From the State Journal Register

Blagojevich appointment scrutinized
Woman named to board after her business contributed to campaign
THE ASSOCIATED PRESS (via the State Journal-Register)
July 11, 2004
CHICAGO - Gov. Rod Blagojevich appointed a woman to the state health-care
construction panel that is under federal investigation soon after her
business made a $25,000 contribution to his campaign, records show.
Meanwhile, several members of Blagojevich's cabinet said state Rep. Jack
Franks, D-Woodstock, pressured them last fall into urging the Illinois
Health Facilities Planning Board to back a hospital project in Crystal Lake
that was represented by Franks' law firm, according to a report in Sunday's
Chicago Tribune.
The planning board's members decide whether to approve medical expansion
projects worth hundreds of millions of dollars.
According to published reports, a whistle-blower lawsuit filed under seal in
U.S. District Court claims a Chicago financial power broker tried to use
ties to the board to shake down a suburban hospital.
The Blagojevich administration has confirmed that the U.S. attorney's office
in Chicago has notified the governor's office that the board is the focus of
an investigation and that the board and some or all of its members have
received subpoenas.
When Blagojevich overhauled the nine-member board last year, he appointed
several new members and reappointed others to new terms. Among the new
appointments were Winnetka podiatrist Fortunee Massuda and Kankakee
neurosurgeon Michel Malek.
According to state records, Foot & Ankle Clinics of America, which Massuda
runs, made a $25,000 donation to Blagojevich nearly three weeks before she
was appointed to the board.
Massuda did not immediately return calls for comment Sunday. Blagojevich's
aides said there was no connection between the contribution and appointment.
"Campaign activities are separate from government activities," said
Blagojevich spokeswoman Cheryle Jackson.
Malek also gave $25,000 to Blagojevich, but said the timing was a
coincidence, and he was unaware that appointments were being considered when
the donation was made.
When the donation by Malek was first reported last week, Blagojevich said he
couldn't recall how Malek was chosen, but that he probably went through a
screening process like other board appointees and that it was unlikely his
staff members knew about the donation.
"We just try to pick the best people we can find," Blagojevich said.
One hospital planning board decision that has come under scrutiny is its
approval of Mercy Health Care Systems to build a hospital in Crystal Lake.
Mercy hired Franks' law firm to represent it in the application process.
Several directors of state agencies told the Tribune they initially thoughts
Franks was acting in his capacity as a state legislator, but then received
follow-up information from his law firm.
The Illinois Governmental Ethics Act bars lawmakers from attempting to
influence state agencies in cases where they have an economic interest.
Franks said he did nothing wrong, that he was engaged in "absolutely
legitimate activity" and never meant to make the directors feel pressured to
support the hospital project.