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Blagojevich Scandal Not over as Retrial Looms

They were close. After three weeks of respectful but increasingly tense deliberations, 11 jurors were ready to convict Rod Blagojevich of what prosecutors called a "political corruption crime spree" that would have sent yet another former Illinois governor to prison.

Not close enough. On vote after vote, the jury kept coming up one juror short - a lone holdout who wouldn't budge and would agree only that Blagojevich lied to the FBI. "The person just did not see the evidence that everyone else did," said juror Stephen Wlodek.

CBS News correspondent Barry Petersen reported that the holdout juror is said to be a female retiree from the Chicago suburbs. "She just had such different views," said juror Erik Sarnello. "That was just...that's the way she saw it."

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But federal prosecutors - no doubt stung by the jury's inability to reach a decision on all but the single charge - were emphatic that the case was not over. When U.S. District Judge James B. Zagel said Tuesday he would give prosecutors time to decide whether to take Blagojevich to court again, prosecutor Reid Schar spoke up instantly: "It is absolutely our intention to retry this."

U.S. Attorney Patrick Fitzgerald later thanked the jury for its service but refused to comment on their decision. Petersen said Fitzgerald, who was boastful when Blagojevich was indicted, saying his "conduct would make Lincoln roll over in his grave," was subdued after the trial. "We're about to get ready for a retrial, so we'll make no further comments," Fitzgerald said.

Zagel set a hearing for Aug. 26 to decide manner and timing of the retrial, and a former federal prosecutor said the 11-1 split in favor of conviction on several counts bodes well for the government.

"Especially when the jury was strongly in favor of conviction, 10-2, 11-1, I think overwhelmingly the prosecution convicts on the second time around," reports Peterson.

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The guilty verdict on the least serious of the 24 counts against him, and mistrial on all the rest, led Blagojevich to taunt prosecutors in the courthouse lobby, bragging about essentially fighting them to a draw.

"This fight is a lot bigger than just me and my family. This is a fight for the very freedoms that we as Americans enjoy," said Blagojevich, who promised to appeal his conviction on the single count. "The right to be able to be innocent, the right to be able to do your job and to not be lied about."

The former governor's brother and co-defendant, Robert Blagojevich, said the jury's conclusion showed he's been "an innocent target of the federal government."

"I feel strong. I feel confident. I don't feel in any way deterred. I've done nothing wrong," he said. "I've got ultimate confidence in my acquittal."

The outcome that left the Blagojevich brothers so pleased came as a disappointment to three jurors who spoke to The Associated Press late Tuesday, hours after the exhausted panel departed the courthouse. They said further deliberations would not have mattered - a second unanimous decision on a charge of attempted extortion evaporated shortly before the verdicts were to be read.

"I think in the end, based on what happened today, the people of the state just did not have justice served," said Wlodek, 36, a human resources manager whose job in the jury room was playing the FBI wiretap tapes in which Blagojevich, often in the most profane language imaginable, discussed his alleged schemes.

It had been clear jurors were struggling with the case. Last week, they told Zagel they had reached an unanimous decision on just two counts and had not even considered 11 others.

Wlodek and the other two jurors disagreed on the exact number of counts in which the jury eventually voted 11-1 to convict, but they did agree on this: On at least some of the most serious counts, the overwhelming sentiment was Blagojevich was not just a politician blowing off steam in conversations recorded by the FBI in which he said the power to name a senator was "(expletive) golden" and that he wasn't going to give it up "for (expletive) nothing."

"I had him guilty on all counts," said James Matsumoto, 66, a Vietnam veteran and retired television station librarian who served as foreman.

Matsumoto and Sarnello said the most sensational allegation - that Blagojevich tried to sell or trade President Barack Obama's Senate seat - was the one that most jurors agreed was true.

"For a lot of us, the Senate seat was the most obvious," said Sarnello, a 21-year-old College of DuPage student from Itasca.

Unlike some juries that report angry deliberations and even physical confrontations, jurors in the Blagojevich case said that while there was arguing, it was always respectful. "No yelling," Sarnello said.

The three jurors said there was agreement in the jury room that Fitzgerald's case was not as strong as it could have been, and Matsumoto and Sarnello said they were bothered by the complexities of the government's case. "It was hard to follow," Sarnello said.

Matsumoto said he thinks prosecutors jumped the gun by arresting Blagojevich in December 2008, before he'd appointed someone to fill Obama's Senate seat. It would have been much easier to convict Blagojevich if there had been a "smoking gun" of some kind, Matsumoto said.

But when they didn't find one, some jurors argued the whole alleged scheme, as ugly as it sounded on the secretly recorded FBI tapes, amounted to "just politics," he said.

The closest jurors came to any kind of "smoking gun" was the tapes themselves. When the accusations were only based on testimony and not Blagojevich's own recorded words, Matsumoto said reaching a verdict was a tougher call. Some jurors didn't believe various witnesses weren't credible or had simply made a deal to save themselves, he said.

As for the tapes, Wlodek said he was "shocked to hear your governor use language like that." But he and others said the language did not affect their decision. Sarnello said jurors also were not bothered by Blagojevich's refusal to take the witness stand.

Blagojevich spent $2.8 million dollars on his defense, and now he's broke, according to Petersen. One of Blagojevich's attorneys, Aaron Goldstein, appeared on CBS' "The Early Show" and seized on the fact that his defense in a retrial will have to be paid by taxpayers.

"Here we have another $10, $20, $30 million paid for a retrial of a man they could not prove their case the first time," Goldstein said. "We can't pay for health care; we have two wars; people are dying on the streets of the city of Chicago. And they're not putting any federal money towards that, but they want to retry this individual they could not prove their case on."

A retrial could come at the height of the November election season and reach into the White House, with possible testimony from former Illinois Congressman Rahm Emmaneul, now the White House Chief of Staff.

Or higher.

"They claim that this was a bribery, extortion to sell the Senate seat. Well, who was Gov. Blagojevich supposedly selling the senate seat to? It had to be President Obama," Goldstein told "Early Show" co-anchor Erica Hill. "If that's true, wouldn't the jury like to hear what this supposed extortee has to say? He has been on record that nothing wrong happened and that he was not engaged in any negotiations. So this completely shows governor Blagojevich did nothing wrong. The jury, I would think, would want to hear what the president has to say."

CBS News chief legal correspondent Jan Crawford said the prosecution simply failed to show Blagojevich was a criminal.

"They thought the jurors were going to be shocked by these tapes," Crawford told "Early Show" co-anchor Harry Smith. "Jurors in Chicago are not shocked by politicians who talk that way. The defense really kept it simple. Follow the money. The prosecution was never able to show that money went in his pocket."

In the months after his arrest, Blagojevich featured his over-the-top personality on a reality television show, as the host of a weekly radio talk show and even on stage at Chicago's famed "Second City" comedy review. But he showed no emotion as the verdict was read, sitting with his hands folded, looking down and picking nervously at his fingernails, as the jury entered the courtroom.

After the jury delivered its single verdict and Zagel declared a mistrial on the rest of the charges, the Blagojevich bravado was back.

"This jury shows you that the government threw everything but the kitchen sink at me," Blagojevich said. "They could not prove I did anything wrong - except for one nebulous charge from five years ago."

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