Re: Union Named in Blagojevich Indictment to Endorse Giannoulias
“There's this congressman, Rod Blagojevich…don't know if he can be elected but maybe if we could help him in a big way.” – Tom Balanoff, SEIU Illinois Council President[1]
"SEIU had a special relationship with the governor.” – Gerald McEntee, AFSCME President[2]
Key Questions for Alexi Giannoulias
1) Why are you accepting SEIU and Tom Balanoff’s endorsement after both SEIU and Mr. Balanoff were named in the Blagojevich indictment?
2) On March 3, 2006, SEIU contributed $200,000 to Rod Blagojevich’s campaign. Six days later, Blagojevich signed a generous new contract for the SEIU-represented home-care workers.[3] Do you condone this kind of activity?
3) SEIU has contributed $4 million to ACORN while SEIU Local 880 and ACORN Chicago share an office. How can you accept the endorsement of ACORN’s “sister organization” after the recent shocking ACORN videos?
4) When you announced for U.S. Senate, you said you would not accept Political Action Committee contributions to be free of special interests. To confirm, you will not be accepting any contributions from SEIU, correct?
5) Question for David Hoffman and Cheryle Jackson: Do you believe SEIU should be investigated for its role in the Blagojevich indictment and its close relationship with ACORN?
Background
Later today, the Illinois State Council of the Service Employees International Union (SEIU) will endorse Democrat Alexi Giannoulias for U.S. Senate. The move, similar to SEIU’s decision to back then-Congressman Rod Blagojevich early in his primary run for governor, creates new ethics questions for Giannoulias because of the union’s alleged involvement in selling the very same U.S. Senate seat he now seeks. SEIU is named in the Blagojevich indictment, remains closely linked with ACORN and has a history of pay-to-play schemes in Illinois. Democrat candidates David Hoffman and Cheryle Jackson should join in condemning SEIU corruption.
SEIU and the Blagojevich Indictment
According to his official calendar, Rod Blagojevich met with SEIU President Andy Stern and SEIU Illinois President Tom Balanoff on November 3, 2008, the day before Barack Obama was elected President and about the same time, according to federal investigators, that Blagojevich was scheming to sell Obama’s Senate seat. Stern has refused to divulge what he discussed with Blagojevich that day.[4]
Federal wiretaps captured a conversation between Rod Blagojevich and an “SEIU official,” later identified as Tom Balanoff.[5] According to the Blagojevich criminal complaint, Balanoff had previously served as an “emissary” for “Senate Candidate 1.” Blagojevich told Balanoff that he wanted to head up a 501(c)4, and that the new organization could help “our new Senator [Senate Candidate 1].” Balanoff replied that he would “put that flag up and see where it goes.”[6]
On November 3, 2008, Federal wiretaps captured a conversation between Rod Blagojevich and “Advisor A”, later identified as Doug Scofield[7], his former campaign spokesman and deputy Governor – and a lobbyist for SEIU.[8] Blagojevich told Scofield that “[the Senate seat] is a fucking valuable thing, you just don’t give it away for nothing.”
On a subsequent phone call on November 10, 2008, Blagojevich asked Scofield if the President-elect could get his wife on “paid corporate boards right now.” Scofield replied he “think[s] they could,” and that “President-elect…can do almost anything he sets his mind to.”[9]
SEIU Pays to Play in Illinois
SEIU was one of Rod Blagojevich’s most generous backers, contributing more than $1.9 million to the Governor’s campaign fund.[10] In return, Blagojevich appointed SEIU Illinois President Tom Balanoff to the Health Facilities Planning Board.[11]
SEIU endorsed Blagojevich for Governor in 2002 over his Democratic opponents. Democrat Paul Vallas accused Blagojevich of “buying” his SEIU endorsement with his votes, saying “Rod Blagojevich sold his vote on federal airport security for the SEIU endorsement.”[12]
On March 3, 2006, SEIU contributed $200,000 to Rod Blagojevich’s campaign. Six days later, Blagojevich signed a generous new contract for the SEIU-represented home-care workers.[13]
SEIU was one of four unions to publicly pressure Illinois House Speaker Mike Madigan to end his attempts to impeach Rod Blagojevich in the summer of 2008.[14]
SEIU endorsed Rod Blagojevich for re-election in 2006 over his reformer opponent, Edwin Eisendrath. AFSCME, Illinois’ second-largest union, had previously refused to endorse Blagojevich.[15]
Alexi Giannoulias Already Tied to Rod Blagojevich
Rod Blagojevich appointed Giannoulias' brother (Demetris) to the Illinois Finance Authority and reappointed him one month after a $10,000 contribution from Giannoulias' father.[16]
Demetris Giannoulias appeared on Blagojevich's "clout list" with convicted felon Tony Rezko as a sponsor: "'Rezko also pushed for the appointment of Chicago banker Demetris Giannoulias, brother of Democratic state Treasurer Alexi Giannoulias, to the Illinois Finance Authority board, records show."[17]
Alexi Giannoulias’ business ties to Tony Rezko were extensive. At his family bank, Giannoulias helped finance a failed condominium development project operated by Tony Rezko’s company, Rezmar Corp.[18]
Alexi Giannoulias also bankrolled Tony Rezko's Vegas debts. According to the U.S. Attorney’s criminal complaint against the Blagojevich fundraiser, Rezko bounced $250,000 in checks at Caesars Palace Casino between March 24 and July 15, 2006, and bounced another $200,000 in checks at Bally’s. According to the complaint, these checks were drawn on Rezko's account at Giannoulias’ bank.[19]
SEIU and ACORN
The close ties between SEIU and ACORN nationally have been well-documented. SEIU has supported ACORN to the tune of at least $4 million[20]. SEIU national president Andy Stern serves on ACORN’s advisory board[21]. Wade Rathke, the founder of ACORN, served on SEIU’s national executive board, co-founded and still serves as president of the SEIU Southern Conference, and founded a major SEIU local in New Orleans.
Less well-known is the crucial role ACORN played in the creation of Illinois SEIU Local 880. On its Web site, Local 880 claims it “was founded over 20 years ago as an independent union with the guidance of our sister organization, the Association of Community Organizations for Reform Now (ACORN).[22]”
In a 2000 IRS filing[23] for Local 880’s political action committee, the contact email was listed as SEIU880@acorn.org. Until recently, ACORN operated its national headquarters out of that address. In the 2006 end-of-year report issued by the House Committee on Oversight and Government Reform,[24] Local 880 recounts working with ACORN to reelect Rod Blagojevich and again refers to ACORN as its “sister organization.”
Local 880 rents office space from the “Chicago Organizing and Support Center”, an ACORN affiliate, and both Local 880[25] and ACORN[26] have offices at 209 W. Jackson Blvd in Chicago.
[1] Architect of Rebellion, Chicago Tribune, July 31, 2005
[2] Blagojevich and Union Have Longstanding Ties, Wall Street Journal, December 13, 2008
[3] Illinois Scandal Spotlights SEIU's Use of Political Tactics, Wall Street Journal, December 20, 2008
[4] Calendar Shows Key Blagojevich Meetings, Associated Press, January 7, 2009
[5] Union Official Allegedly Liaison Between Governor, Obama Team, Washington Post, December 10, 2008
[6] United States of America v. Rod R. Blagojevich and John Harris, criminal complaint
[7] Decoding Blago, Chicago Sun Times, January 19, 2009
[8] Ex-aides are now lobbying governor, Chicago Tribune, May 29, 2007
[9] United States of America v. Rod R. Blagojevich and John Harris, criminal complaint
[10] Illinois State Election Records
[11] Blagojevich and Union Have Longstanding Ties, Wall Street Journal, December 13, 2008
[12] CANDIDATES BATTLE FOR BLACK VOTE, Chicago Defender, February 11, 2002
[13] Illinois Scandal Spotlights SEIU's Use of Political Tactics, Wall Street Journal, December 20, 2008
[14] Four unions send critical letter over impeachment memo, Associated Press, June 13, 2008
[15] SEIU endorsing Blagojevich in primary, State Journal-Register, January 24, 2006
[16] The State Journal-Register, “Blagojevich has twice appointed Giannoulias brother,” October 26, 2006
[17] Chicago Sun-Times, “Gov's 'clout lists' surface in Rezko trial,” February 22, 2008
[18] Chicago Sun-Times, “Mole put on Rezko,” May 5, 2007
[19] Chicago Daily Herald, “Caesars, Bally's, Bellagio They all say Rezko owes them,” May 30, 2008
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