Potential racketeering conviction could bankrupt Blagojevich

[August 05, 2010]  CHICAGO -- Former Illinois Gov. Rod Blagojevich said on numerous FBI wiretaps that he was looking out for the best interests of his family, but a guilty verdict on just a couple counts of corruption could threaten those very concerns.

Blagojevich could lose his home and several other assets if convicted of racketeering charges, originally developed to fight organized crime. The federal government is looking to confiscate assets worth more than $438,000 from the Blagojevich family in connection with his alleged attempt to sell President Barack Obama's former U.S. Senate seat and other pay-to-play schemes. That includes the ex-governor's home in northwest Chicago, along with his Washington, D.C., condominium.

The government is also after what's left in Blagojevich's campaign coffers. The Friends of Blagojevich campaign fund had about $2 million in it when he was indicted on corruption charges nearly 19 months ago. His hefty legal fees have seen those funds dwindle to below $100,000, according to the defense.

Prosecutors contend Blagojevich served as the head of a criminal organization, which they ominously dubbed the "Blagojevich Enterprise," and as a result, the federal government can seize assets which they believe were financed by his illegal activities.

Blagojevich could be convicted of racketeering charges if the jury finds him guilty of at least two criminal counts, including bribery and extortion charges. Prosecutors are seeking the forfeiture of assets in connection with the six-figure fees Patti Blagojevich collected from former Blagojevich fundraiser and convicted influence peddler Tony Rezko.

The jury is in its fifth full day of deliberations -- and things have gotten quiet. Jurors have previously sent several notes to federal Judge James Zagel requesting transcripts for the two-month trial, along with copies of the closing arguments. The judge denied the first as too broad -- though he said specific transcript requests are permissible -- and the second as irrelevant to the evidence. The six men and six women charged with judging the ex-governor have since gone quiet.

Neither Blagojevich nor his brother and co-defendant Robert was in court on Wednesday morning, though each is supposed to stay within an hour of the courthouse in case a verdict is reached.

Wednesday morning saw one surprise -- the defense and the prosecution agreed on the racketeering instructions, also known as forfeiture. U.S. Attorney Reid Schar said the government agreed to a set of instructions drafted by defense jury consultant Mark Martin. The argument over forfeiture will take place after the jury delivers a verdict and only if Blagojevich is convicted on the racketeering charges. The defense hopes to argue against forfeiture before the jury, rather than the judge.

The prosecution has attempted to prove the Blagojevich family collected about $280,000 from Rezko and fundraiser Ali Ata. Schar indicated that he would present some additional evidence in order to convince jurors the $438,000 figure is appropriate.

Blagojevich's finances, especially the revelations of his $400,000 shopping sprees and mountainous debt, have been subject to much speculation. Forfeiture could push the family deeper into the red. The defense said it does not intend to call any witnesses for what will be a "brief" hearing, despite the potential consequences.

Zagel said he will consider trying to wrap up the ruling in one fell swoop, but the decision is still to be determined.

"You can usually tell from looking at the jury how exhausted or fresh they are," he said.

[Illinois Statehouse News; By BILL McMORRIS]