An Indian businessman with ties to both Gov. Rod R. Blagojevich and Rep. Jesse L. Jackson Jr. is caught up in the probe of the governor’s alleged efforts to sell the Senate seat vacated by Barack Obama.
Investigators are looking at whether Raghuveer Nayak, a political and community leader in Chicago’s Indian community, offered to raise more than a $1 million for Blagojevich in exchange for the governor appointing Jackson to the Senate, the Chicago Tribune reported.
Nayak, who became wealthy running a pharmacy and then a series of surgical centers in Illinois and Indiana, has given generously to both the governor and to Jackson
He and his wife, Anita, have also made donations to other politicians, including President-elect Barack Obama and Sen. John McCain of Arizona.
Jackson has been identified as “Senate Candidate 5″ in the 76-page federal complaint filed against Blagojevich. The complaint outlines secretly taped conversations where the governor said an “emissary” from “Senate Candidate 5″ offered at least $500,000 in campaign contributions to secure the post.
“We were approached ‘pay to play,’ that, you know, he’s raise me 500 grand,” Blagojevich said on Dec. 4, according to the affidavit. “An emissary came. Then the other guy would raise $1 million if I made [Candidate 5} a senator.”
Jackson has denied authorizing anyone to act on his behalf to make a deal with the governor.
“I did not initiate or authorize anyone at any time to promise anything to Governor Blagojevich on my behalf,” he said at a press conference two weeks ago. “I never sent a message or an emissary to the governor to make an offer, to please my case or to propose a deal about a U.S. Senate seat, period.”
But the Tribune reported that Nayak discussed raising at least $1 million for Blagojevich at an Oct. 31 meeting that Blagojevich attended.
“Two businessman who attended the meeting and spoke to the Tribune on the condition of anonymity said that Nayak and Blagojevich aide Rajinder Bedi privately told many of the more than two dozen attendees the fund-raising effort was aimed at supporting Jackson’s bid for the Senate,” according to the Dec. 12 story.
That meeting led to another fund-raiser just three days before Blagojevich was arrested on public corruption charges, which was co-sponsored by Nayak. The second fund-raiser was also attended by Jonathan Jackson, Jesse’s younger brother.
Jackson’s spokesman Rick Bryant told the Tribune that Nayak is a “family friend and supporter” of the congressman, as well as of his father, the Rev. Jesse Jackson.
“He has talked to [Nayak] about the Senate seat and he has mentioned his interest,” Bryant said. “But he never asked him to do anything.”
Jackson’s attorney, James Montgomery, said that he could not rule out the possibility that someone not authorized by Jackson discussed a pay to play scenario with Blagojevich.
Nayak, 54, has raised hundreds of thousands of dollars for Blagojevich; he and his wife have also donated more than $22,000 for Jackson.
Besides his surgery centers, he also founded and until recently, had an ownership interest in a drug testing laboratory with millions of dollars in public contracts.
In a press conference Friday, Blagojevich denied doing anything improper and said he would fight to clear his name.
12/22/2008 Update: Nayak has sought immunity from federal authorities in return for his cooperation in their ongoing probe.
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