Patrick Fitzgerald: Intrepid Crime Fighter? Or, Politically-Driven Leaker? The Exterminator’s Catch & Release Program (Part 9)
Hugo Floriani, Investigative Reporter
Is the result of U.S. Attorney Patrick Fitzgerald’s ten-year, crime-fighting crusade in Illinois the near extermination of corruption? Or, has it been more about trapping a few big bugs and spraying a catch-and-release treatment on them?
In a March 17, 2011 Chicago Tribune article by John Kass entitled “If Fitzgerald goes to Washington, will political cockroaches like Blagojevich multiply?” Kass bemoans the future of Chicago if Patrick Fitzgerald is eventually appointed Director of the FBI. Kass wrote, “If the best exterminator leaves town, what will happen to all those political cockroaches?” (Answer: Dear John, They’ll continue as if nothing’s changed, cause nothing has.)
Kass is among the Chicago media types who've succumbed to Fitz idolization driven, in part, by the eventual conviction of Dead Meat at the hands of the Exterminator. And so Fitz stands watch alone today, in his hands-on-hips-Superman-stance, along that thin line that separates law-and-order from Illinois’ Pay-to-Play.
So, OMG! If the Exterminator moves to Washington, D.C., what will stop the proliferation of other political cockroaches, like Dead Meat? Kass asks. (It’s hard to tell when Kass is being serious versus flippant, since his writing style aims to tease, not confront. It’s both a literary niche, and a survival technique. If you really don’t want to, you don’t have to take him seriously.)
If you were reading Kass’ piece on Mars, you’d think the Exterminator had pretty much wiped out corruption in the Land of Lincoln, Crook County, and the City that Capone built.
Such is the power of the myth of the Intrepid Crime Fighter. Question is: How does it match with reality? In the ten years the Exterminator has prowled the Windy City, spraying for cockroaches, has there been any substantive reduction in their numbers and impact? Well, lets’ do a body count and see.
The Chicago Sun Times, which doesn’t have quite the simpatico relationship with Fitz that the Trib has, recently catalogued the cockroaches trapped in Operation Board Games. Here’s a short list:
- Stuart P. Levine, Pleaded guilty in October 2006 (that’s like 5 years ago) of masterminding extortion schemes and skimming “millions from construction deals the school [Chicago Medical School] gave to Jacob Kiferbaum.” Stu awaits sentencing.
- Jacob Kiferbaum, Pleaded guilty November 2007 (a mere 4 years ago) of participating in Levine’s schemes. Jake awaits sentencing
- John Glennon, Pleaded guilty November 2007 of covering up for Levine and Kiferbaum. John awaits sentencing. (Is there a trend here?)
- Steven Loren, Pleaded guilty September 2007 “in the attempted extortion of an investment firm that sought business from the teacher-pension fund.” Steve awaits sentencing.
- Tony Rezko, Convicted June 2008. Volunteered to be incarcerated. Disappeared down the Federal Rabbit Hole and hasn’t yet surfaced. Tony has told associates that he expects his friend Barack to eventually pardon him. Anyone want to bet against that?
- Ali Ata, Pleaded guilty April 2008 to not reporting $1.2 million in income from a Rezko deal, for lying to the FBI, and, as a bonus, admitted he got a well-paying state job at the Illinois Finance Authority from Rezko. Ali awaits sentencing.
- Abdelhamid Chaib, Pleaded guilty July 2010 of interfering “with the administration of internal revenue laws” in a Rezko business transaction. A.C. was sentenced to three years of probation and ordered to pay a $50K fine.
- John Harris, Pleaded guilty October 2009 of helping Dead Meat try to sell Barack’s Senate seat. Another John awaits sentencing.
- Alonzo “Lon” Monk, Pleaded guilty October 2009 of mail fraud and scheming with Dead Meat to “get rich off state deals and split the money with Rezko and Kelly.” Lon awaits sentencing. What a surprise!
- Anita Mahajan, Sentenced to four years of probation in August 2011 and, as the Trib reported, “ordered to pay $200,000 in fines and restitution Monday after pleading guilty to billing the state for drug tests her company never performed.” She over-billed the state $2.1 million. “Anita Mahajan, 60, the wife of a major Blagojevich fundraiser, dabbed at her eyes with a tissue and apologized as she stood before Judge James Obbish to plead guilty to a reduced count of theft of $99,900.” You’d cry, too, if you got off so light for stealing two-mil from Illinois taxpayers.
One more not mentioned by the Sun Times…
- Joseph Cari, Pleads guilty in September 2005 of involvement in an extortion scheme that aimed to steer state pension business to companies in exchange for campaign contributions to a public official described in court docs as “Public official A [as in Dead Meat].” In August 2011, Joe – a close friend of Joe Biden – was sentenced to three years of…wait for it…wait for it…yes, pro-ba-tion. Oh, the state pension fund was for school teachers.
Rezko’s sentencing is pending. Anyone want to bet against him being sentenced to time served (Where?) and three years of probation?
It’s all part of the Exterminator’s Catch & Release Program for the Cockroaches.
Hat tip: Chicago news humorist John Kass. He’s such a kidder.
Patrick Fitzgerald: Intrepid Crime Fighter? Or, Politically-Driven Leaker? On Sharing Information with the USAO (Part 6)
Hugo Floriani, Investigative Reporter
Patrick Fitzgerald has, on several public occasions, encouraged citizens with knowledge of corruption to come forward and tell his office what they know. It’s only with their help, he has said, that the USAO can clean up corruption in Crook County.
Okay. Well, here’s a test of that exhortation.
Let’s say, hypothetically, you knew of someone associated with the legal team that represented a former business associate – oh, say, a bean counter (BC) – who’d done work for a high-dollar fund raiser facing possible indictment by a Grand Jury for allegedly being a Bag Man (BM) for a state-level politician.
Now, suppose also, that you learned that this someone made sure that BC (who was scheduled to testify before a Grand Jury as a witness in a complaint against BM) received past due payment for services BC had once provided BM. Let’s say BC preformed miraculous accounting services.
Now, of course, this payment wasn’t a bribe.* Of course not! Just a late payment for past services rendered that just happened to come in the midst of BM’s Grand Jury saga. Pure coincidence. Read along, nothing to see here.
Now, imagine you knew that another person, a person of note within the U.S. Attorney’s office, had learned of this payment, but brought no charges against that someone close to BC’s legal team, for, what some might construe as…well, maybe not technically tampering with a witness (Title 18 U.S.C. section 1512), but something highly inappropriate.
Now, in this purely hypothetical example, where any relationship to anyone living or dead is purely coincidental, would you pass that information to the USAO and expect anything to come of it? Knowing that office’s proclivity to leak?
Not unless you’d been dropped on your head once and never fully recovered.
* Oh, BTW, speaking of bribes, on April 18, 2006, in an article reporting on the conviction of former Illinois Governor George Ryan, The New York Times quoted Fitzgerald concerning bribes.
"People now know that if you're part of a corrupt conduct, where one hand is taking care of the other and contracts are going to people, you don't have to say the word 'bribe' out loud," Mr. Fitzgerald said. "And I think people need to understand we won't be afraid to take strong circumstantial cases into court."
Hat tip: John Chase, Chicago Tribune
Patrick Fitzgerald: Intrepid Crime Fighter? Or, Politically-Driven Leaker? The Silent Mole & A Complicit Newspaper (Part 5)
Hugo Floriani, Investigative Reporter
Was Bernard Barton, Jr. relocated to Chicago on a mission to help bring down Tony Rezko and, thereby, shield a young, articulate, African-American politician from his potentially incriminating associations with Rezko? Too conspiratorial, you say? Maybe. Maybe not.
Let’s review the highlights of the Silent Mole, starting with an admission from the Complicit Newspaper.
The Chicago Tribune identified Thomas as a Mole in this May 4, 2007, article written by David Jackson.
John Thomas bought and sold downtown office buildings and helped other property developers secure multimillion-dollar mortgage loans.
But the high-living dealmaker had a double life.
Thomas, who was convicted of federal business fraud in New York in 2004, has been serving as an undercover government mole in Chicago for at least a year as part of an ongoing federal investigation into fraud in the financing of large-scale commercial real estate deals, the Tribune has learned.
Records made public so far do not identify the targets of the federal probe and the FBI and US Attorney’s Office declined to comment for this article.
That same May, a concerned citizen spoke on the phone with a well-known Chicago Tribune reporter. The concerned citizen was trying to chase down information as to when the Tribune learned that John Thomas was an FBI mole while working in Rezko’s office. “Thomas” was Barton’s new name in Chicago after being relocated from New York, where he faced prosecution and eventual sentencing for fraud. (The complete story of Burton-Thomas is well documented and won’t be rehashed here.)
The concerned citizen asked the reporter why the Trib had sat on the Mole’s story since, at least, 2006. That timeframe was implicitly provided by the Trib reporter when stating that Patrick Fitzgerald warned the paper, a year earlier in May 2006, that outing the Mole would cause problems for the investigation and could prove dangerous for Burton-Thomas.
Then, in a moment of indiscretion, the reporter added that Fitzgerald told the Trib in May 2006 that identifying the mole could also “influence the election.”
Now, the Illinois gubernatorial election came in November 2006, and the national election came two years after that. To which election was the reporter referring? It wasn’t explicitly stated, but the obvious inference pointed to the Presidential election in 2008. In either case, it’s a curious statement coming from the USAO, as it was conveyed by the reporter.
There are other elements of the Burton-Thomas story equally curious.
Way back on February 22, 2002, then Tribune staff reporter Thomas A. Corfman, who followed the Mole over the years like a bloodhound, wrote this in an article:
Developer Donald Trump has picked prominent Chicago real estate firm U.S. Equities Realty to handle leasing for his proposed mixed-use skyscraper on the riverfront site of the Chicago Sun Times..
The selection was announced as questions surfaced in real estate circles about alleged criminal activity by two members of a small brokerage firm that, with Trump's blessing, last fall did some marketing of the 1.3 million square feet of office space in the massive tower.
John Thomas, a partner in Chicago-based Carnegie Realty Partners, and a Carnegie employee, Louis Giordano of New York, were arrested last year in connection with an alleged fraud scheme that took place over five years in New York.
According to an affidavit by an FBI agent, the wide-ranging scheme involved credit card fraud, forgery and allegations that the defendants, while running several billboard leasing companies, defrauded restaurants such as Hard Rock Cafe and Planet Hollywood, and entertainment companies such as Motown Records and Arista Records.
Thomas allegedly took upfront lease payments for billboards in Manhattan's Times Square and along Broadway, even though he has no contracts to hang the advertising from the buildings, according to the affidavit, which was filed in U.S. District Court in Chicago in order to obtain a warrant for Thomas' arrest.
Thomas and Giordano are free on bond, according to court records. The U.S. attorney for the Eastern District of New York would not comment on the case.
They have not yet been indicted, although a formal charge is expected, said attorney Eugene E. Murphy Jr., who represents Thomas [and also represented Buddy Wilkins when Buddy appeared before the Rezko Grand Jury as a witness against Rezko, and he later represented Tony Rezko while at the Byran Cave law firm.]. "I look forward to defending this case," said Murphy, a partner with Chicago-based law firm Horwood Marcus & Berk. Giordano and his New York attorney could not be reached for comment.
Back when the Mole was entangled with the Eastern District of New York, Patrick Fitzgerald was an Assistant U.S. Attorney in the adjacent Southern District. The two would later rendezvous in Chicago.
So, in February 2002, shortly after Burton-Thomas was relocated to Chicago from the Big Apple, his nefarious past was outed by a Trib reporter, but lacked any hint of his cooperation with the feds, nor reference to his real name.
(So who alerted Corfman to Thomas’s past, since he was arrested in NY under another Burton? And, if Rezko new of Burton-Thomas’ past, what sense did it make to trust him to work in his office?)
Four years later, Corfman reported again on Burton-Thomas. His article appearing on November 1, 2006 at ChicagoRealEstateDail.com:
John Thomas, who has done more flips than an acrobat, has tied up another downtown office tower.
A venture managed by the controversial real estate entrepreneur has agreed to buy 20 S. Clark St., an office tower overlooking Chase Plaza in the Central Loop, says Mr. Thomas, who earlier this year formed Chicago-based Morgan Street Properties LLC for his investment activities.
The price is about $54 million, sources say…
In the last two years, Mr. Thomas has bought and quickly resold several other office buildings, including 250 S. Wacker Drive, 105 W. Adams St. and 11 S. LaSalle St. Last year, a Thomas venture bought 318 W. Adams St., a small West Loop office building that is being marketed as office condominiums…
He says he is also negotiating with developer Daniel Mahru, his partner on the 105 W. Adams and 11 S. LaSalle deals., to partner with him on 20 S. Clark.
Daniel Mahru was, as you probably know, a business partner of Tony Rezko. Eventually, Burton-Thomas went to work in that same office. The Mole was in his designated hole.
Now, jump ahead to February 2008. Sun-Times staff reporter David Roeder elaborated on the Mole’s activity:
But sources said that, for more than two years when he was giving information to agents, Thomas provided a fly-on-the-wall look inside Rezko's real estate operations and his desperate attempts to keep his projects afloat.
Sources said Thomas also logged frequent visits to Rezko from Gov. Blagojevich and U.S. Sen. Barack Obama (D-Ill.).Blagojevich and Obama were among the many politicians for whom Rezko raised campaign cash. Neither has been charged with any wrongdoing.
Thomas had good reason to help. He hopes to get probation for his own felony fraud conviction in a New York case. And he said he wants to redeem himself in the eyes of business associates and his family.
Sources said Thomas helped investigators build a record of repeat visits to the old offices of Rezko and former business partner Daniel Mahru's Rezmar Corp., at 853 N. Elston, by Blagojevich and Obama during 2004 and 2005…
Sources said the government had him wear a hidden wire to record conversations with a Chicago alderman -- but that he did not record Blagojevich or Obama.
Why no recording of Blago and Obama? Maybe because Blago had notoriously loose lips and might say something that implicated the Protected One, Obama.
One month later, in March 2008, presidential candidate Barack Obama was subjected to an underhand, slow-pitch softball interview by the editorial board of the Sun Times. The transcript of the interview (no longer available on line) includes this exchange:
Q: In November 2006, you and your campaign exchanged with us written interrogatories. So a lot of the quotes I will give you just come out of those. The campaign said that you probably had lunch with Rezko once or twice a year. You sort of added four or five times, something like that.
John Thomas is an FBI mole. He recently told us that he saw you coming and going from Rezko’s office a lot. And three other sources told us that you and Rezko spoke on the phone daily. Is that true?
A: (Obama) No. That’s not accurate…
Okay, maybe the Mole misremembered. A bad memory might explain why he was never called by the USAO as a witness in the Rezko trial. Or, perhaps, there was another reason.
On June 21, U.S. District Judge Elaine Bucklo sentenced John Thomas to three years probation. His court records are sealed. His mission accomplished. And the extent of his subsequent success in Chicago commercial real estate is displayed on his face today.
Patrick Fitzgerald: Intrepid Crime Fighter? Or, Politically-Driven Leaker? Saving Jesse Jr. (Part 4)
Hugo Floriani, Investigative Reporter
As the FBI planned the arrest of Blago, most of the serious wantabees lobbying for appointment to Obama’s Senate seat had backed off the pursuit, no doubt realizing that association with Hot Rod was about to become toxic.
But, there was still one candidate with his eyes on the prize. Right up to the day of Blago’s arrest, Candidate #5’s people were working hard to put a package together to buy their guy the seat. Had Fitzpatrick waited a bit longer to pull the trigger on Blago, Candidate #5 might have been swept up in Fitz’s rush to stop a “corruption crime spree” in progress.
But it wasn’t to be, because the precise timing of the arrest of Blago was really about saving Jesse Jackson Junior’ political career. And maybe even his freedom.
The Designated Bundler: Raghuveer Nayak
A prominent member of the Chicago Indian business community plays a key role in this story.
Here’s how the Chicago Tribune described Raghuveer Nayak in a December 10, 2008 article:
Nayak, 54, is a political and community leader in Chicago's Indian community who has raised hundreds of thousands of dollars for Blagojevich, including more than $200,000 from Nayak, his wife and his various corporations. Nayak and his wife have donated more than $22,000 to Jackson, federal records show, and raised more for the congressman.
Nayak owns a series of surgery centers on Chicago's North Side. He also founded and until recently retained an ownership stake in a drug testing laboratory with millions of dollars in Illinois public aid contracts.
The Fund Raising Event
According to that same Tribune article, Nayak and Jessie Jackson Junior’s brother, Jonathan Jackson, co-hosted an October 31, 2008 “Blagojevich fundraiser” in Elmhurst. “According to several people who were there, Nayak and Jonathan Jackson go back years and the two even went into business together years ago as part of a land purchase on the South Side.”
So the Jacksons and Nayak were long-time buds.
Joliet pharmacist Harish Bhatt was among those attending the event. More on him later.
The December 10, 2008 Tribune also reported that:
Two businessmen who attended the meeting and spoke to the Tribune on the condition of anonymity said that Nayak and Blagojevich aide Rajinder Bedi {remember his name, too} privately told many of the more than two dozen attendees the fundraising effort was aimed at supporting Jackson's bid for the Senate.
A year-and-a-later, on July 7, 2010, a Chicagobreakingnews.com article reported that:
A supporter of U.S. Rep. Jesse Jackson Jr. told the Democratic congressman in 2008 that he would raise $1 million in return for then-Gov. Rod Blagojevich naming Jackson to the U.S. Senate, a federal prosecutor said today.
The allegation, made on a busy day at Blagojevich's federal corruption trial, was the first time authorities publicly suggested Jackson was aware of efforts by his allies to swap campaign cash for his appointment to the Senate seat vacated by President-elect Barack Obama.
Prosecutors also played a rapid-fire sequence of secret wiretap recordings that show Blagojevich reluctantly warming to Jackson as a Senate pick after first profanely ripping him as a non-starter.”
Nearly three months later after the Chicagobreakingnews.com piece, on September 21, 2010, the Chicago Sun-Times (article available here) followed suit with,
Rep. Jesse Jackson Jr. directed a major political fund-raiser to offer former Gov. Rod Blagojevich millions of dollars in campaign cash in return for an appointment to the U.S. Senate, sources said the fund-raiser has told federal authorities.
The allegation by Oak Brook businessman Raghuveer Nayak counters public statements made as recently as last week by Jackson that he never authorized any deal to attempt to buy the Senate seat.
The FBI interviewed that acquaintance -- a Washington, D.C., restaurant hostess named Giovana Huidobro {with whom JJ Junior was having an affair} -- about a year ago as part of its corruption probe of Blagojevich. Authorities were trying to determine whether Jackson had asked Nayak to offer Blagojevich campaign cash in exchange for the then-governor appointing Jackson to the seat once held by President Obama, according to sources with knowledge of the probe.
Huidobro, Jackson and Nayak all dined together on Oct. 8, 2008 {about three weeks before the Oct 30 Elmhurst fundraiser} -- the same day that Nayak has told authorities he had a key conversation with Jackson about the Senate appointment, sources said. The three then ended up at Ozio, the restaurant and club where Huidobro works and where Jackson has held fund-raisers.
Before he dined with Huidobro and Jackson on Oct. 8, 2008, Nayak said he had a critical conversation with the congressman about the seat while the two were alone. Nayak, also a former Blagojevich fund-raiser, said that Jackson asked him to tell Blagojevich that if the then-governor appointed Jackson to the U.S. Senate, Chicago's Indian community would raise $1 million for Blagojevich and -- after Jackson was appointed -- Jackson would raise $5 million for the then-governor.
Here’s a version of J.J. Junior’s “public statement” mentioned in the second paragraph above:
A concise account of the ramp-up among Blago and his advisors concerning the possibility of appointing J.J. Junior to the Senate also appears in the July 7 Chicagobreakingnews.com piece linked above.
Here’s the setting: During the first Blago trial, Rajinder Bedi was being questioned by Assistant U.S. Attorney Christopher Niewoehner.
Bedi testified he met with Jackson and another important Indian businessman, Raghuveer Nayak, at a Loop restaurant on Oct. 28, 2008, and Jackson expressed his interest in Obama's Senate seat.
At that point, U.S. District Judge James Zagel sent jurors out of the room, then asked Niewoehner to explain where the testimony was headed.
Nayak says to Jackson in Bedi's presence, “I will raise a million if he appoints you to the Senate seat,” Niewoehner explained.
Zagel barred Niewoehner from asking Bedi about that part of the conversation before jurors, but Bedi did testify that both Jackson's interest in the seat and fundraising were discussed with Jackson sitting at the table. Prosecutors then played wiretaps of conversations in which Blagojevich and his brother, Robert, appeared aware of the approach involving Jackson. {one such transcript is below}.
In one, recorded the same day as that restaurant meeting, Robert Blagojevich told the governor that Bedi had filled him in on the details, including Nayak's offer to do "some accelerated fundraising" on the governor's behalf if Jackson got the Senate nod.
Three days later, Gov. Blagojevich was recorded talking about overtures for Jackson in a conversation with one of his deputy governors, Robert Greenlee.
"I'm tellin' ya that guy's shameless," Greenlee said.
"Unbelievable isn't it," responded Blagojevich. "Then I, we were approached, pay to play. That, you know he'd raise me 500 grand, an emissary came, then the other guy would raise a million, if I made him a senator."
In a Dec. 4 telephone call with one of his advisers, Fred Yang, Blagojevich said he was now keeping an open mind on "clearly somethin' I would never have considered and that's Jesse Jr."
The thought was repugnant, Blagojevich said, but "just between you and me, they've offered a whole bunch of different things they wanna do for me." Those things included fundraising, Blagojevich said on the recording, asking Yang to think about the politics of making a pick that was sure to be unpopular with the Washington establishment.
A couple of hours later, the governor was on the phone with his brother, filling him in on the idea that he had elevated Jackson to the top of the list of candidates he was considering to replace Obama. He wasn't going to tolerate making a pick and getting nothing in return, he said on the recording.
"And I can cut a better political deal with these Jacksons and, and most of it you probably can't believe, but some of it can be tangible upfront," Blagojevich said to his brother.
He directed Robert Blagojevich to get in touch with Nayak and explain that Jackson was a realistic pick, but the promised help had to start coming in immediately. And he warned him to be careful how that message was delivered.
Blago wasn’t keen on appointing J.J. Junior to the Senate, but the more the money-talk heated up, the more he warmed to the idea.
On December 6, the Blagojevich brothers had this brief conversation.
Date: 12/6/08
Time: 12:39 pm
Robert Blagojevich Cell Phone
Speakers:
ROBERT BLAGOJEVICH
ROD BLAGOJEVICH
ROBERT BLAGOJEVICH {The Governor’s brother} Well, here’s one, uh that’s pending tonight, possibly, with Raghu {Nayak}. And all I’m thinking, all I’m thinking about saying is, you know, your guy’s meeting with Rod on Monday. That’s all I’m gonna say, and I’ll leave it at that. Based on what you told me, correct?
ROD BLAGOJEVICH Yeah, that’s all. You know, if he says, I can do a lot more money, say, that’s you know, you answer that and just say, uh, look one, you know, that’s, that’s your decision…
ROBERT BLAGOJEVICH One is not tied to the other. One is not tied to the other. And if you want to, obviously, we want to help you do that.”
ROD BLAGOJEVICH Yeah, that’s good. I like that. But you..yeah, that’s good.
ROBERT BLAGOJEVICH Alright, well, I hear your caution, and I’m not being defensive, I’m just trying to be explanatory, that’s all. Alright, look, I’m freezing my ass off. I’ve got to get in the shower here.
ROD BLAGOJEVICH I’ll see you.
ROBERT BLAGOJEVICH Alright bye.
ROD BLAGOJEVICH Bye.
On Monday, December 8, JJ Junior and Blago met for 90 minutes during which J.J. Junior said, later, that he merely laid out his qualifications as a potential Senator. No pay-to-play was discussed, he claimed.
On Tuesday, December 9, the FBI arrested Blago at his home.
Nayak, Harish, and Bedi – What’s become of them?
Raghu has had his own problems with a federal grand jury.
A federal grand jury has subpoenaed dozens of doctors in the Chicago area as part of a probe into a wealthy Indian-American fund-raiser who owns surgical centers — and has ties to U.S. Rep. Jesse Jackson Jr. and former Gov. Rod Blagojevich, sources told the Chicago Sun-Times.
While the FBI and IRS investigation is centered on businessman and political fund-raiser Raghuveer Nayak, who owns surgical centers in Illinois and Indiana, the feds have cast a wide net: Sources said at least 30 doctors received grand jury subpoenas, and more than 10 of Nayak’s employees have also been subpoenaed.
In addition, two of Nayak’s surgery centers in Chicago were hit with search warrants in late January, and at least half a dozen doctors have been offered immunity or been granted immunity for their testimony, sources with knowledge of the investigation say.
Federal authorities are investigating whether Nayak made improper payments to the doctors in order to draw their surgeries to his centers. Under the allegations, while private insurers paid doctors and the centers for surgeries performed, Nayak is under investigation for allegedly separately paying doctors hundreds of dollars for every surgery brought to the centers. Doctors who perform out-patient surgeries, including chiropractors and podiatrists, practice at the centers and can choose to bring their work to the centers rather than a hospital.
Harish was visited by the FBI.
FBI agents on Thursday searched two Joliet drugstores owned by a major fundraiser for Gov. Rod Blagojevich who was the focus of a state investigation into whether campaign donations were made in exchange for regulatory favors.
Agents took records from the Basinger's Pharmacy stores but declined to say what they were investigating. FBI spokesman Ross Rice confirmed search warrants were executed and said no arrests were made.
The pharmacies are owned by Harish M. Bhatt, a prominent Indian businessman who helped the state's top pharmacy regulator win his job. The Tribune reported last year that state pharmacy auditors probing allegations of Medicaid fraud at Basinger’s complained that their bosses thwarted the investigation.
Bhatt denied he exerted any improper influence and said the investigation stalled for lack of evidence. State police and federal corruption investigators reopened the Bhatt investigation after Tribune reports.
And Bedi got arrested for shoplifting. Back in April 2009, Bedi was fired from his $100K-plus job at the Illinois Department of Commerce and Economic Opportunity, so maybe he was short on cash.
Jesse Jackson Junior – What’s become of him?
Well, nothing so far. He continues to be a United States Congressman. In the wake of his affair becoming public and lingering doubts surrounding his activities as Candidate #5, he decided not to run for Mayor of Chicago. Nowadays, he keeps a relatively low profile.
Best of all, for him, is that he didn’t get indicted for trying to buy a seat in the United States Senate. For that he has the U.S. Attorney for the Northeastern District of Illinois to thank.
So why would Patrick Fitzgerald want to step in, at the 11th hour, to stop J.J. Junior from stepping on a political and criminal landmine?
Patrick Fitzgerald: Intrepid Crime Fighter? Or, Politically-Driven Leaker? The Untouchable Myth Is Born (Part 2)
Hugo Floriani, Investigative Reporter
“[Joseph C.] Wilson never worked for the CIA, but his wife, Valerie Plame, is an agency operative on weapons of mass destruction.” Robert D. Novak, “Mission to Niger,” The Washington Post, July 14, 2003
This sentence, written by the late columnist Robert Novak, catapulted Patrick Fitzgerald into national notoriety where he assumed the mythological stature of a relentless Special Counsel.
The key word used, or perhaps misused, by Novak was “operative.”
Once “operative” appeared, Plame assumed the image of the clandestine secret agent whose identify had been casually, and carelessly, revealed by a leaker with potentially nefarious motives. The revealing was seen as a violation of 50 U.S.C. § 421 : US Code - Section 421: Protection of identities of certain United States undercover intelligence officers, agents, informants, and sources. Plame quickly became a pop culture Jane Bond.
The word “operative” triggered the appointment of a Special Counsel to investigate the leak – an investigation that stayed active in the news media, on-and-off, from September 2003 to March 2007.
At the end, when Scooter Libby, Vice President Cheney’s Chief of Staff, was convicted on four counts of making false statements on March 6, Libby was the big loser. The Special Counsel, Patrick Fitzgerald, was the big winner. His image as Untouchable had been cast in bronze by the mainstream media. Today, The Washington Post describes Fitzgerald with these words:
“The dogged Fitzgerald has been compared to Eliot Ness, the former head of the liquor-busting “Untouchables” in Prohibition-era Chicago… [T]he workaholic prosecutor’s most famous investigation was into the leaking of CIA agent Valerie Plame’s identity, a probe that led all the way to the Bush White House and resulted in the conviction of former vice presidential chief of staff I. Lewis ‘Scooter’ Libby (President George W. Bush later commuted his sentence.)”
Information concerning the Plame Case is well-documented and easily accessible on the internet. No need to rehash it further here.
Future historians who review the saga will encounter a very curious fact. It’s found in this 2006 interview between CBS News national security correspondent David Martin and Richard Armitage, who was Secretary of State Colin Powell’s Deputy at the State Department.
Click here to view video:
http://www.cbsnews.com/stories/2006/09/07/eveningnews/main1981433.shtml
So, before Fitzgerald was appointed Special Council, Armitage told the FBI that he was the leaker. When asked why he didn’t go public as the investigation to find the leaker grew, Armitage says, “The Special Counsel, once he was appointed, asked me not to discuss this, and I honored his request.” Now that’s interesting stuff. And puzzling, too.
(Why did Armitage speak up publically in 2006, long after the media spotlight had turned on Libby, and, also, Karl Rove? After all, Bush said,in July 2005, he wanted to know who leaked the information, and that he’d fire whoever committed the crime. In any regard, Armitage’s allegiance was not to his President but to a Prosecutor who went on the hunt for the leaker he already knew. Now, really, isn’t all this bizarre, or what?)
The CBS interview wasn’t the only time Armitage confessed to the crime.
Armitage agrees it was “foolish” for him to mention Plame’s CIA employment to Novak.
That begs this question: If “foolishness” is his excuse, what was Patrick Fitzgerald’s excuse for engaging in a long and costly investigation when, even before it started, the culprit, Armitage, had confessed to the crime? (Has the media ever asked Fitzgerald that question? Or, were they so delightedly breathless to see the evil Cheney embarrassed through Libby that they dared not ask?)
What was the Fitzgerald investigation really about? If Armitage was guilty, why was he never prosecuted for the alleged crime? Does confessing get you a pass?
We get a hint to the back story from recent comments made by former Vice President Cheney while speaking at Union League Club Authors Group in Chicago on September 19. According to the Chicago Sun-Times,
A block away from the office of the man who prosecuted his chief of staff, former Vice President Dick Cheney and his daughter had harsh words Monday for U.S. Attorney Patrick Fitzgerald.
“My friend Scooter Libby is a very good man,” Cheney said. “He gave up a very successful private life in order to serve the nation. … For his trouble, he ended up as part of a particular prosecution. I will always think that he did not deserve what happened.”
Cheney was in Chicago to discuss his new book "In My Time: A Personal and Political Memoir." In his book, Cheney wrote, “It was as though he [Colin Powell] thought the proper way to express his views was by criticizing administration policy to people outside the government.”
Armitage was the Deputy Secretary of State under Powell. Libby was Cheney’s Chief of Staff. It’s clear now that Powell and Cheney were not blood brothers. But there may have been occasional blood spilled between them.
In the now obvious power struggle that was going on between the two top Lieutenants in the Bush administration, what was Fitzgerald’s role? Was he the Untouchable, intrepid prosecutor in search of the truth, the whole truth, and nothing but the truth of who committed the alleged crime of exposing Plame’s employment to Novak? Or, was Fitzgerald a political operative touched by persons within the Bush administration to embarrass and undercut Cheney.
If Judith Miller went to jail for failing to reveal her source for what she later wrote about Plame, why did Novak get a pass? Looks like Bob Novak was the real “Untouchable” throughout the entire saga. Nobody touched him.
Turning now to more recent events, since John Chase of the Chicago Tribune is obviously getting a pass for notifying Blagojevich that his phone conversations were being tapped, how’d he earn that pass? Was it by leaking the information to Blago?
One last question:
In the events that constituted the sudden arrest of Blago, for who might Fitzgerald have been playing the political operative, dressed, again, in the dark suit of the Untouchable Eliot Ness?
U.S. Attorney Patrick Fitzgerald: Untouchable Crime Fighter? Or, Politically-Driven Leaker? (Part 1)
By: Hugo Floriani, Investigative Reporter
Is the United States Attorney for the Northeastern District of Illinois an intrepid crime fighter, as he’s typically portrayed by most of the Chicago and national media? Or, is the legend of a modern day Untouchable Elliott Ness largely a media-created myth?
The ABC News video below is from the June press conference following the conviction of former Illinois Governor Rod Blagojevich. It has about it a seriously surreal aspect.
At about 5:40 in the recording, Fitzgerald reports what everyone in the room already knows, and one reporter in the room knows better than all the others. “There was a leak to a newspaper article that indicated that Mr. Blagojevich was being recorded on,” he says.
Later in the press conference, reporters begin asking Fitzgerald – whose national reputation as a dogged plugger of leaks was built during his relentless pursuit of the person who revealed Valerie Plame’s identity as a Central Intelligence Agency employee – about the leak in the Blago investigation. You’ll recall that Fitzgerald’s hunt for the Plame-leaker began in 2003, and ended in March 2007 with the conviction of Scooter Libby, after costing the taxpayers $2.58 million. (Hold that thought. We’ll briefly revisit that saga in a later installment. It’ll help us answer the lede question.)
In the June 2011 press conference, the reporter sitting in the front row, slightly to Fitzgerald’s left, holding a tape recorder toward the podium is Chicago Tribune reporter John Chase. He’s the slightly balding man, wearing a striped blue shirt and glasses. He carefully follows the questions other reporters ask about the “leak” that alerted Blagojevich that his conversations were being recorded by the FBI. It’s reasonable he’d be interested, since he wrote the article to which Fitzgerald referred. Sitting right there with a front row seat as they talk about him. How ‘bout that.
Here’s a transcript of the intercepted phone conversation where Blago learns about Chase’s Tribune article in advance of its publication.
DATE: 12/04/2008
TIME: 10:29 P.M.
ACTIVITY: Rod Blagojevich home line incoming call.
SESSION: 1394
SPEAKERS: BLAGOJEVICH: Rod Blagojevich
P. BLAGOJEVICH: Patti BlagojevichGUERRERO: Lucio Guerrero
* * * * *
1 P. BLAGOJEVICH Hello.
2 GUERRERO Hey Patti, this is Lucio.
3 P. BLAGOJEVICH Hey Lucio.
4 GUERRERO Little late. Is the governor around?
5 P. BLAGOJEVICH Yeah, hold on.
6 GUERRERO Alright.
7 (PAUSE)
8 BLAGOJEVICH Hey.
9 GUERRERO Hey, sorry to call so...
10 BLAGOJEVICH Yeah.
11 GUERRERO You probably know this. Ah, Scofield12 and I got a call from John Chase about13 ten minutes ago. Uh, he said they're14 writing a story for tomorrow's paper15 that says as part of a federal16 investigation they have recordings of17 you and also, John Wyma's cooperating18 with the feds. Uh, I've got calls out19 to Quinlan, waiting to hear back. So20 does Mary Stewart, I just haven't heard21 back from him yet. I assume we're not22 going to say anything but I want you to23 know.11 BLAGOJEVICH They have recordings of me and Wy-,2 Wyma's cooperating with the feds? Who3 said that?
4 GUERRERO John Chase. He said the story's gonna5 say two things. He left me a message I6 didn't pick up cause I wanted to hear7 what he had to say. He said one, it'll8 say it's the, as part of the federal9 investigation they have recordings of10 you. He doesn't say what it says on the11 recordings. And, number two, that John12 Wyma's cooperating with the feds.
13 BLAGOJEVICH Huh.
14 GUERRERO So, like I say I have a call in... I, I15 assume we're not going to say anything,16 but I, just so you know that tomorrow's17 paper, that's gonna be in there.
18 BLAGOJEVICH In the Tribune tomorrow?
19 GUERRERO Correct.
20 (PAUSE)
21 BLAGOJEVICH Recordings of me?
22 GUERRERO Correct.
23 BLAGOJEVICH On the telephone with Wyma, maybe?
24 GUERRERO I don't know. Like I said I didn't pick25 up the phone. I didn't want to get into26 it with him so that's what he left on27 my, on my, ah, voice mail.
28 BLAGOJEVICH And where's Quinlan?
29 GUERRERO I don't know. I got, Mary's got,30 calling him and I've called and emailed31 him.
32 BLAGOJEVICH Alright, I'll get him. I'll call you33 back. Bye.
34 GUERRERO Bye.21 BLAGOJEVICH (To P. BLAGOJEVICH) Tribune's2 writing...
Late in the press conference, the prosecutor who jailed New York Times’ reporter Judith Miller for 85 days for failing to reveal a source, displays a rather blasé attitude toward having a key element of his investigation leaked to the media. Chase isn’t going to jail like Judith. What’s up with that?
At about 16:14 in the video, Fitzgerald states, “I didn’t do it.” The “it” refers to leaking the information to the Chicago Tribune. Who said he did?
That’s probably a truthful statement. Of course, the US Attorney for the Northeastern District of Illinois would never phone a Chicago reporter and leak sensitive information. He’d have someone on his staff do it.
The question is – Why?
While you ponder that thought, here’s another.
In the press conference, Fitzgerald makes a plea for persons with knowledge of corruption to come forward and report that information to his office. He repeated that theme recently when, on September 12, while speaking before City Club of Chicago, according to the Sun Times, he said,
“The one thing I find frustrating is that people view corruption as a law enforcement problem. If I had a dollar for everyone who has come up to me after we’ve convicted someone and said, ‘Yes, we knew he or she was doing that all the time but we wondered when someone was going to get around to doing something about it. And I bite my lip, but I wanted to smack them upside the head.”
He said the person who needs to do something about corruption is “you. It is my view that sometimes we say, ‘that’s the way it is in Illinois or that’s the way it is in Chicago.’ If you’re finding yourself saying that, what you’re really saying is, ‘That’s the way I will allow it to be.’
“You either speak up and do something about it or you’re part of the problem. That’s the only way to look at it.”
So, here’s another question:
If you’re a citizen with first-hand knowledge of corruption, why in the world would you take that information to a U.S. Attorney’s office that has a leak, particularly when the guy in charge doesn’t seem all that concerned about leaks? Doing so could cause you unintended pain, if it got leaked to the wrong person, or persons.