Former banker pleads guilty in Naperville hospital fraud
A politically connected former investment banker has admitted telling the CEO of Edwards Hospital in Naperville that she had to hire a contractor favored by former Gov. Rod Blagojevich if she wanted a government contract.
P. Nicholas Hurtgen, 46, a key figure in the long-running federal investigation of corruption in the Blagojevich administration, entered his plea to aiding and abetting wire fraud in an appearance before U.S. District Judge John F. Grady.
Hurtgen's 23-page written plea agreement stopped short of outlining details of why Blagojevich wanted contractor Jacob Kiferbaum hired. Kiferbaum pleaded guilty to extortion in a related case in June 2005 and admitted Levine was to get a kickback from him in the Edward hospital deal.
Hurtgen said he told Edward Hospital's chief executive that she didn't want to know why Blagojevich and millionaire political contributor Stuart Levine wanted Kiferbaum to get the job, but that it was "all about money" for campaign contributions.
Hospital CEO Pam Davis was not identified by name in the plea agreement, but she has been strongly praised by the FBI and others for serving as an undercover witness during the investigation.
Naperville-based Edward Hospital had wanted to build a new hospital and medical building in Plainfield but required a certificate of need from the Illinois Health Facilities Planning Board before it could start construction.
Levine testified at last year's fraud trial of political fixer Tony Rezko, a major Blagojevich fundraiser, that Rezko had stacked the planning board with individuals who would obediently vote as directed by Rezko and Levine.
Hurtgen, former manager of the Chicago offices of the Bear, Stearns investment house, admitted telling the hospital chief he was contacting her on behalf of Levine, who as a member of the board was not allowed to speak with her about a request for a certificate of need.
Hurtgen said that in return for working with Levine and the board to get Edward's project approved he wanted Bear, Stearns to handle the financing.
The decision by Hurtgen, also a one-time aide to former Wisconsin Gov. Tommy Thompson, to plead guilty furnished federal prosecutors with a new potential witness in their investigation of Blagojevich, who was impeached and ousted after being charged in a criminal complaint with an array of crimes including scheming to sell the U.S. Senate seat left vacant by President Obama's election.
Hurtgen promised to cooperate with the investigation in return for a lenient 22.5 month sentence. Grady could still reject that deal, in which case Hurtgen would be free to withdraw his plea.