Governor's fundraiser pleads not guilty

Gov. Rod Blagojevich's chief campaign fundraiser pleaded not guilty Friday to federal tax charges and was allowed to stay free on bond provided he gets treatment for a gambling problem.

Christopher Kelly, 49, a roofing contractor who was Blagojevich's chief fundraiser in both of his campaigns for governor, appeared before U.S. Magistrate Judge Sidney I. Schenkier to enter his not guilty plea.

Kelly was charged in a federal indictment Dec. 13 with 11 counts of making false statements to the Internal Revenue Service, each with a maximum sentence of three years, and one count of illegally structuring a bank transaction to avoid scrutiny by federal officials.

The structuring count carries a five-year maximum, and all 12 counts carry a possible fine of $250,000 each.

The indictment included allegations that Kelly, who once served as Blagojevich's point man on Illinois gambling issues, used company money to pay gambling debts to Las Vegas casinos and Chicago-area bookies.

Schenkier included gambling treatment for Kelly as one of the conditions of bond. He was released on his own recognizance but would have to surrender the $4,500 amount of the bond if he didn't show up for court.

Defense attorney Michael Monico declined to comment after court when asked about his client's dual status as a onetime gambling-issue spokesman and a man who apparently suffers from a gambling problem. The government said Kelly made millions of dollars in bets in Las Vegas and with bookies.

As he did last week, Monico said Kelly had paid "millions of dollars in taxes" and that when all the facts are known, the evidence will show that his client doesn't owe any additional money to the government.

Kelly is not charged with any form of political corruption.

But the charges come as the government is preparing for the racketeering and fraud trial of another key Blagojevich fundraiser, real estate developer and fast-food entrepreneur Antoin "Tony" Rezko.

Rezko and Kelly were both part of Blagojevich's inner circle and not only raised funds but advised the governor on staffing his administration.