Fed probe takes bite out of gov's war chest

SPRINGFIELD | Debt to law firm shows growing legal tab

BY DAVE MCKINNEY AND ABDON M. PALLASCH - Chicago Sun-Times

January 23, 2008

Being "Public Official A" isn't cheap.

Gov. Blagojevich's once-flush political fund couldn't scrape up enough money last year to pay nearly $1 million in legal expenses that appear tied to an expanding federal corruption probe of his administration and inner circle, newly-filed campaign reports showed Tuesday.

Rumbles over Rezko The Friends of Blagojevich fund, which only two years ago held $15.5 million, disclosed it racked up a $965,352 tab with the Winston & Strawn law firm in 2007. None of that was repaid.

Counting that debt, Blagojevich's fund has incurred $2.07 million in legal fees since his administration disclosed it was under federal investigation in October 2005.

Campaign spokesman Doug Scofield refused to identify what service Winston & Strawn performed on behalf of the campaign.

Of Winston & Strawn's new billings, $555,255 came prior to last July. Those expenses weren't included in a filing last summer that was supposed to show all of the fund's financial activity for the first half of the year. The charges weren't reflected until Tuesday in an amendment Blagojevich's campaign filed with the State Board of Elections.

Scofield said the fund did not report the billings last year because "rather than make an estimate or file something inaccurate or incomplete, they waited until they worked through an agreement on the total."

Coincidentally, the $2.07 million the governor's campaign account has been billed for lawyers is the same amount Blagojevich reported in his war chest at the end of 2007.

Last month, federal prosecutors outlined their case against one of Blagojevich's former top fund-raisers, Antoin "Tony" Rezko, and alleged the governor viewed his political account as a checkpoint for state business. The feds alleged "Public Official A" -- whom the Chicago Sun-Times has confirmed is Blagojevich -- told a different fund-raiser that supporters would be rewarded with "contracts, legal work and investment banking" for contributions.

The administration has denied Blagojevich is "Public Official A."

"Despite the governor's rhetoric of 'There's nothing here,' these [campaign] filings show there is at least $1 million worth of something for somebody to look at," said Jay Stewart, executive director of the Better Government Association.

Between July and December, Blagojevich reported raising $2.05 million. His largest single donor was the Illinois Pipe Trades political action committee, which gave $110,000.

The next largest individual donor was A. Finkl & Sons Co., a Chicago steel company that hosted Blagojevich's October fund-raiser. That firm, which once employed Blagojevich's late father, donated $80,000.

$2 mil. in state's attorney's race

In other campaign reports, candidates for Cook County state's attorney raised more than $2 million, with County Commissioner Larry Suffredin and Ald. Tom Allen (38th) raising about $500,000 each. Anita Alvarez, the No. 3 administrator in the office, posted $640,000 in contributions from her husband, obstetrician/gynecologist James Gomez, bringing her total to $700,000.

"Anita Alvarez ... is proud to be self-funded because it will convince voters that unlike her opponents ... she will owe no one any favors when she becomes state's attorney," Alvarez spokeswoman Sally Daly said.

Suffredin's biggest donor is Democratic heavyweight Fred Eychaner, who has given Suffredin $100,000 and loaned him $50,000.

Allen got heavy support from organized labor, with whom he sided on the City Council Wal-Mart votes.

Meanwhile, Mayor Daley's $3 million campaign fund brought in $43,663 during the last half of 2007 and paid for about $1,500 worth of hotel stays in Italy and other cities. That expense, Daley's campaign treasurer said, was related to Daley's scouting the Olympics or a speech he was invited to give in Europe.