OW'-chee! AP Exclusive: Indicted Blagojevich fundraiser got loan from Iraqi

The AP today.

Governor Rod Blagojevich's chief fundraiser has arranged to get a loan from the same Iraqi billionaire whose $3.5 million payment got another member of the governor's inner circle thrown in jail.

Christopher Kelly headed Blagojevich's campaign fund in both of his races for governor and is now under federal indictment.

State records reviewed by The Associated Press show that Kelly pledged all of his shares in a Nevada land partnership as collateral for a loan from a company headed by Nadhmi Auchi (OW'-chee).

Ok, I'll skip the obvious speculation... but just tell me with Romney talking like this today, how this mess from Illinois isn't going to ruin Democrats in 2008.

I disagree with Senator McCain on a number of issues, as you know. But I agree with him on doing whatever it takes to be successful in Iraq, on finding and executing Osama bin Laden, and on eliminating Al Qaeda and terror. If I fight on in my campaign, all the way to the convention, I would forestall the launch of a national campaign and make it more likely that Senator Clinton or Obama would win. And in this time of war, I simply cannot let my campaign, be a part of aiding a surrender to terror.

What an albatross Illinois politics has become.

Update: more here.

Update 2 even more: Gov insiders to testify at Rezko trial.

Insiders from Gov. Blagojevich’s administration will testify in the upcoming fraud trial of political fund-raiser Tony Rezko that Rezko was “one of a handful of extremely powerful political leaders” who had “significant influence” on gubernatorial appointments, according to a new federal court filing.

The document shows in the most detail yet how deeply federal investigators are probing into the inner workings of the governor’s office.
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The case has drawn national attention because of Rezko’s fund-raising ties to Democratic presidential contender Barack Obama, who was involved in a real estate transaction with Rezko’s wife at a time in 2006 when Rezko was widely known to be under federal investigation.