P. Nicholas Hurtgen Pleads Guilty In Scheme Tied To Blagojevich Probe

CHICAGO — A politically connected former investment banker pleaded guilty Wednesday to threatening to deny state permission for a suburban hospital expansion if the hospital's chief didn't hire a contractor favored by former Gov. Rod Blagojevich.

P. Nicholas Hurtgen, 46, a key figure in the long-running federal investigation of corruption in the Blagojevich administration, entered his plea to aiding and abetting wire fraud during an appearance before U.S. District Judge John F. Grady.

Hurtgen's 23-page written plea agreement stopped short of outlining why Blagojevich wanted contractor Jacob Kiferbaum hired. Kiferbaum pleaded guilty to extortion in a related case in June 2005 and admitted that millionaire political contributor Stuart Levine was to get a kickback from him in the hospital deal.

Hurtgen said he told Edward Hospital's chief executive that she didn't want to know why Blagojevich and Levine wanted Kiferbaum to get the job, but that it was "all about money" for campaign contributions.

Hospital CEO Pam Davis was not identified by name in the plea agreement, but she has been praised by the FBI and others for serving as an undercover witness during the investigation.

Davis said in statement she was pleased by the guilty plea but still had concerns about the way applications for such projects were reviewed and hoped there would be reforms to make it "effective and less vulnerable to corruption."

Naperville-based Edward Hospital had wanted to build a new hospital and medical building in Plainfield but required a certificate of need from the Illinois Health Facilities Planning Board before it could start construction.

Levine testified at last year's fraud trial of political fixer Tony Rezko, a major Blagojevich fundraiser, that Rezko had stacked the planning board with individuals who would obediently vote as directed by Rezko and Levine.

Hurtgen, former manager of the Chicago offices of the Bear, Stearns investment house, admitted telling the hospital chief he was contacting her on behalf of Levine, who as a member of the board was not allowed to speak with her about a request for a certificate of need.

Hurtgen said that in return for working with Levine and the board to get Edward's project approved, he wanted Bear, Stearns to handle the financing.

The decision by Hurtgen to plead guilty furnished federal prosecutors with a new potential witness in their investigation of Blagojevich, who was impeached and ousted after being charged in a criminal complaint with scheming to sell the U.S. Senate seat vacated by President Barack Obama.

Hurtgen promised to cooperate with the investigation in return for a lenient 22.5 month sentence. Grady could reject that deal, in which case Hurtgen would be free to withdraw his plea.

Comments

[sasson]

The sooner our disgraced ex-governor is in jail, the happier I will be.

[greatlakesgirl]

Here, here. He's nothing more than a distraction and both Blago's should go to jail.