Thursday, November 10, 2011
 
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Feds dig into Blagojevich pension

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[November 10, 2011]  SPRINGFIELD -- Federal prosecutors are digging for data about convicted former Gov. Rod Blagojevich's potential pension income in advance of his sentencing on corruption charges, even though Illinois officials plan to block the disgraced Democrat from getting any state retirement pay.

Last month, U.S. Attorney Patrick Fitzgerald's office demanded records related to Blagojevich from two state pension programs, according to documents obtained by The Associated Press. Fitzgerald's spokesman Randall Samborn declined to comment.

Illinois law already prohibits state officials from collecting if they have been convicted of felonies related to their official duties. But prosecutors are probably drawing a picture of Blagojevich's finances before his Dec. 6 sentencing on 18 convictions, according to former federal prosecutor Julian Solotorovsky of Chicago. That will undoubtedly include prison time and potentially hefty financial penalties.

"They're trying to figure out his net worth so they can go in and argue for as much of a fine as possible," said Solotorovsky, now a private attorney specializing in white-collar crime.

State officials said last month they plan to deny Blagojevich's $65,000-a-year pension, just as they did to his predecessor, former Gov. George Ryan, who also was convicted of corruption. But Blagojevich would be due a refund of more than $129,000 he paid into the fund as a state legislator and later as governor. And he's entitled in the future to at least $13,000 annually from his six-year stint in Congress.

Blagojevich was convicted in June on 17 counts of participating in sweeping schemes to raise campaign cash or enrich himself, including by selling an appointment to President Barack Obama's vacated U.S. Senate seat. With an additional conviction from a 2010 trial, he faces a maximum sentence of 305 years in prison and millions of dollars in fines. Experts say he is likely to receive about 10 years.

Before his sentencing hearing, lawyers for both sides will submit memos to U.S. District Judge James Zagel, making their cases about what penalties should be assessed against the former governor -- and how able he is to pay fines.

"His net worth will be an issue," Solotorovsky said. "It's not unusual for the defense to say a defendant's net worth is 'X' and for the government to say it's '2X.'"

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But Blagojevich's attorney Sheldon Sorosky, who said he was unaware of the subpoenas, suggested the government is looking for something beyond numbers. They might be checking whether Blagojevich applied for pension benefits and made claims about innocence that might contradict later statements or evidence at his sentencing, he said.

Blagojevich knows he won't qualify for a state pension and made no pitch to state officials for an exception, Sorosky said.

The former governor would be eligible to start collecting a $64,533-a-year state pension when he turns 55 Dec. 10, just days after his sentencing. That would have increased 3 percent a year, compounded, beginning at 60, according to the State Retirement Systems.

The federal subpoenas went to both the State Employees’ Retirement System and the General Assembly Retirement System. After serving in the Illinois House of Representatives from 1993 to 1997 and having returned from Congress, Blagojevich continued paying into the General Assembly's system as governor from 2003 to 2009.

[Associated Press; By JOHN O'CONNOR, AP political writer]

Copyright 2011 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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