Another tough break for Rod Blagojevich and Jesse Jackson, Jr. On of the Good Fellas is getting ready to sing:
A key figure in Gov. Rod Blagojevich’s alleged scheme to sell a U.S. Senate seat has sought immunity from federal authorities in return for his cooperation in their ongoing probe, the Tribune has learned.
Raghuveer P. Nayak, an Oak Brook businessman and political fundraiser, is the unnamed “Individual D” who prosecutors say was being squeezed by the governor for campaign cash in return for appointing U.S. Rep. Jesse Jackson Jr. to the Senate seat vacated by President-elect Barack Obama, sources said.
And what could Nayak have to share with federal authorities that would be worth granting him immunity? We know at least this much already:
The Tribune has reported that Nayak hosted an Oct. 31 luncheon where he discussed raising $1 million for Blagojevich to help persuade the governor to choose Jackson. The congressman’s brother Jonathan appeared at a Nayak-sponsored fundraiser for the governor three days before Blagojevich was arrested.
[Jackson] has acknowledged speaking with Nayak about his desire for the Senate seat but said he did not endorse and was not aware of a fundraising effort to support his bid.
On Sunday evening, Jackson’s lawyer, James Montgomery Sr., reacted to the news of Nayak’s bid for immunity by saying, “If that is indeed the case, and if that cooperation relates to my client, then [Nayak] is trying to save his own skin. That’s all I have to say.”
Attempts to reach the congressman were unsuccessful Sunday.
Could Nayak’s cooperation with the feds have implications for anyone else in Cook County politics? Maybe:
Federal and state election reports show Nayak, his wife and his businesses for the last decade have donated more than $779,000 and raised hundreds of thousands more for candidates ranging from the Cook County Circuit Court clerk to President-elect Barack Obama. He has contributed primarily to Democrats but has given money to some Republicans as well.
…[Nayak attorney Thomas] Conley said Nayak enjoys political fundraising.
…”He does it for the community. I don’t think he does it for himself,” said Shareef, who said he has attended about 20 Nayak events for various politicians, including Blagojevich and Jackson. “I don’t think any of them missed a chance to be in his home.”
So just who is this benevolent fundraiser for Chicago Democrats?
In 1987, Nayak was suspended for 60 days from the state’s public aid program after auditors concluded nearly 22 percent of billings at one of his pharmacies were fraudulent. In 1989, state auditors reported concerns that Nayak was giving free airline tickets to doctors who sent business to NR labs, which he has since sold. And in 2001, Nayak returned $20,000 in a federal Medicaid fraud lawsuit in Indiana.
“Nothing has ever gone beyond the initial inquiries,” Conley said. “This is just a part of life for health care professionals. Aside from Indiana, he’s never paid a dime back on all those audits and there are very few labs that can say that.”
Nayak said last year that together his businesses make about $60 million a year. He also said his medical businesses no longer accept public aid.
“We don’t want the hassles of the government coming into our business,” he testified in a 2007 deposition for a civil lawsuit.
