Blagojevich Busted

CHICAGO (CBS) ― Illinois lawmakers continued the early stages of impeachment proceedings against Gov. Rod Blagojevich on Thursday as a war of words erupted between the governor's lawyer and the state's top legal officer.

Blagojevich's attorney Ed Genson, who attended the hearings in Springfield for a second day, said federal investigators illegally monitored his client's conversations.

The wiretaps are crucial to the criminal charges filed against Blagojevich last week. Prosecutors say they caught the Democratic governor discussing efforts to auction off Barack Obama's U.S. Senate seat and pressuring a hospital executive for campaign donations.

Genson told the impeachment committee that it shouldn't consider any material from the wiretaps, saying the evidence was "illegally obtained." Earlier on MSNBC, Genson said the governor has maintained his innocence. "He's telling me that he's not guilty, he's telling me that he wants to fight."

"He asked for nothing" on the tapes, Genson said. "He talked to people, he talked to people on his inner circle, he didn't ask anyone for anything. And I think the tapes are clearest to that point."

Genson's comments to lawmakers livened up the dry proceedings, which began with presentations about the duties of a legislative committee that reviews executive rules. The panel later heard from the state's top internal watchdog, Auditor General William Holland, who says his own past probes of the Blagojevich administration have turned up improper contracts, incomplete records and sloppy handling of tax money. 




Illinois Attorney General Lisa Madigan, who lost a bid this week to have the state Supreme Court consider removing Blagojevich, said she's disappointed in the attitude of Genson, a renowned defense attorney. She zeroed in on Genson's statement earlier this week, saying that he's taking the potentially expensive Blagojevich case partly for "fun."

"You know what? This isn't fun," Madigan shot back in an interview with CBS 2 Political Editor Mike Flannery. "This isn't fun for the people of the state of Illinois. It's not fun to see your governor arrested and taken away in handcuffs. … Unfortunately, Mr. Genson seems to have an attitude that is not appropriate for the circumstances."

Madigan said Genson should act more professionally when he addresses the House committee.

Genson responded later in an interview with CBS 2 Chief Correspondent Jay Levine. "When Lisa Madigan pays me, she'll have the right to say what she thinks is appropriate," Genson. "I am paying her salary, and I don't think what she says is appropriate."

Also appearing at the hearing Thursday was state Auditor General William Holland. His own past probes of the Blagojevich administration have turned up improper contracts, incomplete records and sloppy handling of tax money.

Holland also frequently complains that the administration drags its feet on providing information and tries to stonewall his reviews.

Madigan said Thursday that Gov. Rod Blagojevich isn't entitled to a taxpayer-funded legal defense, dismissing requests from Genson, who claimed there was a misunderstanding about what he wanted.

Madigan's office said the state wasn't on the hook in either the governor's impeachment or criminal cases.

"It is absurd to suggest that taxpayers must finance the defense of a criminal action against Governor Blagojevich who is accused of corruptly betraying the public trust for personal and financial gain," Madigan's chief of staff Ann Spillane wrote in a letter Thursday to Genson.

Spillane wrote that Genson had asked for special assistant attorney general to be appointed and paid for by the state to represent Blagojevich in the criminal case. But, she said, prior court rulings indicate Blagojevich isn't entitled to criminal legal representation on the state's dime.

Genson said he never intended to suggest such a thing.

"There was some misunderstanding as to whether I was asking to be appointed in the criminal case. I never asked that," Genson said.

On Wednesday, Blagojevich defense attorney Ed Genson and partner Sam Adam Jr. likened the proceedings before the House panel to something akin to "Alice in Wonderland."

Genson and Adam lashed out at three of the House members in particular -- Reps. Jack Franks (D-Woodstock), Bill Black (R-Danville), and Jil Tracy (R-Mount Sterling), saying they should recuse themselves from the proceedings because in their view, the governor was already guilty.

Genson complained that he has had no time to prepare for the hearings, has neither a witness list nor the power to subpoena witnesses.

"He's throwing up enough dust to convince people not guilty, pure as driven snow," Committee chair Barbara Flynn Currie (D-Chicago) said of Genson.

Genson also argued that much of the evidence against the governor shouldn't be admitted. Among those things is the criminal complaint filed last week by U.S. Attorney Patrick Fitzgerald.

But the thrust of Genson's argument about the governor's conversations caught on tape may have also hinted at his upcoming criminal court defense.

"People talk and talk and talk but no one ever did anything," Genson said. 

Franks challenged Genson to have Blagojevich testify.

"If we want the facts, we should have your client here. If you want to get to the facts, let's bring him here, let's ask the questions," Franks said. 

Earlier this week, Blagojevich seemed to be encouraged that his side was punching back a little more than a week after he was arrested for allegedly trying to sell President-elect Barack Obama's Senate seat to the highest bidder.

"I can't wait to begin to tell my side of the story and to address you guys and the people of Illinois. That's who I'm dying to talk to," Blagojevich said. "There's a time and a place for everything. That day will soon be here." 

Blagojevich left his Ravenswood Manor neighborhood home around 9:30 a.m. He quickly waved to reporters before getting in a truck and driving away. Unlike recent days, Blagojevich had nothing to say Thursday.

The governor's spokesman, Lucio Guerrero, said Blagojevich signed bills  in his Chicago office. Guerrero said the governor may address the crisis on Friday, but no plans have been set yet.

Scandal Continues To Generate Shockwaves
As the Blagojevich scandal takes new daily turns, it continues to generate shockwaves elsewhere in the world of politics.

The Illinois GOP has been running commercials calling viewers to contact state House Speaker Michael Madigan and Senate President Emil Jones for a special election, arguing that Lt. Gov. Pat Quinn should not be permitted to select a replacement himself as he says he plans.

Genson said Wednesday that Blagojevich himself has no plans now to select a replacement for Obama. Earlier this week, U.S. Senate Majority Leader Harry Reid (D-Nev.) said he would not confirm anyone Blagojevich picked.

Meanwhile, an internal review earlier this week indicated that President-elect Obama had no "inappropriate discussions" with Blagojevich or his staff concerning the search for a Senate replacement from Illinois, a spokesman for the presidential transition office said Monday.

But spokesman Dan Pfeiffer also Monday that said the office won't release details of its review until the week of Dec. 22 at the request of prosecutors "in order not to impede their investigation of the governor."

It did not say whether Obama's incoming White House chief of staff, Rep. Rahm Emanuel, was heard on a wiretap providing the governor's top aide with a list of names that the president-elect favored. Nor did it say who, if anyone, on Obama transition's team had made contact with the governor or his aides concerning a replacement for Obama.

Since then, the issue has generated speculation in the local and national media. On Tuesday, Chicago Sun-Times columnist Michael Sneed said wrote that she heard "rumbles (Emanuel) is reportedly on 21
different taped conversations by the feds -- dealing with his boss' vacant Senate seat! A lot of chit-chat? Hot air? Or trouble?"

On Wednesday, the Blagojevich-Obama story erupted into a battle between national news commentators. Fox News Channel's Gretchen Carlson reported that "there is varying discussion" about whether prosecutors asked Obama to delay the release of his internal review about staff contacts with Blagojevich. Later the same day, MSNBC's Keith Olbermann called Carlson's story a "lie" and "fabrication." Olbermann said both Obama and U.S. Atty. Patrick Fitzgerald had confirmed the request to delay the information, as he named Carlson the day's "Worst Person in the World."

Also, an attorney for the head of Blagojevich's campaign fund says federal prosecutors will ask that the fund's money be forfeited if Blagojevich is convicted.

Attorney Michael Ettinger represents Blagojevich's brother, Rob Blagojevich, who is chairman of the Friends of Blagojevich fund.

Ettinger says a letter he received from federal prosecutors this week warned that if money is withdrawn from the fund, the government will ask that it be forfeited and returned if Blagojevich is convicted.

Blagojevich's last campaign finance report shows the Friends of Blagojevich fund had $3.6 million in the bank as of June 30.

Neither Rob Blagojevich nor Friends of Blagojevich is charged in the complaint against the governor.

CBS 2's Mike Puccinelli, Chief Correspondent Jay Levine, Political Editor Mike Flannery and the Associated Press contributed to this report.

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