Dec 21, 2007 4:31 pm US/Central
Gambling Counseling Ordered For Gov's Confidant
Chris Kelly Pleads Not Guilty To Concealing Income Intended For Gambling Debt Payoff
CHICAGO (CBS) ―
-
-
Former Blagojevich fundraiser and chief gambling adviser Chris Kelly has pleaded not guilty to concealing $1 million in corporate funds to pay off gambling debts.
CBS
There was a surprise in federal court today. It came as the man Gov. Blagojevich once put in charge of expanding legalized gambling pleaded not guilty to charges of concealing more than $1 million in income.
Businessman Chris Kelly was released on bond. But as CBS 2's political editor Mike Flannery reports, the governor's close friend was also ordered into treatment for an addiction to gambling.
The federal grand jury's indictment alleges that Chris Kelly illegally bet 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.
After Kelly pleaded not guilty Friday, his lawyer noted that whatever violations he may have committed, failing to pay his taxes in full is not among the charges.
"He has paid millions in taxes, we believe Kelly will have no taxes due and owing," said Kelly's defense lawyer Michael Monico.
Neither Kelly nor his attorney would comment outside of court on a judge's order that, as a condition of being released on bond, Kelly must get treatment for an addiction to gambling.
It was an astounding development in light of Kelly's role in 2003. Christopher G. 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 has expressed only sympathy.
In response to the indictment against Kelly Dec.13, Gov. Blagojevich said in a statement: "Chris Kelly is my friend. 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 was 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.
CBS 2 legal analyst Irv Miller said Dec. 13 that he 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.
The federal indictment does not allege that Kelly misused either state money or his close friendship with the governor. He is charged with obstructing the IRS, filing false income and corporate tax returns, and illegally structuring monetary transactions, the U.S. Attorney's office said.
Kelly will be in court next month. The other key Blagojevich aide facing criminal charges is Tony Rezko. He goes on trial in February.
cbs2chicago.com's Most Popular Pages 
Slideshow: Most Popular Videos Of 2007 Slideshow: Newsmakers Remembered Slideshow: They Really Said It! Quotes From Celebrities In 2007 Slideshow: '90s TV Stars Then & Now Slideshow: What A Way To Go Slideshow: In To Be Out: Gay Celebrities Slideshow: Did You Know? Stars From Chicago!
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
Click to enlarge
Stumble It!
Reporting
