Prosecution: Suburban fundraiser was for Jackson appointment

Faced with difficulty getting donations for a governor already under suspicion, a leader in the local Indian-American community designed a two-part fundraiser: a glad-handing lunch with Rod Blagojevich at the India House restaurant in Schaumburg in October 2008, then another event in Elmhurst in early December.

Prosecutors in Blagojevich's corruption trial attempted to depict it as a deal to trade campaign contributions for Jesse Jackson Jr. being appointed to the U.S. Senate.

Yet the testimony by Rajinder Bedi, 57, of Chicago, was severely curtailed Wednesday by defense objections about hearsay, and the jury was left to piece it together.

Bedi, a fundraiser in Rod Blagojevich's 2002 gubernatorial campaign who then received a top Asian-Pacific trade post in the state Department of Commerce and Economic Opportunity, testified under immunity that he agreed to raise funds for the governor in 2008. But "it was getting harder to convince people to donate money," because of newspaper reports about a federal corruption probe and because Blagojevich had snubbed the Indian-American community over a series of events.

When a September 2008 fundraiser fell through, Bedi developed the two-part plan, culminating with the Elmhurst event just days before federal agents arrested Blagojevich.

Bedi testified that Raghuveer Nayak of Oak Brook, his "very good friend" of 30 years and a contributor to both Blagojevich and U.S. Rep. Jackson, was interested in getting Jackson appointed to the U.S. Senate seat to be vacated by Barack Obama. Bedi testified they met with Jackson the morning before Bedi was to have a meeting with Robert Blagojevich, the former governor's brother.

The Blagojevich defense raised hearsay objections, and - with the jury removed - Assistant U.S. Attorney Christopher Niewoehner stated that Bedi was about to testify that Nayak would offer to raise $1 million for Blagojevich in exchange for the Jackson appointment.

"That is the heart of our case," Niewoehner said. "They understood there's that offer on the table."

Michael Ettinger, attorney for Robert Blagojevich, argued that was hearsay, and Rod Blagojevich defense attorney Aaron Goldstein raised objections that Nayak was an available witness the government was apparently reluctant to call. "It's an end-around," he said. "We can't cross-examine."

Judge James Zagel allowed Bedi to testify that "Nayak is very good at raising money, and he is very interested in getting the Congressman appointed," but not to go into detail.

The prosecution was left to string together a rapid-fire series of wiretapped phone calls that depicted the Blagojeviches scheming about the seat. Robert passed on to Rod that "there would be some accelerated fundraising on your behalf" if he appointed Jackson.

"We were coached pay-to-play," Rod Blagojevich said on one tape. "One guy would raise $500,000, another guy a million for making him senator."

On cross-examination, Ettinger attempted to make much of how Robert Blagojevich originally told Bedi, "My brother will never appoint (Jackson) to the U.S. Senate seat."

But Rod Blagojevich was later taped saying he was "clueless" to have ruled Jackson out earlier, and "I'm (expletive) elevating him now" in early December, only days before his arrest.

In fact, news reports, showed to the jury, that revealed Blagojevich was being taped and that fundraiser John Wyma was cooperating with the investigation are what derailed what seemed to be the imminent appointment, with Rod Blagojevich saying, "It's too obvious right now."

Bedi faces cross-examination from the ex-governor's defense team Thursday.

Also on Wednesday:

•Suburban pavement executive Gerald Krozel wavered slightly on exactly when the governor told him an expanded tollway construction project would be announced.

Yet in the end he left no doubt that he believed it was linked to campaign contributions to be received by Blagojevich by the end of 2008, before a new ethics law was to take effect.

"It was obvious," said Krozel, of Willowbrook, former vice president of Bridgeview-based Prairie Material, a concrete, asphalt and pavement company that figured to benefit from the project. "He never said it, but it was obvious there was a connection."

Goldstein did his best to get Krozel to admit there was no direct quid pro quo exchange of campaign contributions for the proposed expanded tollway project, and he shook Krozel on just when Blagojevich supposedly said a $1.8 billion project was to be expanded to $6 billion in January 2009.

Yet Krozel maintained his testimony.

"You never felt pressure from Rod Blagojevich, did you?" Goldstein said.

"I sure did," Krozel replied, and the same went for his dealings with Blagojevich fundraiser Alonzo Monk in late 2008, before their arrest in December. "When somebody asks you continually about money, you feel pressured," he added.

•The court also heard testimony from Sean Conlon, a Chicago realtor who pointed to another "phantom" commission earned by Patti Blagojevich in 2003 and apparently manipulated by former Blagojevich fundraiser Tony Rezko as a form of kickback to the governor.

Rod and Robert Blagojeviches are facing 24 counts of racketeering, extortion, bribery and conspiracy. The prosecution has said it intends to rest its case some time next week.