Giannoulias wants no part of Blagojevich circus

Representatives for U.S. Senate hopeful Alexi Giannoulias distanced their candidate from Rod Blagojevich on Sunday, saying that he was "not really a part of this circus" despite being subpoenaed by the former governor's attorneys to testify at his corruption trial.

Giannoulias said Sunday that he introduced a friend of President Barack Obama's to a union official. The friend, Valerie Jarrett, allegedly was Obama's choice to replace him in the Senate after he was elected president.

Prosecutors say Blagojevich sought favors from the White House in return for Jarrett's appointment and delivered the message through the union official, Tom Balanoff.

Blagojevich has pleaded not guilty to charges of trying to sell or trade the appointment to the Senate seat.

Democrat Giannoulias, currently state treasurer, is locked in a contentious race for Obama's old seat with Republican Congressman Mark Kirk.

A statement released Sunday by Giannoulias' campaign office said he made no secret that he thought Jarrett "would make a terrific senator."

The statement confirmed that Giannoulias arranged a meeting between Balanoff and Jarrett, and that he attended that meeting but was not an active participant.

"He never spoke to the President or the former governor about anything related to it. Still, as with dozens of others from the President on down, the former governor's defense team contacted Alexi's attorney as part of what can only be described as a wide-ranging defense strategy," the statement read.

"As has been clear for some time, but especially as the trial has unfolded, Alexi is not really a part of this circus," the statement read.

But Kirk spokeswoman Kirsten Kukowski released a statement Sunday saying Blagojevich's subpoena emphasizes a troubling pattern emerging with Giannoulias.

"As state treasurer, Giannoulias lost more than $70 million in Bright Start college savings funds and his family's bank cost the FDIC nearly $400 million in losses. Now we've learned Giannoulias' name has come up on federal wire taps talking about the Illinois Senate seat and he has been subpoenaed in former and disgraced Governor Rod Blagojevich's public corruption trial," the statement read.

Kukowski questioned what Giannoulias heard and said during the meeting he brokered between Balanoff and Jarrett.

"Why would Tom Balanoff need Alexi Giannoulias to reach Valerie Jarrett if Balanoff had a direct line to the President-elect?" Kukowski said.

Kukowski said there are many questions surrounding that meeting that remain unanswered including whether Balanoff agrees with Giannoulias' version of events.

Giannoulias' name was mentioned briefly last week during Blagojevich's trial. Former Blagojevich chief of staff John Harris was heard on federal wiretaps mentioning that Giannoulias had called about Obama's old seat on behalf of someone else.

Blagojevich, 53, has pleaded not guilty to charges that he schemed to get a large payoff, a high-paying job after he left office or a big campaign contribution in exchange for the Senate seat. He also has pleaded not guilty to conspiring to launch a racketeering scheme using the power of the governor's office.

If convicted, he could face up to $6 million in fines and a sentence of 415 years in prison, although he is certain to get much less time under federal guidelines.

"Tom Balanoff reached out to me to get in touch with Valerie because he didn't know how to get ahold of her, and I put the two of them together," Giannoulias told the Associated Press.

He said he also attended an informal meeting between Jarrett and Balanoff sometime after Obama's election but "didn't really participate in it."

"I thought she would make a terrific senator so I wanted to be helpful," Giannoulias said.

Last week, prosecutors at Blagojevich's trial played an FBI tape on which Harris is heard telling the governor that the Obama camp sent word that it would be "thankful and appreciative" if Jarrett were appointed to the Senate seat. Jarrett, a Chicago businesswoman and former aide to Mayor Richard M. Daley, was a longtime Obama family friend.

Blagojevich had allegedly sent word through Balanoff that he would appoint Jarrett if Obama agreed to appoint him as secretary of health and human services.

He apparently took the words "thankful and appreciative" as a sign that the Obama camp didn't want such a deal. Jarrett later withdrew her name and is now a White House adviser. Blagojevich named former Illinois Attorney General Roland Burris to the Senate.

• Daily Herald Staff Writer Madhu Krishnamurthy contributed to this report.