Former Blagojevich adviser dies days before going to prison

CHICAGO -- A former chief fundraiser for ousted Illinois governor Rod Blagojevich died Saturday, just days before he was to report to prison to begin a three-year sentence for tax offenses that included using his company's money to pay gambling debts and claiming it as a business expense.

Christopher Kelly, 51, also pleaded guilty last week to an $8.5 million fraud involving hangar roofing contracts at O'Hare International Airport. He faced more than five years in prison at that sentencing, but was ordered to report next Friday to begin his three-year term.

Kelly was taken to Cook County's Stroger hospital by ambulance at 5:15 a.m. Saturday and pronounced dead at 10:46 a.m., said spokesman Marcel Bright. Bright did not know whether Kelly was conscious when he arrived in the emergency room or where he was transported from.

He said the body remained at the hospital Saturday but was to be taken to the morgue where an autopsy would be performed.

Kelly, a suburban roofing contractor and Blagojevich's longtime fundraiser, was charged along with the former governor in an indictment alleging Blagojevich sought to sell or trade President Barack Obama's former seat in the U.S. Senate.

Kelly pleaded not guilty to charges he plotted with Blagojevich to use the muscle of the governor's office as a moneymaking machine to squeeze payments out of those seeking state business.

Although prosecutors clearly hoped Kelly would cooperate in their case against Blagojevich, he had steadfastly refused. Neither of his guilty pleas in the fraud cases called for his cooperation in the Blagojevich case.

"I rather doubt that it will have any impact on the government's case at all," said Allan A. Ackerman, who recently joined Blagojevich's legal defense team. "It's a tragedy and very sad for his family."

U.S. attorney's office spokesman Randall Samborn would not comment on Kelly's death. Kelly's attorney, Michael Monico, did not return repeated messages left on his office phone Saturday by The Associated Press.

Blagojevich was in New York when he learned of Kelly's death.

"I am deeply saddened to hear that Chris has died. My heart goes out to his wife Carmen, his three daughters Grace, Jacqueline and Claire and his entire family. They are in our prayers," Blagojevich said in a statement.

On Tuesday, Kelly admitted he paid $450,000 in kickbacks to an unnamed consultant who allegedly inflated cost estimates for repairs to hangars operated by American Airlines and United Airlines at O'Hare International Airport. Kelly admitted bids on the projects were rigged to make certain his BCI Commercial Roofing Inc. would land the contracts. In all, the contracts paid Kelly $8.5 million. His profit was $2.5 million, according to the plea agreement. He was to be sentenced to nearly five years in prison.

U.S. District Judge Charles R. Norgle set Nov. 18 for that sentencing but ordered Kelly to start his three-year term next Friday.

The new sentence would have been on top of those three years, handed to him in June for obstructing the Internal Revenue Service by paying gambling debts with his company's money and illegally structured cash withdrawals to hide how much he was taking from the company.

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Associated Press writers Tammy Webber and Caryn Rousseau contributed to this report.