Chicago devloper pleads guilty in murder-for-hire case

DENVER — A Chicago developer accused of flying to Denver to arrange the murder of a business associate pleaded guilty Thursday to one charge in exchange for others being dropped.

Brooks Kellogg, 72, entered the plea in U.S. District Court to charges of interstate travel with intent that murder be committed, which carries a maximum penalty of 10 years in prison. Prosecutors agreed to drop four other charges and recommend a maximum of six years in prison when the part-time Steamboat Springs resident is sentenced June 30.

Kellogg, who has no previous criminal record, faced up to 20 years in prison if convicted of all five charges handed up in an indictment in February.

FBI agents said he flew from Chicago to arrange the murder of Stephen Bunyard of Destin, Fla. He was arrested Oct. 19 at Denver International Airport after he gave $2,000 for expenses to an FBI agent posing as a hit man, the FBI said.

Bunyard had settled a lawsuit in a soured land deal with Kellogg and his company him for $2.5 million. He did not immediately return a message left by The Associated Press.

Kellogg told U.S. District Judge Christine M. Arguello that he “met with an undercover FBI agent and presented him with $2,000 that he had asked for to go ahead and hurt or kill Steve Bunyard.”

Asked by Arguello whether he was guilty, Kellogg replied: “I am, your honor.”

Kellogg’s attorneys previously asked Arguello to dismiss the charges, alleging outrageous governmental misconduct because the FBI relied on copies of emails and instant messages provided by Barbara Blackmore of Clifton, Colo., who was described in court documents as Kellogg’s mistress.

Blackmore, who has a felony criminal history, also placed a call to Kellogg that was monitored by FBI agents.

Blackmore tipped off Bunyard’s Steamboat Springs attorney, who then notified authorities. When contacted by the FBI, Blackmore asked for new Social Security numbers for herself and a son, along with placement in a witness protection program for her cooperation in the investigation.

Kellogg attorney Dru Nielsen alleged in court documents that Blackmore made up the murder-for-hire plot and provided information to the FBI in an effort to start her life over with her criminal history wiped clean by a new identity.

A number listed for Blackmore in Clifton, Colo., was disconnected Thursday. She previously told the Steamboat Pilot & Today: “I’m not what the press has made me out to be.”

“If this were to go to trial, we would argue the illegality of the government’s conduct,” Larry Pozner, another Kellogg defense attorney, told Arguello in court.

He said that he advised Kellogg that the plea negotiations were in his best interest.

Assistant U.S. Attorney Robert M. Brown dismissed Kellogg attorneys’ arguments in court documents, saying that Kellogg confirmed that he wanted Bunyard killed during the meeting with the undercover FBI agent at the Denver airport.

Brown also said that time was of the essence and that FBI agents couldn’t wait for a time-consuming process of checking computer records if Bunyard’s life was under threat, especially if Kellogg searched elsewhere for a contract killer.

“To do otherwise would be considered outrageous, had harm to the victim resulted,” Brown said.

Brown declined to comment after Thursday’s hearing.

A key piece of evidence, a recording of the conversation between Kellogg and the undercover FBI agent was missing from the case. An agent monitoring the recording device failed to operate it properly, according to court documents.

U.S. attorney spokesman Jeff Dorschner said FBI agents who were monitoring the conversation would have been called to court to testify about what Kellogg said at the airport.