Politics

CHICAGO (CBS) ― U.S. Rep. Luis Gutierrez (D-4th) actively fronted for now-indicted real estate developer Calvin Boender, and the relationship led to a personal loan and at least one real estate deal for Gutierrez, sources tell CBS 2.

Gutierrez allegedly squired Boender around City Hall and introduced him to aldermen. Those meetings led to discussions about potential development deals in various Chicago wards.

Boender was named in the federal grand jury indictment this week of Ald. Ike Carothers. It focused on their relationship, especially what each got from a multi-million-dollar rezoning scheme.

But the revelation that Carothers worked for a year with the FBI secretly recording conversations means the investigation may involve many more. Among insiders said to be worried is Gutierrez.

On Congressional letterhead stationery, Gutierrez asked Mayor Daley to support the Boender project that's now central to the federal indictment.

Like many Chicagoans, he made big bucks buying and selling real estate, including a profit of about $176,000 on a townhome in this development on the Chicago River. The now-notorious fixer Tony Rezko was developer.

What was the benefit to Gutierrez for helping Boender? Sources say timely real estate investments in at least one Boender projects, tens of thousands in campaign cash and a $200,000 loan to the congressman.

A veteran defense lawyer and former federal prosecutor says everyone Boender ever dealt with now awaits his next move.

"Clearly Boender's under some pressure now to decide whether or not he's going to trial in this case or cooperate against whoever he can," Patrick Deady said. He said that "should give anyone pause who's had some improper contact with him."

Gutierrez has not been charged with any crime, nor is anyone suggesting he's under federal investigation.

A mayoral spokesperson has said Daley cannot recall seeing the letter Gutierrez sent on behalf of Boender.

Rebecca Dreilinger, Gutierrez' Congressional spokeswoman, explained the nature of the letter:

"It expressed Congressman Gutierrez' general support of the overall goals of the Galewood Yards project, which included a Laborers International Union job training center that was specifically targeted to helping the community's significant Latino and African American populations. As you may know, this development is adjacent to the 4th Congressional District and his constituents would be directly affected by any plans or developments in this area."

One source says Gutierrez purchased real estate in at least one Boender project at a discounted price. Gutierrez then "flipped" or re-sold the home after the market had risen. Gutierrez then sank those profits into other homes. The source says Gutierrez has followed this pattern for the 16 years he's been in Congress, flipping more than half a dozen homes in the same manner.

Dreilinger said that a holding company in Rep. Gutierrez's name purchased "only one vacant lot from Fulton Corridor Land LLC, constructed on the lot and sold the property at a loss. This was the only property transaction with Mr. Boender, and it was fully disclosed in public records."

Federal campaign records show Boender donated $5,000 to Gutierrez. State of Illinois records show Boender donated an added $10,000 to Gutierrez. Other Boender entities donated additional thousands.

Dreilinger sees nothing amiss with Boender serving as Gutierrez's personal banker. "The loan was fully disclosed and repaid within 58 days at above market interest,"  

By CBS 2 Political Producer Ed Marshall and Political Editor Mike Flannery contributed to this report.

(© MMX, CBS Broadcasting Inc. All Rights Reserved.)

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