Illinois corruption update: First Lady's suspicious real estate dealings

One of 2009's major stories in Illinois will probably be the indictment of Governor Rod Blagojevich, a Democrat from Chicago. Well, it's kind of a big story. After all, three of the last seven elected governors in my state have been sentenced to prison, and George Ryan, as I write this, probably just heard the "Lights Out" call at the Federal Correctional Institute in Terre Haute, Indiana.

But the indictment of "Blago" could break new ground in the nation's most corrupt state. His wife, Patti, could end up getting charged with crimes as well.

Oh, there is a Tony Rezko angle, too.

Here is what the Chicago Sun-Times says:

A Chicago developer and donor to Gov. Blagojevich steered more than $100,000 in commissions to first lady Patti Blagojevich's real estate firm before a business owned by the developer's parents saw dramatic increases in state payments.

Virgil Tiran's real estate ties to the governor's wife are coming to light as federal investigators scrutinize her relationships with real estate clients, including recently convicted former gubernatorial fund-raiser Tony Rezko.

Patti Blagojevich's company, River Realty, listed dozens of condominium units Tiran and various partners had been developing throughout the city's North and Northwest sides between 2001 and 2004, real estate records show. River Realty sold 17 units between August 2001 and April 2002, allowing the firm to get an estimated $108,000 in commissions.

In 2002, before Blagojevich took office, the state paid Tiran's parents' home-care company for the developmentally disabled, Diane Home Care, $183,000. In 2003, during the governor's first year in office, the payments increased to $325,000. Last year, Diane Home Care did $1.1 million in state business through a contract with the Human Services Department.

The Sun-Times also reports that federal agents are investigating Patti Blagojevich's real estate dealings with convicted felon Tony Rezko.

Illinois' first lady knows her way around Illinois' sleazy political environment. Her father is powerful Chicago alderman Dick Mell.

Related post:

Obama's pal Rezko: Convicted felon

Did Rezko switch on Gov. Blago's home improvement

Impeachment talk about Gov. Blagojevich continues

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