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Feds turn up heat on Jesse Jackson Jr.

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The feds asked a congressional ethics committee to back off its probe of U.S. Rep. Jesse Jackson Jr. That's because the panel's work started overlapping a federal probe, the Chicago Sun-Times reported today.
The ethics office said Wednesday it was investigating whether Jackson used tax-backed resources -- in the form of his Chicago and Washington, D.C., staffs -- to vie for the U.S. Senate seat appointment last year. The now-indicted ex-Gov. Rod Blagojevich at the time was in charge of appointing a replacement to the seat vacated by President Obama.
"Rep. Jackson may have violated federal law and House rules concerning the proper use of the member's representational allowance," the panel indicated.
Among the areas of inquiry in an ongoing federal probe tied to the case of ex-Gov. Rod Blagojevich, is whether Jackson's congressional staff had authored letters of support for Jackson, then distributed those letters to different interest groups. The groups then are alleged to have put their organization names and signatures on the letters and sent them to Blagojevich.


State worker resigns one day after Sun-Times story

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Rajinder Bedi, managing director of the state's Office of Trade & Investment, resigned his post Tuesday -- a day after the Sun-Times reported he was involved in an alleged scheme surrounding U.S. Rep.Jesse Jackson Jr.'s bid to be appointed to the U.S. Senate seat post. The Sun-Times reported Monday that Bedi approached the brother of Rod Blagojevich last October to tell him of a proposal to appoint Jackson to the Senate seat. The proposal was that Jackson would raise $5 million for Blagojevich after his appointment and the Indian community, through the efforts of Raghuveer Nayak, would raise another $1 million. Nayak made another, similar approach. Sources say that Bedi's approach to Blagojevich was to convey what Nayak could do for the now ex-governor. Sources say Nayak represented himself as a Jackson representative. Jackson denied he allowed Nayak to make any pay-to-play overtures.
Bedi resigned after Gov. Quinn told him he'd likely be fired by the end of the month.
Former Gov. Blagojevich, who pleaded not guilty to charges yesterday, hired Bedi back in 2003.

There's been a few new disclosures about U.S. Rep. Jesse Jackson Jr. and the Senate seat appointment that's under federal scrutiny, but today the Sun-Times makes a new revelation.
Two donors told the Blagojevich camp that Jackson himself would raise campaign cash in exchange for the Senate seat appointment -- to the tune of $5 million. The donors would kick in another $1 million to Blagojevich if Jesse Jr. were appointed, according to sources.
There's no indication of Jackson's involvement in this alleged pledge. He would not comment for the article.
One of the reported conversations took place Oct. 31, when a Jackson longtime supporter and Blagojevich donor approached Robert Blagojevich
According to the indictment, Robert Blagojevich, who headed the ex-governor's campaign fund, talked with his brother the next day on the phone to give him an update on fund-raising with Jackson's supporters.
The Blagojevich brothers are both charged with wire fraud because of that conversation.

Me on Mancow

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I will be a guest on the Mancow and Cassidy morning show today at about 9:30 a.m. to talk about the Sun-Times' coverage of U.S. Rep. Jesse Jackson Jr.
Tune in! WLS 890 AM

JESSE JACKSON JR. BREAKS HIS SILENCE

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After not responding to requests for comment for days, U.S. Rep. Jesse Jackson Jr.
acknowledged today he is under scrutiny by a House ethics panel, saying: "I have done nothing wrong."
His comments come after the Sun-Times first reported Tuesday that Jackson's efforts to secure President Obama's vacant U.S. Senate seat are being reviewed in a congressional inquiry.
He said today he is cooperating in the probe -- and is confident it will be dismissed.
"I am cooperating fully with the preliminary review being conducted by the Office of Congressional Ethics (OCE)," Jackson said in a statement released by his office. "I was notified last week about the inquiry and am eager to answer any questions and provide any information to the OCE about my actions related to last year's vacant Senate seat."
Jackson's statement is his first on the topic, despite repeated requests for comment in previous days.
"As I said when the [Rod] Blagojevich scandal first broke back in December, I have done nothing wrong and reject pay-to-play politics," Jackson said. "I'm confident that this new ethics office -- which I voted in favor of creating -- will be able to conduct a fair and expeditious review and dismiss this matter."
Jackson has been tough to get a hold of lately. The Sun-Times sought to get a comment from Jackson last week and Monday in response to a different story that ran Tuesday -- that Jackson was interviewed by federal authorities.
We were able to reach Jackson's wife, the 7th Ward Ald. Sandi Jackson, and his father -- the Rev. Jesse Jackson -- but neither congressman Jackson, his attorney nor his spokesman would comment.

Natasha Korecki

Natasha Korecki is the Federal Courts Reporter for the Chicago Sun-Times, covering federal news, corruption investigations and trials.

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