SPRINGFIELD -- for what reason doe...

SPRINGFIELD -- for what reason does someone who lost a $250000 state consulting gig -- apparently for doing no work -- master a $900,000 no- bid contract a not many months later from Gov. Blagojevich's administration?

That was the religious fortune of Chicago lawyer Myron "Mike" Cherry, a major Blagojevich donor who is the main protagonist in notwithstanding another story of clout and big coin in state government.

Cherry, a prominent Democratic fund-raiser who is linked to at least $60000 in contributions to Blagojevich, has not been accused of any criminal wrongdoing.

if it were not that a 2004 investment proposal at the state Teachers Retirement a whole that would have netted Cherry the $250000 has drawn scrutiny from federal investigators probing corruption at the pension a whole and under Blagojevich.

The fed have been investigating whether Blagojevich and fund- raisers Antoin "Tony" Rezko and Christopher Kelly were involved in a hidden scheme to steer state pension business to top campaign donors -- an accusation all three have adamantly denied.

INVESTMENT CALLED not on

A little more than a year into Blagojevich's bourn Cherry was poised to infer a handsome payday at TR nevertheless wound up empty- handed.

He was part of a $25 million deal that Sterling hazard Partners pitched to TRS in April 2004 The investment proposal was pushed according to indicted former TRS board member Stuart Levine and by the agency of Michael C. Winter, president of Rezko's company at the time, sources said.

Ultimately, TR staff chose not to invest any agency permanent funds with Sterling because of underperformance through its funds.

however before that call was made, Sterling identified Cherry as its consultant and indicated it would pay him a 1 percent chisel from the $25 million deal, or $250000 according to a company document filed with TR and obtained through the Chicago Sun-Times through the Freedom of Information Act.

Cherry's duties were to consist of "making introductions to various potential investors, coaching and consulting in succession the . . . investor presentation and acting as a consultant to the manager with reverence to its fund-raising," the document said.

LAW FIRM DONATES $25000

unless staff at the pension agency closeed Cherry's involvement amid suspicions he had done no work in succession the deal.

Cherry "had not participated in any evident way with the potential TR investment," wrote TR executive director Jon Bauman in a memo to former TR board chairman Randy Dunn explaining the agency's demand that Cherry be dump

Cherry's name first surfaced at TR in May 2004 In June of that year, his law firm donated $25000 to the governor's political supply But three weeks later, responding to TRS' objections with Cherry, Sterling dropp him from the deal.

It didn't take lengthy for Cherry to be upon the receiving end of a a great deal more lucrative offer from state control

In December 2004 the Blagojevich administration awarded Cherry a no-bid deal to give an account of Illinois in a three-state probe of insurance factors allegedly accepting improper payments from insurance providers.

The state Department of Financial and Professional Regulation confirmed that Cherry's feuds totaled $900,000 for six month of work as a special examiner for the agency.

Susan Hofer an agency spokeswoman, said Cherry was qualified for the work based forward his experience as a class-action litigator and that his work helped stable settlements with three major insurance brokerages that flowed in $260 million in restitution to policy owners nationwide.

if it be not that when asked specifically to provide the mark of Cherry's work, the state agency said in a statement: "For confidentiality reasons, the names of the examinees and the specific services provided cannot be disclosed."

Cherry was in his Chicago office when first contacted from the Sun- Times but did not get back a phone call seeking observation After a second call was placed to his firm, an assistant said Cherry was abroad of the country and unavailable.

'Absolutely no role'

Blagojevich's office deferr questions to Hofer's agency about whether there was any link between contributions to the governor, Cherry's stint as a consultant for Sterling, and the state contract he received six month later that nearly quadrupled his promised windfall below the Sterling deal had it gone forward.

Hofer said Cherry's campaign contributions to Blagojevich played "absolutely no role" in any of his 2004 activities with the state.

As part of a probe into corruption at TR that has broadened into state hiring practices, U Attorney Patrick Fitzgerald's office last year subpoenaed records from TR in succession the Sterling deal and several other investments.

The magnitude of alleged wrongdoing at TR was exorcismed out last September in a plea agreement according to Democratic fund-raiser Joseph Cari, who acknowledged participation in a kickback scheme at TR that allegedly involved Levine.

'THINGS anticipate SUSPICIOUS'

Cari indicated Levine told him a high-ranking state leader, dubbed in the pleading as "Public Official A," and sum of two units close associates tried to young ox state pension business to the public official's campaign donors.