Jan 16, 2009 1:02 pm US/Central
Blagojevich Friend Chris Kelly Pleads Guilty
Kelly Is Charged With Concealing More Than $1 Million In Income
CHICAGO (CBS) ―
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Former Blagojevich fundraiser and chief gambling adviser Chris Kelly has pleaded guilty to concealing corporate funds to pay off gambling debts.
CBS
Impeached Gov. Rod Blagojevich's former chief fundraiser has admitted he illegally used corporate funds to pay gambling debts and personal expenses.
Christopher G. Kelly pleaded guilty to those charges Friday and that he illegally structured financial transactions in an effort to hide them from the federal government. The indictment against the 50-year-old did not touch on politics.
Minutes after arriving at federal court, Chris Kelly declared, in a booming voice, "guilty!" when a judge asked, "How do you plead?"
Kelly's lawyer explained why.
"He is prepared to accept the consequences of his conduct and is contrite about it," attorney Michael Monico said.
The two tax charges Kelly pleaded to Friday were not related to fund-raising for the governor. What remains unclear is whether Kelly might yet help the feds strengthen their case against his old friend, Blagojevich.
Kelly was the ultimate insider: chairman of Friends of Blagojevich as it collected about $25 million, breaking every record for political fundraising in Illinois. The mountain of money helped Blagojevich win re-election, despite the U.S. attorney's investigation of what he called "endemic corruption" in the Blagojevich administration.
Friday's plea came as a lawyer for the man arrested with the governor said John Harris was having preliminary conversations with federal prosecutors. He said Harris might cooperate with those trying to put Illinois's already-impeached chief executive in prison.
As for Kelly, his own attorney said, "There is no agreement in the plea agreement for a reduction of sentence based upon his cooperation. And he will not seek one."
The feds may yet hit Kelly with fundraising criminal allegations.
Blagojevich has been charged with using his position to get personal and professional favors, including trying to sell off the U.S. Senate seat left vacant by President-elect Barack Obama. Blagojevich has denied any wrongdoing.
Kelly could be sent to prison for a total of eight years. His sentencing is set for April 24.
Kelly was accused of illegally betting millions of dollars on sporting events with at least two unidentified local bookmakers, used business funds to pay gambling debts with whom he had placed losing wagers on baseball, basketball and football games and horse races and failed to account properly for the huge wagers on his tax returns.
He was indicted in December 2007 and released on bond after pleading not guilty. He was also ordered to undergo gambling addiction counseling.
Kelly was finance chairman of Blagojevich's first campaign for governor in 2002. He later became the governor's adviser in negotiations to expand legal casino gambling in Illinois. Although it appeared Kelly may have continued during that time to place huge illegal wagers, the governor expressed only sympathy immediately following Kelly's arrest.
Kelly was also president of a roofing business called BCI Commercial Roofing and another company called CGK Consulting, both based in south suburban Markham. He was charged with claiming he made more than $1.3 million less than he really did between 2000 and 2005, the U.S. Attorney's office said in 2007.
CBS 2 political editor and The Associated Press contributed to this report.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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