Sep 8, 2009 5:02 pm US/Central
Blagojevich Pal Pleads Guilty In Separate Case
Unclear If Former Fundraiser Is Cooperating With Feds Against Ex-Governor
CHICAGO (CBS) ―
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Former political fundraiser Chris Kelly leaves the federal courthouse in Chicago Monday June 22, 2009 after being sentenced to 37 months in prison in one of the three cases against him.
CBS
On the same day deposed Gov. Rod Blagojevich launched a media blitz to
promote his new book, a key figure in the federal case against him pleaded guilty to federal charges connected to an $8.5 million fraud scheme at O'Hare International Airport.
Kelly, a longtime friend, adviser and fundraiser to the ex-governor, entered the plea agreement Tuesday afternoon with federal prosecutors.
Kelly was named in an indictment accusing him of contract fraud at O'Hare International Airport.
The 51-year-old roofing contractor admitted to paying $150,000 in kickbacks to fellow roofing contractors to fix bids. This amounted to defrauding the customers, American and United Airlines, whose O'Hare hangers were re-roofed by Kelly's firm, Markham-based BCI Commercial Roofing. This netted BCI $8.5 million in revenues.
Kelly also admitted to using BCI profits to pay a $600,000 home loan debt to another Blagojevich fundraiser, convicted influence peddler Antoin "Tony" Rezko, and to pay off $360,000 in casino gambling debts. All told, he admitted to more than $1 million in illegal diversions of BCI funds for his personal use.
In court, U.S. District Judge John Norgle asked Kelly if he had been "threatened, pushed, shoved, squeezed to plead guilty."
Kelly said, "Judge I'd be remiss if I didn't say there was a great deal of pressure." But Kelly added that he was pleading guilty "freely, willingly, knowingly and consciously."
Kelly was expected to go to trial in that case on Wednesday, but now faces nearly five years in prison when he is sentenced on Nov. 18. That would be on top of
more than three years in prison he received in June in a separate tax case against him.
Kelly remained free on bond Tuesday and was scheduled to surrender to prison on Sept. 18, following another hearing in the case.
Kelly still faces separate charges with Blagojevich in connection with pay-to-play allegations while Blagojevich was governor.
It was not clear if Kelly has offered any cooperation. He has been adamant against cooperating in the past.
Kelly is named in the indictment accusing Blagojevich of trying to sell the U.S. Senate seat formerly occupied by President Barack Obama, which alleges that Kelly exercised substantial influence over certain activities of the governor's office. In that case, he is set to go to trial with Blagojevich.
Kelly is the former head of the Friends of Rod Blagojevich campaign fund and raised millions of dollars in that role.
Kelly pleaded guilty in January to using funds from his roofing business to pay off gambling debts, and was later sentenced to 37 months in prison.
The roofing contractor was a principal campaign fundraiser who also served as chairman of Blagojevich's campaign fund from early 2004 until August 2005.
CBS 2 Political Producer Ed Marshall, the STNG Wire and the Associated Press contributed to this report.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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