Politics

CHICAGO (AP) ― Gov. Rod Blagojevich boasted that he "could award contracts, legal work and investment banking" to encourage campaign fundraising, according to a document released Friday by federal prosecutors.

Blagojevich is not quoted by name but is referred to as "Public Official A" in the 78-page court document prosecutors issued Friday as they prepared for the trial of real estate developer and fast food entrepreneur Antoin "Tony" Rezko.

Attorneys who asked not to be quoted by name due to grand jury secrecy have said Blagojevich was Public Official A.

Blagojevich's spokeswoman denied the conversation ever took place.

"No such conversation ever occurred. This administration does not do business that way," said Blagojevich spokeswoman Abby Ottenhoff. She dismissed the suggestion that Public Official A was Blagojevich.

"Based on the description in the filing, it is not the governor," she said.

The statement about using state business to help raise funds came in a meeting with Joseph Cari, a Chicago attorney and former finance chairman of the Democratic National Committee, according to the document. Cari has already pleaded guilty to one count of attempted extortion in the Rezko investigation and is now a government witness.

"At one point, Cari had a conversation with Public Official A," according to the document. "Public Official A stated that he had a lot of ways of helping his friends and that Rezko and Co-Schemer B were his point people in helping his friends and coordinating fundraising."

"Public Official A also informed Cari that he could award contracts, legal work and investment banking to help with fundraising," the document said. "Public Official A ended the conversation with Cari by noting that he wanted to continue the dialogue with Cari about fundraising and that Rezko and Co-Schemer B would follow up with Cari."

Co-Schemer B is Chicago roofing and consulting millionaire Christopher Kelly, according to a person with knowledge of the investigation who would not speak for attribution because grand jury material is secret.

Kelly headed fundraising for both of Blagojevich's successful campaigns for governor. He recently was indicted on charges of making false tax statements and structuring a bank transaction in illegal fashion to avoid the scrutiny of federal regulators. He pleaded not guilty Friday.

The newly filed document also recounts a conversation on a flight to Chicago from New York in the fall of 2003 after Blagojevich had reappointed millionaire political contributor Stuart Levine to the Illinois Health Facilities Planning Board.

Board approval is required for construction of new hospitals and other medical facilities in Illinois. Levine has admitted that he used his power as a member of the board to engage in the attempted shakedown of a suburban hospital and to swindle a suburban medical school.

In the conversation aboard the airplane, Levine thanked Blagojevich for reappointing him to the board, according to the court papers. The document added that Blagojevich "responded that Levine should only talk with Tony (Rezko) or 'Co-Schemer B' about the board, 'but you stick with us and you will do very well for yourself."'

Levine told the government he understood Blagojevich to mean "that Levine could make a lot of money working with Public Official A's administration."

Blagojevich has been accused of no wrongdoing in the investigation.

Rezko is charged with joining with Levine, who has also pleaded guilty to charges in the investigation, to shake down money management companies seeking to do business with the 11-member Illinois Teachers Retirement System board.

The $30 billion fund pays the pensions of 125,000 retired downstate and suburban school teachers.

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