If you have yet to hear, Illinois Governor Rod Blagojevich was arrested for attempting to sell Barak Obama’s empty senate seat to the highest bidder. Obama quickly came out to deny any connection or knowledge of the matter saying on Tuesday, “I had no contact with the governor or his office, and so I was not aware of what was happening” concerning any possible dealing about Blagojevich’s appointment of a successor.

His statement that he didn’t have contact with Blagojevich about the Senate seat seems to conflict with that of top adviser David Axelrod, who told Fox News Chicago on Nov. 23: “I know he’s talked to the governor, and there are a whole range of names, many of which have surfaced, and I think he has a fondness for a lot of them.”

Axelrod issued a statement retracting the comments, saying they were, “mistaken.” But that explanation does not seem credible. Axelrod is Obama’s closest adviser and is widely credited with being the mastermind of his election campaign. It is simply not believable that he would be mistaken about the basic fact of whether or not a meeting had taken place between the Governor of Illinois and the President-elect. And it is equally not believable that he would be deliberately misleading on the subject.

It also appears that Obama friend Valerie Jarrett, an incoming senior White House adviser, is the person referred to repeatedly in court documents as “Candidate 1.” That individual is described as a female who is “an adviser to the president-elect” and as the person Obama wanted appointed to the Senate seat. Court papers say that “Candidate 1″ eventually removed “herself” from consideration for the Senate seat. The governor dangled the prospect of appointing Jarret to the seat in exchange for an appointment to serve in Obama’s cabinet as Secretary of Health and Human Services. He also is alleged to have sought a job with the Service International Employees Union (SEIU) as a price for appointing someone to the seat that would be favorable to union interests.

In a Nov. 11 phone conversation with an aide, Blagojevich talked at length about “Candidate 1″ and said he knew that Obama wanted her for the open seat but “they’re not willing to give me anything except appreciation. F*** them.”

Obama backed supported Blagojevich for re-election in 2006. Obama has said little about the many misconduct allegations that have piled up against Blagojevich, and he has complimented Blagojevich for running “a sound administration” with “the right priorities.”

Both Obama and Blagojevich got extensive money and support from Chicago businessman Antoin “Tony” Rezko, who is now under federal indictment. And Obama is close to Illinois Senate President Emil Jones, who has been the governor’s staunchest legislative ally.

At least one top aide to Obama, Michael Strautmanis, previously worked for Blagojevich. Obama has appointed Strautmanis to serve as White House chief of staff to the presidential assistant for intergovernmental relations and public liaison. The Chicago native was legislative director and counsel to Blagojevich when the governor was a member of Congress and then helped Blagojevich win the governorship in 2002.

Court documents say they don’t include all calls dealing with the governor’s efforts regarding the Senate seat appointment. And many people in the documents are referred to by aliases; there’s little doubt their identities will eventually surface.

In Chicago, Obama largely kept a low profile as word of Blagojevich’s arrest spread.

He went to a gym to work out as he does most mornings but canceled a previously scheduled FBI briefing and, instead, headed to his transition office next door to the federal courthouse. He stayed there and mostly out of sight until a midday meeting with former Vice President Al Gore on environmental and energy issues. That was supposed to be the news of the day out of the Obama office but the president-elect found himself peppered with questions about Blagojevich when reporters entered the Gore meeting for a photo op.

“Like the rest of the people of Illinois I am saddened and sobered by the news that came out of the U.S. attorney’s office today. But as this is an ongoing investigation involving the governor, I don’t think it would be appropriate for me to comment on the issue at this time,” Obama said — and then he said he wasn’t aware of Blagojevich’s maneuvering.

Robert M. “Mike” Duncan, chairman of the Republican National Committee adds: “Americans expect strong leadership, but President-elect Barack Obama’s comments on the matter are insufficient at best.”

In court documents, FBI Special Agent Daniel Cain detailed several phone calls between Blagojevich and his aides that were intercepted on court-authorized wiretaps over the past month. Blagojevich is accused of conspiring to sell or trade the vacant Senate seat for personal benefits for himself and his wife, Patti. Among his alleged desires: a Cabinet post, placement at a private foundation in a significant position, campaign contributions or an ambassadorship.

Obama is not charged with any wrongdoing, but U.S. Attorney Patrick Fitzgerald refused to rule out the possibility that Obama might get caught up in the scandal. At a press conference announcing the Blagojevich indictment, Fitzgerald would only say that there were no charges against Obama, “in the compliant.”

In the wake of the scandal, a prankster has placed Barack Obama’s Senate seat up on E-Bay. Governor Blagojevich has said the seat is “f***ing valuable,” and that he wouldn’t give it away for “f****ing nothing.”

Related posts:

1. Illinois Governor Arrested Trying to sell Obama’s Senate Seat on “Political Corruption Crime Spree”
2. Summer of Corruption: Obama’s billion-dollar earmark for shady Illinois energy boondoggle
3. Obama knew of Blagojevich plot
4. Blagojevich Cursing Obama Over Senate Seat
5. More Obama Lies: Emanuel Pushed Blagojevich to Appoint Obama Loyalists
6. Obama and Blago — Linked Political Sausage?
7. Just a taste of what we can expect for the next four years
8. Blago Says On Tape Obama Is ‘All Take and No Give’ and Is ‘More Tony’d Up Than I Am’
9. Analysis: Protecting Obama Cost Prosecution Blago Case
10. Barack Obama’s ‘politics as usual’ revealed by Rod Blagojevich trial