Category Archives: Chicago

Chicago Tribune Why is Blago’s appeal dragging on and on?, Citizen Wells answer all about protecting Obama, Why was Blagojevich prosecution and adjudication delayed over years?, More pristine on Rezko

Chicago Tribune Why is Blago’s appeal dragging on and on?, Citizen Wells answer all about protecting Obama, Why was Blagojevich prosecution and adjudication delayed over years?, More pristine on Rezko

“An unusual court delay is keeping Rod Blagojevich’s appeal “out of sight, out of mind.””…Chicago Tribune April 10, 2015

“I believe I’m more pristine on Rezko than him.”…Rod Blagojevich

“Regardless of how this plays out, it benefits Obama. If there is no appeal or the appeal is denied, Blagojevich will be sequestered. If the appeal proceeds, it could drag out beyond impacting the 2012 election cycle. The intent is obvious.”…Citizen Wells, July 19, 2011

 

 

The Chicago Tribune asks:  Why is Blago’s appeal dragging on and on?

A much bigger and more important question is: Why was the Blagojevich prosecution and adjudication delayed over years?

Especially since his administration came under investigation by the feds at least by late 2003.

The answer is: It is all about protecting Obama.

Recently the National Enquirer reported:

“He’s constantly muttering to himself about Obama and blames the president for him being in prison and is sure he will be released within the year,”

WORLD EXCLUSIVE! BLAGO: BEHIND BARS & GOING BONKERS!

From the Chicago Tribune April 10, 2015.

“Commentary: Why is Blago’s appeal dragging on and on?”

“It’s been three years since former Illinois Gov. Rod Blagojevich started his 14-year prison sentence for political corruption, including trying to sell Barack Obama’s soon to be vacated U.S. Senate seat. If his appeal is unsuccessful, the earliest he could get out of prison would be around Christmas 2024.

But wait. He appealed his conviction before the U.S. Court of Appeals for the 7th Circuit in Chicago on July 15, 2013. So, he still has a chance his conviction will be overturned and he’ll be released, resentenced or the appellate court may order a new trial on all the charges. There still is a glimmer of hope for the disgraced governor.

This appeal, however, is unique in the annals of appellate jurisprudence. The case was argued before a three-judge panel in December 2013. Normally, a decision is handed down within three to six months after oral argument before the court. In a very rare situation, the decision may not be rendered until nine months after the case was argued.

However, it’s been more than 15 months since the case was argued before the court and “taken under advisement,” more than double the normal time for deciding an appeal.
This extraordinary delay has generated extensive speculation by legal scholars and practitioners as to what is going on in the court’s deliberation over the appeal. Some say the court is really struggling with the central issue of so-called “honest services,” the fuzzy legal distinction between traditional political horse-trading and flat-out corrupt bribery. Others maintain the court is just being particularly careful in light of the national significance of the case. Still others suggest that a lengthy written majority opinion is likely, with an equally lengthy dissenting opinion, both of which likely require drafts and redrafts in an attempt to “get it right.”

Whatever the explanation, this appeal is proving to be out of the ordinary.”

Read more:

http://www.chicagotribune.com/news/opinion/commentary/ct-rod-blagojevich-prison-appeal-corruption-perspec-0413-jm-20150410-story.html

 

 

 

 

Blagojevich blames Obama for being in prison, Behind bars and going bonkers, White hair, Obama more rezko upped than me, Blagojevich sure he will be released within year

Blagojevich blames Obama for being in prison, Behind bars and going bonkers, White hair, Obama more rezko upped than me, Blagojevich sure he will be released within year

Why did Patrick Fitzgerald and the US Justice Department wait until December 2008 to arrest Rod Blagojevich?”…Citizen Wells

“I believe I’m more pristine on Rezko than him.”…Rod Blagojevich

“Regardless of how this plays out, it benefits Obama. If there is no appeal or the appeal is denied, Blagojevich will be sequestered. If the appeal proceeds, it could drag out beyond impacting the 2012 election cycle. The intent is obvious.”…Citizen Wells, July 19, 2011

 

 

From the National Enquirer April 9, 2015.
“WORLD EXCLUSIVE! BLAGO: BEHIND BARS & GOING BONKERS!”

“Disgraced former Illinois Governor Rod Blagojevich has suffered a breakdown behind bars – and his famous mop top is now a dazzling snow white!

These extraordinary world exclusive photos – snapped by a jailhouse snitch and obtained by The National ENQUIRER – dramatically show how America’s most celebrated political inmate has gone loopy during his three years locked away at a Colorado correctional facility.

“He doesn’t really socialize and is very paranoid of everyone,” The ENQUIRER’s spy said.

Somber Blagojevich – federal inmate No. 40892-424 – whiles away his days bizarrely babbling about President Barack Obama and vowing that he will one day reclaim electoral glory!

“He’s constantly muttering to himself about Obama and blames the president for him being in prison and is sure he will be released within the year,” said the jailhouse source. “He plans to run for president as soon as he can!”

WORLD EXCLUSIVE! BLAGO: BEHIND BARS & GOING BONKERS!

What were Obama and Blagojevich discussing in 2008?

ObamaBlagoNov2008

 

 

“DATE: 11/12/2008
TIME: 10:44 A.M.
ACTIVITY: Rod Blagojevich home line incoming call.
SESSION: 545
SPEAKERS:
BLAGOJEVICH: Rod Blagojevich
HARRIS: John Harris

BLAGOJEVICH I just talked to Balanoff.

HARRIS Yeah. You called him?

BLAGOJEVICH Yeah.

HARRIS Okay.

BLAGOJEVICH It’s clear he got the message back from them they want no part of me. You know the Rezko thing and…

HARRIS Right, right.

BLAGOJEVICH I thin-, you know, it’s really, I get that I’m a big boy and I can handle that, but it’s really fucking galling, this guy is more Tony’d up than I am. And it’s almost like they fucking conspi-, made a concerted effort and they got the Chicago media to fucking make me wear Rezko more. To fucking dilute it from him.”

Blagojevich appeal delayed waiting on transcripts, Court clerk 5 1/2 month leave of absence, Delays help Obama, Transcripts of Blagojevich wiretaps hurt Obama

 

Blagojevich appeal status March 24, 2015, Sentence shortened or Obama pardon?, Obama cronies Rezko and Blagojevich know corruption details, Will Rod Blagojevich rat on Obama?

Blagojevich appeal status March 24, 2015, Sentence shortened or Obama pardon?, Obama cronies Rezko and Blagojevich know corruption details, Will Rod Blagojevich rat on Obama?

Why did Patrick Fitzgerald and the US Justice Department wait until December 2008 to arrest Rod Blagojevich?”…Citizen Wells

“I believe I’m more pristine on Rezko than him.”…Rod Blagojevich

“Regardless of how this plays out, it benefits Obama. If there is no appeal or the appeal is denied, Blagojevich will be sequestered. If the appeal proceeds, it could drag out beyond impacting the 2012 election cycle. The intent is obvious.”…Citizen Wells, July 19, 2011

 

 

You don’t suppose…

Two Obama cronies are languishing in prison.

Tony Rezko and Rod Blagojevich.

Tony Rezko has indicated that he would not rat out his buddy Obama.

Rod Blagojevich, in the approx. 3 percent of wiretaps released, inadvertently ratted out Obama.

You don’t suppose that Rezko, of Syrian birth, made a deal with Obama related to Syria?

I do suppose that Obama and Blagojevich have a deal. It probably involves others including former prosecutor Patrick Fitzgerald.

Despite the lies told by Fitzgerald about the rapid arrest of Blagojevich, the prosecution and legal process of his trials and appeals has dragged out forever.

Remember, the feds knew about and began investigating the Blagojevich Administration by at least late 2003.

I stated some time ago that I believe that Blagojevich’s sentence would likely be reduced, that is, if Obama doesn’t pardon him first.

From Citizen Wells January 1, 2014.

“So far no one has ratted on Obama.

Tony Rezko said that he wouldn’t.

Some never had the chance.

Orlando Jones
Donald Young
Quarles Harris Jr.
Christopher Kelly
Bill Gwatney
Andrew Breitbart
Loretta Fuddy

I believe that Rod Blagojevich made a deal with Obama. Probably beginning in 2006.

I believe that Blagojevich, who was deeper under investigation than Obama, agreed to take the heat for a reduced or pardoned sentence.

ObamaBlagoNov2008

A lot of interesting things can happen in 2014.

We will know the results of the Blagojevich appeal ruling within a few weeks.

I believe that he will get a sentence reduction or a new trial.

This will determine what Obama does next. And of course Obama not being impeached or arrested will too.

If Obama does not lose senate control in 2014, I believe that he will pardon Blagojevich.

Of course the AL Supreme Court may rule that Obama is ineligible.

The Sheriff Joe Arpaio investigation may convince enough congressmen to investigate Obama.

Dead men don’t talk or do they?

There are plenty still alive who may talk. Even Tony Rezko.

The economy has been propped up by smoke and mirrors. That can only work so long.

Despite the best efforts of the media to talk of an economic recovery the economy on your street, not Wall St. has been heavily impacted.

Millions are unemployed, working part time, receiving food stamps and now being charged more for their healthcare insurance.

The media and Obama camp are trying to prop up the economy through the 2014 elections. They have to win.

By their own admission Obama could be impeached otherwise.

My hope for 2014 is that Obama is arrested and removed from office.

Survival of our nation depends on it.

2014 Obama Blagojevich Rezko, Economy collapse, Arpaio investigation of Obama fraud, AL Supreme Court ruling, Fuddy death, Wall St vs your street, Democrats need to win 2014 elections may get Trumped

 

Obama Clinton pay to play rewards criminal Ecuadorean family Isaías with US stay, Hundreds of thousands of contributions to Obama et al, Money laundering and immigration fraud, Ghosts of Christmas past and Tony Rezko

Obama Clinton pay to play rewards criminal Ecuadorean family Isaías with US stay, Hundreds of thousands of contributions to Obama et al, Money laundering and immigration fraud, Ghosts of Christmas past and Tony Rezko

“Why did the Illinois Senate Health & Human Services Committee, with Obama as chairman, create and push Bill 1332, “Illinois Health Facilities Planning Act,” early in 2003, which reduced the number of members on the Board from 15 to 9, just prior to rigging by Tony Rezko and Rod Blagojevich?”…Citizen Wells

“I believe I’m more pristine on Rezko than him.”…Rod Blagojevich

“Now, I don’t get upset when foreign and national journalists fail to mention Tony Rezko, or the Daley boys, or how the Chicago machine plans to staff the Department of Justice, and the new Department of Homeland Casinos.”…John Kass, Chicago Tribune July 30, 2008

 

 

The ghosts of Christmas past, Tony Rezko like chicanery Haunt Barack Obama.

Chicago pay to play politics.

From the NY Times December 16, 2014.

“The Obama administration overturned a ban preventing a wealthy, politically connected Ecuadorean woman from entering the United States after her family gave tens of thousands of dollars to Democratic campaigns, according to finance records and government officials.

The woman, Estefanía Isaías, had been barred from coming to the United States after being caught fraudulently obtaining visas for her maids. But the ban was lifted at the request of the State Department under former Secretary of State Hillary Rodham Clinton so that Ms. Isaías could work for an Obama fund-raiser with close ties to the administration.

It was one of several favorable decisions the Obama administration made in recent years involving the Isaías family, which the government of Ecuador accuses of buying protection from Washington and living comfortably in Miami off the profits of a looted bank in Ecuador.

The family, which has been investigated by federal law enforcement agencies on suspicion of money laundering and immigration fraud, has made hundreds of thousands of dollars in contributions to American political campaigns in recent years. During that time, it has repeatedly received favorable treatment from the highest levels of the American government, including from New Jersey’s senior senator and the State Department.

The Obama administration has allowed the family’s patriarchs, Roberto and William Isaías, to remain in the United States, refusing to extradite them to Ecuador. The two brothers were sentenced in absentia in 2012 to eight years in prison, accused of running their bank into the ground and then presenting false balance sheets to profit from bailout funds. In a highly politicized case, Ecuador says the fraud cost the country $400 million.”

“American diplomats began enforcing the ban against Ms. Isaías, blocking her from coming to Miami for a job with a communications strategist who had raised up to $500,000 for President Obama.”

The Obama administration then reversed its decision and gave Ms. Isaías the waiver she needed to come to the United States — just as tens of thousands of dollars in donations from the family poured into Mr. Obama’s campaign coffers.

An email from Mr. Menendez’s office sharing the good news was dated May 15, 2012, one day after, campaign finance records show, Ms. Isaías’s mother gave $40,000 to the Obama Victory Fund, which provided donations to the president and other Democrats.

“In my old profession as a prosecutor, timelines mean a lot,” said Ken Boehm, a former Pennsylvania prosecutor who is chairman of the National Legal and Policy Center, a government watchdog. “When a donation happens and then something else happens, like the favor, as long as they are very, very close, that really paints a story.”

In 2012, the Isaías family donated about $100,000 to the Obama Victory Fund. Campaign finance records show that their most generous donations came just before a request to the administration.”

Read more:

 

Obama corruption trial witnesses Blagojevich and Rezko still in prison, Blagojevich appeal drags on, Rezko from Syria remains quiet, One year anniversary of prosecution response

Obama corruption trial witnesses Blagojevich and Rezko still in prison, Blagojevich appeal drags on, Rezko from Syria remains quiet, One year anniversary of prosecution response

Why did Patrick Fitzgerald and the US Justice Department wait until December 2008 to arrest Rod Blagojevich?”…Citizen Wells

“I believe I’m more pristine on Rezko than him.”…Rod Blagojevich

 

“Regardless of how this plays out, it benefits Obama. If there is no appeal or the appeal is denied, Blagojevich will be sequestered. If the appeal proceeds, it could drag out beyond impacting the 2012 election cycle. The intent is obvious.”…Citizen Wells, July 19, 2011

 

 

Stranger than fiction.

Unbelievable as a novel without an understanding of Chicago pay to play politics and the efforts made to protect Obama.

With our involvement in Syria the past several years, I couldn’t help but wonder if that is why Tony Rezko helped Obama get elected and then kept his mouth shut. Never called as a witness.

The two people who could nail Obama on the witness stand, Tony Rezko and Rod Blagojevich are still in prison.

Tony Rezko refused to rat on his friend Obama.

Blagojevich, who came under federal investigation by at least late 2003, is still awaiting a decision on his appeal.

It has been one year since the prosecution responded to the appeal filed on JUly 15, 2013.

From Citizen Wells November 13, 2013.

The prosecution of Blagojevich drags on and protects Obama.

From Fox News Illinois November 13, 2013.

“Prosecutors respond to Blagojevich appeal”
“Prosecutors have filed a response to Rod Blagojevich’s corruption conviction appeal. The 169-page government filing submitted late Tuesday urges the 7th U.S. Circuit Court of Appeals to reject the imprisoned former governor’s request for a new trial. Defense lawyers filed the appeal on the Illinois Democrat’s behalf in July. It asks the Chicago-based appellate court to toss his convictions or at least reduce his 14-year prison sentence.”

Read more:

http://www.foxillinois.com/template/inews_wire/wires.regional.il/26fb71b1-www.foxillinois.com.shtml#.UoN2XPl4z90

From Citizen Wells July 16, 2013.

“Blagojevich appeals convictions, stiff sentence”

“Lawyers for Rod Blagojevich filed an appeal Monday challenging the imprisoned former Illinois governor’s corruption conviction and stiff, 14-year prison term.

The lengthy filing with the 7th U.S. Circuit Court of Appeals in Chicago comes more than two years after the Chicago Democrat’s retrial and 16 months after he entered a federal prison in Colorado.

Jurors convicted Blagojevich, 56, of engaging in wide-ranging corruption, including that the two-term governor sought to profit from his power to appoint someone to the U.S. Senate seat that Barack Obama vacated to become president.

The appeal cites a juror who allegedly expressed a bias against Blagojevich who was seated despite the objections of defense attorneys. It also raises longstanding claims that Judge James Zagel barred FBI wiretap evidence that might have aided the defense and argues the judge miscalculated the appropriate prison term.

The appeal was filed about 30 minutes before a midnight deadline to do so.

In June, Blagojevich’s attorneys requested permission to file a longer-than-usual appeal, noting the trial produced 12,000 pages of transcripts. “The issues for appeal are numerous and complicated,” they wrote. The court agreed to let them file the equivalent of about 100 pages, which is what they did.

Blagojevich was convicted on 18 counts over two trials, jurors in the first deadlocking on all but one count. Taking the stand in the second, decisive trial in 2011, Blagojevich insisted his talking about wanting to sell Obama’s seat was just that — talk.

At his sentencing hearing later in 2011, an uncharacteristically deferential Blagojevich asked Zagel for mercy and said he accepted responsibility. He told the court in a hushed voice, “I caused it all.”

Despite those words, Zagel imposed a lengthy prison term, telling Blagojevich he had abused voters’ trust and undermined the democratic process “to do things that were only good for yourself.”

Many observers at the time said Blagojevich’s best hope on appeal wasn’t that a higher court would overturn his convictions but that appellate judges would agree his sentence was too harsh.”

http://www.theoaklandpress.com/articles/2013/07/16/news/doc51e4d91045f9d865437288.txt?viewmode=fullstory

The appeal.

http://www.scribd.com/doc/154180774/Blagojevich-Appeal

The response.

http://www.scribd.com/doc/183864545/Blagojevich-Appeal-Response-Prosecutors-oppose-new-trial

https://citizenwells.wordpress.com/2013/11/13/blagojevich-appeal-prosecutor-response-november-13-2013-169-page-plea-to-reject-new-trial-request-us-court-of-appeals-seventh-circuit-blagojevich-prosecution-drags-on-obama-protected/

From Citizen Wells October 26, 2014.

“The administration of Rod Blagojevich came under FBI scrutiny beginning in late 2003.

Yet, with all the harm Blagojevich et al were doing to the citizens of Illinois, he was not arrested until just after the 2008 election.

His arrest and the timing of his prosecution were clearly coordinated to have the least impact on Barack Obama.

That protection of Obama continues.

The 2010 election cycle has passed.

The 2012 election cycle has passed.

The 2014 election cycle is about to pass.

We have 6 sessions of the US Court of Appeals Seventh Circuit left before the November 4, 2014 elections.

If the decision comes before the election, I predict that Blagojevich will get a reduced sentence.

If not, it is entirely possible that Obama will pardon Blagojevich.

I believe that they have a deal.

ObamaBlagoNov2008

Blagojevich “prosecution” history.”

https://citizenwells.wordpress.com/2014/10/26/blagojevich-appeal-prediction-reduced-sentence-or-obama-pardon-6-seventh-circuit-appeals-court-sessions-before-nov-4-obama-protection-continues-obama-rezko-ties-blagojevich-fall-guy/

 

 

 

 

Blagojevich appeal prediction, Reduced sentence or Obama pardon, 6 Seventh Circuit Appeals Court sessions before Nov 4, Obama protection continues, Obama Rezko ties, Blagojevich fall guy

Blagojevich appeal prediction, Reduced sentence or Obama pardon, 6 Seventh Circuit Appeals Court sessions before Nov 4, Obama protection continues, Obama Rezko ties, Blagojevich fall guy

 

Why did Patrick Fitzgerald and the US Justice Department wait until December 2008 to arrest Rod Blagojevich?”…Citizen Wells

“I believe I’m more pristine on Rezko than him.”…Rod Blagojevich

“There is enough corruption in Illinois so that all it takes is someone who is serious about finding it to uncover it. If a U.S. attorney is not finding corruption in Illinois, they’re not seriously looking for it.”…Northwestern Law Professor James Lindgren

 

 

The administration of Rod Blagojevich came under FBI scrutiny beginning in late 2003.

Yet, with all the harm Blagojevich et al were doing to the citizens of Illinois, he was not arrested until just after the 2008 election.

His arrest and the timing of his prosecution were clearly coordinated to have the least impact on Barack Obama.

That protection of Obama continues.

The 2010 election cycle has passed.

The 2012 election cycle has passed.

The 2014 election cycle is about to pass.

We have 6 sessions of the US Court of Appeals Seventh Circuit left before the November 4, 2014 elections.

If the decision comes before the election, I predict that Blagojevich will get a reduced sentence.

If not, it is entirely possible that Obama will pardon Blagojevich.

I believe that they have a deal.

ObamaBlagoNov2008

Blagojevich “prosecution” history.

From Citizen Wells December 13, 2013.

The Rod Blagojevich appeal hearing is scheduled for today, Friday the 13th of December, 2013, in the US Court of Appeals Seventh Circuit.

This is part of a 10 year saga of investigations, prosecutions and perpetual delays.

Blagojevich, who was the presumptive presidential candidate, not Obama, in early 2006, should have been prosecuted before Tony Rezko, with stronger ties with Obama, and most definitely before the 2008 election.

Remember, the Blagojevich Administration was being investigated by the feds at least by late 2003 when the chicanery of Obama buddies Tony Rezko and Stuart Levine was being monitored by wiretap.

Attorney Len Goodman has made some strong arguments for a retrial or new sentencing hearing. Do not be surprised at the outcome.

I personally believe that the fix was in by 2006 and this is why Blagojevich was arrested after the 2008 election.

From Citizen Wells July 16, 2013.

“Lawyers for Rod Blagojevich filed an appeal Monday challenging the imprisoned former Illinois governor’s corruption conviction and stiff, 14-year prison term.

The lengthy filing with the 7th U.S. Circuit Court of Appeals in Chicago comes more than two years after the Chicago Democrat’s retrial and 16 months after he entered a federal prison in Colorado.”

https://citizenwells.wordpress.com/2013/07/16/blagojevich-appeal-filed-july-15-2013-attorney-len-goodman-lauren-kaeseberg-judge-james-zagel-barred-fbi-wiretap-evidence-juror-bias-why-was-appeal-delayed/

The appeal.

http://www.scribd.com/doc/154180774/Blagojevich-Appeal

From Citizen Wells November 13, 2013.

“Prosecutors have filed a response to Rod Blagojevich’s corruption conviction appeal. The 169-page government filing submitted late Tuesday urges the 7th U.S. Circuit Court of Appeals to reject the imprisoned former governor’s request for a new trial. Defense lawyers filed the appeal on the Illinois Democrat’s behalf in July. It asks the Chicago-based appellate court to toss his convictions or at least reduce his 14-year prison sentence.”

https://citizenwells.wordpress.com/2013/11/13/blagojevich-appeal-prosecutor-response-november-13-2013-169-page-plea-to-reject-new-trial-request-us-court-of-appeals-seventh-circuit-blagojevich-prosecution-drags-on-obama-protected/

The response.

http://www.scribd.com/doc/183864545/Blagojevich-Appeal-Response-Prosecutors-oppose-new-trial

On December 2, 2013 Blagojevich attorney Len Goodman filed a reply brief.

http://www.scribd.com/doc/190964843/Blagojevich-appeal-reply-brief-December-2-2013

From Citizen Wells March 7, 2013.

Still wondering about the continued delay in the prosecution of Rod Blagojevich, specifically the lengthy delay in his appeal?

Here is one of the reasons.

From Chicago Business March 6, 2013.

“Blagojevich attorney hopes three’s a charm”

“Will three be a charm for Chicago attorney Len Goodman?

He’s on a winning streak that he’s hoping will carry over to his next case — defending former Illinois Gov. Rod Blagojevich.”

“The next big case on the criminal defense attorney’s plate is the appeal of Mr. Blagojevich, who is in prison in Colorado following his conviction on corruption charges.

“Right now, I’m just trying to get through 10,000 pages of trial transcripts,” says Mr. Goodman, who is the nephew of Chicago financier Lester Crown.

The case likely will go before the 7th Circuit Court of Appeals later this year.”

Read more:

http://www.chicagobusiness.com/article/20130306/BLOGS03/130309878/blagojevich-attorney-hopes-threes-a-charm

Of course there are other reasons why the appeal of Blagojevich has dragged on so long.

From Citizen Wells January 30, 2013.

“Here is the rest of the story.

Patrick Fitzgerald and the US Justice Department aggressively prosecuted George Ryan.

Patrick Fitzgerald and the US Justice Department, despite the fact that they began wiretaps in late 2003 and had in depth knowledge of corruption in the Rod Blagojevich Administration by 2005 at the latest, delayed the arrest of Blagojevich until after the 2008 election. The production of transcripts required for the Blagojevich appeal were delayed for over half a year by the US Justice Department in 2012, once again delaying the appeal until after the 2012 election.

From Citizen Wells  May 27, 2012.

“Fitzgerald aggressively prosecuted Republican ex Governot of Illinois, George Ryan and unjustly went after Scooter Libby and Karl Rove. Fitzgerald waited until after the 2008 elections to arrest Governor Rod Blagojevich despite the fact that he had details of corruption in the Blagojevich Administration at least by late 2003.

Is Patrick Fitzgerald a pawn, an idiot or corrupt?

From an FBI wiretap:

“You know, Axelrod and Obama’s people, you know, clearly turned, you know, got the Chicago media to make Rezko all about me.”

Late 2003.

Earliest documented awareness by FBI and Patrick Fitzgerald of corruption in Blagojevich admin. Pamela Meyer Davis agreed to secretly record conversations involving state health planning board with an FBI wire.

December 31, 2003 NY Times.

“Mr. Fitzgerald announced that he was prosecuting former Gov. George Ryan, a Republican, in a scandal that had been swirling around long before Mr. Fitzgerald got here and that many people thought would never touch the most powerful politicians in Illinois. But there Mr. Fitzgerald was, a week before Christmas, ticking off the details of a 91-page indictment against Mr. Ryan, seemingly from memory.

That, even Mr. Fitzgerald’s former opponents in the courtroom say, is classic Fitzgerald: dogged, dispassionate and endlessly prepared.”

April 8 – May 21, 2004 (Rezko Trial March 12, 2008; 11:11 a.m.)

“FBI Special Agent Daniel Cain, the primary case agent on the investigation into Levine and Rezko, is on the stand now in testimony that is laying the foundation for entering the wiretaps into evidence.

Cain said the investigation, dubbed Operation Board Games by the federal agents, began in December 2003 and was prompted by information gleaned from an informant whom he did not identify. That witness, he said, took part in meetings with two other individuals who were in contact with Levine by phone at his home.

Cain said Levine had three phone lines in his North Shore home. Federal agents recorded conversations on those lines April 8-May 21, 2004. Those dates span the time when Levine, Rezko and others allegedly were working to rig the hospital board vote on a Mercy Health System hospital proposal for Crystal Lake and other kickback schemes prosecutors claim they were engaged in.”

May 9, 2005.

Stuart Levine indicted on corruption charges. Federal subpoena issued to Tony Rezko.
June 15, 2005.

Obama purchased home next door to Rezko for $1.65 million, $300,000 less than the asking price.
June 15, 2005.

Rita Rezko, Tony’s wife purchased plot next door for $625,000 asking price.

October 25, 2005.

The Chicago Tribune reports about a federal grand jury investigation into the alleged political hiring practices of the Blagojevich administration.

January 2006.

Rita Rezko sells the Obamas one-sixth of her lot for $104,500.

August 5, 2006.

The Chicago Tribune reports that Stuart Levine is cooperating with the federal investigation of state government.”

“December 7, 2008.

Criminal complaint of Blagojevich. Nine individuals is important. Obama helped passed a bill to reduce the number from 15 to 9.

“b. Corruption of the Planning Board”
“At the relevant time period, the Planning Board consisted of nine individuals.”

“Planning Board” (IL Health Facilities Planning Board) is mentioned 31 times.

“Rezko” is mentioned 170 times.

“Hospital” in context of Mercy Hospital mentioned 8 times.
December 9, 2008.

Blagojevich arrested

“Fitzgerald said, “We make no allegations” that Obama was aware of any alleged scheming by Blagojevich.”

February 24, 2011.

Counts 1,2,4 in the Blagojevich Indictment are dropped. This represents approx. half of the indictment and includes numerous corruption ties to Blagojevich and Obama.”

“December 7, 2011.

Rod Blagojevich sentenced to 14 years.

Colin Powell, who has continued to endorse Barack Obama, knew that Scooter Libby and Karl Rove were innocent in the Valerie Plame leak. Yet Powell did not share his knowledge with the Bush Administration and thus allowed Patrick Fitzgerald to continue to investigate and prosecute Libby and Rove.

Why did Colin Powell allow Patrick Fitzgerald to be pulled away from the Blagojevich prosecution?

https://citizenwells.wordpress.com/2013/01/30/george-ryan-released-from-prison-former-il-governor-patrick-fitzgerald-aggressively-prosecuted-ryan-blagojevich-arrest-and-appeal-delayed-past-elections/

From Citizen Wells October 26, 2012.

“FOX Chicago News has learned that Rod Blagojevich’s appeal is still having trouble getting off the ground, because of delays in producing transcripts from his two trials.

For the second time in the last four months, Lauren Kaeseberg, one of the attorney’s handling Rod Blagojevich’s appeal, has been threatened with disciplinary action because she still hasn’t provided a complete copy of the Blagojevichtrial transcripts to the appellate court.

The appellate court won’t set a briefing schedule to get the appeal moving until the transcripts are available.

As FOX Chicago reported exclusively in August, the court reporter responsible for producing the 16,000 pages of transcripts took a leave of absence for five and a half months after Blagojevich was convicted. So, the appellate court agreed to wait until September 28th for the transcripts.

But, now in October, they’re still not completed. On Monday, the court issued an order, warning Kaeseberg again that she could face monetary or disciplinary sanctions. She responded Tuesday with an explanation, saying transcripts are still missing because they were under seal, or were handled by a different court reporter and she hopes to have them soon.”

“ The court reporter, trial judge James Zagel and the appeals court all have a responsibility to produce transcripts needed for an appeal in a timely manner.”

https://citizenwells.wordpress.com/2012/10/26/corrupt-obama-justice-department-delays-blagojevich-appeal-transcripts-still-not-ready-delay-in-appeal-protects-obama-obama-still-has-a-rezko-problem/

Citizen Wells for years has been questioning the delayed prosecution of Rod Blagojevich with the obvious intent of protecting Obama.

Today we present a new question that will be explored further soon.

“Why wasn’t Rod Blagojevich, the Governor of Illinois, wiretapped at least by 2005 when it was known in 2003 that there was widespread corruption in his administration?”

https://citizenwells.wordpress.com/2013/03/07/blagojevich-appeal-update-march-7-2013-10000-pages-of-delayed-trial-transcripts-7th-circuit-court-of-appeals-later-in-2013-fitzgerald-us-justice-dept-delayed-prosecution/

CHRISTOPHER KELLY HAD TIES TO  BLAGOJEVICH AND OBAMA.

https://citizenwells.wordpress.com/2013/12/13/blagojevich-appeal-friday-december-13-2013-us-court-of-appeals-seventh-circuit-new-trial-or-sentencing-hearing-attorney-len-goodman-strong-arguments-10-year-investigation-prosecution-with-perpet/

 

 

Raghuveer Nayak appeal fails, Obama Blagojevich contributor, Seventh Circuit Court of Appeals decision October 20, 2014, Operation Board Games Chicago IL pay to play politics

Raghuveer Nayak appeal fails, Obama Blagojevich contributor, Seventh Circuit Court of Appeals decision October 20, 2014, Operation Board Games Chicago IL pay to play politics

“Why did the Illinois Senate Health & Human Services Committee, with Obama as chairman, create and push Bill 1332, “Illinois Health Facilities Planning Act,” early in 2003, which reduced the number of members on the Board from 15 to 9, just prior to rigging by Tony Rezko and Rod Blagojevich?”…Citizen Wells

“Why did Patrick Fitzgerald, instead of protecting the citizens of Illinois as he has touted, prosecute Tony Rezko first, a businessman, instead of Rod Blagojevich, the governor of Illinois.”…Citizen Wells

“Why did Patrick Fitzgerald and the US Justice Department wait until December 2008 to arrest Rod Blagojevich?”…Citizen Wells

 

 

The appeal of Chicago, IL Obama Blagojevich crony Raghuveer Nayak has failed.

“We AFFIRM the judgment of the district court.”

http://media.ca7.uscourts.gov/cgi-bin/rssExec.pl?Submit=Display&Path=Y2014/D10-20/C:14-1404:J:Flaum:aut:T:fnOp:N:1438223:S:0

From Citizen Wells June 23, 2013.

From the Morris Daily Herald June 21, 2012.

“A longtime friend of U.S. Rep. Jesse Jackson Jr.who was at the center of a Senate seat scandal that sent ex-Gov. Rod Blagojevich to prison was arrested Wednesday in his own federal fraud case, accused of bribing doctors to send patients to his surgical centers.

Raghuveer Nayak, a wealthy businessman and former campaign fundraiser for both politicians, was indicted on charges he secretly paid hundreds of thousands of dollars to physicians from 2000 to 2010 to have patients referred to Rogers Park One Day Surgery Center, Lakeshore Surgery Center and other Chicago-area facilities he owned.

The investigation of his businesses had hung over Nayak’s head for years, and his lawyer, Thomas McQueen, said the charges were not unexpected. “He knew this had never gone away,” McQueen said after the FBI arrested his client at Nayak’s Oak Brook home.

A frowning Nayak appeared Wednesday at the Dirksen U.S. Courthouse in a rumpled shirt and entered a plea of not guilty to the 19 fraud counts against him. U.S. Magistrate Judge Maria Valdez ordered him released on a $10 million bond secured by six properties in Illinois and Indiana after Assistant U.S. Attorney Christopher Niewoehner told the court that Nayak has “rather significant assets” and ties to India.

Nayak left the courthouse without commenting.

In making their case against Blagojevich, federal authorities alleged that it was Nayak, a longtime friend of the Jackson family, who offered up to $6 million in campaign money in exchange for Jackson being named a senator. Blagojevich was found guilty on corruption charges last year that included counts involving the attempted sale of the U.S. Senate seat vacated by Barack Obama after his 2008 election to the presidency.

Nayak was never charged in the Blagojevich case, and he quickly spoke with authorities after Blagojevich’s arrest in a bid for leniency. But he never was used as a witness, either, and investigators continued to look into his businesses.

Jackson testified at Blagojevich’s trial that he had no knowledge of a scheme to buy the Senate seat.

The indictment of Nayak is seen as one of the final offshoots of the sweeping federal investigation known as Operation Board Games, which in addition to Blagojevich led to convictions of fundraiser Antoin “Tony” Rezko, formerAld. Edward Vrdolyak, Republican power broker William Cellini and others. One of the final sentences in cases connected to that probe could be handed down as soon as next week, when political insider turned federal witness Stuart Levine is expected to learn his punishment.
Sources have confirmed that the Board Games investigation is wrapping up. U.S. Atty. Patrick Fitzgerald is leaving office at the end of the month, and one of the lead prosecutors against Blagojevich, Reid Schar, already has left.

Although he raised money for politicians for more than a decade, Nayak mostly worked under the radar until his connections to Blagojevich and Jackson surfaced in 2008 as part of the burgeoning federal investigation into the governor’s office.”

“The indictment unsealed Wednesday alleges as part of the scheme that “physicians deceived their patients by not disclosing that they were being paid for making referrals to Nayak’s facilities,” but Nayak was the only person charged. He allegedly created false contracts to disguise some of the illicit payments, describing them as money for advertising, according to the document.

Prosecutors are seeking $1.8 million in “alleged fraud proceeds” in the case.

In one kickback scheme, prosecutors alleged, Nayak paid one person, identified only as “Individual A,” more than $2 million in checks drawn on his surgery centers’ accounts. In return, “Individual A” gave Nayak cash equaling about 70 percent of the value of the checks, according to the indictment.

In the Blagojevich case, Nayak’s friend Bedi testified that Nayak issued about $2 million in checks to a Bedi-owned company. Bedi testified he provided cash in return and said he knew Nayak was cheating on his taxes by making the payments.

Nayak’s businesses have over the years needed the approval of state regulators and auditors, and Nayak became a big campaign bundler and contributor, donating more than $779,000 to elected officials including Blagojevich, Attorney General Lisa Madigan and Obama from the late 1990s until his name surfaced in the Blagojevich scandal.

The Tribune previously reported that after Nayak first opened several Chicago drugstores in the early 1980s, his businesses faced multiple audits by state and federal authorities. His name also came up repeatedly in one of the largest health care fraud investigations in Illinois history.

That multiyear federal probe resulted in the shuttering of two hospitalsDoctors Hospital and Edgewater Medical Centerand the convictions of seven doctors and administrators. Nayak, who then owned a lab testing company called NR Laboratories as well as an outpatient surgery center, was among numerous people who came under scrutiny, the Tribune had reported.

Some of Nayak’s associates and friends were convicted in the scheme, which included charges that two patients died from unnecessary procedures performed by doctors looking to collect fraudulent public aid checks.”

Read more:

http://www.morrisdailyherald.com/2012/06/21/blagojevich-fundraiser-accused-of-health-care-fraud/aui3jyk/

Raghuveer Nayak indictment.

http://chicagotonight.wttw.com/sites/default/files/Nayak%20Indictment.pdf

From Citizen Wells December 22, 2008.

“MARCH 18, 2008 ARTICLE ON NAYAK, BLAGOJEVICH, REZKO, WEISNER

“Tuesday, March 18, 2008
Move Over Rezko; Weisner-Blagojevich Crony Raghuveer Nayak
Continues to Spend Thousands on Elected Officials…in Iowa?

Aurora Mayor Tom Weisner, boytoy Gerry Galloway and
crony Raghuveer Nayak are viewing a property in downtown
Aurora in the path of a major development back in 2005.
Nayak is spreading his money around. All the way to Iowa.”

“Raghuveer Nayak, the campaign crony who has dumped tens of
thousands of dollars into the campaign pockets of Aurora
Mayor Tom Weisner and Illinois Gov. Rod Blagojevich, seems
to in a race to compete with another star campaign donor
from Illinois, Tony Rezko, to see how many people he can
contribute to and apparently “influence.”

While Rezko’s list includes some power names in Illinois,
including our local political rockstar, U.S. Senator and
Presidential candidate Barack Obama, Nayak seems to be
broadening his geographical reach (and Nayak is a Hillary
Clinton buddy).””

“The Case Against Barack Obama reveals Shomon connection

SHOMON CONNECTIONS TO WEISNER AND AURORA, IL
“Dan Shomon, who’s background is in media, has a lobbying
contract for the City of Aurora (scroll down or click for
our post on how Dan Shomon is fleecing the taxpayers of
Aurora). He got that contract after helping to secure a
political endorsement of Sen. Barack Obama for then-candidate
for Mayor of Aurora, Tom Weisner. That’s after
Obama said he wan’t going to be a “kingmaker” in Aurora.

We think it’s HIGHLY unethical of Dan Shomon or Tom Weisner
to exploit the taxpayers of Aurora for political purpose.
Barack Obama’s credibility is also risked in the process of
Shomon and Weisner’s games at the expense of taxpayers.”

“Like the ill-advised connection to Obama in Aurora, thanks
to Dan Shomon, Obama is mentioned in the same discusion with
all these problems with Giannoulias. Not good for a
political rockstar who otherwise could be on his way to
becoming President of the United States.””
“Aurora Mayor Thomas J. Weisner gave Shomon the lobbying
gig in exchange for political work, including getting the
endorsement of Barack Obama back in 2005 when Obama first
said he would remain “neutral” in the heated mayoral race.

Shomon’s main activities are political campaigns and helping
Obama and his friends like Alexi Giannoulias who is now the
Treasurer for the State of Illinois.”

“Plus, when all hell breaks loose on Weisner’s various problems
with cronyism and allegations of corruption (and it WILL),
it’s probably in Obama’s interest that Dan Shomon has nothing
to do with Weisner any longer.”

https://citizenwells.wordpress.com/2012/06/23/raghuveer-nayak-indicted-campaign-bundler-and-contributor-to-blagojevich-and-obama-jesse-jackson-jr-us-senate-seat-19-count-indictment/

 

Chicago crime rate drops, Illinois concealed carry applications surge, Robberies down 20 percent, Homicide rate at 56 year low, Guns protect weaker people from stronger people armed or unarmed

Chicago crime rate drops, Illinois concealed carry applications surge, Robberies down 20 percent, Homicide rate at 56 year low, Guns protect weaker people from stronger people armed or unarmed

“Weaker people, whether at school, at home or elsewhere are best protected from stronger people, with ill intent, by guns and proper security measures.”…Citizen Wells

“Germans who wish to use firearms should join the SS or the SA – ordinary citizens don’t need guns, as their having guns doesn’t serve the State.”…Heinrich Himmler

“The very atmosphere of firearms anywhere and everywhere restrains evil interference – they deserve a place of honor with all that’s good”…George Washington

 

Guns protect weaker people from stronger people, armed or unarmed.

A point missed or ignored by the media and the left.

The police officer in Ferguson, MO was protected from further harm by a gun.

From the Washington Times August 24, 2014.
“Chicago crime rate drops as concealed carry applications surge

An 86-year-old Illinois man with a concealed carry permit fired his weapon at an armed robbery suspect fleeing police last month, stopping the man in his tracks and allowing the police to make an arrest.

Law enforcement authorities described the man as “a model citizen” who “helped others avoid being victims” at an AT&T store outside Chicago where he witnessed the holdup. The man, whose identity was withheld from the press, prevented others from entering the store during the theft.

Police said the robber harassed customers and pistol-whipped one.

Since Illinois started granting concealed carry permits this year, the number of robberies that have led to arrests in Chicago has declined 20 percent from last year, according to police department statistics. Reports of burglary and motor vehicle theft are down 20 percent and 26 percent, respectively. In the first quarter, the city’s homicide rate was at a 56-year low.

“It isn’t any coincidence crime rates started to go down when concealed carry was permitted. Just the idea that the criminals don’t know who’s armed and who isn’t has a deterrence effect,” said Richard Pearson, executive director of the Illinois State Rifle Association. “The police department hasn’t changed a single tactic — they haven’t announced a shift in policy or of course — and yet you have these incredible numbers.”

As of July 29 the state had 83,183 applications for concealed carry and had issued 68,549 licenses. By the end of the year, Mr. Pearson estimates, 100,000 Illinois citizens will be packing. When Illinois began processing requests in January, gun training and shooting classes — which are required for the application — were filling up before the rifle association was able to schedule them, Mr. Pearson said.”

Read more:

http://www.washingtontimes.com/news/2014/aug/24/chicago-crime-rate-drops-as-concealed-carry-gun-pe/?page=2

 

Blagojevich appeal update August 19, 2014, US court of appeals seventh circuit decision, Empress Casino Joliet Corp v John Johnston et al, Quid pro quo between racetracks and Governor Blagojevich

Blagojevich appeal update August 19, 2014, US court of appeals seventh circuit decision, Empress Casino Joliet Corp v John Johnston et al, Quid pro quo between racetracks and Governor Blagojevich

“Why wasn’t Rod Blagojevich, Governor of IL, prosecuted before Tony Rezko, a businessman?”…Citizen Wells

“Why was Tony Rezko’s sentencing delayed?”…Citizen Wells

“I believe I’m more pristine on Rezko than him.”…Rod Blagojevich

 

 

We are still awaiting a decision from the US Court of Appeals Seventh Circuit on the Blagojevich appeal.

Yesterday the court of appeals presented their decision on Empress Casino Joliet Corp v John Johnston, et al.

Some of the most damning wording for Blagojevich is the following:

“The summary judgment record contains considerable evidence that, if credited, would support the allegation of a quid pro quo between the Racetracks and Governor Blagojevich. When Blagojevich did not immediately sign the ’08 Act into law, Racetracks executive Johnston stated to a colleague in an email: “We are going to have to put a stronger bit in his mouth!?!” Johnston complained to Blagojevich’s chief of staff Monk that the delays in signing the bill were costing Johnston $9,000 per day. A factfinder could conclude that Blagojevich was talking about Johnston’s commitment to pay $100,000 when he informed Monk that he would “like some separation between that and signing the bill.” After the FBI recorded Monk and Blagojevich scheming about getting Johnston to pay, Monk met with Johnston and, according to Monk, delivered the message that the bill would not be signed until he paid.”

http://media.ca7.uscourts.gov/cgi-bin/rssExec.pl?Submit=Display&Path=Y2014/D08-15/C:13-2972:J:Wood:aut:T:fnOp:N:1400418:S:0

From Chicago Law Bulletin August 18, 2014.

“Reviving a lawsuit accusing racetrack owners of offering a bribe to then-Gov. Rod Blagojevich, a federal appeals court has addressed when political horse-trading crosses the line “from the merely unseemly to the unlawful.”
The 7th U.S. Circuit Court of Appeals did not rule on the merits of the claim that Blagojevich in 2008 signed legislation favored by the racetrack industry in return for the promise of a $100,000 campaign contribution.
But the court ruled there is enough evidence — if true — to support a finding of a quid pro quo exchange between Blagojevich and the industry.
And assuming such an exchange took place, the court continued, it directly harmed four riverboat casinos in northern Illinois by leading to the implementation of the Horse Racing Act.”
“The casinos do not allege that members of the Illinois General Assembly were offered or took any bribes to pass the bill, the panel wrote.
And deeming officials’ support of legislation to be illegal merely because campaign contributions were solicited and received about the time the legislation was enacted, the panel wrote, would leave the officials open to prosecution for conduct long thought legal.
Such an action, the panel continued, quoting McCormick v. United States, 500 U.S. 257 (1991), also would lead to prosecutions for conduct “that in a very real sense is unavoidable so long as election campaigns are financed by private contributions or expenditures, as they have been from the beginning of the nation.”
It’s a different story, the panel wrote, when it comes to the 2008 renewal legislation.
Evidence that Blagojevich signed the bill in exchange for the promise of a $100,000 contribution included the criminal trial testimony of Blagojevich’s former chief of staff, Alonzo Monk, and Johnston’s admission that he offered the bribe, the panel wrote.
Johnston received immunity from prosecution, and Monk pleaded guilty to corruption charges.”
Read more:
This transaction is the only time I recall the appeals court judges stating that Blagojevich was clearly involved in a quid pro quo activity. During the initial oral arguments phase and in the lastest decision they otherwise question whether or not he was involved in traditional political activities.
This fact coupled with the earlier irregularities in the Blagojevich trials and subsequent delays in producing the transcripts leads me to believe that Blagojevich will get a reduced sentence.

 

Obama puppeteer Valerie Jarrett Obamacare insuror bailout increases, House oversight committee report July 28, 2014, Large backdoor bailouts of insurance companies

Obama puppeteer Valerie Jarrett Obamacare insuror bailout increases, House oversight committee report July 28, 2014, Large backdoor bailouts of insurance companies

“Obama’s introduction into the “Combine” came when his wife Michelle was hired by Jarrett in the early 1990s, and served as Jarrett’s assistant in Daley’s office and followed her to the Department of Planning and Development.
Jarrett was appointed chairman of the University of Chicago Medical Center Board in June 2006. She was also made chairman of a newly created Executive Committee of that Board, according to a June 13, 2006 University announcement. In addition, Jarrett was named vice-chair of the University’s Board of Trustees, the announcement states.
Michelle landed a high paying job at the University of Chicago Hospitals. Two months after Obama became a US senator, she was appointed vice president for community and external affairs. Tax returns show the promotion nearly tripled her pay to $317,000 in 2005, from $122,000 in 2004.”…Evelyn Pringle

“What about those rumored billions of dollars the oil rich Arab nations are
supposed to unload on American black leaders and minority institutions?
“It’s not just a rumor. Aid will come from some of the Arab states,”
predicted a black San Francisco lawyer who has close ties to officials of
the Organization of Petroleum Exporting Countries (OPEC).

“The first indications of Arab help to American blacks may be announced in
December.” said Khalid Abdullah Tariq Al-Mansour, formerly known as Donald
Warden, of the Holmes and Warden law firm.”…Vernon Jarrett November 6, 1979

“Freedom is the freedom to say that two plus two make four. If that is granted, all else follows.”…George Orwell, “1984″

 

 

Valerie Jarrett, one of the puppeteers of Barack Obama, for the most part, flies under the radar and escapes scrutiny.

Many people are still unaware of who she is, her long time envolvement with the Obamas and her involvement in Chicago corruption.

I was reminded of this at a gathering Saturday evening when I mentioned her name and the otherwise informed person said “Who is she?”

Many have asked who are the puppeteers controlling Obama. Some, including myself believe that the Saudis are.

Whether Obama is in the Oval Office or on one of his numerous vacations or golf outings, Jarrett is running the White House.

From the House Oversight Committee July 28, 2014.
“In making the case for ObamaCare prior to its passage in Congress, President Obama often vilified insurance companies and decried their large profits. For example, in July 2009, President Obama remarked that “health insurance companies and their executives have reaped windfall profits from a broken system.”1 One month later, he remarked that “nobody is holding these insurance companies accountable.”2 The President’s public criticism of large health
insurance companies was good politics for him and likely contributed to the law’s passage. The text of the law passed by Congress and the White House’s recent actions to protect insurance company profits, however, show the hypocritical nature of the President’s arguments in selling the law.”

“ObamaCare benefited health insurance companies with its unprecedented mandate that individuals purchase government-approved health insurance coverage and with expensive subsidies to assist individuals in purchasing that coverage through ObamaCare exchanges. In addition to providing health insurance companies with a mandate for individuals to purchase their product as well as creating these subsidies, ObamaCare contains large backdoor bailouts of
insurance companies offering ObamaCare-compliant coverage in the individual and small group health insurance market. Essentially, ObamaCare contains two types of bailouts for insurance companies offering ObamaCare-compliant coverage – one bailout transfers money from the vast majority of people with health insurance, and another bailout transfers money directly from
taxpayers.”

“At least one insurance company appealed directly to Valerie Jarrett, Senior Advisor to President Obama and Assistant to the President for Public Engagement and Intergovernmental Affairs, after the Administration signaled its intent in March 2014 to implement the Risk Corridor program in a budget neutral manner. Chet Burrell, the President and CEO of Care First Blue Cross Blue Shield, wrote to Ms. Jarrett that insurers would likely require Risk Corridor payments on net and that budget neutrality would lead insurers “to increase rates substantially (i.e., as much as 20% or more…).””

“Ms. Jarrett intervened and wrote to Mr. Burrell that “the policy team is aggressively pursuing options.” After the Administration explained how it would implement the Risk Corridor program in April 11, 2014 guidance, Ms. Jarrett wrote to Mr. Burrell that the Administration had given insurance companies 80 percent of what they sought.”

“It appears that several companies, including Care First Blue Cross Blue Shield,
underpriced their exchange plans in 2014 due to their expectation of a taxpayer bailout through the Risk Corridor program.”

“Essentially, ObamaCare contains two types of bailouts for insurance companies offering ObamaCare-compliant coverage in the individual health insurance markets throughout the country. The first bailout, ObamaCare’s Reinsurance program, transfers money from the vast majority of people with health insurance to individuals who have purchased ObamaCarecompliant
coverage in the individual market. The amount of this bailout was set by statute and will equal $10 billion in 2014, $6 billion in 2015, and $4 billion in 2016.

The second bailout, ObamaCare’s Risk Corridor program, transfers money directly from taxpayers to insurance companies. There is no statutory limit on the amount of taxpayer exposure for this bailout. According to the information obtained by the Committee, health insurance companies and the co-ops expect a taxpayer bailout of the magnitude of about $1 billion this year alone. Moreover, the information provided by insurers shows that the expected size of the taxpayer bailout has increased by more than 33 percent since October 1, 2013, partly because the Administration ceded to industry demands and unilaterally altered numerous bailout provisions, making them more generous to insurers.”

“ObamaCare’s mix of taxes, subsidies, regulations, and mandates significantly increased the cost of insurance in the individual market. For example, in its rate filings for the 2014 plan year, one of the insurers that provided information to the Committee planned to increase average premiums by 55 percent for its ObamaCare eligible individual members, with a much larger increase for younger individuals.13 The insurer referred to these increases as “dramatic ‘shocks’ on premium rates, out of pocket expenses and reduction in plan choice.”14 The insurer further stated that “only a relatively small percentage (approximately 7 percent) of our members may be eligible for meaningful subsidies to help offset the higher premiums or obtain lower out of
pocket expenses. This means that most will feel the full brunt of the increases.””

“Evidence that Several Companies Underpriced Plans and Now Expect Large Bailouts

The 3R programs, which insulate companies from significant losses, provided insurers with a strong incentive to price aggressively to gain market share. As described by Health Watch, risk corridors “could provide an incentive for an issuer to price its plan competitively … and if this price ends up being too low to cover costs, it will share that burden with HHS, while at the same time gaining market share.”56 Both the Reinsurance program and the Risk Adjustment program provide insurers with similar incentives.

According to Professor Chandler’s estimates, ObamaCare’s Reinsurance program, funded by higher premiums on the vast majority of Americans, provides about a $500 subsidy per covered life for ObamaCare-compliant plans in the individual market.57 With respect to the Risk Corridor program, Professor Chandler testified “that by backstopping the losses, there is
somewhat of an incentive for insurers to underprice, get the business, if things go badly, Risk Corridors bails them out and if things go okay, well, great.””

“Size of the Expected Bailout Has Significantly Increased

Table 2 shows the total expected Risk Corridor and Risk Adjustment payments for the 15 insurers and 23 co-ops as of both October 1, 2013, and May 2014. Table 2 demonstrates that insurers’ expected payments through each program have grown in size over time. Overall, the insurance industry’s expectation for payments through the Risk Corridor program have increased by about 34.7 percent since October 1, 2013. In addition, insurers and co-ops currently expect
payments through the Risk Adjustment program of nearly twice the amount they expected on October 1, 2013.”

“For example, on April 4, 2014, Chet Burrell, the President and CEO of CareFirst Blue Cross Blue Shield, emailed Valerie Jarrett, Senior Advisor to President Obama and Assistant to the President for Public Engagement and Intergovernmental Affairs, “I want to bring to your attention a brewing issue that will negatively impact upcoming ACA premium rates – any chance
for a brief conversation?”87 Later that day, Mr. Burrell and Ms. Jarrett spoke on the phone, and the following day, Mr. Burrell emailed Ms. Jarrett, “[h]ere’s a short summary of the issue I described to you yesterday, as you requested. Thank you for understanding that I am only trying to give a ‘heads-up’ notice on an issue that could produce an unwelcome surprise. …”88 Mr. Burrell attached a document entitled ‘Premium Rate Increase Concern.docx’; which discussed
the “Concern That [the] Recent HHS Rule will cause Sharp Premium Rate Increases.”89 According to Mr. Burrell’s memo:”

Mr. Burrell’s memo is further evidence that insurers generally expect to receive payments through the Risk Corridor program. It also shows that this expectation of receiving payments allowed insurers to keep exchange plan premiums significantly cheaper than they would have been without taxpayers being on the hook for a bailout. Mr. Burrell’s memo essentially presents
the Administration with a choice: face significantly higher premium increases in 2015 for exchange plans or make taxpayers bail out insurance companies.”

Read more:

Click to access WH-Involvement-in-ObamaCare-Taxpayer-Bailout-with-Appendix.pdf