEVICH.16 Individual A has advised agents that he/she has been present
for and participated in multiple conversations with ROD BLAGOJEVICH in recent months
regarding campaign fundraising. According to Individual A, ROD BLAGOJEVICH and
32
Fundrasier A, who is the chairman of Friends of Blagojevich, are making a strong push to
raise campaign funds before a new state ethics law goes into effect on January 1, 2009, that
will prohibit any individual or entity with existing state contracts of more than $50,000 from
contributing to entities like Friends of Blagojevich.
60. In response to questions posed by agents, Individual A has described efforts
by ROD BLAGOJEVICH and Fundrasier A to obtain campaign contributions from state
contractors by the end of the year. Specifically, Individual A advised that ROD
BLAGOJEVICH is seeking a total of approximately $2.5 million in campaign contributions
by the end of the year, principally from or through individuals identified on a list maintained
by Friends of Blagojevich. The FBI has obtained a copy of that list, which identifies
individuals and entities targeted for campaign contributions, as well as amounts sought from
those individuals and entities. A comparison of the names and entities on that list with
information available from public sources and FBI investigative files reflects that numerous
of the individuals and entities on that list have state contracts or have received public benefits
conferred by ROD BLAGOJEVICH, such as appointments to positions in state government.
61. In response to questions, Individual A has advised agents of incidents involving
efforts by ROD BLAGOJEVICH to obtain campaign contributions in connection with his
official actions as Governor. Three such incidents are related below.
62. On October 6, 2008, Individual A and Individual B attended a meeting with
ROD BLAGOJEVICH and JOHN HARRIS. Individual B sought the meeting with ROD
33
BLAGOJEVICH to discuss help ROD BLAGOJEVICH could provide to Individual B’s
business venture. After Individual B left the meeting, ROD BLAGOJEVICH informed
Individual A that ROD BLAGOJEVICH liked Individual B and/or Individual B’s project and
wanted Individual A to approach Individual B about raising $100,000 for Friends of
Blagojevich by the end of the year. According to Individual A, he later learned that ROD
BLAGOJEVICH reached out directly to Individual B to ask Individual B to hold a fund
raiser for ROD BLAGOJEVICH before the end of the year.
63. According to Individual A, after Individual B left the meeting on October 6,
2008, ROD BLAGOJEVICH told Individual A that he was going to make an upcoming
announcement concerning a $1.8 billion project involving the Tollway Authority. ROD
BLAGOJEVICH told Individual A that Lobbyist 1 was going to approach Highway
Contractor 1 to ask for $500,000 for Friends of Blagojevich. ROD BLAGOJEVICH told
Individual A that, “I could have made a larger announcement but wanted to see how they
perform by the end of the year. If they don’t perform, fuck ‘em.” According to Individual
A, he/she believed that ROD BLAGOJEVICH was telling Individual A that ROD
BLAGOJEVICH expected Highway Contractor 1 to raise $500,000 in contributions to
Friends of Blagojevich and that ROD BLAGOJEVICH is willing to commit additional state
money to the Tollway project but is waiting to see how much money Highway Contractor 1
raises for Friends of Blagojevich.
34
64. A search of public information available on the internet reflects that Highway
Contractor 1 is an officer of a company that is a large supplier of concrete in the state of
Illinois. The search also reflected that Highway Contractor 1 is active in one of the largest
trade associations, ACPA (American Concrete Pavement Association), in the road building
industry in the state of Illinois. In addition, I am aware from public sources that on October
15, 2008, ROD BLAGOJEVICH announced a plan to have new express lanes built on the
Illinois Tollway in the next few years at a cost of $1.8 billion.
65. According to Individual A, on October 8, 2008, during a discussion of
fundraising from various individuals and entities, the discussion turned to Children’s
Memorial Hospital, and ROD BLAGOJEVICH told Individual A words to the effect of “I’m
going to do $8 million for them. I want to get for 50.” Individual A
understood this to be a reference to a desire to obtain a $50,000 campaign contribution from
Hospital Executive 1, the Chief Executive Officer of Children’s Memorial Hospital.
Individual A said that he/she understood ROD BLAGOJEVICH’s reference to $8 million to
relate to his recent commitment to obtain for Children’s Memorial Hospital $8 million in
state funds through some type of pediatric care reimbursement. As described in further detail
below, intercepted phone conversations between ROD BLAGOJEVICH and others indicate
that ROD BLAGOJEVICH is contemplating rescinding his commitment of state funds to
benefit Children’s Memorial Hospital because Hospital Executive 1 has not made a recent
campaign contribution to ROD BLAGOJEVICH.
Voice identifications of the individuals on the oral in 17 tercepts or, as described in
detail below, on the phones, are preliminary. In most cases, voice identifications are based
on names used during the intercepted conversations, as well as voice recognition that has
been accomplished to date by FBI monitoring personnel and/or telephone subscriber
information. In addition, quoted sections of intercepts or phone calls are based on
preliminary analysis of the intercepts or calls and are not final transcripts. For purposes of
clarification, I have added interpretations of certain sections of the phone calls within the
quoted language by inserting the clarification in parentheses.
35
66. According to Individual A, during this same meeting, ROD BLAGOJEVICH
began discussing recent media reports about the possibility that Antoin “Tony” Rezko was
cooperating with the government. According to Individual A, at one point in the
conversation, ROD BLAGOJEVICH said words to the effect that he was not concerned
about Rezko’s cooperation because he was not involved in illegal activity with Rezko.
According to the Individual A, Fundraiser A then said words to the effect of, “unless
prospectively somebody gets you on a wire.”
67. On October 22, 2008, the FBI intercepted pursuant to a court order portions of
a meeting held in a conference room at the Friends of Blagojevich office. The meeting was
attended by ROD BLAGOJEVICH, Fundraiser A, and two lobbyists actively involved in
fundraising for Friends of Blagojevich. FBI Special Agents have listened to a recording of
the meeting. The voices on the recording are very low and at times are difficult to hear.
However, based on a review of the recording, FBI Special Agents were able to determine the
following:17
(a) At approximately 10:15 a.m., and consistent with phone records, ROD
36
BLAGOJEVICH called Highway Contractor 1. Only ROD BLAGOJEVICH’s portion of
the phone call can be heard. The call started with ROD BLAGOJEVICH saying hello to
“Mr. ” and noting that ROD BLAGOJEVICH was “excited” about
the “Tollway” (believed to be a reference to ROD BLAGOJEVICH’s recent announcement
of $1.8 billion in Illinois Tollway funding that will benefit Highway Contractor 1 and the
trade association with which he is affiliated). ROD BLAGOJEVICH talked about speaking
with “,” (Individual C is a former member of the U.S. House of
Representatives who is believed to be attempting to assist ROD BLAGOJEVICH in passing
a capital bill worth billions of dollars that would benefit Highway Contractor 1 and the trade
association with which he is affiliated) and began, in the context of asking Highway
Contractor 1 to do fund raising, to discuss fund raising rule changes that will take effect on
January 1, 2009. The conversation ended with ROD BLAGOJEVICH stating to Highway
Contractor 1: “Call me if you need anything.”
2. Information Obtained from Intercepted Phone Conversations
Concerning Efforts to Obtain Campaign Contributions In
Exchange for Official Acts
68. Certain of the intercepted telephone communications relate to ROD
BLAGOJEVICH’s efforts to illegally obtain campaign contributions in exchange for official
action, in violation of his duty of honest services to the State and people of Illinois. The
interceptions to date have corroborated the testimony of witnesses in the Rezko Trial who
testified that ROD BLAGOJEVICH was involved in obtaining campaign contributions in
37
exchange for official action and directly corroborate the information provided by Individual
A that ROD BLAGOJEVICH is engaged in an effort to obtain as many contributions as
possible from persons doing business with the State of Illinois before the end of the year.
Among these communications are the following:
a. On the morning of November 12, 2008, ROD BLAGOJEVICH talked
to Fundraiser A. During the course of the conversation, which principally concerned the
status of campaign fundraising efforts, Fundraiser A told ROD BLAGOJEVICH that
Fundraiser A had never heard from Hospital Executive 1. Fundraiser A said, “I’ve left three
messages there so I’m gonna quit calling. I feel stupid now.” ROD BLAGOJEVICH asked
when the most recent call was, and Fundraiser A replied that it was two days ago. ROD
BLAGOJEVICH said that if “they don’t get back to you, then, then, last resort is, I’ll call.”
b. Later on November 12, 2008, at approximately 2:14 p.m., ROD
BLAGOJEVICH spoke with Deputy Governor A, a Deputy Governor of the State of Illinois.
The following exchange began the conversation:
ROD BLAGOJEVICH: The pediatric doctors – the reimbursement. Has
that gone out yet, or is that still on hold?”
DEPUTY GOVERNOR A: The rate increase?
ROD BLAGOJEVICH: Yeah.
DEPUTY GOVERNOR A: It’s January 1.
ROD BLAGOJEVICH: And we have total |
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