Ticket Replay: Obama and Blagojevich: No strangers in a dark, ruthless world

This holiday week we are from time to time republishing some of our favorite Ticket items from this past political season. This one on the inbred political relationships in Illinois Democratic operations, originally appeared in this space on Dec. 11, 2008.

(UPDATE: Today, Dec. 30, 2008, Gov. Blagojevich moved in a bold political foray to nominate former Illinois Attorney General Roland Burris to the vacant Obama Senate seat. Before the announcement Senate leaders announced they would not accept any Blagojevich pick. But the selection of a 71-year-old politicallly-experienced African American could create problems for Majority Leader Harry Reid. More breaking details here. Now, the Replay:

First of all, we need to crush a rumor floating around.

Illinois' legally-embattled Gov. Rod Blagojevich did not offer the vacant Barack Obama Senate seat to the FBI agent handcuffing him.

However, given the compelling courtroom nature of wiretap audios, especially ones as brazenly specific as those the feds allege they have of Blagojevich discussing the sale of his nomination to that seat, Obama recognized the inevitable Wednesday and called on his state's governor to resign. (Notice, he did so through a spokesman's statement, providing no scandal-dominated Obama video for endless looping on news channels.)

This morning, Obama would really prefer to be back talking about forming his new White House administration instead of about disassembling one of a state political ally. He and Blagojevich are no strangers.

As a state senator, Obama and the governor had a mutual fundraiser, Antoin "Tony" Rezko, now convicted on federal charges. Obama advised the governor's first campaign in 2002, endorsed him then and in 2006 and campaigned for him two years ago. That's what you do in Illinois politics, despite the persistent rumors of gubernatorial shadiness for years.

Fifty Democratic senators in Washington also signed a letter Wednesday calling for the governor's resignation and raising the threat of not seating anyone he might name under the current cloud.

Fact is, the Harry Reid-led Democrats did this to create some political public relations distance from an embarrassing corruption case, not because they think that a Chicago politician would heed their urging any more than he would advice from the Arizona Diamondbacks.

Politics can be tough and hardball anywhere, as Alaska Gov. Sarah Palin knows from her successful struggles against a corrupt Republican establishment there. But none are tougher than ...

...Illinois politics in general and Chicago's Cook County in particular.

There, the Democratic machine with its family factions based in specific surviving ethnic neighborhoods with long-running alliances across town has been entrenched for generations. Every so often it experiences some volcanic corruption case, almost always driven by federal, not local, investigators.

These erupt, produce a convict or two (at least three of Illinois' governors have gone to prison in the last generation), and then subside until the next one. All this carefully chronicled by competitive local news outlets but largely ignored by the national media, especially in the last two years.

This is the local environment that produced Rahm Emanuel, the new White House chief of staff; William Daley, an Obama economic advisor, former Clinton Commerce secretary, son to the late mayor and brother to the current mayor; and Obama, whose national mantra has been change and reform but whose state career was not characterized by any abnormal wave-making.

Here's how things are connected in Chicago politics: Blagojevich is a 51-year-old graduate of Pepperdine law and an ex-county prosecutor. The son of a steelworker, he worked his way through college as a shoe-shiner, pizza deliveryman and pipeline camp dishwasher in Alaska.

He married the former Patricia Mell, whose father, Richard, is a powerful city alderman and helped elect his son-in-law to the state Assembly.

When Rep. Dan Rostenkowski, longtime chairman of the House Ways & Means Committee, pleaded guilty to mail fraud, a Republican won that 5th District seat -- for two years. He was then defeated by none other than Blagojevich, again with Mell's help.

And when Blagojevich stepped up to governor in 2002, the district was inherited by -- tah dah -- Emanuel, a Daley machine groupie in the 1980s who'd become finance chairman for Bill Clinton's 1992 campaign.

So it's very hard for longtime observers of Illinois' inbred politics to believe that the staffs of a governor and retiring senator of the same party with a chief of staff also close to the governor would have no contact or discussion about the successor.

U.S. Atty. Patrick Fitzgerald specifically said there is no evidence involving Obama in the Blagojevich seat-sale and the ex-senator has said he had no direct contact with the governor over his successor.

Although, also according to Fitzgerald, the governor was taped complaining that the Obama camp was offering only appreciation for the nomination of a favorite, not money.

Who expressed that appreciation on Obama's behalf?

That issue may arise today during an Obama news conference in his Chicago transition headquarters to announce at least three new Cabinet members -- Tom Daschle at Health and Human Services, Berkeley's Steven Chu as Energy secretary and Lisa Jackson of New Jersey as Environmental Protection Agency administrator, as The Ticket reported here earlier.

Meanwhile, Illinois legislators and Blagojevich's own lieutenant governor began preparing for possible impeachment proceedings against the governor; they have their own futures to protect. On bail, Blagojveich himself slipped and slid through snow to work in his Chicago offices as usual, realizing that a resignation may become his only bargaining chip as proceedings unfold in the months to come.

Blagojevich is the type of confrontational Chicago politician who several years ago shut down the landfill of his own father-in-law as part of one power play. It's called "clout," a Chicago kind of word.

So the likelihood of a North Sider like Blagojevich heeding the resignation call of some insignificant South Sider, even a longtime friend who works out daily and is about to become the 44th president of the United States, would make the foundation of a hilarious sketch over at the Second City comedy club on North Wells.

--Andrew Malcolm

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Photo credits: Associated Press (Obama and Blagojevich-top) and (Blagojevich, Rahm Emanuel and unidentified man-bottom).

Comments

[Writing from Alaska]

Much of your information is behind the news coverage and you are making assumptions based on incorrect information. And, by the way, we have yet to see whether Gov. Palin's struggles against a corrupt Republican establishment were successful, or if she just has brought us a new brand of corruption. The jury is still out, so to speak.

(Thanks for recognizing that what we do is talk about what's behind the news. Happy New Year.)

[John Ryskamp]

If you want to know the connection between Obama and the Blago complaint, it is provided below in a letter I wrote to Patrick Fitzgerald on December 9. Count one of the complaint is the count that matters, not the senator stuff (count two). Count one is the pay to play stuff. It is a message to Barack Obama: you're next. Here's why:

Dear Mr. Fitzgerald:

Today you told the press, in connection with the Blagojevich arrest, “We were in the middle of a corruption crime spree and we wanted to stop it.” And yet most of the complaint is based on evidence you have had for a number of years. In other words, if the matter concerning the appointment of a Senator were removed, you would still have had enough evidence to indict Blagojevich. In fact, the complaint shows that you have enough evidence for a number of years.

This means that you and no one else, allowed Blagojevich to continue on a “crime spree” long after you had enough evidence to arrest him. Indeed, he would never have gotten to the point at which he was about to sell a Senate seat, if you had arrested him earlier. Why did you not do so? Why did you allow him to commit more crimes?

And now you are about to show the same negligence again. You are apparently about to make the same mistake with regard to Barack Obama. As you probably know, Evelyn Pringle has published detailed online articles concerning Obama’s participation in “Operation Board Games” crimes. Below, I reproduce paragraphs from your own Blagojevich complaint, and after them, a section from the Pringle Obama articles dealing with precisely the same facts as the complaint.

Her articles show in detail that Obama has committed the same 18 USC 1346 crimes you discuss in your Blagojevich complaint. And yet he has not yet been arrested. Why not?

Just as you allowed Blagojevich to get to the point where he was about to sell a United States Senate seat, so you allowed Obama to be elected President, and apparently you are willing to let him continue his own crime spree by actually becoming President.

It was irresponsible for you to continue to allow Blagojevich to continue in office when you had enough evidence to arrest him, and it is irresponsible of you now to allow Obama to continue in office and become President, when you have enough evidence to arrest him.

Arrest Obama now. It is irresponsible of you to wait any longer.

Sincerely yours,

John Ryskamp

I. FROM THE BLAGOJEVICH COMPLAINT

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 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.

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.

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, 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."

II. FROM EVELYN PRINGLE’S "CURTAIN TIME" ONLINE ARTICLES

Tony Rezko is a private citizen. Therefore, the evidence presented in the trial focused on his influence over officials in getting members appointed to the Boards. Prosecutors did not discuss how the legislation got passed that enabled the Planning Board to be set up in a way that allowed for the appointment of members to rig the votes to begin with.

That part of the scheme will likely be detailed in future indictments, probably starting with Blagojevich. Blagojevich signed the Illinois Health Facilities Planning Act with an effective date of June 27, 2003. However, before he could sign the act, a bill had to be passed by the Illinois House and Senate. As discussed fully in Curtain Time Part II, Obama was the inside guy in the senate who pushed through the legislation that resulted in the Act.

Obama was appointed chairman of the Senate Health and Human Services Committee. The minute the bill was introduced, it was referred to his committee for review. The sponsors of the bill also served on this committee with Obama. Within a month, Chairman Obama sent word to the full senate that the legislation should be passed.

On May 31, 2003, Senate Bill 1332 passed and specified that the "Board shall be appointed by the Governor, with the advice and consent of the Senate." The legislation reduced the number of members from 15 to 9, paving the way for the appointment of a five-bloc majority to rig the votes.

The corrupt members appointed included three doctors who contributed to Obama. Michel Malek gave Obama $10,000 on June 30, 2003 and donated $25,000 to Blagojevich on July 25, 2003. Malek also gave Obama another $500 in September 2003.

Fortunee Massuda donated $25,000 to Blagojevich on July 25, 2003, and gave a total of $2,000 to Obama on different dates. After he was appointed, Dr Imad Almanaseer contributed a total of $3,000 to Obama. Almanaseer did not give money to Blagojevich.

When the first pay-to-play scheme was put in play, and the application for approval of a new hospital was submitted, the Department of Human Services, along with four other Illinois agencies, sent recommendations that the project should be approved even though experts said the hospital was not needed.

During the trial, Rezko’s attorney presented an email exchange to the jury that hinted at Obama’s role in setting up the scheme. The exchange showed that Obama and seven other top Illinois politicians consulted on the legislation passed in 2003 and were involved in recommending the members for the board.

Matthew Pickering wrote the memo to Blagojevich’s general counsel, Susan Lichtenstein, on behalf of David Wilhelm, a former chairman of the Democratic National Committee, who headed Blagojevich’s 2002 campaign for governor.

Pickering said he and Wilhelm had "worked closely" over six months with state legislators. The memo recommended the appointees listed above and stated, "our attached recommendations reflect that involvement" with the political leaders.

The persons appointed to rig the votes, including those who contributed to Blagojevich and Obama, are cooperating in exchange for immunity or lighter prison sentences.

Feds shut down pay-to-play schemes

Only two pay-to-play schemes succeeded before the Feds swooped in and shut them all down. Blagojevich did not receive the $1.5 million from the Planning Board deal because the hospital was never built.

But Obama received $20,000 from the first kickback paid in the pension fund scheme and the straw donors used to funnel the $10,000 payments, Elie Maloof and Joseph Aramanda, also made $1,000 contributions to Obama’s failed run for Congress in 2000.

In addition, Aramanda gave $500 to Obama’s senate campaign on June 30, 2003. In the summer of 2005, Aramanda’s son landed an intern position in Obama’s Washington office.

Obama also received contributions for his senate campaign from the two persons appointed to rig the vote on the pension fund board. On June 30, 2003, Jack Carriglio contributed $1,000, and the other appointee, Anthony Abboud, donated $500 on June 30, 2003, $250 on March 5, 2004, and $1,000 on June 25, 2004.

The person chosen to funnel the kickback in a future scheme, Michael Winter, donated $3,000 to Obama on June 30, 2003.

All these people are also cooperating in exchange for immunity or lesser prison sentences but prosecutors pointed out during closing arguments that people who entered into agreements with the government are required to tell the truth or all deals are off.