Blagojevich, aide arrested by FBI for corruption, conspiracy

A U.S. Senate seat.

Wrigley Field.

Millions of state dollars for sick children.

State contracts and legislation.

To Gov. Rod Blagojevich, all of it was for sale to the highest bidder as he sought to build his personal wealth and maintain political power, federal prosecutors say.

"Gov. Blagojevich has taken us to a truly new low," U.S. Attorney Patrick Fitzgerald said in announcing two felony counts against the sitting governor.

The 51-year-old, two-term governor was arrested early Tuesday morning and bonded out in the afternoon, leaving the federal courthouse flanked by his state security team as top Illinois politicians called on him to resign - or at least, in the words of his lieutenant governor, Patrick Quinn, to "step aside" - as well as debated impeachment and moved to strip him of certain powers.

Blagojevich's chief of staff, John Harris, was arrested and also charged with wire fraud and bribery, which can bring a maximum of 30 years in prison.

Blagojevich's attorney, Sheldon Sorosky, told reporters the governor "believes that he didn't do anything wrong and he asks that the people of Illinois have some faith."

The governor's office issued a statement saying the "allegations do nothing to impact the services, duties or function of the state."

The charges stem from years of investigation, dating back to Blagojevich's first run for governor in 2002, which culminated in a month of wire taps on Blagojevich's home phone and campaign office on Chicago's North Side.

Transcripts of the recordings show the governor apparently juggling multiple illegal schemes, including:

• Auctioning off President-elect Barack Obama's vacant Senate seat for campaign cash, a lucrative job, a federal appointment or well-paid work for his wife.

• Strong-arming massive campaign donations from a horse racing insider seeking legislation for racetracks, a state highway contractor and the executive director of Children's Memorial Hospital hoping for an $8 million state grant.

• Prevailing upon Chicago Tribune executives to fire editorial board members who have been critical of Blagojevich in exchange for state help selling Wrigley Field.

Fitzgerald said the expletive-laden recordings of the governor, his staff and his wife so rattled prosecutors that they decided to move forward with charges abruptly to stop what Fitzgerald called a "political corruption crime spree."

Wiretaps were still running on the governor as recently as last week.

The criminal complaint filed Tuesday paints the picture of a governor jumping from phone calls to staff meetings to plot how to wring personal gain from taxpayer money and his public authority.

Blagojevich is repeatedly quoted in the complaint as voicing concern about making a large salary after leaving office, raising campaign cash, avoiding impeachment and even remaking his tarnished image for a presidential run in 2016.

The rampant corruption allegedly carried on despite the conviction of former Gov. George Ryan - whom Blagojevich vilified in his campaigns - the recent conviction of a key Blagojevich fundraiser, Antoin "Tony" Rezko, and numerous well-known ongoing investigations of the governor's office.

"You might have thought in that environment that pay-to-play would slow down," Fitzgerald said. "The opposite happened; it sped up."

The secret recordings of Blagojevich are sure to act as the cornerstone of any future trial of Blagojevich, though one is not expected for months.

Of the charges, Fitzgerald called Blagojevich's alleged move to sell Obama's old Senate seat the "most appalling."

Blagojevich still has the sole power to appoint someone to fill Obama's remaining two years in office, but Senate President Emil Jones Jr. is now moving to strip him of that authority and hold a special election instead.

On Election Day, Blagojevich is recorded saying he would like an ambassadorship in exchange for appointing someone Obama favors. He also theorizes about an appointment as Obama's secretary of health and human services, the criminal complaint says.

A few days later, his comments turn to landing his wife a lucrative corporate job, raising significant campaign cash or putting himself into a union position that could pay up to $300,000 a year, the criminal complaint says.

The governor also considered appointing himself to the spot to avoid impeachment at the state level, the complaint says. In several instances, the governor is recorded as saying that he doesn't want to fill out the remaining two years in his own term.

"I got this thing and it's (expletive) golden, and, uh, uh, I'm just not giving it up for (expletive) nothing. I'm not gonna do it. And, and I can always use it. I can parachute me there," Blagojevich is recorded as saying to an adviser the day after Obama won the presidency.

At one point, Blagojevich floats the idea of landing a job with a major union that could then win favors from Obama, the complaint says.

Fitzgerald stressed in his news conference that there are no allegations of wrongdoing involving Obama. He declined to answer questions about whether Obama or his staff had been questioned by the FBI or federal prosecutors.

"We make no allegations that he is aware of anything," Fitzgerald said.

The Senate appointment still hangs in the air, as does other state business Blagojevich was allegedly perverting for personal gain.

Another leg of the prosecution's case rests on allegations the governor was pushing to rake $2.5 million into his campaign fund from businesses that rely on the state before a new ethics law takes effect.

Fitzgerald said many of those contributions were to come from strong-arm tactics. For example, sitting on the governor's desk is legislation to funnel casino taxes to racetracks. Prosecutors allege Blagojevich wanted a lobbyist to donate $100,000 to his campaign fund before he would sign the legislation into law.

Children's Memorial Hospital also is still waiting for an $8 million grant from the state. Blagojevich is recorded as asking his staff to see if the grant could be pulled because the hospital's CEO didn't donate $50,000 to his campaign fund, according to court documents.

In another case, Blagojevich is accused of trying to get $500,000 in campaign cash from a highway contractor who stood to gain from the tollway's new $1.8 billion "Green Lanes" project, which will reserve a lane of traffic for carpoolers and those willing to pay higher tolls.

The FBI has a list of other individuals and companies who it says were targeted by Blagojevich and his operatives for campaign cash.

Fitzgerald stressed in his news conference that the investigation is still ongoing and he made a public appeal for sources to come forward.

"What we really need is cooperation from people who are not in law enforcement - the people outside who heard or saw things," Fitzgerald said.

Former Gov. Jim Thompson, who defended Ryan and recently represented Blagojevich, told the Daily Herald he thought Tuesday's charges were just the start.

"My guess is this is just the opening salvo," Thompson said.

Since his election as a reformer, federal investigations and the bad press that followed have dogged the governor. As part of the criminal complaint, Fitzgerald also alleges Blagojevich sought to get revenge against members of the media who criticized him.

Blagojevich is recorded in several conversations with staff members discussing how to get Chicago Tribune executives to fire editorial board members in exchange for helping the company sell Wrigley Field.

"Our recommendation is to fire all those (expletive) people, get 'em the (expletive) out of there and get us some editorial support," Blagojevich is recorded as saying to Harris.

That phone call occurred on Election Day, the same day Blagojevich is recorded telling Harris he plans to shop around the Senate appointment like a sports agent would pitch a free agent to various teams, the complaint says.

The arrest

At first, Blagojevich thought it was all a joke when FBI agents came to his door at about 6 a.m. Tuesday.

FBI Chicago chief Robert Grant said he called Blagojevich to ask him to step outside in order to "do this quietly, without the media finding out about it, without waking the children."

"I woke him up, so the first thing was, was this a joke?" Grant said. "He tried to make sure this was an honest call."

He said the governor cooperated and was handcuffed.

At his afternoon bond hearing, Blagojevich appeared wearing tight black jogging pants, a black-and-blue sweatshirt and gym shoes. Harris was in a full suit and tie. Both men were given a $4,500 signature bond and released. Blagojevich will have to surrender his passport.

Blagojevich didn't talk openly in court except to say "Yes" to the judge's routine questions. He glanced around the room full of reporters and, after the hearing, sought out Assistant U.S. Attorney Carrie Hamilton. He shook her hand, talked quietly to her, laughed, patted her back and walked out the courtroom's side door.

A subsequent hearing date has not yet been set. But calls for the governor's resignation and moves to strip him of his power are expected to grow only louder in the coming days and weeks.

Numerous statewide officials including the lieutenant governor and attorney general urged him to step down from office. Lawmakers announced they'd return to the Capitol on Monday with plans of passing legislation would remove the governor's authority to name a U.S. Senate replacement and possibly consider impeachment proceedings.

"Today's events are shocking and disappointing," said House Speaker Michael Madigan, a Chicago Democrat. "It represents a new low for conduct by public officials." Madigan's sentiment echoed the sentiments of federal investigators.

In reflecting on the scope of the charges and the systemic corruption displayed in multiple levels of Illinois government in recent years, Grant said of the crimes alleged of the governor: "If (Illinois) isn't the most corrupt state in the United States, it is certainly one hell of a competitor. Even the most cynical agents in our office were shocked."

• Daily Herald staff writers Robert McCoppin and Lee Filas contributed to this report.

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