More indictments in probe of gov's inner circle
Suburban businessman Chris Kelly, a former fundraising chief for Gov. Blagojevich and the governor’s one-time emissary on state gaming issues, was indicted today on charges he ripped off the tax man by allegedly concealing his use of his company’s money to pay debts to bookmakers and Las Vegas casinos — where he gambled millions of dollars.
Kelly’s indictment was one of three announced today by the U.S. attorney’s office in Chicago as it continued its widening probe of the governor’s inner circle.
(Brian Jackson/Sun-Times)
Also indicted in a separate case was Abdelhamid Chaib, a business partner of another top Blagojevich fundraiser, Tony Rezko. Chaib, 53, of LaGrange Park, was accused of taking part in a phony scheme with Rezko to get a $2.6 million loan.
The feds re-indicted a former top executive in the Chicago office of Bear Stearns & Co., P. Nicholas Hurtgen, who was charged with helping shake down a suburban hospital needing state approval for an expansion. A federal judge earlier threw out the case against Hurtgen, 44, of Glencoe, but the feds provided additional detail in their charges today to try to pass muster with the judge.
The series of indictments, released in one fell swoop, ratchets up the pressure to cooperate on individuals who are charged or under investigation in the federal probe.
Today’s marquee defendant was Kelly, 49, of Burr Ridge, a close friend of the governor, who is accused of understating his business and personal income from 2000 to 2005 by more than $1.3 million.
The Sun-Times first reported Sunday that the feds were investigating Kelly regarding his taxes and gambling losses.
Today, the governor released a brief statement on the Kelly indictment, saying: “Chris Kelly is my friend.”
“I am saddened to hear these allegations about Chris’ personal life,” the statement continues. “I know the pain it must be causing him and his family. My thoughts and my prayers are with them during this difficult time. In fairness to Chris, I believe it is important to let the legal process play out and not rush to judgment.”
The governor’s comments come in sharp contrast to the statements he made regarding Kelly in an interview with the Daily Southtown in October last year.
In that interview, Blagojevich said he was “confident” Kelly would not be indicted. The governor sought to distance himself from Rezko in that interview and emphasized his closeness with Kelly.
“Chris and I are much closer,” Blagojevich said, according to a transcript of the interview. “That's someone I talk to a lot more frequently.”
Spokesmen for the governor’s office and campaign did not immediately return phone calls today.
The governor’s campaign has received $212,000 in contributions from Kelly’s roofing and consulting companies, and it remains unclear if the governor will return the money.
Kelly had the roofing company he owns, BCI Roofing, pay gambling debts to two bookmakers, with whom he wagered milions of dollars, according to the feds. In one instance, Kelly allegedly hid the payment by disguising it as a loan from his company to one of the bookmakers.
In another case, Kelly had his roofing company pay off a gambling debt to a casino by having his company prepare a phony document to make it appear as if the expense came from part of a roofing contract for an airline, according to the indictment.
Kelly also allegedly had the company pay for personal items at his home, including electronics, hardwood floors, draperies and lawn maintenance.
Kelly allegedly would use an unnamed friend to help wash money by making out business checks to the pal, who would then cash them and return the money to Kelly. Kelly also made out one check to the friend’s 4-year-old as well as Kelly’s own children, according to the indictment.
The indictment against Kelly is expected to give fuel to critics opposed to the current proposal to expand gambling in the state — an idea the governor has supported.