One Big Happy Crime Family

12:30 pm, 5/10/05

One Big Happy Crime Family
The time of the cleansing is at hand!

A top fund-raiser for failed Republican gubernatorial nominee Jim Ryan who later was reappointed to key state posts by Gov. Blagojevich, was rousted out of bed early Monday by FBI agents and hauled into court on fraud charges alleging kickbacks, influence-peddling and insider dealing.

All told, Stuart P. Levine, 59, abused his positions on the Illinois Health Facilities Planning Board and the Rosalind Franklin University of Medicine and Science/Chicago Medical School board of trustees to the tune of $9.5 million, federal prosecutors stated in a 64-page indictment.

Charged along with Levine, of Highland Park, were P. Nicholas Hurtgen, 42, and Jacob Kiferbaum, 52, both of Glencoe. Hurtgen, a former executive with Bear Stearns & Co., and Kiferbaum, a construction magnate, took part in the schemes so their companies could obtain multimillion-dollar contracts, the government is alleging. Kiferbaum is cooperating in the investigation, which authorities said is only just beginning.

The scandal marks the first major criminal charges linked to the Blagojevich administration, which noted it overhauled the health board shortly after it learned of potential wrongdoing last year.

Levine, who has given more than $1.6 million to mostly Republican state politicians since 1993, was re-appointed to the planning board -- as well as the state Teachers' Retirement System board -- at the urging of Blagojevich adviser and fund-raiser Tony Rezko.

"We needed Republicans on the [health] board and wanted to show no repercussions against Jim Ryan's people," Blagojevich spokeswoman Abby Ottenhoff said. "The public should look at how we responded when we became aware of what was going on."

Blagojevich canceled a public appearance in Bolingbrook soon after the indictments became known.

...Yeah, that's how he usually responds.

But Hurtgen also has ties to Blagojevich. Bear Stearns was paid more than $8 million to be one of two senior underwriters on a $10 billion state pension bond deal. Knight Infrastructure, an engineering company that once included Hurtgen's wife Catherine as a 3.5 percent owner, has given Blagojevich more than $42,000 in cash and free plane flights.

"Stay tuned; there will be more charges in the future," FBI Special Agent in Charge Robert Grant said.

Levine and Hurtgen appeared before U.S. Magistrate Judge Sidney Schenkier. Each was released on $5 million bond.

Levine was placed on home detention with electronic monitoring until he strikes a formal bond deal. Hurtgen was released into the custody of his wife. Neither Hurtgen's attorney, Ronald Safer, nor Levine's attorneys, Marc and William Martin, would comment.

Kiferbaum will appear in court at a later date. Said his attorney, Theodore Poulos: "Jacob Kiferbaum is accepting full responsibility for his conduct."

Besides the three men charged Monday, the indictment identified three others who were part of the schemes, but it did not name them. Several sources identified them as Dr. Robert J. Weinstein, a longtime business associate of Levine's and former president of HMO America, which Levine founded; Republican businessman John Glennon; and Sven Philip-Sorensen, a European businessman who once served on HMO America's board. None was charged with crimes.

"I'm saddened very much," Ryan said. "If the allegations are true, they don't square with what I know about Stu Levine, but that's what the courts are for.

The Sun-Times article even includes a helpful guide to the allegations, which you can go check out. The Bear Stearns investigation has been ongoing for some time now, because Blago's bond deal was crooked like a Metro East malpractice attorney. In fact, it's that same bond sale that came up with the cash with which ostensibly Republican Bob Kjellander was paid $800,000 for undisclosed services. Coincidentally, Knight Infrastructure was the recipient of the $30 million contract to build a shooting complex in Sparta and the contract for overseeing the remodeling of tollway oases, a project to which mob ties have long been suspected.

Levine faces 28 counts including mail fraud, wire fraud, misapplication of funds, money laundering and extortion. Hurtgen faces three counts of mail fraud, three counts of wire fraud and one count of extortion. Kiferbaum faces 22 counts including mail fraud, wire fraud, misapplication of funds and extortion.

This state needs an enema.