Dec 13, 2007 10:38 pm US/Central
Former Governor Fundraiser Indicted For Tax Fraud
Christopher Kelly Allegedly Concealed More Than $1 Million To Pay Gambling Debts
CHICAGO (CBS) ―
Gov. Rod Blagojevich's former chief fundraiser was charged Thursday with tax fraud in a federal indictment that alleged he hid more than $1 million in income.
Christopher G. Kelly, a contractor who served as finance chairman of Blagojevich's 2002 campaign, was among three men indicted on corruption charges related to state government by a federal grand jury.
The indictment alleges Kelly used business funds to pay gambling debts.
"Chris Kelly is my friend,'' Gov. Blagojevich said in a statement. "I am saddened to hear these allegations about Chris's personal life. ... In fairness to Chris, I believe it is important to let the legal process play out and not rush to judgment."
Kelly's attorney agrees.
"At the end of the day when all the evidence is in, the government will see, as will everyone else, that Mr. Kelly owes no taxes," said attorney Michael Monico.
The government also announced the re-indictment of former investment banking executive Nicholas Hurtgen on related corruption charges. A judge earlier this year dismissed charges that alleged Hurtgen helped a state official pressure a suburban hospital to hire a favored contractor.
Abdelhamid Chaib, a close business associate of Blagojevich fundraiser Antoin "Tony" Rezko, also was indicted on corruption charges.
The charges are the latest in a long-running federal investigation of state government under Blagojevich, the second consecutive Illinois governor whose administration has become the target of a major corruption probe. Blagojevich has not been charged with any wrongdoing.
Thursday's charges have aroused the ire of the Better Government Association
"You have to wonder if the Blagojevich administration really takes this stuff seriously," said the BGA's Jay Stewart "The best you can say is they have a laissez-faire attitude."
CBS 2 legal analyst Irv Miller thinks it's possible the indictment is a squeeze play meant to pressure Kelly into a plea deal, to induce Kelly to tell what he knows about possible influence peddling in the Blagojevich administration.
"This is the typical M.O. of the way our federal government and prosecutor works… to try to start low, build a case on somebody, then move up the chain to the next person," Miller said.
For a case study in that technique, consider the fed's successful pressure on Gorge Ryan's indicted right hand man, Scott Fawell. Although he resisted at first, Fawell finally caved and helped convict and send the former governor to prison.
CBS 2's Mike Parker and the Associated Press contributed to this report.cbs2chicago.com's Most Popular Pages 
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