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Blagojevich Staff Defends First Lady Real Estate Deals
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CHICAGO (AP) -- The Blagojevich administration is defending first lady Patricia Blagojevich's lucrative real estate deals with a woman whose company has a no-bid state contract and whose husband's bank has requests pending before state regulators.
Patricia Blagojevich, a licensed real estate broker, earned $113,700 in commissions -- her only commissions this year -- through deals involving Anita Mahajan and her husband Amrish.
A spokeswoman for Gov. Rod Blagojevich told the Chicago Tribune for Friday's editions that it's "unfair and completely ridiculous" to suggest that Patricia Blagojevich keep track of whether all of her clients have contracts with the state.
"Mrs. Blagojevich has no authority over state contracts, and she has every right to conduct her private real estate business the same way everyone else does," said spokeswoman Abby Ottenhoff. "To suggest otherwise, quite frankly, is a throwback to the 1950s."
The real estate deals involve four commercial and residential properties in the city and suburbs that sold for a total of $5.71 million. In May, two private land trusts that name Anita Mahajan as a beneficiary bought two apartment buildings, according to county records.
In June, Anita Mahajan decided not to buy a retail and apartment property, and the investors who took over the contract decided to keep Blagojevich as their agent, according to the Mahajans and their lawyer.
And in September, Anita Mahajan's brother bought the fourth property, a small shopping center in south suburban Homewood.
Ottenhoff and Anita Mahajan's lawyer characterized the Mahajans as friends of the Blagojevich family. Ottenhoff said they were happy with Patricia Blagojevich's work and decided to recommend her to others.
But Anita Mahajan told a different story Thursday.
"I didn't hire her," Anita Mahajan said of Blagojevich. "I didn't even know who she was until closing. That's when I heard she was the governor's wife. I try not to get involved in politics."
Anita Mahajan owns K.K. Bio-Science Inc., a urinalysis company that has conducted drug testing for the state Department of Children and Family Services since at least the mid-1990s, state records show.
In June, the contract was renewed, increasing the amount from $693,696.79 to $739,025.
Amrish Mahajan is president and chief executive officer of Mutual Bank in south suburban Harvey. The bank has requests pending before the Illinois Department of Professional Regulation's division of banking to acquire two out-of-state banks.
He has donated $10,000 to Gov. Blagojevich's political campaigns.
His bank has also lent millions of dollars to indicted Blagojevich fundraiser and political confidant Antoin "Tony" Rezko.
Rezko, 51, pleaded not guilty last week to federal charges that he worked to squeeze millions of dollars in kickbacks from investment firms seeking state business. He is free on bond.
In May, the governor's office acknowledged that Patricia Blagojevich had a business relationship with Rezko for eight years that is now over.
Ottenhoff said there was no evidence that the deals between Patricia Blagojevich and the Mahajans had any connection to Rezko, saying, "Mr. Rezko borrows money from a lot of banks."
It is not illegal for the spouses of public officials to conduct business with state contractors.
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Copyright 2006 The Associated Press. All rights reserved.This material may not be published, broadcast, rewritten, or redistributed.
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