Politics

Feds Questioned Blagojevich 'Multiple' Times

New Court Documents Show Blagojevich Denied Having Conversations Described By Witnesses

CHICAGO (CBS) ― It's a taboo topic that Rod Blagojevich refuses even to discuss in public. But newly unsealed court files confirm it. Federal agents investigating state government corruption have questioned the governor not just once, but "on multiple occasions."

CBS 2 Political Editor Mike Flannery found Blagojevich this evening raising hundreds of thousands of dollars.

It was by far the largest of a series of events at which the governor has raised more than a million dollars this week. But it was overshadowed by a Sun-Times website report about newly-revealed court documents confirming what's long been suspected: Rod Blagojevich himself has been questioned repeatedly by federal agents investigating his Administration.

Newly unsealed court files in the Tony Rezko corruption case show that federal agents interviewed Gov. Blagojevich "on multiple occasions" and that the governor denied having conversations described in court by two key prosecution witnesses.

That raises the possibility that either the witnesses lied under oath or that the governor lied to federal agents about statements Blagojevich was said to have made, tying state business to support for his campaign.

The witnesses -- former Democratic Party official Joseph Cari and former Rezko associate Stuart Levine -- helped convict Rezko early this month of far-reaching fraud and corruption charges tied to state deals.

The governor's staff said Blagojevich would have nothing to say about how many times federal investigators have interviewed him, nor about what questions investigators have asked him.

The governor's spokesman Lucio Guerrero said Thursday evening, "The governor has acknowledged being cooperative and having discussions with the federal government. He met with them twice, the last time nearly two years ago."

Despite the governor's many legal troubles, a spokesman for his campaign fund said Blagojevich had raised about $2 million so far this year, much of it at events like the one Thursday night at Navy Pier, attended by hundreds of people with state contracts.

Campaign spokesman Doug Scofield said the governor's camp had no trouble selling tickets for Thursday's fundraiser. "No, not at all. I think the results tonight speak for themselves. There was almost 1,200 people here, a very enthusiastic crowd." 

Illinois State Sen. Kwame Raoul (D-Chicago) emphasized that only allegations surround Blagojevich.

"We've had all sorts of allegations that have come out – many that aren't very flattering," Raoul said. "But as a lawyer, I don't assume anything that comes out as an allegation is the truth until there's a conclusion reached."

The governor ordered his lawyers to stall for years before finally complying with Freedom of Information requests regarding federal subpoenas of public records.

The feds also have subpoenaed his campaign fund and have been looking closely at fees that convicted fundraiser Tony Rezko and others split with First Lady Patti Blagojevich.

The new court documents were filed by attorneys for Rezko, a Wilmette businessman and former top campaign fund-raiser for Blagojevich and presumptive Democratic presidential nominee Barack Obama who was also a key adviser to the governor.

Testifying for the prosecution during Rezko's two-month federal trial in Chicago, Cari and Levine each described having conversations with the governor aboard a private jet during a fund-raising trip to New York.

In news interviews, the governor has repeatedly denied having those conversations.

He told federal agents the same thing, according to the newly disclosed court papers, which indicated that agents interviewed Blagojevich regarding the Rezko case and that his statements were made available to Rezko's lawyers. Rezko's defense team had tried to cast doubt about the prosecution witnesses and about another former top Blagojevich adviser, Chris Kelly, who has been charged in an unrelated tax case.

"Gov. Blagojevich was interviewed on multiple occasions and denies these conversations," the defense filing says. "Cari failed to recall his conversation with the governor until his fifth interview by government agents, and Kelly, the only other witness to these conversations, has never been interviewed and will not testify at trial."

Levine testified that the governor told him, during another flight, "Stick with us, and you'll make lots of money." Levine said he believed Blagojevich meant Levine would make money in Blagojevich's administration — if he gave to his campaign fund.

Other newly unsealed court documents confirmed that prosecutors sought to call witnesses to testify about Rezko's ties to Obama. The Illinois senator was the recipient of "straw" campaign contributions made by others on behalf of Rezko, the Chicago Sun-Times has reported — money that Obama has since given to charities.

The documents indicate that prosecutors considered offering witnesses to explore why Rezko used others to contribute to Obama and also to Blagojevich, and U.S. District Judge Amy J. St. Eve ruled that they could. But they did not end up offering any such testimony during the trial.

Obama, the South Side Democrat, hasn't been accused of any wrongdoing.

The U.S. attorney's office in Chicago had no comment on the newly released documents.

CBS 2 Political Editor Mike Flannery, Joanie Lum and the STNG Wire contributed to this report.

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