Blagojevich Wiretap Transcripts and FBI Charges in Plain English

8/14/2019 Blagojevich Wiretap Transcripts and FBI Charges in Plain English

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Page 1 of94PEG_Blago Illinois GOV Criminal Charges 020510

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* ROD R. BLAGOJEVICH, and JOHN HARRIS/Criminal Complaint* Action

COUNT 1: Starting from 2002 to the present, Blago and Harris schemed to defraud the

State and people of Illinois. They did this through mail and wire fraud.


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COUNT 2: As agents of the state, they received more than $10,000 for these services in

federal benefits. In return they:

Demanded the firing of specific Chicago Tribune editorial board members responsible

for negative articles about them. In exchange, they offered business deals with the

state. To be exact, they offered millions of dollars in state financial assistance to the

Tribune regarding the Wrigley Field baseball stadium.

Im a Special Agent for the FBI, and base this complaint on facts found in the attached

sworn document.


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Im referred to in this complaint as Affiant.

Im a Special Agent with the FBI assigned to Chicago, Illinois.

Ive been an FBI agent for over 22 years.

Im assigned to the West Resident Agency.

I investigate white collar crimes, and have been for most of my career.


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Ive been a part of this investigation and have learned details of it through interviews and

documents submitted by other FBI agents, the IRS, the US Postal Inspection Service

(USPIS) and the US Department of Labors Office of the Inspector General (DOLIG).

Ive also spoken to witnesses, and reviewed:

1. Pen register information [device that records numbers dialed]2. Phone line traces3. Phone records4. Information from telephone wire taps

Im also familiar with:

1. Conversations that took place in the offices of Friends of Blagojevich (FOB)2. Testimony from the trial of Antoin Rezko

This affidavit supports the attached criminal complaint and arrest warrants charging

Blago and Harris with:


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Conspiracy to defraud the state and people of Illinois of honest services. They did this

through mail and wire fraud.

As agents of the state, they received more than $10,000 for these services in federal

benefits. In return they:

Demanded that the Chicago Tribune fire editorial board members responsible for

negative articles about Blago. In exchange, they offered business deals with the

state. To be exact, they offered millions of dollars in state financial assistance to the

Tribune regarding the Wrigley Field baseball stadium.


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Blago has been the Governor of Illinois since 2002.

Harris is Blagos chief of staff.

As public servants, they each owe honesty to the State and people of Illinois.

The State Constitution demands public funds, property and credit to be used for public

purposes only.


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State law forbids Blago and Harris from:

1) Using their authority to gain personally2) Asking for, or accepting, unauthorized fees or rewards

State law forbids Blago from accepting unauthorized gifts or advantages meant to

influence him in office.

FOB is a private political organization setup on behalf of Blago to support his campaign

efforts.


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The Illinois Finance Authority (IFA) was created to police the public interest in the state.

The members are appointed and removed by the Governor.

The IFA receives government funds and can be audited by the state Auditor General.

The Governor is the elected representative of the people when it comes to the IFA.

The IFA received $493,750 from the state in 2008.

The state received over $10,000 in federal benefits in 2008.

I havent included everything I know, since I only need to show enough facts to establish

that its probably true in order to file the complaint and get arrest warrants.


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Since 2003, the government has been looking into claims of illegal activity in the state of

Illinois administration under Blago. Evidence shows Blago conspired with many people as

early as 2002.

OCTOBER 2008: Blago and Harris devised a scheme to use mail and wire communications

to defraud the state. They used the Governors office in a way that Blago and others

could gain personally and financially.

NOVEMBER 2008: Blago and Harris began demanding the Chicago Tribune fire members

of the editorial board who were responsible for negative articles about Blago. They

promised State money in connection with the sale of Wrigley Field. This is how it

happened:


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Blago, and sometimes Harris, tried to get money for Blago, members of his family, and

third parties like FOB, in exchange for appointments to state boards and commissions,

state employment, state contracts and access to state funds.

Blago and Harris threatened to withhold $100 million in state financial assistance

connected with Wrigley Field from the Tribune if they didnt fire certain people.


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Blago and Harris schemed to use Blagos authority when appointing the Senator who

would fill Obamas vacated position. For example, Blago wanted to be appointed as the

Secretary of Health and Human Services under Obama. If a union would use theirinfluence to get the position for him, he would install a Senator that was favorable to

unions.

In another instance, in October 2008, the government found out that Blago wasaccelerating his corrupt fund raising activities to get as much money as possible before

the start of ethics legislation on January 1, 2009. This legislation would block his ability

to raise money from people or companies that did business with the state. The

Government got approval to install bugging devices at the FOB offices and wiretap

Blagos home phone. This is how:


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OCTOBER 21, 2008: Chief Judge James F. Holderman authorized bugging for 30 days in

two rooms of the FOB office: Blagos personal office and conference room.

NOVEMBER 19, 2008: The Judge extended bugging for another 30 days.

OCTOBER 29, 2008: The Judge agreed to tap phones in Blagos home.

NOVEMBER 26, 2008: Chief Judge Matthew F. Kennelly agreed to extend this for another

30 days.

The rest of this document deals with information received prior to bugging and

wiretapping, showing Blago used campaign contributions in exchange for favors in office.

It also covers information gathered from intercepted conversations related to additional

crimes. I have divided it into three topics that show:


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Blago attempted to:

a) Get campaign contributions in exchange for favorsb) Use state funds to pressure the Chicago Tribune to fire board members by denying

financial assistance in connection with Wrigley Field

c) Gain financially through the appointment of a Senate seat

The facts below are enough to show crimes probably happened. I gained this information

when I interviewed Ali Ata.

Ali Ata testified earlier that he discussed his appointment to a state position while a

$25,000 donation check to the FOB was sitting on the table in front of Blago.


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Alta also said Blago once told him he was aware of a large contribution he made to FOB.

He said he understood Ata would be joining his administration and that Ata better get a

job where [Ata] can make some money.

Ata is a businessman who pled guilty to tax fraud. As part of his plea agreement, heagreed to cooperate with the government on several things, including the Blago

investigation. Ata also testified in the 2008 Antoin Rezko trial. Part of his testimony in

that trial overlaps with this one, such as the following:


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Around 2000 or 2001, while Blago was a State Representative, he asked Ata to support

him in his run for Governor. Ata noticed Rezko was close to Blago and very involved in

fundraising for him, including overseeing Atas fundraising for Blago.

In 2002, Ata talked to Rezko several times about possibly getting a high-level government

position if Blago was elected. Rezko told Ata to put a list together of 3 State agencies Ata

was interested in, including the Capital Development Board.

AUGUST 2002: Blago attended a fund raising event held by Ata. Before the event, Ata

promised Rezko he would raise $25,000 there. He did this by personally throwing in

$5,000 of his own money.

Later that year, Rezko asked Ata for more money for Blago. Ata agreed to another

$25,000, and arranged to bring the check to Rezkos office.


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When Ata got to Rezkos office, he gave him the check in an envelope. Rezko then took

Ata into a conference room where the two met with Blago. Rezko placed the envelope

on the table and said Ata had been a good supporter and was willing to take a job in

Blagos administration. Blago was glad and acknowledged this, then asked Rezko if he

had talked to Ata about positions in the administration. Rezko said yes.

After the meeting, Ata completed an application for a state appointment.

In early 2003, Rezko told Ata he was going to be appointed to head the state Capital

Development Board. Later he said the position wasnt available but they would find

something else. After some time, Rezko talked to Ata about a position with the newly

formed IFA.


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JULY 2003: Rezko asked Ata for an additional $50,000 donation to Blagos campaign. Ata

only agreed to $25,000, and gave Rezko a check.

JULY 25, 2003: Ata talked to Blago at a fundraising event at Navy Pier. Blago told him he

was aware of the donation and that he knew he would be joining Blagos administration.

Ata said he considered a position. Blago said it better be one where Ata could make

some money.

Ata was taken aback and said something to Rezko about it. Rezko said he wasnt

surprised because he had heard Blago say similar things before.


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The information here came from the testimony of Joseph Cari in the Rezko trial.

Cari said Blago told him he could use his power to award state contracts in order to

generate campaign contributions. Cari also said he had similar discussions with Rezko

and Chris Kelly [a principal campaign fundraiser for Blago] who specifically offered him state

work in exchange for Caris help with fundraising. The following is a portion of that

testimony:

Cari was a significant fundraiser for Democratic causes, and the national finance chair for

Vice President Al Gores presidential campaign. He had several meetings with Blago,Chris Kelly, Rezko, and Stuart Levine. [Stuart Levine was a Chicago-area businessman and associateof Rezko and Kelly. He served on the Illinois Health Facilities Planning Board and the board of trustees of

the Teachers Retirement System of Illinois.]

OCTOBER 29, 2003: Cari, Blago, Kelly, Levine and others rode on an airplane arranged by

Levine, to a Blago fundraiser in New York hosted by Cari.


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Cari and Blago discussed Caris fundraising background. Blago talked about his interest in

running for President. He told Cari it was easier for Governors to get donations because

they could award contracts, and jobs to contributors. He said Rezko and Kelly were his

point people in raising campaign funds.

Later, Blago told Cari that there were state contracts to give to contributors that helped

him, Rezko, and Kelly. Cari testified Blago ended saying that Rezko and Kelly would

follow up with Cari about it.

At one point during this trip, Levine told Cari there was a plan to have Rezko and Kelly

pick consultants to do business with state boards and then ask those consultants to

contribute to the campaign.


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Cari also testified that he met with Rezko and Levine at Rezkos office. Rezko told him he

had a close relationship with the Blago administration, and a role in picking consultants,law firms, and others to get state business. He said Blagos chief of staff, Lon Monk,

would help setup Rezkos choices for state work. He then told Cari if he would raise

money for Blago, the administration would be financially helpful to Caris business

interests.

MARCH 5, 2004: Cari met Kelly at a restaurant. Kelly said he was following up on Caris

earlier conversation with Blago, Rezko, and Levine, and needed his help raising money on

a national level for Blago. Cari declined. Kelly pushed Cari by saying it would be good for

Caris business interests; that he could have whatever he wanted. Cari understood this to

mean he would have any state work he wanted.


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Cari testified he was involved in an extortion attempt of JER, a real estate investment

firm. JER was trying to get an investment from the Teachers Retirement System (TRS).

The corruption involving TRS and Levine is detailed below.

Based on talks with Blago, Rezko, Kelly and Levine, about the plan to give consultants

state work and then asked for donations, Cari believed JER needed a consultant.

Cari told employees of JER they should hire a consultant. He said in Illinois the Governorand his associates pick the consultants for specific deals. Cari also said if they didnt hire

the consultant then JER would not get the money it was asking from the state. In the

end, JER exposed the extortion attempt and did get money from the state.


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DECEMBER 2003: FBI started to investigate rumors that Levine was soliciting bribes in

exchange for board action. At the time, Levine was a businessman serving on two state

boards: board of trustees of TRS and the Illinois Health Facilities Planning Board(Planning Board). As part of the investigation, the government began tapping several

phones used by Levine.

MAY 4, 2005: Levine was indicted on 28 counts of mail and wire fraud, extortion, bribery,

and money laundering (Grady case).

AUGUST 3, 2005: Levine was indicted on 13 counts of mail and wire fraud, bribery, and

attempted extortion in another case (St. Eve case).

OCTOBER 27, 2006: Levin pled guilty to several counts in Grady as part of a plea

agreement. That agreement dismissed all other charges.


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The government asked Levine about a lot of things, including what he knew about the

Blago fundraising corruption. Levine also testified at the Rezko trial. Parts of his

testimony in that trial relate here, so the remainder of this section refers to thattestimony unless noted.


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Levine testified that in October 2003 he took a plane ride with Blago and Kelly. Levine

thanked Blago for reappointing him to the Planning Board. Blago said he should only talk

to Kelly or Rezko about the Planning Board, but you stick with us and you will do very

well for yourself. Blago said this in front of Kelly. According to Levine, he understoodthis to mean that Blago did not want him to speak to him directly about the boards.

Levine also understood it to mean he could make a lot of money working with the Blago

administration.

Mercy Hospital sought permission from the Planning Board to build a hospital in Illinois.

Rezko gave permission after he was promised a substantial Blago campaign contribution.

Rezko later told the Planning Board that he did this because Blago wanted them toreceive the permit.

Levines crimes include the abuse of his position on the Planning Board. He benefitted, as

well as FOB. All 9 members of the Planning Board were appointed by the Governor.

State law requires anyone constructing medical facilities to obtain a permit called a

Certificate of Need (CON) from the Planning Board.


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Two other Planning Board members, Thomas Beck and Imad Almanaseer, also testified at

the Rezko trial.

Beck said he was reappointed by Rezko, who told him which CON permits to approve.

Beck had to communicate Rezkos preferences to the rest of the Board.

Beck understood that Rezko spoke on behalf of Blago regarding CONs.

Almanaseer said Beck told him that Rezko wanted Almanaseer to vote a certain way, so

to follow Levines lead.

Almanaseer said before Planning Board meetings Beck would give him notecards telling

him how to vote. Beck confirmed this in his testimony.


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Levine created a plan to enrich himself and FOB. Mercy Hospital needed a CON for a new

hospital. Levine knew the contractor.

NOVEMBER 2003: Levine checked with Rezko to see if Rezko wanted Mercy to get a CON.

Rezko said no.

Levine asked if the contractor paid a bribe and contributed to Blagos campaign, would

that change his mind?

Rezko agreed it would.


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Attorney Steven Loren backed up Levines story in his testimony in the Rezko trial and to

the grand jury. Levine relayed the conversation to him in November 2003.

After that event, and confirmed by Levine, Beck, and Almanaseer, and in recorded

conversations, Rezko reversed his decision and approved the CON for Mercy Hospital.

Mercy received its CON through an irregular vote at the public Planning Board meeting.

This brought publicity to the Board and its disbanding.

Almanaseer later saw Rezko at a fundraiser. Almanaseer was still embarrassed about

the result of the meeting and Rezkos role in it.


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Almanaseer asked Rezko why he changed his mind and voted for the Mercy CON. Rezko

said, The Governor wanted it to pass.

Levine was also a member of the TRS board of trustees. TRS is an Illinois public school

system pension plan. TRS manages over $30 billion in assets for the schools. The TRS

board of trustees votes on how to invest the funds.

Levine was appointed to the TRS Board in 2000.

William Cellini owned part of a real estate firm that did a lot of business with TRS.

By the summer of 2001, Levine effectively controlled the TRS board and got them to vote

with Cellini and Levine.


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At the Rezko trial Levine said he and Cellini were both powerful, long-standing

Republican operatives in Illinois. They believed they had to get in with Blago, since he

was the first Democratic governor there in over 20 years.

Levine also stated that one of the first things Cellini did was raise a lot of money for

Blago.

Kelly Glynn was the Finance Director for FOB from May 2002 until August 2004. Glynn

testified at the Rezko trial and was also interviewed by the government. She explainedthat FOB tracked and credited money brought in through fundraising through the use of a

computer database.


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She talked about one fundraising even in October 2002, held by Cellini. Most of the

guests were members of the Illinois Road and Transportation Builders Association. So

Chris Kelly instructed Glynn to track it as a Roadbuilders event in combination with Rezko

and others.

In the spring of 2003, it looked as though Blagos administration would use legislation toconsolidate TRS with two other State pension boards.


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Levine and Cellini were worried that if the pension boards were consolidated they might

lose their control of TRS. Later, Levine stated that Cellini said he spoke with Rezko and

Kelly, and offered to direct funds to investment firms that donated to Blagos campaign in

exchange for their help in stopping the consolidation.

Rezko and Kelly agreed to this.

Levine understood they would give investment firms TRS money based on their political

contributions to Blago.

Levines version of the story was backed up by a recorded call on April 12, 2004 where he

told someone, You know, I sat down and talked to Cellini a long time ago and I said ifyou can convince those guys [Rezko and Kelly] to let us stay in place We got a real

machinery and if theres an accommodation you know well certainly try to

accommodate but if they just wanna stick things in, you know Im gonna leave, thats no

way to do that.


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Levine claims:

1. Cellini said Rezko and Kelly met with Blago and other state officials aboutconsolidating pension boards.

2. Cellini said Rezko remarked that Blago didnt think he should take Kellys adviceover a senior state official.

3. Cellini said Rezko then asked him to get Levine to put together some talking pointsshowing why the consolidation was a bad decision.

4. Levine got those talking points from Steve Loren, TRS outside counsel.


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The pension consolidation proposal didnt happen during the Spring 2003 legislative

session.

Levine told attorney Loren that Kelly and Rezko assured him the administration would

leave TRS alone. In exchange, Levine agreed to help when occasional donors wanted to

be repaid for their acts. Rezko and Kelly would pay them back by promising investments

from TRS (Levine), and directing the payment of placement fees.

Attorney Loren understood this to mean Rezko and Kelly would use the fees to reward

Blagos political contributors. Loren also understood this to mean that they steered free

money to whomever they chose, without those people doing anything for it.

Levine said once in awhile Rezko and Kelly would give him names to pass them on to the

TRS staff in an attempt to direct business their way. Sometimes he wasnt able to

arrange it because they didnt meet basic TRS criteria. (For example, TRS didnt invest in

hedge funds so if Rezko or Kelly gave him the name of one, he couldnt help.)


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As described below, Rezko, Levine and others withheld $220 million in state funds in anattempt to extort campaign contributions to Blago from a specific company. When the

attempt failed, Rezko checked with Blago before everyone agreed that the company

wouldnt receive states funds again afterwards.

Capri Capital was a real estate investment management firm with a long-standing

relationship with TRS.

FEBRUARY 2004: Capri expected to receive $220 million from TRS to manage. Levine

tried to stall the payment. As the $220 million looked like it would move forward, Levine,

Rezko, Kelly, and Cellini, conspired to extort Capri and Thomas Rosenberg, one of Capris

owners. Levine and Rezko agreed if Rosenberg wanted the money he was either going to

have to make a $1.5 million donation to Blagos campaign, or pay them a 1% fee.


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According to Levine and in recorded conversations both Kelly and Cellini joined the

extortion attempt. Cellini told Rosenberg that Capri had not gotten its money because hedidnt donate to Blagos fund. Rosenberg realized this was extortion and threatened to

turn them in to the police. Afterwards, Levine, Rezko, Kelly and Cellini backed off, but

agree that after giving Capri the money the State of Illinois would no longer give them

any business.

The wire tap on Levines phones revealed several talks about this extortion attempt.

MAY 1, 2004: Levine spoke to Dr. Robert Weinstein, who participated in Levines crimes.

During the call, Levine told Weinstein about a recent meeting with Rezko and Kelly. He

said Rezko said Rosenberg would have a choice: either raise $1.5 million for the June


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campaign fundraiser, or work out a finders fee.

On other calls Levine and Cellini talked about Rosenbergs reaction when he figured out

Rezko and Kelly were stalling his money, and was told he could walk away if he didnt

cooperate.

MAY 8, 2004: Cellini and Levine were recorded after Rosenberg threatened to tell the

police about the extortion. Cellini told Levine, Rezko and Kelly were hammering people

with state contracts in exchange for fundraising contributions. Cellini said he was a

nervous wreck and that they needed to talk to Rezko and Kelly about Rosenbergsthreats.

As confirmed, Levine, Kelly, Rezko, and Cellini met days later and discussed the threats.

Rezko suggested giving him the state money but cut him out of further business. Kelly

wanted to withhold the money.


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MAY 12, 2004: Levine and Cellini talked about their meeting with Rezko and Kelly.

Levine described another conversation he had with Rezko, saying Rezko again asked

Levine to solve the Rosenberg problem with his head, not your heart. Levine told

Cellini that Rezko wanted him to give Rosenberg a hard time. Cellini confirmed he

thought Rezko was okay giving him money this time, but no more business with the state

or with TRS.


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MAY 12, 2004: Cellini talked to Levine.

Cellini: Did he tell you too, that the big guy said Rosenberg means nothing to him?

Levine testified that he understood this to mean Rezko said Blago was aware of the

extortion but Rosenberg meant nothing to Blago.

Levine confirmed he was told the same thing. Rezko said Blago agreed that the $220

million was the last business the state would give to Rosenberg.

Since October 2008, the FBI has conducted interviews with Individual A, an associate of

Blago who helped his fundraising.

In meetings with Blago, Individual A said Fundraiser A, the chairman of Friends of

Blagojevich, made a strong push to raise funds before a new state ethics law was to go


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into effect in January 1, 2009. This law prohibits any individual or entity having state

contracts of more than $50,000 from certain campaign donations.

Individual A described efforts by Blago and Fundraiser A to get campaign contributions

from state contractors by the end of the year. In fact, Individual A claims Blago is seekinga total of $2.5 million from the Friends of Blagojevich list. The FBI got that list, which

gives names and amounts sought. A comparison shows a number of the individuals and

organizations on that list were given state contracts or benefits by Blago, such as

appointments to state government.

Individual A told the FBI about several incidents where Blago tried to get campaign

contributions using his power as Governor. Three are below:


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OCTOBER 6, 2008: Individual A and Individual B went to a meeting with Blago and John

Harris to see if any help could be given to Individual Bs business venture. After B left,

Blago said he liked B and the project, and asked A to approach B about raising $100,000

for FOB by the end of the year. Individual A later learned that Blago also spoke directly

to Individual B about holding a fundraiser.


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According to Individual A, the October meeting went like this:

1. Individual B left the meeting.2. Blago told Individual A he was going to make an announcement about a $1.8billion project with the Tollway Authority.

3. Blago said Lobbyist 1 would approach Highway Contractor 1 to ask for $500K forFriends of Blagojevich.

Blago: I could have made a larger announcement but wanted to see how they perform

by the end of the year. If they dont perform, fuckem.

Individual A understood this to mean that Blago was willing to give more state money to

the Tollway project but first wanted to see how much money Highway Contractor 1

raises for his campaign.

Highway Contractor 1 is an officer of a company that supplies a large amount of concreteto the state. He/she is also an active member of the ACPA (American Concrete Pavement

Association) in the state.

OCTOBER 15, 2008: Blago did in fact announce a plan to have new tollway express lanes

built at the cost of $1.8 billion.


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OCTOBER 8, 2008: A fundraiser meeting took place with various individuals and

organizations. The discussion turned to Childrens Memorial Hospital and Blago indicated

he was going to give them $8 million in state funds through pediatric care reimbursement

because he wanted to get Hospital Executive 1 for $50,000 in donations to his campaign

fund. The recorded conversation described below confirms this, in that Blago comments

he is going to withhold the state funds because Hospital Executive 1 didnt make the

campaign contribution.


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During this same meeting, Individual A said Blago mentioned media reports about Rezko.

The story was that Rezko was cooperating with the government. Blago said he wasnt

concerned because he wasnt involved in any illegal activity with Rezko. Fundraiser A

then said, unless prospectively somebody gets you on a wire [tap].

OCTOBER 22, 2008: The FBI tapped part of a meeting in the FOB office. Blago, Fundraiser

A, and two lobbyists involved in fundraising for FOB were there. FBI agents were able to

determine the following:


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10:15 am: Blago called Highway Contractor 1. Only Blagos portion of the call can be

heard.

Blago said hello to Highway Contractor 1, and that he was excited about the Tollway.

Blago said he spoke with Individual C about fundraising rules taking place on January 1,

2009. (Individual C is a former member of the US House of Representatives believed to

be involved with Blago in trying to pass a capital bill worth billions of dollars that would

benefit Highway Contractor 1 and his trade group.)

Blago asked Highway Contractor 1 about fundraising, then ended the conversation.

Blago: Call me if you need anything.

Certain wire tapped calls related to Blagos attempt to get campaign contributions in

exchange for favors through his office. Those calls back up the Rezko Trial testimonies

that claim Blago was involved in exchanging campaign contributions for government

favors. The calls also support Individual As claim that Blago is engaged in an effort to get

as many contributions as possible from state contractors before the end of the year.

Some of those communications are below:


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NOVEMBER 12, 2008: Blago talked to Fundraiser A concerning fundraiser efforts.

Fundraiser A said he never heard from Hospital Executive 1. He said, Ive left three

messages there so Im gonna quit calling. I feel stupid now. Blago asked when the mostrecent call was, and Fundraiser A said two days ago. Blago said, if they dont get back to

you then, then, last resort is, Ill call.

NOVEMBER 12, 2008: At 2:14 pm, Blago spoke with Deputy Governor A, a Deputy

Governor of Illinois. The conversation follows below:


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NOVEMBER 12, 2008: At 8:26 pm, Fundraiser A called to update Blago about fundraising

efforts.

Blago said to call Lobbyist 1 the next day and ask what to do about the fact that Hospital

Executive 1 is not calling Fundraiser A back, and if Individual A gave instructions not to

call back.

Blago: What do we do with this guy, [Hospital Executive 1]?


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NOVEMBER 13, 2008: At 10:05 a.m., Blago asked Fundraiser A for an update, and about

Highway Contractor 1. Fundraiser A said Lobbyist 1 is still working on it. Fundraiser A

said he was going to meet Lobbyist 2 and someone at Weiss Memorial Hospital.

Blago: Yeah, now be real careful there. I mean the FBI went to see [Lobbyist 2]. You

understand?

Fundraiser A also said he had a call into Individual A and will talk to him/her about

Hospital Executive 1.

During this same phone call, they spoke about trying to get contributions from two other

people before the end of the year. He/she told Blago that Lobbyist 1 wanted to talk to

him about some sensitive matters and timing but that Contributor 1 was good for it.

Blago said he knew Lobbyist 1 was in Springfield with Contributor 1, trying to push a billbefore the end of the year.


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It became clear through several calls that the bill Lobbyist 1 is interested in, is actually in

Blagos office waiting to be signed. Its a law directing money from casinos to the horse

racing industry.

DECEMBER 3, 2008: Lobbyist 1 told Blago he spoke with Contributor 1 and explained

there was concern about signing the bill because of timing, so the donation had to go in

now. Blago commented, Good job.

DECEMBER 4, 2008: Lobbyist 1 called Blago and asked him to call Contributor 1, Just

to say, hello, Im working on the timing of this thing but its gonna get done. Blago said

he would call and say he wanted to set up a fundraiser event where they could meet to

go over dates for signing the bill. Lobbyist 1 assured Blago that Contributor 1 would be

good for the donation because Lobbyist 1 got in his face.


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In the November 13, 2008 call, Blago and Fundraiser A also talked about 60 (believed to

be $60,000) received from a fundraiser held on November 12th

by the president of

Engineering Firm 1. According to government records, this firm received more than $10

million each year from the state from 2004 through 2008. After this phone call Blago

called the president of this firm and said, I want to thank you again for your support and

friendship and we are going to do everything we can to get that capital bill. Blago is

supporting a bill that gives billions to infrastructure and benefits companies like this firm.

NOVEMBER 14, 2008: Fundraiser A told Blago he spoke with Individual A and that Blago

needed to call Hospital Executive 1.

Blago said he would.


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Phone call recordings show Blago and John Harris are corruptly using the powers of

Blagos position to put financial pressure on the owners of the Chicago Tribune

newspaper to fire board members who criticized Blago, and asked for his impeachment.

An owner of the Tribune also owned and tried to sell the Chicago Cubs, and use the

money to pay acquisition debt. The Tribune acquisition loan agreement required an

acceleration of payments if any were late.


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Based on wiretaps, the Tribune Company considered financing through the Illinois

Finance Authority (IFA) for the sale of Wrigley Field. Blago and John Harris used theGovernors office to insist on the firing of certain Tribune board members in exchange for

help through the IFA.

Blago directed Harris to tell the Tribune owner, associate, and financial advisor, that theywere withholding state financial help in the Wrigley sale until certain board members

were fired. Although I dont go into all the calls here, the following summaries show

some of the conversation between Blago, Harris, and the Tribune Financial Advisor.


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NOVEMBER 3, 2008: Blago talked to Deputy Governor A. Blago said he was worried

about being impeached in the Spring and the Tribune would push for it.

Blago asked if he could check to see if the Tribune backed his impeachment. In fact, the

Tribune had recently printed critical articles about him.

NOVEMBER 3, 2008: Blago and Deputy Governor A talked again later about an article the

Tribune printed recommending Michael Madigan as Blagos replacement following

impeachment. During the recorded call, Blagos wife can be heard in the backgroundsaying, to hold up that fucking Cubs shitfuck them.

Blago asked the Deputy Governor what he thought of his wifes idea. The response was

that he agrees with part of it.


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Deputy Governor A said the Tribune Owner will claim he had nothing to do with the

articles, but I would tell him look, if you want to get your Cubs thing done get rid of this

Tribune.

Later, Blagos wife got on the phone and said the Tribune Owner can fire the writers as

the owner. She then told Blago that if the Tribune Owners papers were hurting his

business, he would do something about the board.

Blago then got back on the phone.


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Blago told the Deputy Governor to pull all the articles so John Harris could go to the

Tribune Owner and say, Weve got some decisions to make now.

Blago: Someone should say, get rid of those people.

Blago said he thinks they should then have Harris say, Moving this stuff forward

(believed to be a reference to the IFA helping with the Cubs sale)someones gotta go to

[Tribune Owner], we want to see himits a political fuckin operation in there.

Deputy Governor A agreed and said Harris needs to be sensitive in how he does it.

Blago said its, straight forward. And to say were doing this stuff for you, we believe

this is right for Illinois [and] this is a big deal to [Tribune Owner] financially, but what

Blago is doing to help you is the same thing the Tribune says he should be impeached for.

Blago said the Tribune Owner should be told, Maybe we cant do this now. Fire those

fuckers.


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Deputy Governor A suggests Blago say, Im not sure we can do this anymore because

weve been getting a ton of these editorials that say, look, were going around the

legislature, we gotta stop and this is something the legislature hasnt approved. We

dont want to go around the legislature anymore.

Blago agreed and said he wants Harris to make that case, not me. The Deputy Governor

agreed, and Blago asks him to put a list of the articles together.

NOVEMBER 3, 2008: In another call later that evening Blago talked to Advisor A, a former

Deputy Governor under Blago, who is now a lobbyist. Blago said hes going to the

Tribune Owner to tell him he wont help him because his own paper is saying to impeachhim for trying to help the Tribune Owner. Blago said theyre going to go to the Tribune

Owner, before we pull the trigger on this deal, (believed to mean helping the Tribune

Owner get financing.)


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NOVEMBER 4, 2008: Blago told Deputy Governor A to think about the Tribune stuff,

and that hes going to talk to Harris. The Deputy Governor confirmed he has people

doing research right now. Blago said take the issue to the Tribune Owner and say,

Look, we got a problem at IFA. Here it is.

NOVEMBER 4, 2008: In a recorded call, Blago talked to Harris about the Tribune articles

that suggested he should be impeached. He said they should talk to [Tribune FinancialAdvisor], Cubs Chairman, and Tribune Owner about the articles criticizing him for actions

they are asking him to take, on this Cubs deal at the IFA. Blago said because of the

impeachment articles, it was difficult to take a chance on the IFA deal. I dont want to

give them grounds to impeach me. Blago also said, Our recommendation is to fire all

those fucking people, get em the fuck out of there and get us some editorial support.


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NOVEMBER 6, 2008: Blago spoke to Harris about a negative article in the Tribune again.

Blago and Harris discussed a conversation Harris had with the [Tribune Financial Advisor]

the day before.

Harris said he told him, things look like they could move ahead fine but, you know, there

is a risk that all of this is going to get derailed by your own editorial page.

Harris said that he told him they need to discuss how to tone things down and change the

focus of that page. Tribune Financial Advisor said thats a delicate issue, he wanted to

come in to talk to Harris about it and talk to the Tribune Owner first about it.

Later, Blago and Harris talked about an upcoming meeting between Harris and the

[believed to be] Tribune Financial Advisor. Harris said he will say that in his experience,

you cant tread lightly and you need to make wholesale changes. Harris says he will

throw it out there and let him figure out how to do it.

Blago stated that Harris suggestion will be to get rid of these people, and that the


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other point you want to make iswe sure would like to get some editorial support from

your paper. Okay?

Harris: I want to do that in person.

Harris stated that they wouldnt get that out of the current crew.

Blago : This is a priority. Stay on it, right? I mean, he, he gets the message, doesnt he?

Harris: Oh yeah. He got it loud and clear, referring to Wrigley Field deal.

Blago: What does this mean to them? Like $500 million? What does it mean to [Tribune

Owner] in real terms?

Harris: To them? About $100 millionmaybe 150.


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Blago and Harris discussed details of the deal the Cubs are trying to get through the IFA.

Harris said its basically a tax mitigation scheme where the IFA will own title to the

building [Wrigley Field], and the Tribune wont have to pay capital gains tax. Harris

explained the total gain to the Tribune is around $100 million.

Blago: $100 million is nothing to sneeze at. Thats still worth something, isnt it?

Harris said he planned to se e the [Tribune Financial Advisor] the following Monday

(November 10, 2008).

November 11, 2008: Blago talked to Harris and asked about the Tribune issue. Harris

said he met with the Tribune Financial Advisor on November 10th and found he hadtalked to the Tribune owner and that the Tribune Owner got the message and is very

sensitive to the issue. Harris said he was told there were corporate reorganizations and

budget cuts coming, and reading between the lines, hes going after that section.


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Blago: Oh, thats fantastic.

Harris said he got the clear feeling that the Tribune Financial Advisor was very sensitive

to their concerns. Blago asked if the Tribune Financial Advisor understood the timeline

for making changes.

Harris: CorrectNovember, December.

Blago: Right.

Harris said he expects cuts to be done before the end of the month [November].

Blago: Wow. Okay, keep our fingers crossed. Youre the man. Good job, John.


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NOVEMBER 20, 2008: Blago asked Harris if there was progress with [Tribune Financial

Advisor]. Harris said no.

Blago: Be smart and stay on top of that.

Blago said the Tribune wasnt willing to listen to Deputy Governor A and basically hung

up on him. Blago told Harris to touch base with Spokesman and Deputy Governor A, andto keep talking to Tribune Financial Advisor about it. He suggested Harris could say,

What are we going to do? Weve got this IFA thing. We want to do all this. Hows that

going? Blago asked Harris if he understood what he wants and to use your judgment.

NOVEMBER 21, 2008:

Blago asked Harris if he told Deputy Governor A that, McCormick is going to get bounced

at the Tribune. (Jim McCormick, Deputy Editorial Page Editor.)

Harris said no. He only said McCormick is in a bad mood, so he wanted to check with

[Tribune Financial Advisor] to see if it had something to do with the message about

cutting people from the editorial board. Harris said, I had singled out McCormick as

somebody who was the most biased and unfair.


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Blago: That would be great. McCormick is a bad guy. [Tribune Financial Advisor] is on

top of this, right?

Harris replied yes, that he said they would be downsizing, and that they, understand.

Blago confirmed that Harris made the point to [Tribune Financial Advisor] that the

Tribune is supporting the idea that Blago should be impeached, even though the same

thing is involved in helping with Wrigley Field.

Blago asked if [Tribune Financial Advisor] understood that, we are not in a position

where we can afford to do that ifthe Tribune is pushing impeachment. Harris said,

right, and explained that the Tribunes articles about impeachment could jeopardize

our efforts to do good things for people as well as the other thing (helping the Cubs

sale).


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Blago: There ya' go. He got the message?

Harris: Yeah.

Blago: Good.

NOVEMBER 21, 2008: Blago called Harris back 5 minutes later.

Blago: The Tribune thing is important, if we can get that.

Harris: Delicate, very delicate.

Blago: I know, I know. Use your judgment, dont push too hard. But you know what

you got to do, right?

Harris: Alright, sir.

Blago spoke to Chicago Cubs representatives several times about state funding for

Wrigley Field.

NOVEMBER 30, 2008: Blago spoke to Sports Consultant, the president of a Chicago-

area sports consulting firm, who made remarks leading Blago to believe he was working

with the Cubs on the Wrigley deal.


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DECEMBER 5, 2008: Tribune ran a front-page story about Blago being under criminal

investigation. Blago talked to Harris about it.

Blago: Whats the deal? So does McCormick stay at the Tribune, huh?

Harris: We havent heard that hes gone, so.Blago: I mean, those layoffs were minor.

Harris: Well, I know that got a lot to do.

Blago: Theres still more coming?

Harris: Yeah. They got a lot of cuts to make.

Blago: Okay. At some point, we should talk to [Tribune Financial Advisor] again, right?

Harris confirmed.


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Blago and Harris spoke on the phone about trying to make money off selling Obamas

Senate Seat.

By law, Blago has the sole authority to appoint a Senate seat replacement. Through

wiretaps Blago was heard conspiring to trade the seat in exchange for any of the

following:


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1. Positions for himself that the President elect has the power to appoint (such asSecretary of Health and Human Services)

2. Wifes placement on corporate boards3. Blagos placement in a high position at a private foundation, with salary to match4. Millions of dollars in donations to a non-profit organization he would create and

employ himself at a high salary after leaving office

Summaries of a portion of the calls between Blago and Harris are outlined below.

This doesnt include everything that was said, every call that was made, or conversations

recorded between Blago and others. This focuses on recent conversations about getting

campaign contributions upfront in exchange for the Obama senate seat.


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NOVEMBER 3, 2008: Blago talked to Deputy Governor A the day before the US

Presidential election. They discussed the potential Senate seat vacancy.

Blago: Iftheyre not going to offer anything of any value, then I might just take it.

NOVEMBER 3, 2008: Later that day, Blago spoke to Advisor A because the mediareported that Candidate 1, an advisor to the Obama was interested in the seat, and

supported by Obama.

Blago: Unless I get something real good for [Candidate 1], shit, Ill just send myself, you

know what Im saying.


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Im going to keep this Senate option for me a real possibility, you know, and therefore I

can drive a hard bargain. You hear what Im saying. And if I dont get what I want and

Im not satisfied with it, then Ill just take the Senate seat myself. Later, Blago stated

that the Senate seat is a fucking valuable thing, you just dont give it away for nothing.

NOVEMBER 4, 2008: Deputy Governor A spoke to Blago on the day of the Presidential

election, and suggested putting together a list of things Blago would accept in exchange

for the Senate seat. Blago said it cant be in writing.

Blago then talked about whether he could get an ambassadorship in exchange for the

Senate seat.

NOVEMBER 4, 2008: Blago talked to Harris about the potential vacant Senate seat. Blago

said the trickis how do you conduct indirectlya negotiation for the Senate seat.

Later, Blago compared his situation to a sports agent shopping a free agent out to various


71/94




teams, stating how much are you offering, [Obama]? What are you offering, [Senate

Candidate 2]?...Can always go to [Senate Candidate 3]. Blago said hell make a decision

on the Senate seat in good faithbut it is not coming for free Its got to be good stuff

for the people of Illinois and good for me. Blago then said, [Obama], you want it? Fine.

But its got to be good or I could always take [the Senate seat].

NOVEMBER 5, 2008: Blago asked Deputy Governor A about positions he could get for the

Senate seat, like Secretary of Health and Human Services and ambassadorships.

Deputy Governor A said the Secretary of Energy position makes the most money. He

said its hard not to give it to a Texan, but Blagos coal background might make it a

possibility.


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NOVEMBER 5, 2008: Blago asked Harris what he could get for the Senate seat, such as

federal government positions. Blago asked if Obama could make him the head of a

private foundation. He told Harris to do homework, on it right away. He asked if he

could get a high-ranking position at the Red Cross. Harris said, Its got to be a group

thats dependent on Obama, that a President probably couldnt influence the Red Cross.

Blago: Look into all of those.

NOVEMBER 5, 2008: Blago talked to Harris and Deputy Governor A about private

foundations where Blago might be able to get a position in exchange for the Senate Seat,

especially those foundations heavily dependent on federal aid, and ones the White

House would have the most influence on.

Blago wanted to know the pay for each.

NOVEMBER 5, 2008: Blago talked with Advisor A about the Senate seat, saying Obama

can remove someone from a foundation and give the spot to him.

Blago: Ive got this thing and its fucking golden, and, uh, uh, Im just not giving it up for

fuckin nothing. Im not gonna do it. And, I can always use it. I can parachute me there.


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NOVEMBER 6, 2008: Blago told Spokesman to leak a story to a particular Chicago Sun-

Times columnist. The story would say Candidate 2 is in the running for the Senate seat.

Blago said he wanted, to send a message to Obamas people, but didnt want it to look

like it came from him.

Later Blago and Spokesman went over the exact words that should be printed by the

columnist, and arguments about why Candidate 2 made sense for the vacant Senate seat.

The November 7, 2008 article uses the exact words and argument spoken between Blago

and Spokesman about Candidate 2 during that recorded conversation.

NOVEMBER 7, 2008: Blago talks to Advisor A about being willing to trade the Senate

seat in exchange for the position of Secretary of Health and Human services in Obamas

cabinet.


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NOVEMBER 7, 2008: Blago had a conference call with Harris and Advisor B, a consultant

from Washington D.C. Blago explained if Obama appointed him as Secretary of Health

and Human Services, then he would appoint Candidate 1 to the newly opened Senate

seat.

Harris: We wanted our ask to be reasonablerather thanmake it look like some sort

of selfish grab for a quid pro quo.

Blago said he needs to consider his family. He is financially hurting. Harris said they

are considering what will help the financial security of the Blagojevich family and what

will keep Blago politically viable.

Blago: I want to make money.


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Blago, Harris and Advisor B discussed a three-way deal. Harris commented that Blago

was interested in a high-paying position with Change to Win. This organization is

connected to Service Employees International Union (SEIU).

1. The SEIU Official makes Blago head of Change to Win.2. Blago gives Senate seat to Candidate 1.3. In exchange, Obama could help Change to Win (with SEIU) on a national level.

Advisor B asked why SEIU Official cant just give Blago the job. Harris said Change to Winwould want something from Obama for bringing Blago in, since someone was already in

the position. Harris said this three-way deal would give Obama a buffer so there is no

obvious quid pro quo for [Candidate 1].


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Blago said for him to give up the governorship for the Change to Win position, it must pay

a lot more than he is getting now. He says he wants to make $250,000-$300,000 on the

board. Advisor B said they should use Obamas wish to have Candidate 1 appointed to

the Senate seat to their advantage to get the Change to Win position and salary. Advisor

B agreed the three-way deal would be better than Blago appointing Candidate 2 to theSenate seat and continuing as Governor.

NOVEMBER 8, 2008: Blago asked Harris if it was possible to also get a job for his wife in

the Senate seat deal. He asked if his wifes Series 7 license could place her in a firm in

Washington or New York at a much better salary than she is making now. Blago asked if

she could take a position at Change to Win until he was brought on.

NOVEMBER 10, 2008: Blago, his wife, Harris, Governors attorney, and various DC based

advisors including Advisor B, talked about the open Senate seat on a conference call. The

participants joined on-and-off at different times. The call lasted around 2 hours. What

follows are summaries of various parts of the call.


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Blago said he wanted to find out how to:

1) Make money2) Build financial security3) Be able to get back into politics later, if wanted.

He mentioned the Senate seat, the new Presidential administration, and the strong

contacts he has.

He asked if there was anything he can do to make this work for both he and his wife, and

his responsibilities as Governor.

Blago suggested he could name himself to the open Senate seat to avoid impeachment by

the state, because it was unlikely Obama would name him Secretary of Health and

Human Services, or ambassador, because of all the negative publicity Blago was

experiencing.


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Blago asked what he can get from Obama for the Senate seat.

He said his General Counsel asked, Can Obama help in the private sectorwhere it

wouldnt be tied to him?...I mean, so it wouldnt necessarily look like one for the other.

Blagos wife said she is qualified to sit on corporate boards and has a background in real

estate and appraisals.

Blago asked if there was something that could be done with his wifes series 7 license in

this deal for the Senate seat. He said he is struggling and doesnt want to be Governor

for the next two years.


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Blago said the consultants (on the call) are telling him to:

Suck it up for two years and do nothing, and give the mother-fucker (Obama) his

senator. Fuck him. For nothing? Fuck him.

Blago said hell put [Candidate 4 the Deputy Governor of Illinois] in the seat before I

just give fucking [Candidate 1] a fucking Senate seat and I dont get anything.

Blago said he needs to find a way to take the financial stress off his family: that his

wife is more qualified than [named] individual to sit on corporate boards.

Blago: The immediate challenge is how do we take some of the financial pressure off of

our family.

Later on the call, Blago said if he didnt get something back, he wouldnt appoint

Candidate 1. Harris said they could work out a three-way deal with SEIU and Obama.

1. SEIU could help Obama with Blagos appointment of Candidate 12. Blago could be given the National Director of the Change to Win position3. SEIU would get something favorable from Obama in the future


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One of Blagos advisors said he liked it, but to be leery of promises for something 2 years

from now.

Blagos wife said they would take the job now.

Blago and others on the call talked about different ways Blago can monetize

relationships hes making as Governor to make money afterwards when he isnt

Governor.

NOVEMBER 10, 2008: Blago and Advisor A talked about the open Senate seat. Blago

asked if Obama could help get his wife on paid corporate boards right now. Advisor A

said he thinks they could and that a President-elect can do almost anything he sets his

mind to. Blago states will appoint [Candidate 1]but if they feel they can do this and

not fucking give me anythingthen Ill fucking go with [Candidate 5].


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Blago said if his wife could get on some boards and pick up another 150 grand a year or

whatever, it would help Blago get through the next few years as Governor.

NOVEMBER 10, 2008: Later, Blago and Advisor A discussed leaking another story to the

same columnist, that hes considering Candidate 5 for the appointment. This would send

a message to Obama that there are options beyond Candidate 1.

Advisor A agreed to call the columnist and leak the story that Blago had a long,

productive discussion with Candidate 5.


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NOVEMBER 11, 2008: Blago talked to Harris and suggested a 501(c)(4) organization (non-

profit organization that can engage in politics/lobbying) and getting Warren Buffet or

someone to help.

Harris: What, for you?

Blago: Yeah.

Later on the call, Blago said if he appoints Candidate 4 and later it looks like Blago will be

impeached he could count on [Candidate 4] if things got hot to give [the seat] up and let

me parachute over there.

Harris: You can count on [Candidate 4] to do that.

Later, Blago said he knows that Obama wants Candidate 1 for the seat but theyre not

willing to give me anything except appreciation. Fuck them.

NOVEMBER 11, 2008: Advisor A told Blago he will stay on top of getting the Candidate

5 story leaked to the columnist. Blago again raised the idea of the non-profit

organization and asked if they (Obama and his associates) can get Warren Buffet and

others to put $10-12-15 million into it.

Blago says when he is no longer Governor he could go over to the organization, that

Candidate 6 (wealthy Illinois person) could raise me money like that for a Senate seat.


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Blago: If I get [Candidate 6] to do something like that, is it worth giving him the Senate

seat? Advisor A said it would be hard to put Candidate 6 in the seat. Blago said it

would be better than putting Candidate 1 for nothing.

Later on the call, Blago said Candidate 6 could do it. They talked about who might be

close to Candidate 6 to talk with him about the issue, because Blago didnt want to be

the one to ask for something like that. Advisor A agreed to find someone close to the

candidate.

NOVEMBER 12, 2008: Blago told Harris that CNN is reporting Candidate 1 doesnt want

the seat. Harris said he thought it was a tactic.

Blago raised the issue of the non-profit again, and that contributors can put 10 to 15

million in it so I can advocate health care and other issues I care about and help them,

while I stay as Governor, shes (Candidate 1) a Senator.


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Blago said Obama can ask Warrant Buffet, Bill Gates, and others for money for the

organization. Blago said hell ask [Candidate 6] to help fund it too. Harris said that

funding it would be a lot easier for Obama than appointing Blago to a position.

Blago: They could say, hey, we get [Candidate 1]. Lets help this guy have a 501(c)(4)

issue advocacy organization. Lets fund it to the level that hes asked for and then well

get [Candidate 1].

Blago said hell control the non-profit through a board of directors while hes Governor

and then a position in the organization when he leaves Office.


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NOVEMBER 12, 2008: Advisor B tells Blago he likes the non-profit idea, but liked the

Change to Win option better because, according to Advisor B, there would be fewer

fingerprints on it by Obama because Change to Win already has a stream of revenue.

Therefore, you wont have stories in four years that they bought you off. Blago said he

prefers the non-profit because he isnt sure Change to Win will be around in 2 years whenhe leaves office.

NOVEMBER 12, 2008: Blago explained the non-profit idea to one of his Washington D.C.

based advisors and that Obama gets these Warren Buffet types to fund it. The advisor

asks him if this is real, or just a way to help himself. Blago says its real but also gives him

a place to go when he is no longer Governor. The advisor says he likes the Change to Win

idea better, and that its more likely to work because its a step removed from Obama.

NOVEMBER 12, 2008: Later, Blago talked to SEIU Official, who was in Washington D. C.

A week before this call they met in person to discuss the seat, and Blago understood SEIU

Official was an agent to discuss Candidate 1s interest in the seat. During the call, Blago

said he heard Obama wanted persons other than Candidate 1 to be considered.


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The SEIU Official said he would find out if Candidate 1 wanted him to keep pushing her

for the seat. Blago said that one thing Id be interested in, is a non-profit organization.

Blago explained the idea to him and said the non-profit could help our new Senator

[Candidate 1].

SEIU Official agreed to put that flag up and see where it goes.

NOVEMBER 12, 2008: Blago told Advisor B the story about the meeting with the SEIU

Official about the non-profit idea.


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NOVEMBER 12, 2008: Blago told Harris his decision about the Senate seat will be based

on 3 things in order of importance:

Blago: Our legal situation, our personal situation, my political situation. The decision,

like every other one, needs to be based uponon that. Legal. Personal. Political.

Harris: Legal is the hardest one to satisfy.

Blago said his l

Blagojevich Wiretap Transcripts and FBI Charges in Plain English

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