A former state contractor with close ties to ex-Gov. Rod Blagojevich plans to enter a guilty plea Monday, more than four years after she was charged with bilking the state out of $2 million for drug tests that were never performed, said a source with knowledge of the case.
Anita Mahajan, the wife of a major Blagojevich fundraiser, was charged in May 2007 with theft and fraud, based on allegations that her company, K.K. Bio-Science, submitted bogus bills for drug screenings for clients of the Illinois Department of Children and Family Services.
Prosecutors also accused Mahajan of laundering money taken from the alleged fraud and using it to buy properties in Chicago andNew York.
Mahajan is also the target of a civil lawsuit filed by Atty. Gen. Lisa Madigan, who alleged in 2009 that Mahajan improperly billed the state from January 2004 until November 2006. The suit, which is still pending, asks for at least $3.4 million in damages and civil penalties.
Mahajan is the wife of Amrish Mahajan, a former head of the defunct Mutual Bank of Harvey who was called "Uncle Amrish" by Blagojevich’s children. He held events for Blagojevich and raised at least $500,000 for the former governor's campaigns. The Mahajans also hired Patricia Blagojevich for several real estate deals that netted the former first lady more than $113,000 in commissions.
The commissions were revealed by the Tribune in 2006, before Blagojevich’s final gubernatorial victory. At the time, Blagojevich said the implication of impropriety was “Neanderthal and sexist” toward his wife.
Blagojevich is slated for sentencing Oct. 6 on 17 counts of public corruption.
Tribune reporter John Byrne contributed to this report.