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Carlyle Group at Center of Illinois Corruption Probe

HeadlineAug 11, 2005

Federal prosecutors investigating corruption at an Illinois state pension fund have subpoenaed records concerning more than $4 million in fees that the Carlyle Group is paying to the new treasurer of the Republican National Committee. The subpoena calls for documents related to the group and Robert Kjellander, whom was named Treasurer of the RNC over the weekend. He headed President Bush’s re-election campaign in three states. Carlyle allegedly paid him more than $3 million to land contracts for the group with the pension fund—that is as much as corporations like Merrill Lynch or Goldman Sachs would be paid for such services. The subpoena was part of an ongoing federal investigation of corruption involving the fund. A former fund trustee and two Chicago attorneys already are under indictment. One of the two lawyers is a former finance chairman of the Democratic National Committee.

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