Lon Monk's guilty plea Tuesday ramps up the pressure on Rod Blagojevich. From the Sun-Times today: Blagojevich has repeatedly sought to distance himself from Tony Rezko, essentially claiming that Rezko duped him. Monk's plea not only puts the two in the same room, but it also alleges that Blagojevich gave both Rezko and Kelly free rein over his administration. Monk "understood that Blagojevich and [Monk] would use their power and authority in state government as needed to assist whatever plans Rezko and Kelly put in place to make money," the plea states.
From the Chicago Tribune: Pulling back the curtain on how Blagojevich and his cohorts allegedly went about their plan, Monk's plea suggests a possible pattern of political crimes that took place well before Blagojevich allegedly offered the Senate seat vacated by President Barack Obama to the highest bidder. As part of his deal, Monk told prosecutors that he, Blagojevich and key fundraisers Antoin "Tony" Rezko and Christopher Kelly repeatedly met about how the four of them could secretly make money through state deals, offering the most specific account yet of how the alleged conspiracy in the case formed.
From AP: The plea is guaranteed to be a blow to Blagojevich, who is scheduled to stand trial starting June 3 on corruption charges that included allegedly trying to sell or trade the U.S. Senate seat President Barack Obama held.
A lawyer for ex-governor Rod Blagojevich deemed a slew of allegations leveled by onetime top aide Lon Monk: "one-thousand percent false."
In a plea deal made public today, Monk, 51, said there was an ongoing agreement among Blagojevich and his closest advisers that involved making hundreds of thousands of dollars off state business deals.
The money would be split four ways, according to Monk. The alleged recipients: Blagojevich, the now-deceased fund-raiser Christopher Kelly, convicted businessman Tony Rezko and Monk.
"That is completely false. One-thousand percent false," Sheldon Sorosky told the Sun-Times. "Blagojevich never participated in any deal or conference where he'd receive a kickback from any investments or any money that Rezko and Kelly made -- from the state or otherwise."
The Chicago Sun-Times reports today that the president of a topless bar was among those on a clout list who appeared to get people hired during Rod Blagojevich's administration.
Perry Mandera, of Glenview, was listed among clout-heavy political sponsors in a secret hiring database obtained by the Sun-Times.
Mandera's name was linked to 10 job candidates.
Four of the people on Mandera's list wound up getting state jobs, the records show.
Mandera, the president of a company that owns VIP's A Gentlemen's Club, a topless bar on the Near North Side, said he knew of no such list.
"I have no knowledge of what you're talking about," Mandera told a Sun-Times reporter. "This is the first time I'm hearing about this."
The Mandera report was the third report in a series about patronage under Blagojevich.
The first report indicated that Blagojevich ordered a hiring freeze while in state office, but, behind the scenes, "flouted the supposed freeze, forging a patronage machine that -- despite their boss' public promises -- eventually would provide state jobs or promotions to nearly 2,500 people with enough clout to have political sponsors."
On Sunday, the Sun-Times reported that the same lawmakers who forced the ex-governor's ouster, once begged him for jobs.
At the request of prosecutors, a federal judge this morning dismissed the case pending against Christopher Kelly, a onetime fund-raiser and adviser to Rod Blagojevich, who died earlier this month.
U.S. District Judge Charles Norgle agreed to dismiss the case against Kelly as well as Kelly's BCI Commercial Roofing.
Kelly, 51, of Burr Ridge, died after an apparent suicide. He had been indicted three times since 2007, including in the case involving BCI.
That case was set to go to trial in early September before Kelly pleaded guilty to charges of bid-rigging at O'Hare.
In court on Sept. 8, Kelly told the judge he felt pressures "in my life." He later died of an apparent overdose.
Earlier this week, Kelly's case before U.S. District Judge James Zagel was dismissed. In that case, he faced racketeering and extortion charges with Blagojevich. Kelly had pleaded not guilty to the charges.
The dismissal of the O'Hare charges means that Kelly's agreement to turn over $450,000 in cash and home equity to the government is now voided out.
Kelly's guilty plea is wiped clean because he wasn't sentenced before his death.
But the prosecution could have pursued a case against BCI because it still exists as an entity, defense lawyer Tom Leinenweber said. The government chose to drop the case, he said.
"I think the government really did the right thing," said Leinenweber, who represents BCI Commercial. "The assets of the company will be used for his wife and children."
A lawyer for Rod Blagojevich said outside of court today that the recently deceased friend of the former governor will "speak ... from the grave," at Blagojevich's trial next year.
Wasting no time in spinning the death of Christopher Kelly, who died of an apparent suicide last week, Sam Adam Jr. told reporters today that Kelly's refusal to plead guilty in Blagojevich's case serves as proof that the ex-governor did no wrong.
At next June's trial: "Chris Kelly's voice will speak louder from the grave," Adam said. Chris Kelly pleaded guilty to two criminal cases in federal court involving income tax fraud and fraud at O'Hare Airport.
Kelly faced an extraordinary amount of pressure by federal prosecutors to cooperate in federal court. He was indicted three times in two years.
But Kelly's refusal to plead guilty in Blagojevich's case shows Blagojevich was not involved in wrongdoing with Kelly, Adam said.
"He told the truth in the first case. He told the truth in the second case," and he told the truth in Blagojevich's case by not pleading guilty, Adam argued.
Kelly's guilty pleas in two separate fraud cases each came on the eve of trial.
Kelly was to face trial on racketeering and extortion charges with Blagojevich next June.
Asked if the government can be accused of "piling on" charges against Kelly, another lawyer, Sheldon Sorosky said: "It would be inappropriate to do any post-mortem" on who is at fault.
A confidant of Kelly's told the Sun-Times last week that Kelly was prepared to go to trial in the second case he faced involving bid-rigging at O'Hare. But Kelly, 51, of Burr Ridge,
changed his mind at the last-minute when the government moved to revoke his bond, according to the confidant. Kelly came up with a compromise to turn himself into jail a week later. He killed himself in the interim.
Kelly, who was angered with the government for playing hardball with him, was steadfast in his refusal to cooperate against Blagojevich, those close to him have said.
Meanwhile, in court this morning, U.S. District Judge James Zagel formally dismissed charges against Kelly.
There was little formal talk of Kelly in the courtroom except for prosecutors asking to dismiss the counts against Kelly.
"On suggestion of death?" Zagel asked. "Motion granted."
Kelly's lawyer, Michael Monico, was not in court.
Photo by Jean Lachat Grace Kelly (center, with hand on her stomach) is consoled by family at her father's funeral.
In his final hours, Christopher Kelly called his brother, Charlie, with a request: keep his funeral service short, keep his eulogy brief.
Above all, he wanted his family and friends to know one thing, his brother said this morning:
"Christopher Kelly is at peace," Charles Kelly said. "Nothing more. Nothing less."
At a funeral service this morning at St. John of the Cross Church in Western Springs, there was no talk of Rod Blagojevich, of federal prosecutors or of a suicide investigation of the onetime political insider that has dominated the news in recent days.
Photo by Jean Lachat Pallbearers, led by one of Chris Kelly's brothers (right) and nephew (left) carry Kelly's casket from the church Wednesday.
Charles Kelly said his brother in no uncertain terms told him he was at peace and that he wanted that communicated to his family.
Charles Kelly said his brother was blessed with a loving and devoted wife, Carmen and that the entire Kelly family was proud of his brother.
Charles spoke of his brother's intense love for his three daughters: his first-born, Grace, his middle daughter Jacqueline, who is named after the Kelly patriarch, John "Jack" Kelly and the youngest, Claire, whom Chris Kelly liked to call "Claire Bear."
Rod Blagojevich and his wife, Patti, as well as their two daughters attended the funeral. They did not speak publicly afterward. Also in attendance was Kelly's lawyers and Chicago Ald. Ed Burke.
Photo by Rich Hein Chris Kelly's girlfriend, Clarissa Flores, leaves Kelly's funeral Wednesday.
Kelly died Saturday morning after overdosing on a bottle of aspirin, according to police. In recent years, Kelly was under the weight of three federal indictments.
Authorities said Tuesday that Kelly made a first attempt at suicide just hours after he pleaded guilty in federal court last week. That day in federal court, Kelly told reporters: "My life is over."
In court, Kelly told the judge he faced pressures "in my life."
The Chicago Sun-Times has obtained a transcript of Christopher Kelly's court hearing the day he pleaded guilty last week. Country Club Hills Police say that hours after entering his guilty plea, he attempted suicide.
Friends rushed to his aid and Kelly vowed he'd get help.
But three days later, Kelly once again walked down that dark path, downing a bottle of aspirin. He was dead the next day. Kelly had been indicted three times since 2007. The day he pleaded guilty he spoke of pressures "in my life."
Here are excerpts:
U.S. District Judge Charles Norgle: Are you being threatened in any way?
Kelly: No, sir.
Norgle: Are you being pressured or forced or shoved into pleading guilty?
Kelly: "I would be remiss if I didn't say that there was a great deal of
pressure in my life right now. But I'm doing it freely, and willingly,
understandingly, knowingly, conscious of the ramifications of my actions,
and I'm accepting responsibility here in front of you today, Judge Norgle."
Norgle: Is it fair to say you have had enough time to think about all of
this?
Kelly: Yes, your Honor, I have.
Norgle: All right. This is an important question: Then what is it that
you have decided to do?
Kelly: To plead guilty to the charges as outlined by the
prosecutor.
Country Club Hills Police today said former gubernatorial fund-raiser and adviser Christopher Kelly killed himself, ruling out suicide.
They also revealed that Kelly had attempted suicide days earlier -- on the same day that he had pleaded guilty in federal court.
The Sun-Times reported today that Kelly pleaded guilty after the feds moved to have a judge revoke his bond.
Just four days before his death, Christopher Kelly spoke those words while at the federal courthouse downtown.
Today, investigators continued to try unraveling details of what happened during the final hours of Kelly's life. Country Club Hills investigators interviewed Kelly's girlfriend, Clarissa Flores.
They reported Flores was cooperative with their probe and her lawyer, Terry Gillespie, said there wasn't a question she didn't answer.
Investigators say they found prescription medication and over-the-counter pills in Kelly's SUV. They want Kelly and Flores' cell phones to review the texts they exchanged before his apparent overdose death.
Country Club Hills Mayor Dwight Welch is expected to hold a news conference tomorrow and lay out a timeline of events surrounding Kelly's final hours.
Country Club Hills police are investigating the death of Chris Kelly, the longtime loyal friend, adviser and fund-raiser of Rod Blagojevich.
Hours before Kelly was pronounced dead at Stroger Hospital, he called a friend to tell her he was going to kill himself, the Sun-Times is reporting.
A source familiar with the investigation said that Kelly, who is married, called a friend and told her he took some pills and was going to kill himself.
She found Kelly and drove him to Oak Forest Hospital, dropped him off and called police to report she did so, the source said.
Oak Forest Hospital does not have a trauma unit and was unable to treat Kelly, who then was rushed to Stroger Hospital in an ambulance.
Kelly, 51, had been indicted three times but refused to cooperate against the ex-governor. He pleaded guilty last Tuesday was set to turn himself in to prison on Friday.
Sources say that a key figure in the case of Rod Blagojevich -- Christopher Kelly -- was found dead this morning.
The news comes just days after Kelly pleaded guilty to a scheme involving $8.5 million in fraud at O'Hare airport.
He was to report to jail by Friday and was on a curfew, which he agreed to, until he turned himself into court.
On the day he pleaded guilty, Kelly, 51, told a judge he'd be remiss if he didn't say he felt pressures in his life. The onetime adviser to Blagojevich had been hit with three federal indictments and refused to flip on his friend.
He faced nearly eight years in prison from two guilty pleas.
Update: A law enforcement source is saying Kelly died of an aspirin overdose.
One of the biggest players in Rod Blagojevich's criminal saga pleaded guilty in federal court today and agreed to turn himself in to jail by next week.
Christopher Kelly, a longtime friend, adviser and fund-raiser to the ex-governor, pleaded guilty to a kickback scheme involving contracts at O'Hare Airport and his roofing company, BCI Commercial Roofing, Inc.
By doing so, he evades a trial that was scheduled to begin tomorrow.
Kelly told the judge he pleaded guilty after enduring "a great deal of pressure."
"I'm doing it knowing the ramifications of my actions," said Kelly, whose plea deal calls for a 57-month sentence, almost five years, to run after he serves three years in a separate tax fraud case.
Kelly will voluntarily surrender to the federal lock-up on Sept. 18. He will also pay a $450,000 in forfeiture.
There was no talk of Kelly cooperating against Blagojevich, despite the government taking the rare move and charging Kelly three times in two years.
Kelly still faces trial on racketeering and extortion charges with the former governor next June.
Wearing a blue dress shirt in court, Kelly stood with his hands folded before him and, as Assistant U.S. Attorney Reid Schar read the charges aloud in court, Kelly looked up at the ceiling or down at the floor.
Upon swearing in Kelly, U.S. District Judge Charles Norgle asked the Burr Ridge man to speak up.
"Is there a reason why you're whispering?" Norgle asked.
Schar said as part of the kickback scheme, Kelly used criminally-derived profits to pay off personal debts, including to convicted businessman Tony Rezko, as well as gambling debts.
"Is that what happened and is that what you did?" Norgle asked.
"Yes," Kelly replied.
Kelly still faces trial on charges with the ex-governor -- his third indictment. Kelly pleaded guilty in a separate tax scheme earlier this year.
The plea deal was finalized at the last minute, with Kelly initialing portions of it outside the courtroom minutes before court. At one point, Norgle recessed because Kelly said he hadn't read the whole document.
Kelly and his lawyer, Michael Monico, left the courthouse without comment.
Chris Kelly and his lawyers, as well as federal prosecutors, were just up inside a federal courtroom in a closed session.
U.S. District Judge Charles Norgle told the parties to return at 2:15 p.m.
Neither side would discuss what was going on. Are they discussing a plea?
No one would say.
Jury selection in Kelly's case is supposed to begin tomorrow. But Kelly's lawyer, Michael Monico, filed a motion to move the trial to October.
But that's not a matter that would be closed.
Earlier today, Monico wouldn't answer when asked if he was absolutely sure his client would go to trial tomorrow.
"We're going to trial," Monico said initially. But when pressed, Monico abruptly ended the conversation.
Kelly is a longtime, loyal friend to Rod Blagojevich, and was also of his top advisers and fund-raisers. His trial tomorrow is about contract fraud at O'Hare. He pleaded guilty to tax charges earlier this year and as of now faces trial along with the ex-governor next June.
*** Update: Chris Kelly and his lawyers, as well as federal prosecutors, were just up inside a federal courtroom in a closed session. Are they discussing a plea? No one would say. U.S. District Judge Charles Norgle told the parties to return at 2:15 p.m. ***
Christopher Kelly is supposed to go to trial tomorrow.
Will he? His lawyer wouldn't exactly give a straight answer.
Kelly, one of Rod Blagojevich's closest friends, his ex-adviser and fund-raiser, is accused in an alleged contract corruption scheme at O'Hare Airport.
He's just filed a motion asking that his trial be moved because of publicity surrounding the release of the ex-governor's book.
"We've filed a motion for a continuance because of pre-trial publicity because of Blagojevich's book," Kelly's lawyer, Michael Monico said.
Is this just a delay for Kelly to weigh whether he should flip on his old friend or will he plead guilty in the case?
Monico wouldn't give a definitive answer.
"We're going to trial," Monico said initially. But when pressed, Monico abruptly ended the conversation with this Chicago Sun-Times reporter.
In a filing today, Monico asks for an October court date, arguing it would distance Kelly from media attention surrounding Blagojevich. The former governor appeared on the "Today Show" this morning and has other New York talk show appearances planned this week.
"This barrage of media attention has the significant potential to poison the jury pool against Mr. Kelly, who was Mr. Blagojevich's campaign finance chair and close
associate for many years," a filing in federal court today states. "Due to this overwhelming media attention we do not believe that Mr. Kelly can receive a fair trial at this time."
Monico is asking that additional questions be asked of jurors to uncover any Blago taint.
Kelly pleaded guilty earlier this year in a tax case. Then he was hit with two more indictments, including having been charged along with the governor.
Kelly has repeatedly said he would not cooperate against Rod Blagojevich. But, over the summer, he had some preliminary talks with the government, sources said.
Those talks broke down at some point.
It's no secret that the government would see a Kelly deal as a coup. They've wanted him badly enough that they've charged him three times.
Longtime Blago adviser, fund-raiser and friend Christopher Kelly, who has been in the government's sights for years, may roll.
On Tuesday, Kelly lawyer Michael Monico left open the door to his client pleading guilty in the final two cases he faces in federal court.
Kelly was sentenced last week to 37 months in a third case.
"That remains to be seen," Monico said when asked if trial were a certainty. "We're reviewing the evidence, we intend to pursue the results that are in the best interests of Mr. Kelly."
Though Kelly has flirted with flipping on his longtime pal, he's so far made no deal with prosecutors. But Monico has previously hinted that the two sides have had discussions.
Having picked up a felony conviction after pleading guilty in a tax fraud case, Kelly faces stiffer sentencing possibilities in the remaining two cases.
The plea in the tax case was not accompanied by a cooperation agreement.
Monico's comments came the same day a bank moved to foreclose on Kelly's home.
Old Second National Bank filed a $2.1 million foreclosure notice Tuesday on Kelly's Burr Ridge home.
In addition to the tax case, Kelly was indicted in an O'Hare Airport contract fraud scheme and is a Blagojevich codefendant, accused of corruption during the ex-governor's reign.
Kelly's cooperation would be a coup for prosecutors. Kelly, a longtime confidant to Blagojevich, was active in Blagojevich's first run for governor and his first-term administration.
A longtime friend of ex-governor Rod Blagojevich will be sentenced by month's end as planned. Christopher Kelly lost a bid to push the sentencing to October. He asked for the extension because since pleading guilty to the tax fraud charges he was hit with two more indictments -- including one in which he was charged along with Blagojevich.
Sources told the Sun-Times Kelly had some discussions with the government -- the first sign he's flirted with the idea of flipping. But sources also said Wednesday Kelly believes he could wage a fight against the charges in the Blagojevich indictment.
Kelly's lawyer, Michael Monico, told the Sun-Times Tuesday that he's reached no agreement with prosecutors.
"We are facing two upcoming trials and nothing has been decided. The government and Mr. Kelly have not reached any agreements. Mr. Kelly at this point is proceeding to review the evidence in the two pending (cases)."
In denying his motion, Judge Elaine Bucklo wrote: "Defendant's motion states that his request for a lengthy extension on his sentencing date is to give him "sufficient time to reasonably assess the propriety of a global resolution" of two other cases in which he has been indicted. That does not actually impact any potential sentence in this case, however."
Three times may just have been enough to charm a former friend of Rod Blagojevich into talking with the feds. But it hasn't quite gotten Christopher Kelly, who has been indicted three times, to cooperate.
It's the first time the former top fund-raiser has flirted with flipping on his longtime friend.
Sources say Kelly has been in some talks with prosecutors, but so far, the talks haven't amounted to Kelly's cooperation.
That was evidenced in an adverse hearing Tuesday, in which prosecutors fought a Kelly bid to delay sentencing in the first case against him. Kelly pleaded guilty to tax charges in January.
"I cannot comment on anything we've said to the government," said Kelly's lawyer, Michael Monico. "We are facing two upcoming trials and nothing has been decided. The government and Mr. Kelly have not reached any agreements. Mr. Kelly at this point is proceeding to review the evidence in the two pending (cases)."
Monico referenced the amount of pressure the feds have put on Kelly, who is a onetime adviser, fund-raiser and longtime friend to Blagojevich. Kelly was indicted for a third time April 2, along with the ex-governor on corruption charges.
"This case shows more than anything, the power of the government," Monico said.
Monico is seeking to delay Kelly's sentencing on the tax charges until after he gets more evidence for the other two cases against his client. Prosecutors opposed the bid. Monico said in court that prosecutors often delay sentencing when it is in their interests.
That includes the case of fund-raiser and state board member Stuart Levine, who was initially charged in 2004. He's become a significant cooperator for the government and has yet to be sentenced.
Three more defendants charged in ex-Gov. Rod Blagojevich's case are up in court today to face corruption charges.
They are:
• Former adviser and long-time Blagojevich friend Chris Kelly. This is the third indictment of Kelly, he was previously charged in two other cases. In January, he pleaded guilty to a tax scheme involving his roofing company. He was later charged again in a scheme involving contracts at O'Hare airport. Kelly is named in four counts in the Blagojevich indictment, including racketeering conspiracy, fraud, extortion and attempted extortion conspiracy.
• Springfield millionaire William Cellini. Cellini faces three charges tied to a scheme involving the Teachers Retirement System and an alleged effort to get a firm to pay $1.5 million to the ex-governor's campaign fund in exchange for state business.
• Blagojevich's most recent chief of staff John Harris, who is cooperating with the government and is expected to sign onto a plea deal. Harris was arrested with Blagojevich on Dec. 9. He faces just one wire fraud count. He will be arraigned separately, an hour later than Cellini and Kelly.
The three will appear before U.S. District Judge James Zagel and are expected to plead not guilty to the charges.
Just a week ago, we expected a small crowd of defendants to attend their arraignments in the corruption case of ex-Gov. Rod Blagojevich.
But of the six people indicted, just two -- the ex-governor himself and his brother -- will face charges tomorrow.
The ex-governor's former fund-raiser, Chris Kelly, moved his arraignment date today to later in the week. There's a conflict because Kelly's lawyer is in Florida.
Nonetheless, expect nothing short of a circus here at 219 S. Dearborn.
Four defendants -- including the ex-governor -- are expected to appear in federal court Tuesday to answer corruption charges.
Ex-Gov. Rod Blagojevich, his brother, Robert, former gubernatorial adviser and fund-raiser Christopher Kelly and Springfield power-broker William Cellini are scheduled to be arraigned 11 a.m. Tuesday in front of U.S. District Judge James Zagel.
They will answer corruption charges brought down in an indictment last week. Two others who were indicted, John Harris and Lon Monk, are cooperating with the government and are expected to be arraigned April 16.
Rod Blagojevich's long-time friend and fund-raiser Christopher Kelly was in federal court once again this morning.
He was entering a plea of not guilty to an O'Hare fraud scheme the feds hit him with last week. The new charges came just a few weeks after Kelly was in this same courthouse pleading guilty to tax fraud charges.
Prosecutors say Kelly, through his roofing company, BCI Commercial Roofing, won $8.5 million in allegedly inflated roofing contracts from United and American airlines at O'Hare Airport. They allege that Kelly paid kickbacks to get the contracts. The money laundering and fraud charges are a clear sign from the feds that they want Kelly to talk.
Kelly was released on a signature bond today. His company, was also indicted, and defense lawyer Michael Monico said it too pleaded not guilty.
Assistant U.S. Attorney Reid Schar told federal judge Charles Norgle Sr. that there's a potential for a future conflict with Monico representing BCI.
"Mr. Kelly's 100 percent owner of BCI," Monico responded in court.
Norgle said they could take up the issue later.
They meet again in court 10 a.m. March 10.
