Pictured Stuart Levine.....he's still talking, err, cooperating with Feds.
The indictment identifies several individuals by letter only. The Sun-Times was able to confirm the identities of some through sources familiar with the investigation. None of these people have been accused of a crime. Many have declined to comment or could not be reached.
Individual . . .
A. William Cellini: Longtime Springfield powerbroker and associate of Stuart Levine's. Allegedly acted as a go-between in one shakedown.
B. Christopher G. Kelly: Blagojevich fund-raiser. Allegedly discussed plans to raise political donations from investment firms.
C. Sheldon Pekin: Consultant who allegedly agreed to kick back $250,000 in fees in return for getting TRS business.
D. Joseph Aramanda: Rezko associate who allegedly got $250,000 from Pekin "in substantial part for the benefit of Rezko."
G. Michael Winter: Rezko business associate. Had allegedly agreed to funnel fees from an investment firm to Rezko but did not want his identity revealed to TRS board.
H. Myron Cherry: Attorney and political donor. Cherry's name was listed in place of Winter's on TRS paperwork. Cherry said this was done without his knowledge and that he is cooperating with federal authorities.
J. Thomas Rosenberg: Movie producer and former investment firm owner. Balked at Levine and Rezko's extortion attempt and threatened to go to law enforcement.
Governor Blagojevich's friend Chris Kelly is indicted A suburban businessman was indicted today on federal tax fraud charges for allegedly understating his true personal and business income by more than $1.3 million over five years, in part by concealing the use of corporate funds for personal expenses including gambling debts to sports bookmakers. The defendant, Christopher G. Kelly, president and owner of a roofing business and a separate consulting firm, allegedly cheated the government on his personal and business taxes between 2000 and 2005, according to a 12-count indictment returned today by a federal grand jury.
Kelly, 49, of Burr Ridge, was charged with one count of obstructing and impeding the IRS, five counts of filing false individual federal income tax returns, five counts of filing false corporate tax returns and one count of illegally structuring monetary transactions. He will be arraigned at a later date in U.S. District Court.
According to the indictment, Kelly was the president and owner of BCI Commercial Roofing, Inc., and CGK Consulting, Inc., both of which shared offices at 3062 West 167th St., Markham. Kelly maintained financial control over the two companies and determined how each company spent money and categorized its spending for purposes of calculating its business expenses as well as Kelly’s personal income.
As part of a corrupt endeavor to obstruct and impede the IRS, Kelly allegedly used business funds to pay for certain personal expenses, concealed the true nature of the payments through improper recording of the payments on the companies’ financial books and created false documents describing the payments; structured cash withdrawals under $10,000 from banks by disguising them as legitimate business expenses; and used third parties to pay portions of his illegal gambling debts.
More specifically, Kelly allegedly:
o caused BCI Roofing to pay gambling debts for certain of his losing wagers placed with Individual A, who, with the assistance of Individual B, ran a bookmaking operation in Illinois that accepted wagers on sporting events On at least one occasion, Kelly allegedly hid the use of corporate funds to pay a gambling debt to Individual A by ordering that the payment be falsely recorded in BCI Roofing’s financial books as a loan from the company to Individual A;
o placed millions of dollars of wagers with casinos in Las Vegas and caused BCI Roofing to pay for certain of his losing wagers there. On at least one occasion, Kelly allegedly hid the use of corporate funds to pay a gambling debt to a casino by ordering the preparation of false internal BCI Roofing documentation to make it appear that the payment was a legitimate business expense incurred by the company as part of a roofing contract for an airline;
The IRS obstruction and structuring counts allege in September 2004, Kelly solicited Individual C’s help in cashing three checks, each slightly under $10,000, and returning the cash to Kelly. In one instance, Kelly allegedly gave Individual C a BCI Roofing check for $9,500 payable to Individual C’s four-year-old child, and the following day, Kelly allegedly gave Individual C BCI Roofing and CGK Consulting checks payable to Individual C and Individual C’s spouse and obtained the cash back from Individual C for all three checks.
About the same time, Kelly also allegedly concealed his receipt of additional cash by depositing and cashing six BCI Roofing checks payable to himself, his children, his wife and cash. In each of these transactions, Kelly allegedly structured the cash receipts in amounts less than $10,000 to avoid generating Currency Transaction Reports.
The indictment seeks forfeiture of $86,600, which is the total amount of the allegedly structured funds.
The IRS obstruction count also alleges that in early 2005 Kelly attempted to conceal the source and nature of a partial payment on a large gambling debt he owed to Individual A. To assist Kelly in paying the debt, Individual D arranged for a wire transfer of approximately $79,140 from a bank account in Saudi Arabia to a bank account in Florida, according to the indictment. After learning that the wire transfer was not credited to the Florida bank account, Kelly allegedly arranged for the wire transfer of approximately $45,000 from a pizza company in Chicago to Individual A’s bank account. On at least one other occasion, Kelly allegedly attempted to pay a portion of the gambling debt to Individual A by tendering multiple checks, each made out for thousands of dollars and with the payee line
Rezko will also have new charges
Never a dull moment in this town.
Daley's emotional dilemma stems from Chicago Sun-Times disclosures Friday that Patrick Daley had a hidden interest in a sewer inspection company whose city business rose sharply while he was an owner.
The sewer deal also included the mayor's nephew Robert Vanecko. Sun-Times reporter Tim Novak previously had disclosed that Vanecko got $63 million in city pension.
The mayor's son and nephew never publicly disclosed their ownership stake in Municipal Sewer Services, despite a city ordinance that required such disclosure.
In a Thursday memo to his employees, company Chairman Robert Bobb acknowledged that disclosure statements filled out by his predecessors "contain a number of mistakes or oversights. ... These errors, among others, are why we have new management. We will correct these filings if requested by the city."
That left Heard to insist that Daley knew nothing about his son's involvement in the sewer inspection deals until the Sun-Times started asking questions. The mayor's signature appears on city contracts with Municipal Sewer Services. But the mayor's name on all city contracts is actually signed by top mayoral aides who write their own initials next to Daley's name.
"The mayor doesn't sign contracts for this very reason. If someone is signing contracts, you assume they're aware of who's getting it. He doesn't want that. This is not some new practice. It's been that way since he's been mayor," Heard said.
"Readers of the [Sun-Times] story would believe the mayor willingly signed his name to a contract that had his son's name on it. That is not the case. The name was not disclosed. Company owners have acknowledged that mistake."
The front-page story about the mayor's son was the talk of the town among Chicago politicians Friday.
The mayor's brother John sells insurance to city contractors. John, Cook County Commissioner of the 11th District Mayoral brother Michael Daley and his law partner Jack George have emerged as the city's pre-eminent zoning attorneys during the mayor's 19-year reign. But this is the first time that any of the mayor's children have been tied to city business.