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 The federal indictment says Christopher G. Kelly, 49, placed millions of dollars in wagers with a bookie in Chicago and casinos in Las Vegas, then paid the debts out of corporate funds from his business, portraying the payments as legitimate business expenses. He also is accused of hiding $1.3 million in taxable income.
The charges are the latest in a long-running federal investigation of state government under Blagojevich, the second consecutive Illinois governor whose administration has become the target of a major corruption probe. Blagojevich has not been charged with any wrongdoing.
As a former adviser to the Blagojevich administration on gambling issues, Kelly once had been asked to represent the administration in negotiations between the Illinois Gaming Board and the Emerald riverboat casino.
Blagojevich had said he picked Kelly, in part, because Kelly is an avid gambler. Kelly also was the finance chairman of Blagojevich's 2002 campaign.
Kelly's attorney, Michael Monico, told reporters Thursday that "at the end of the day when all the evidence is in the government will see as will everyone else that Mr. Kelly owes no taxes
-- there will be no tax due and owing from Mr. Kelly."
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 The charges against Kelly include five counts each of filing false federal income tax returns and filing false corporate tax returns, one count of obstructing or impeding the Internal Revenue Service and one count of illegally structuring monetary transactions.
"I am saddened to hear these allegations about Chris's personal life," Blagojevich said in a statement released Thursday. "I know the pain it must be causing him and his family. My thoughts and prayers are with them during this difficult time. In fairness to Chris, I believe it is important to let the legal process play out and not rush to judgment."
[Associated
Press; By MIKE ROBINSON]
Associated Press writer John O'Connor in Springfield contributed to this report.
Copyright 2007 The Associated
Press. All rights reserved. This material may not be published,
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