Politics

CHICAGO (CBS) ― In Wednesday's Truth in Politics, while Tony Rezko plays "Let's make a deal," the Feds appear ready to serve Governor Blagojevich and his wife a holiday surprise. Rezko, who helped Gov. Blagojevich shatter every political fundraising record in Illinois, may soon become a government informant. Federal agents believe they have gathered enough evidence to indict the governor. Three separate teams of IRS agents are now working furiously to wrap up the case.

CBS 2 Political Editor Mike Flannery reports that Blagojevich publicly acknowledges the investigation that is targeting him. He still insists he has done nothing wrong.

Several sources tell Truth in Politics that federal agents are preparing charges of tax fraud, conspiracy and obstruction of justice against the governor. The case against the governor reportedly focuses on allegations first made five years ago by his father-in-law Ald. Dick Mell involving alleged trading of jobs for five-figure campaign donations.

Sources claim newly issued subpoenas show First Lady Patti Blagojevich is also under scrutiny. She took nearly $200,000 in real estate commissions – some on deals done with the convicted Tony Rezko. They allegedly coincided with the award of state contracts by her husband's administration.

A source says the Feds want Rezko to testify about deals he did with both Blagojevichs - and the authorities are pressuring him.

"It's pretty solitary. He doesn't get out. There's no cell mate. There's no ability to walk around the cell block," said William Ziegelmueller, Rezko's defense attorney.

The governor has changed some things since last year when CBS 2 often found the governor at his North side home in the middle of the work day. Political foes and friends complained that Rod Blagojevich spent too little time at either the Thompson Center or the State Capitol. He'd go a month or more without a news conference.

Now, his press secretary says, the governor's held 60 press events this year. Since June, he's fielded questions about once a week. Blagojevich says he's worked at the Loop's Thompson Center more than 100 days this year and another 45 days at the State Capitol. He's even spent an occasional night at the Executive Mansion, including ten days during the State Fair.

And since the corruption conviction of his former chief fundraiser Rezko, Blagojevich has become downright philosophical when talking about the federal investigation.

"In the Rezko situation, it was a system that sucked him in, and then some lines were crossed and then that person found himself actually violating some of the rules," Gov. Blagojevich said. "A system that existed that some people mistook a certain way and then crossed a few lines, maybe they didn't even know they crossed those lines. All men make mistakes. But a good man changes course when he recognizes that mistake and failing to do it, the only sin is pride."

Mistakes were also made by another who raised millions of dollars for Blagojevich, roofer Chris Kelly. He faces federal tax fraud charges. The charges are not related to Kelly's work for the governor. Kelly's lawyer said "no comment" when asked if the Feds are pressuring Kelly to cut a deal. He said Kelly is preparing for trial in January.

For his part, the governor says he's learned some hard lessons.

"Those things suggest that you learn from your mistakes and judgments and you fix them," Gov. Blagojevich said.

U.S. Attorney Patrick Fitzgerald does not comment on pending investigations. And although federal agents may believe they've gathered enough evidence to warrant charges against the governor, they do not make that decision. In the case of a sitting governor, Justice Department higher-ups in Washington, D.C., must sign off on that.

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

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