Prosecution rests in Blagojevich trial as defense gets extra week

[July 14, 2010]  CHICAGO -- The federal government on Tuesday rested its case in the corruption trial of Rod Blagojevich, but the former Illinois governor's attorneys are doing anything but, as they try to reverse the picture of a power- and money-hungry politician drawn by the prosecution.

Prosecutors spent five weeks playing wiretaps and questioning some of Blagojevich's closest associates about their former boss's motives, work ethic and character. Tuesday was no different with one of Rod Blagojevich's closest associates taking the stand. Lobbyist John Wyma was the first to turn on him, and he said it had everything to do with the former Illinois governor's fundraising tactics.

"I was increasingly alarmed by the level of aggression the fundraising had taken on," John Wyma said of an Oct. 8, 2008, meeting with the governor. "I withdrew, stopped following up on fundraising."

Less than a week later he approached the FBI and agreed to cooperate with the federal investigation into Blagojevich's activities, though he would not wear a wire.

It was hardly what would have been expected from the close relationship he had enjoyed with Blagojevich since serving as chief of staff in his congressional office and political director of the 2002 gubernatorial campaign.

Wyma said he was aware that fundraising was a "show of (political) strength for any politician." But he said Blagojevich's focus on fundraising was almost obsessive and blurred the line between governance and campaign contributions.

Wyma, who became a lobbyist following the 2002 election, soon found himself "warning" clients at his million-dollar business that Blagojevich was allegedly seeking five-figure donations in exchange for state contracts.

Wyma's reservations did not end his close relationship with the governor. Blagojevich turned to him for advice and access to the political world, including former U.S. Rep. Rahm Emanuel, now White House chief of staff, who was a congressman from Chicago’s northwest side. Wyma said he served as the go-between for Emanuel and Blagojevich during a spat over a charter school in 2006.

Emanuel reached out to the lobbyist for an update on state assistance to a Chicago charter school. Wyma testified that the former governor or his adviser Lon Monk was withholding a multimillion grant to the school with the hope of getting a Hollywood fundraiser with Emanuel's brother, talent manager Ari. The grant would eventually be issued; no fundraiser was held.

Wyma continued to raise money for the governor, throwing private dinners with his clients to encourage contributions, until late 2008, when he became "uncomfortable" with the governor. Wyma said a looming ethics law, which limited contributions from companies doing state business, left Blagojevich mixing contributions with state action.

"(His mindset) was, if you don't get this money immediately, you can't get it after Jan. 1, so you have to get as much as you can, as quickly as you can," Wyma said.

Blagojevich began setting "unrealistic" expectations for his supporters, Wyma said, noting hardly a conversation went by without a mention of a donation. Wyma said Blagojevich told him of his alleged shakedown of road builder Jerry Krozel.

"He had Monk going out to Jerry to get $500,000," he said. "He could have done a broader program, but he wanted to see how people performed. ... He was going to base future state action off (fundraising)."

Wyma said his final interaction with Blagojevich before becoming a cooperating witness came through his client, Children's Memorial Hospital in Chicago. He had been advocating an increase in Medicaid reimbursement rates for pediatric specialists, which would have brought an additional $8 million to the hospital. But, according to Wyma, the increased reimbursements came at a price.

"(The governor said) I wanna get (hospital Executive Director Pat) Magoon for $50,000," he testified.

Wyma haggled Blagojevich down to $25,000 at the meeting but never delivered the message. But Robert Blagojevich, the governor's elder brother and co-defendant, did.

Pat Magoon testified that he received a call from Robert Blagojevich on Oct. 22 -- just five days after the governor informed him of the rate increase. The elder Blagojevich asked him to raise $25,000 from board members and friends from the hospital by Jan. 1.

"What caused me the greatest concern was the governor has the power to approve or rescind that money," Magoon said. "I felt threatened."

The rate increases went through; a fundraiser was never held.

Magoon confirmed during cross-examination that Robert never actually threatened him -- even after the hospital administrator refused to return to his calls. Magoon also acknowledged that Blagojevich never contacted him before approving the law asking for donations in exchange for his signature.

The defense is arguing that the Blagojevich brothers never threatened the legislation and that fundraising calls derived from Magoon's role as chairman of the Illinois Hospital Association and a past donor.

Magoon and Wyma are a different breed of witness for the prosecution, which has relied on admitted co-conspirators to make its case against the governor. Soft-spoken, with a boyish face that belies his 43 years, Wyma seems uncomfortable on the stand, although like the others, he is testifying with immunity.

But defense attorneys called into question his true motivation for stepping forward as a witness. Federal investigators subpoenaed Wyma in connection with his lobbying work for Provena, a consortium of health care organizations, in 2003 and 2004. Defense attorney Sheldon Sorosky accused Wyma of bribery during that time -- a crime he was allegedly trying to cover up when he agreed to cooperate with the investigation against the governor.

Wyma testified that he helped "facilitate a conversation" between Provena and Dr. Michel Malek, a disgruntled employee and Tony Rezko associate, in order to obtain approval of building plans for the organization. Convicted influence-peddler Rezko had some influence over the Illinois Health Facilities Planning Board. Wyma said it was in no way a bribe.

However, Blagojevich's attorneys scored a major victory on Tuesday morning, receiving, in essence, the weeklong delay they had been requesting.

The prosecution is resting about a month earlier than expected at the beginning of the trial. The defense said it lost a month to plan its case and subpoena witnesses -- including White House figures Valerie Jarrett and Emanuel. Blagojevich's attorneys on Monday asked federal Judge James Zagel for a week's delay. The judge did not rule on the motion, but the defense will have until Monday to begin their case.

Lawyers for both sides will spend the remainder of the week reviewing tapes and witnesses for the defense.

Blagojevich, who faces more than 400 years in prison if convicted, will not be in court on Wednesday or Thursday.

[Illinois Statehouse News; By BILL McMORRIS]