Showing posts with label indictments. Show all posts
Showing posts with label indictments. Show all posts

Tuesday, September 08, 2009

Chris Kelly pleads guilty to O'Hare scheme

By Bethany Jaeger
Christopher Kelly, a close adviser and fundraiser for former Gov. Rod Blagojevich, pleaded guilty today to two counts of mail fraud in one of three federal indictments against him. But it's unknown whether he's cooperating in the ex-governor's ongoing corruption trial.

Read his plea agreement here. The Burr Ridge resident reports to jail September 18 and will forfeit $450,000 for a scheme of rigging roofing contracts with two major airlines and using illegal kickbacks for personal use. On top of a three-year prison sentence for a separate tax fraud case, his plea Tuesday calls for a nearly five-year sentence.


Kelly pleaded guilty to rigging bids to steer $8.5 million in inflated contracts for roofing work done on American Airlines and United Airline facilities at O’Hare International Airport between 1998 and 2006. The scheme benefited BCI Commercial Roofing Inc. in Markham, of which he is president and owner.

About $1 million of the kickbacks went to repay gambling debts and a home loan, according to the plea. Some of the kickbacks also went to entities associated with Tony Rezko.

Kelly originally was charged with 11 counts of mail fraud and six counts of money laundering for the scheme.


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Thursday, April 02, 2009

ICPR AND REFORM LEADERS REACT TO BLAGOJEVICH INDICTMENT

Cross posted from ICPR's blog, The Race is On:

Cynthia Canary, Director of the Illinois Campaign for Political Reform, issued the following statement:

“Rod Blagojevich was elected and then reelected governor based on the promise that he would reform and renew state government, but his government was more like an overloaded, malfunctioning sewage system. Now, it’s up to the elected leaders in Springfield to respond to the demands of the citizens of Illinois and clean up this mess. They should start by addressing the free flow of big campaign contributions from special interests. Limited campaign contributions and strong oversight of the campaign finance system would give the people of Illinois reason to believe their elected leaders are serious about changing the culture of corruption.”


Kent Redfield, Director of the Sunshine Project at the University of Illinois, issued the following statement:

“The political system in Illinois is broken and has been for decades. Removing Rod Blagojevich from office by impeachment and putting him on trial in a federal courtroom may teach him a lesson, but it will not reform Illinois. Major changes are required in the way Illinois polices lobbying and openness of government. But the first and most important change needed is to enact reasonable limits on the size of campaign contributions and strong enforcement of campaign finance laws.”

The CHANGE Illinois coalition released this statement:

Leaders of the CHANGE Illinois! coalition on Thursday said the federal criminal indictment of former Gov. Rod Blagojevich has done additional damage to the state’s reputation and urged state legislators to act quickly to enact limits on campaign contributions.

“Rod Blagojevich is just the latest in a very long list of officeholders who have disgusted and disappointed the voters of Illinois,” said Peter Bensinger, a co-chair of CHANGE Illinois! and a former Administrator of the U.S. Drug Enforcement Agency. “This should be a wake-up call to state legislators in Springfield. Open your eyes to the need for real reform and vote to limit how much anyone can contribute to political campaigns.”

CHANGE Illinois! is a coalition of civic, business, professional, non-profit and philanthropic organizations aligned to bring government integrity to Illinois, and the coalition is calling for replacing the state’s unregulated campaign finance system with one modeled after the contribution limit system in place for federal elections and in almost all other states.

“How many more public officials have to go to prison before the people we send to Springfield get serious about campaign finance reform?” asked Deborah Harrington, a co-chair of CHANGE Illinois! and President of the Woods Fund of Chicago. “Illinoisans deserve fair and honest government, and voters must demand change in the way all elections are funded.”

CHANGE Illinois! has opened a toll-free hotline (1-800-719-3020) allowing voters to call their legislators and register their support for campaign contribution limits.

CHANGE Illinois! will hold a rally for reform outside the James R. Thompson Center, 100 W. Randolph St., Chicago, at 10 a.m. Thursday, April 9.

“The charges detailed in the Blagojevich indictment are repugnant, and the international headlines are going to cause corporations around the world to think twice about doing business here,” Bensinger said. “We need to restore the public’s faith in government and demonstrate to investors that reform will replace pay-to-play as the dominant force in Illinois politics.”

For additional information about CHANGE Illinois! and a list of member organizations, go to www.ChangeIL.org.

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Thursday, February 05, 2009

Chris Kelly indicted again

Christopher Kelly, a former campaign manager to former Gov. Rod Blagojevich, received another federal indictment today, this time alleging he rigged roofing contracts with two major airlines to pay for gambling debts and a house, among other things.

We wrote about him a little more than a year ago, when his first indictment said he used corporate funds from his roofing and consulting firms to pay illegal gambling debt and bookies.

The most recent indictment says he allegedly funneled more than $1.18 million in proceeds from fraudulent contracts (see U.S. Attorney Patrick Fitzgerald's news release here). He’s the president and owner of a roofing firm, which allegedly rigged bids to steer $8.5 million in “inflated contracts” for roofing work done on American Airlines and United Airlines facilities at O’Hare International Airport. The scheme allegedly helped Kelly pay $383,000 in personal gambling debts, $700,000 for a personal loan to buy a house and $40,000 in personal expenses. The scheme also granted $450,000 to a president of the consulting firm allegedly involved in the activities.

Kelly was charged with 11 counts of mail fraud and six counts of money laundering. Each count carries a maximum penalty of 20 years in prison and a $250,000 fine. The feds also are seeking the $1.18 million involved in the money laundering counts, $1.6 million involved in the contract fraud, as well as Kelly’s Burr Ridge house. He’ll be arraigned at a later date.

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