Chicago Sun-Times
Inside the Rod Blagojevich investigation and related cases

Blagojevich trial: $10 billion bond deal largest state ever done.

| No Comments | No TrackBacks

Reporting with Sarah Ostman

We begin again after the lunch break with a new witness, David Abel, 49, who lives on Chicago's North Side.

Blond, glasses, Abel sits very still on the witness stand. He looks every bit of the part of the number-crunching expert he was employed to be with the state.

He gives such details as "I knocked lightly on the door," when asked what he did first when he joined a ongoing meeting in the governor's office at the Thompson Center, downtown.

Abel talked about the $10 billion pension bond deal the state took part in under Rod Blagojevich.

Former Blagojevich chief of staff Lon Monk, a government witness, testified that Blagojevich, Monk, Tony Rezko and Chris Kelly plotted to split a kickback off that deal.
Monk testified that Kelly pushed Blagojevich to issue all $10 billion in bonds in one day so that the chosen firm Bear Stearns, would get all the business. Monk testified that Rezko struck a deal with Stearns, in which he'd get $500,000 off the deal. Monk testified that money was to be split four ways -- to Blagojevich, Monk, Kelly, and Rezko.

Abel testified that Kelly was in attendance in the meeting.

"Clearly it's the largest that the state has ever done. At that time it was the largest ... done by any municipality in the United States," Abel said.

"I think we have order support for the $10 billion, we have other alternatives if we're not comfortable with the full $10 billion and we could go either way," he said he advised Blagojevich and others in the meeting.

That's different than what we heard from Monk, who said he believed people in the budget office were pushing to sell all $10 billion. That gives the prosecution room to later argue that it was Kelly's alleged corrupt role that made the sale go forward, rather than professionals advocating the move.

John Filan, who headed the office of budget management, later told Abel they'd be issuing all $10 billion in bonds.

No TrackBacks

TrackBack URL: http://blogs.suntimes.com/cgi-bin/mt-tb.cgi/33052

Leave a comment

About this Entry

This page contains a single entry by Natasha Korecki published on June 15, 2010 1:23 PM.

Blagojevich trial: Judge will release tapes earlier was the previous entry in this blog.

Blagojevich lawyer pushing judge's buttons -- but gets lots of laughs as he calls Blago the "C" student is the next entry in this blog.

Find recent content on the main index or look in the archives to find all content.