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Former Illinois governor Rod Blagojevich will be arraigned today before a federal court after being indicted on 16 counts of racketeering conspiracy and wire fraud earlier this month. Blago is expected to plead not guilty to all the charges, which include allegations that he used pay-to-play politics to sell Barack Obama’s vacant senate seat. The four other people charged, Blago’s former chiefs of staff John Harris and Lon Monk, his top fundraiser Christopher Kelly and Illinois powerbroker William Cellini will be arraigned in the next ten days. (Chicago Tribune)

Blago’s woes are threatening to engulf another prominent Chicago Democrat. Two members of Chicago’s Indian community said Rep. Jesse Jackson Jr. (D-IL) would raise up to $5 million in campaign funds for Rod Blagojevich in return for Barack Obama’s vacant Senate seat, the Chicago Sun-Times reports. The sources said that if appointed to the Senate, Jackson would give $5 million from his fundraisers and $1 million from the Indian donors. Jackson confirmed last week that federal prosecutors were investigating his connection to Blago, following the discovery of a tape recording which reportedly captured an emissary for Jackson guaranteeing $1.5 million to Blago in return for the Senate appointment. (Chicago Sun-Times)

Even after California citizens voted to enact new fundraising laws eight years ago, state lawmakers continue to collect an average of $344,503 per day, according to a report released Monday. Though direct donations are limited to $3,900 for Congress and $20,900 for gubernatorial candidates, lawmakers can seek donations for other purposes, including legal defense, and support for or opposition to other causes. The chair of the Fair Political Practices Commission, which released the report, told the LA Times that the additional donations “allow candidates and officeholders to evade the intent of the people of California.” (LA Times)

Just three days after a federal judge said that victims of Bernard Madoff’s multi-billion dollar Ponzi scheme could push Madoff into bankruptcy, five former investors got right to it. A federal judge approved the request filed in court papers Monday by five investors to retrieve $64 million. The SEC has opposed pushing Madoff into bankruptcy, saying in court papers filed last Wednesday that “a bankruptcy filing is likely to lead to unnecessarily high administrative costs and confusion without any apparent benefits.” (CNN Money)

In more bad news for Madoff, residents of Fairfield, Connecticut took steps Monday towards claiming $42 million in assets invested with the Ponzi schemer. In a court order, state judge Arthur Hiller said that the 1,500 members of Fairfield’s pension fund — which was invested in Madoff accounts — could access $25 million in assets owned by Madoff’s relatives and business associates. This is the newest effort to repay victims of Madoff’s scam, the largest of its kind in history. (Reuters)

A Colorado Judge ended a controversial identity theft investigation into 1,000 suspected illegal immigrants Monday. In the ruling, judge James Hiatt said that the Weld County Sheriff’s Office lacked probable cause when they wrongfully obtained tax records from a Colorado tax preparer. Some see this decision as a rebuke to the Weld County District Attorney Kenneth Buck, who has a history of clashing with immigrants rights groups. The American Civil Liberties Union of Colorado, which filed the original lawsuit against the county, told the New York Times that the ruling “is a tremendous victory for the right to privacy.” (New York Times)

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