Another guilty plea in Blago investigation

COURT | Hurtgen admits helping hospital scheme

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February 25, 2009

BY TIM NOVAK AND CHRIS FUSCO Staff Reporters

The U.S. attorney's investigation of former Gov. Rod Blagojevich's administration has netted another conviction.

P. Nicholas Hurtgen -- a former Bear Stearns investment banking executive in Chicago and onetime top aide to former Wisconsin Gov. Tommy Thompson -- pleaded guilty Wednesday to aiding and abetting a criminal scheme that aimed to defraud Illinois taxpayers.

Hurtgen's 2005 indictment was among the first in the government's Operation Board Games probe, which has led to convictions of several Blagojevich insiders, including top adviser and campaign fund-raiser Tony Rezko and Stuart Levine, who was a member of the Illinois Health Facilities Planning Board.

Hurtgen, 46, of Glencoe, faces up to three years in prison but could get as little as 22 months based on his "continuing cooperation" in the probe, Assistant U.S. Attorney Kaarina Salovaara said. Hurtgen won't be sentenced until he finishes working with the government.

Hurtgen pleaded guilty to helping Levine and construction magnate Jacob Kiferbaum in a failed scheme to shake down executives from Edward Hospital in Naperville who wanted the state agency's approval to build a new hospital in Plainfield and a new medical building in Naperville.

Levine -- who ended up pleading guilty to corruption charges and testifying against Rezko -- was a key member of the state board, whose approval is needed for all hospital construction.

Kiferbaum was to pay Levine a kickback if the shakedown scheme worked. Hurtgen hoped his company would be picked to finance tens of millions of dollars in Edward construction.

But Levine and the board refused in 2003 and 2004 to approve Edward's projects when the hospital didn't hire Kiferbaum as its contractor.

Hurtgen was a conduit between Edward executives and Levine and Kiferbaum. On several occasions, Hurtgen relayed to hospital officials that Levine would block Edward from getting health board approvals unless the hospital hired Kiferbaum.

Many of Hurtgen's statements were caught on tape after Edward's chief executive, Pamela Meyer Davis, helped the FBI secretly record conversations involving Hurtgen.

Hurtgen's lawyer, Ronald Safer, previously had said his client was a minor player.

But U.S. District Court Judge John Grady disagreed, saying Wednesday: "It seems to me Mr. Hurtgen's role was very important. It enabled Mr. Levine to keep his nose clean."

Kiferbaum and Levine -- a Blagojevich appointee -- have pleaded guilty and are awaiting sentencing.