Report: Illinois Pension Probe Focusing on GOP Bigwig

August 10, 2005 ( - Federal investigators have subpoenaed the records of investment deals by the Illinois Teachers Retirement System that generated $4.5 million in fees to a man named as treasurer of the national Republican Party, according to a news media report.

Quoting unnamed sources, the Chicago Tribune reported that Republican National Committee treasurer Robert Kjellander is a target of the federal inquiry along with a number of other political insiders. Kjellander has not been accused of any wrongdoing and has said he has not been contacted by federal authorities.

According to the newspaper, Kjellander, Illinois ‘ longtime national Republican committeeman and a friend of President Bush’s political strategist Karl Rove, got $3.1 million for representing The Carlyle Group, a Washington-based investment advisor focusing on private equities.

Kjellander’s Springfield Consulting Group is set to receive another $1.4 million for business The Carlyle Group has done with the pension board, which would push his income to $4.5 million since 2002, according to The Carlyle Group, the Tribune reported.

More than a month ago, investigators demanded the records of Kjellander, Springfield Consulting and The Carlyle Group. The information and document demand included documents of transactions involving about half a dozen investment firms and consultants who represented potential pension board service providers, the newspaper said.

Last week, federal prosecutors charged former pension board member Stuart Levine with extorting money from investment firms that were seeking board business (See  IL TRS Trustee Charged in Kickback Scheme ). Some of the records sought by investigators involved firms that figured in the Levine matter, now charged in multiple corruption cases, and Chicago attorneys Joe Cari, a former finance chairman for the Democratic National Committee, and Steven Loren, a former outside counsel for the teacher fund.

The Teachers’ Retirement System committed $500 million to Carlyle in six investment deals with Kjellander serving as the firm’s lobbyist, the newspaper reported.