Ill. Gov. Blagojevich pledges to fight, won't quit

Gov. Rod Blagojevich said Friday he will be vindicated of criminal corruption charges and has no intention of letting what he called a "political lynch mob" force him from his job.

"I will fight. I will fight. I will fight until I take my last breath. I have done nothing wrong," Blagojevich said in his first official public comments since his arrest last week on federal corruption charges.

The Democrat is accused, among other things, of plotting to sell or trade President-elect Barack Obama's U.S. Senate seat.

"I'm not going to quit a job the people hired me to do because of false accusations and a political lynch mob," Blagojevich said.

Blagojevich had been itching to talk, even though his attorney Ed Genson didn't like the idea.

Genson has said he plans to challenge the court-ordered wiretaps at the heart of the allegations against Blagojevich. Genson called the wiretaps inappropriate, if not illegal.

Genson said he expects a federal grand jury to indict his client, which likely would unseal many of the documents supporting the charges.

The governor is also accused of trying to strong-arm the Chicago Tribune into firing editorial writers who criticized him, and pressuring a hospital executive for campaign donations.

Blagojevich attorney says wiretaps were illegally obtained

A lawyer for Illinois Gov. Rod Blagojevich told state lawmakers Thursday that the federal wiretaps at the heart of the pay-to-play allegations against his client were illegally obtained, and therefore should be kept out of any impeachment proceedings. The wiretaps are crucial to the federal charges filed against Blagojevich last week. Prosecutors say they caught the Democratic governor discussing efforts to auction off Barack Obama's U.S. Senate seat and pressure a hospital executive for campaign donations.

Genson told the impeachment committee that it shouldn't consider any material from the wiretaps, saying the evidence was "illegally obtained."

Earlier on MSNBC, Genson said the governor maintains his innocence: "He's telling me that he's not guilty, he's telling me that he wants to fight."

The panel was expected to hear later Thursday from the state's top internal watchdog, who says his own past probes of the Blagojevich administration have turned up improper contracts, incomplete records and sloppy handling of tax money.

Meanwhile, Attorney General Lisa Madigan denied a request by Genson to have the state pay for Blagojevich's impeachment defense. The move was all the more significant because Genson said federal officials are seeking to freeze the governor's campaign fund — $3.6 million as of June — a source Blagojevich could tap to pay his legal bills.

Madigan's office said the impeachment review is a case against Blagojevich's capacity as governor and isn't a court action — a classification that doesn't entitle the governor to taxpayer-funded legal representation.

Genson also appeared before the House panel Wednesday and challenged it on multiple fronts. He said three members should be removed, the committee's rules should be changed and it should not consider accusations in a criminal complaint against the governor.

Blagojevich, who left his home Thursday morning without speaking to reporters, has been under siege since his arrest last week. He got some good news Wednesday when the court rejected Madigan's claim that the governor's legal troubles made him unfit to serve.

The court's decision renewed calls from Republicans for a special election to choose Obama's successor in the Senate. They argue that neither Blagojevich nor Lt. Gov. Patrick Quinn — who would take over if Blagojevich goes — should be allowed to make the appointment.

Genson said he doesn't expect Blagojevich will make an appointment.

"Harry Reid said that they're not going to accept anybody he picks," said Genson, referring to the Senate majority leader. "Why would he do that?"

Blagojevich spokesman Lucio Guerrero said he didn't know if Genson was correct about the governor's intentions.

The Illinois House has appointed a 21-member committee to review the possibility of impeachment. The panel, divided 12-9 between Democrats and Republicans, will recommend whether the full House should move to impeach Blagojevich. If that happened, the state Senate would then decide whether the governor is guilty.

Disgraced Illinois governor weighs legal options

Illinois Gov. Rod Blagojevich met with a renowned Chicago criminal lawyer Saturday as he weighed his legal options on how to fight a scandal that has left his career in tatters and disrupted President-elect Barack Obama's White House transition.

The Democratic governor had a four-hour meeting with Ed Genson in the lawyer's downtown office Saturday. Genson has defended newspaper baron Conrad Black, R&B singer R. Kelly and numerous public figures on corruption charges, earning a reputation as the lawyer big shots call when they get in a bind in Chicago.

Genson confirmed the two met but wouldn't discuss details of their dialogue. When asked if he would take the case, Genson said: "We'll make our mutual decision on Monday."

Blagojevich had brushed back calls for his resignation after he was charged with trying to sell Obama's Senate seat. He sought to project a business-as-usual image amid the turmoil, going to work every day and handling state business.

As the legal maneuvering intensified, some observers speculated that he might be trying to leverage the governorship to his advantage in his criminal case — just like prosecutors said he did with the Senate seat for financial gain.

"I would be saying, 'Let me see what I can get in exchange for you resigning. Don't just give it up for nothing. Let me see if I can get you a better deal,'" said Steve Cron, a defense lawyer from Santa Monica, Calif.

Others suggested his lingering refusal to resign is more rooted in his ego than anything else. The governor has been known to love being in the spotlight, whether the attention is good or bad.

"You would think he would see his life collapsing around him," said Chicago defense lawyer John Beal, who was in the courtroom with Blagojevich this week and noted how carefree he seemed. "But he was the center of attention and seemed to love it."

The scandal continued to hound Reps. Jesse Jackson Jr. and Rahm Emanuel, Obama's choice for chief of staff. About a dozen protesters stood outside Jackson's office Saturday demanding his resignation, and Republicans called for more information from Obama about Emanuel's role in the Senate selection process.

The Chicago Tribune reported that Emanuel had conversations — captured on wiretaps — before the election with the Blagojevich administration about who would replace Obama in the Senate. The report did not suggest any dealmaking in the conversations, and Obama has strongly denied that anyone on his team committed wrongdoing.

Jackson was identified as one of the candidates Blagojevich was considering to replace Obama, and a criminal complaint said his supporters were willing to raise $1.5 million for the governor to make the appointment happen.

Blagojevich's political future remains in limbo. The Legislature could start impeachment proceedings as soon as Monday, and the Illinois Supreme Court could act on a request by Attorney General Lisa Madigan to strip him of his powers.

Madigan's staff has taken steps to rewrite lender-assurance language on a short-term borrowing plan, according to a spokeswoman for state Comptroller Dan Hynes. That would head off any problems the state has had in paying its bills over the Blagojevich scandal.

The governor has not made any public comments about his future. Spokesman Lucio Guerrero said the governor plans to sign a bill Monday that provides tax credits to filmmakers in Illinois.

Beal, the Chicago lawyer, said Blagojevich may be contemplating a deal with prosecutors or be in denial. Beal said he has seen many white-collar clients go through a defiant denial stage after they're charged with a crime.

"It often takes awhile to sink in on a gut level how much trouble they've gotten themselves into and what their options are," Beal said.

Chicago defense attorney and former assistant U.S. attorney Ron Safer said the prospect of trading a resignation in a plea deal with federal prosecutors may be far-fetched, but Blagojevich's nature seems to be a self-serving one in which he gains a personal advantage from every action he takes.

Safer sized up the prospect of a possible resignation and plea deal from his perspective as a former federal prosecutor: "If he came in and said, 'Look, I want to plead guilty. I want to cooperate. I want to accept responsibility. I'm going to resign my office,' all of those would indicate to me acceptance and would be relevant to me as a prosecutor."

Obama calls for Illinois governor to resign

President-elect Barack Obama on Wednesday joined others calling for Illinois Gov. Rod Blagojevich to resign, distancing himself further from the unfolding scandal over allegations that the governor schemed to barter Obama's vacant Senate seat for personal gain.

"The president-elect agrees with Lt. Gov. (Pat) Quinn and many others that under the current circumstances it is difficult for the governor to effectively do his job and serve the people of Illinois," Obama spokesman Robert Gibbs said in response to questions from The Associated Press.

Blagojevich was arrested Tuesday, accused of seeking money or other favors to influence his choice in picking Obama's replacement. The governor has authority to appoint the replacement, but top Illinois lawmakers have said they are preparing to call the Legislature into session as early as next week to set a special election to choose Obama's successor.

Asked whether Obama supports a special election, Gibbs said Obama believes the General Assembly should consider how to fill the Senate seat and "put in place a process to select a new senator that will have the trust and confidence of the people of Illinois."

Aides say Obama is refraining from stating what that solution should be.

If Blagojevich resigns, Quinn would become governor and have the right to appoint Obama's successor. That would avoid a special election, which can be costly, and speed up the appointment of Illinois' junior senator.

Over the past two days since Blagojevich's arrest, Obama and his aides have largely refrained from commenting on the scandal. When Obama has spoken about the case, he's been cautious.

In brief comments to reporters Tuesday, Obama said "like the rest of the people of Illinois I am saddened and sobered by the news that came out of the U.S. attorney's office today," but he didn't go so far to condemn Blagojevich's alleged actions.

He did add about Blagojevich's process of considering a successor: "I had no contact with the governor or his office, and so I was not aware of what was happening."

Obama reiterated that point in an interview published in the Chicago Tribune and the Los Angeles Times on Wednesday. "I have not discussed the Senate seat with the governor at any time," he said.

But Obama wouldn't answer a question on whether he was aware of any conversations between the governor and his top aides, including incoming White House chief of staff Rahm Emanuel. "It's an ongoing investigation," Obama said. "I think it would be inappropriate for me to ... remark on the situation beyond the facts that I know."

And, aides didn't say whether Emanuel, a Democratic Illinois congressman, was ever approached by the governor's emissaries involved in allegedly corrupt schemes. Nor did they say whether Obama is investigating his own ranks to determine whether any of his staffers had contact with the governor or his office.

Report: Jesse Jackson Jr. is 'Candidate 5' in Blagojevich scandal

ABC News has a law enforcement source telling them that Jesse Jackson, Jr. is "Senate Candidate Five," the one who was -- according to Blagojevich -- willing to supply campaign cash in exchange for the Senate seat.

(This, incidentally, doesn't strike me as all that unusual in politics, or as obviously criminal as other things in the complaint -- though the crudeness with which Blagojevich discussed it was.)




Jackson Jr. said "I don't know" when asked if he was Candidate #5, but said he was told "I am not a target of this investigation."

Jackson Jr. said he agreed to talk with federal investigators "as quickly as possible" after he consults with a lawyer.

The Congressman, a son of the famed civil rights leader, denied that anyone had been authorized to make payments or promises to the Governor on his behalf.

"It is impossible for someone on my behalf to have a conversation that would suggest any type of quid pro quo or any payments or offers," Jackson Jr. told ABC News. "An impossiblity to an absolute certainty."

Obama works to distance himself from Ill. governor

As Obama works to set up his new administration and deal with a national economic crisis, suddenly he also is spending time and attention trying to distance himself from Illinois Gov. Rod Blagojevich and charges that the governor was trying to sell the now-vacant Senate post.

The president-elect was blunt and brief in addressing the case on Tuesday: "I had no contact with the governor or his office, and so I was not aware of what was happening" concerning any possible dealing about Blagojevich's appointment of a successor.

It's Obama's first big headache since his election last month, and Republicans were anything but eager to let it go away.

Said Rep. Eric Cantor of Virginia, the new GOP House whip: "The serious nature of the crimes listed by federal prosecutors raises questions about the interaction with Gov. Blagojevich, President-elect Obama and other high ranking officials who will be working for the future president."

Added Robert M. "Mike" Duncan, chairman of the Republican National Committee: "Americans expect strong leadership, but President-elect Barack Obama's comments on the matter are insufficient at best."

In Chicago, U.S. Attorney Patrick Fitzgerald said prosecutors were making "no allegations" that Obama was aware of any scheming.

And Blagojevich himself, in taped conversations cited by prosecutors, suggested that Obama wouldn't be helpful to him. Even if the governor was to appoint a candidate favored by the Obama team, Blagojevich said, "they're not willing to give me anything except appreciation."

The two Illinois politicians have never been especially close and have largely operated in different Democratic Party camps in the state. Blagojevich's disdain for Obama was clear in court documents; he is quoted as calling the president-elect a vulgar term in one phone conversation recorded by the FBI.

Still, at the very least, the episode amounts to a distraction for Obama at an inopportune time just six weeks before he's sworn into office. It also raises the specter of notorious Chicago politics, an image Obama has tried to distance himself from during his career.

There were signs the continuing investigation could still involve him.

His statement that he didn't have contact with Blagojevich about the Senate seat seems to conflict with that of top adviser David Axelrod, who told Fox News Chicago on Nov. 23: "I know he's talked to the governor, and there are a whole range of names, many of which have surfaced, and I think he has a fondness for a lot of them."

Obama transition officials say Axelrod misspoke.

It also appears that Obama friend Valerie Jarrett, an incoming senior White House adviser, is the person referred to repeatedly in court documents as "Candidate 1." That individual is described as a female who is "an adviser to the president-elect" and as the person Obama wanted appointed to the Senate seat. Court papers say that "Candidate 1" eventually removed "herself" from consideration for the Senate seat.

In a Nov. 11 phone conversation with an aide, Blagojevich talked at length about "Candidate 1" and said he knew that Obama wanted her for the open seat but "they're not willing to give me anything except appreciation. (Expletive) them."

One day later, Jarrett, a Chicago businesswoman who is one of three co-chairmen of Obama's transition team and was a high-level adviser to his presidential campaign, made it known that she was not interested in the seat. And, on Nov. 15, Obama announced that Jarrett would be a senior White House adviser and assistant for intergovernmental relations.

Obama has maintained a cordial but distant relationship with Blagojevich during the governor's tenure. He supported his fellow Democrat for re-election in 2006, even though the governor backed someone else over Obama in the U.S. Senate Democratic primary race in 2004. Obama has said little about the many misconduct allegations that have piled up against Blagojevich, and he has complimented Blagojevich for running "a sound administration" with "the right priorities."

Obama's circle of major Illinois political allies and supporters is largely separate from Blagojevich's, with two major exceptions. Both Obama and Blagojevich got extensive money and support from Chicago businessman Antoin "Tony" Rezko, who is now under federal indictment. And Obama is close to Illinois Senate President Emil Jones, who has been the governor's staunchest legislative ally.

At least one top aide to Obama, Michael Strautmanis, previously worked for Blagojevich. Obama has appointed Strautmanis to serve as White House chief of staff to the presidential assistant for intergovernmental relations and public liaison. The Chicago native was legislative director and counsel to Blagojevich when the governor was a member of Congress and then helped Blagojevich win the governorship in 2002. There is no indication that Strautmanis is involved in the case.

More details on the case could be forthcoming.

Court documents say they don't include all calls dealing with the governor's efforts regarding the Senate seat appointment. And many people in the documents are referred to by aliases; there's little doubt their identities will eventually surface.

In Chicago, Obama largely kept a low profile as word of Blagojevich's arrest spread.

He went to a gym to work out as he does most mornings but canceled a previously scheduled FBI briefing and, instead, headed to his transition office next door to the federal courthouse. He stayed there and mostly out of sight until a midday meeting with former Vice President Al Gore on environmental and energy issues. That was supposed to be the news of the day out of the Obama office but the president-elect found himself peppered with questions about Blagojevich when reporters entered the Gore meeting for a photo op.

"Like the rest of the people of Illinois I am saddened and sobered by the news that came out of the U.S. attorney's office today. But as this is an ongoing investigation involving the governor, I don't think it would be appropriate for me to comment on the issue at this time," Obama said - and then he said he wasn't aware of Blagojevich's maneuvering.

Robert Gibbs, an Obama spokesman, said: "We did not know about this recent part of the investigation until today."

In court documents, FBI Special Agent Daniel Cain detailed several phone calls between Blagojevich and his aides that were intercepted on court-authorized wiretaps over the past month. Blagojevich is accused of conspiring to sell or trade the vacant Senate seat for personal benefits for himself and his wife, Patti. Among his alleged desires: a Cabinet post, placement at a private foundation in a significant position, campaign contributions or an ambassadorship.