Blago warned he could not profit from Obama seat 

"Despite repeated warnings from others that he could not personally profit in any way, [former Illinois Gov. Rod] Blagojevich continued to suggest methods in which he could personally profit from the naming of a senator," according to a 91-page document filed by federal prosecutors in Chicago Wednesday.

Blago apparently discussed selling President Obama’s former U.S. Senate seat with his wife - in exchange for a Cabinet position, an ambassadorship or financial remuneration - while federal agents were listening on the line.

The court document outlined part of U.S. Attorney Patrick Fitzgerald’s case against Blago, who was indicted on 24 counts of conspiracy, racketeering, mail and wire fraud, attempted extortion and bribery.

As many as 500 hours of secret taped recordings were cited as evidence of “multiple conspiracies and schemes” that Blagojevich and his brother Robert engaged in for their own financial benefit.

An emissary for Jesse Jackson Jr. allegedly offered Blagojevich a $1.5 million offer for the seat, and there is widespread speculation that some White House aides were caught on tape as well.

But prosecutors say they will also rely on statements from former Blago chief of staff John Harris, (whom Blago allegedly told, “Now is the time for me to put my (expletive) children and wife first, for a change."), convicted Obama fundraiser Tony Rezko, and other members of Blagojevich’s inner circle to prove their case under a Santiago proffer – a legal doctrine that allows statements made by unindicted co-conspirators to be used as evidence.

According to the court document filed with U.S. District Court Judge James Zagel and obtained by The Examiner, one of the conspiracies involved kickbacks from pension obligation bonds and the investment of assets belonging to the Illinois Teachers Retirement System.

Blagojevich is also accused of using Rezko to extort healthcare facilities in the state by appointing five Rezko associates to a state planning board – and using the governor’s wife’s real estate business to launder bribes in the form of a $40,000 unearned sales commission and renovations on the governor’s Ravenswood Manor home.

One of the worst allegations is Blagojevich’s alleged attempt to extort $50,000 from the CEO of non-profit Children’s Memorial Hospital, the largest supplier of pediatric specialty services in the state, in exchange for an $8 million increase in Medicaid reimbursements.

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