Mar 8, 2007 5:57 pm US/Central
Woman With Ties To Governor Facing Fraud Charges
Businesswoman Allegedly Took Advantage Of Contract With DCFS
by Derrick Blakley
CHICAGO (CBS) ―
Prosecutors say a woman with ties to the governor and his wife is facing fraud charges after stealing millions of dollars from the state.
Anita Mahajan allegedly took advantage of a contract she had with the Department of Children and Family Services.
As CBS 2's Derrick Blakley reports, Mahajan, 55, is a politically-connected, Indian-born businesswoman.
"She's very upset, that I can tell you. She's very distraught by the whole thing," said Terry Gillespie, Mahajan's attorney.
Prosecutors say, her company, K.K. Bio-Science, formerly located in a Loop high-rise, systematically billed the DCFS for drug tests that never took place.
"Client A would come in and would order to be tested three times a month. She bills for seven, eight, 10 times a month," said Assistant State's Attorney Pat Wolfe.
Mahajan allegedly admitted that from 2002 until last year, 50 percent of her state billings were phony, amounting to $2.1 million in fraudulent charges.
State auditors believe the fraud equaled 70 percent of her billings, making the probable total millions more.
"What we are essentially talking about in these charges today is stealing from the taxpayers of Illinois," said Cook County State's Attorney Richard Devine.
The Mahajan contract awarded by the Blagojevich Administration highlights just one of the ties between the two families.
Last year, Patty Blagojevich earned $113,000 in commissions on real estate bought by Mahajan and her husband.
Mahajan's husband also donated $10,000to the governor's campaign. And the Harvey bank he controls has lent millions to Blagojevich fundraiser Anthony Rezko, now under federal indictment.
Still the governor says Thursday's charges prove his administration will not tolerate corruption.
"They discover something, doesn't matter who you are, you're going to be held accountable," Blagojevich said.
Indeed, the inspector general at DCFS did uncover the alleged fraud, but only after reporters began asking questions about the company and its state contracts.
Bond for Mahajan was set at $250,000 cash.
(© MMVII, CBS Broadcasting Inc. All Rights Reserved.)
Get breaking news alerts
Click to enlarge
Stumble It!
