American Scene

ILLINOIS

Three deny charges in Blagojevich case

CHICAGO | Ousted Illinois Gov. Rod R. Blagojevich’s most recent chief of staff, former chief fundraiser and another Illinois political insider pleaded not guilty Thursday to charges that they took part in what prosecutors say was widespread corruption.

Mr. Blagojevich pleaded not guilty Tuesday to plotting to sell or trade President Obama’s vacant U.S. Senate seat and a tangled web of other suspected corruption.

Pleading not guilty Thursday were former chief of staff John Harris, former fundraising chairman Christopher Kelly and Springfield power broker William Cellini.

Mr. Harris, 47, is charged with only one count in the Senate seat case and is cooperating with prosecutors. His attorney, Terry Ekl, told U.S. District Judge James B. Zagel they hope to have an agreement on a change of plea before the end of May.

Mr. Kelly, 50, a roofing contractor who was previously chairman of the Friends of Rod Blagojevich campaign fund, is accused of scheming with the now-ousted governor to tap the power of the state government in a long-term moneymaking operation.

Mr. Cellini is charged with what the indictment describes as a plot to shake down Hollywood producer Thomas Rosenberg for a hefty campaign contribution.

MICHIGAN

Muslim group says FBI seeking spies

DETROIT | A Michigan Muslim organization said Thursday it has asked U.S. Attorney General Eric H. Holder Jr. to investigate complaints that the FBI is asking followers of the faith to spy on Islamic leaders and congregations.

The Council of Islamic Organizations of Michigan sent a letter last week to Mr. Holder after mosques and other groups reported members of the community have been approached to monitor people coming to mosques and donations they make.

The FBI’s Detroit office denied the accusations Thursday.

Andrew Arena, special agent in charge of the local office, said in a statement that the office had worked hard on its relationship with the Arab-American community in the region, and that no claims of wrongdoing had been brought to its attention.

Based on the complaints, the agency appears to be on a “fishing expedition,” said Dawud Walid, executive director of the Michigan chapter of the Council on American-Islamic Relations.

MINNESOTA

Bridge victims get settlements

MINNEAPOLIS | The state of Minnesota has reached settlements with all 179 eligible victims of the bridge collapse in Minneapolis two years ago.

The individual settlement amounts weren’t immediately released. The state’s initial offers ranged from about $5,000 to more than $2 million for the most grievously injured or the survivors of those killed.

The settlements come from a special victims fund of nearly $37 million set up by legislators. Thursday was the deadline for offers to be accepted or rejected. Victims had little reason to reject the settlements because state law limits Minnesota’s liability.

Thirteen people were killed and 145 injured in the collapse on Aug. 1, 2007.

NEW YORK

WTC towers possibly delayed for decades

NEW YORK | Construction of several ground zero office towers could be put off for decades because of the failing real estate market, the site’s owners said Thursday, citing an analysis that projected one skyscraper might not be built and occupied until 35 years after Sept. 11.

Developer Larry Silverstein and the Port Authority of New York and New Jersey have been talking on and off for months about rewriting a 3-year-old agreement that gives the developer rights to build three out of five towers planned at the Sept. 11, 2001, terrorist attack site.

Mr. Silverstein, unable to obtain financing for all the towers and with only about $1 billion left in insurance money to pay for them, asked the Port Authority last fall to guarantee financing for two of his towers, officials familiar with the negotiations said.

The Port Authority agreed to back one tower already under construction, where the government agency has agreed to move once it’s built. Executive Director Chris Ward on Thursday cited the exodus of major financial firms like Merrill Lynch and AIG from downtown Manhattan as a reason to not flood the market with 10 million square feet of office space at the same time - about 2013.

NORTH DAKOTA

Troops drop bags to fortify dam

KATHRYN | A National Guard official said troops dropped sandbags from a helicopter overnight to shore up a weakening dam that is protecting a small North Dakota town from flooding.

North Dakota National Guard Lt. Col. Rick Smith said water from a tributary of the Sheyenne River began seeping past sandbags overnight that are shoring up the Clausen Springs Dam.

Authorities said the town of Kathryn six miles east would be flooded if the dam fails. Kathryn’s 55 residents were evacuated Wednesday.

Col. Smith said a quick reaction force using night-vision goggles dropped more sandbags from a Blackhawk helicopter about 3 a.m. Thursday. He said troops will continue to position sandbags throughout the day.

From wire dispatches and staff reports