The indictment, which refers to Kelly as "J.K.," makes it clear that he has testified before a federal grand jury. Kelly has not been accused of any crime, but the indictment says that the Chawlas "commanded the highest level of attention from J.K. and his office."
Kelly was out of town on vacation yesterday but was aware of the indictment, according to John Cerrone, his legislative director.
"From the very beginning, Councilman Kelly has fully cooperated with authorities when asked to do so and will continue to do so if asked," Cerrone said.
Teitelman's attorney, William DeStefano, yesterday said that the case stems from "normal, everyday constituent services" provided by Kelly's office. He noted that the U.S. Attorney's Office offered Teitelman and Wright deals to flip on the Chawla brothers.
"The problem was, there was nothing to tell with respect to the others," DeStefano said.
Lisa Mathewson, Wright's attorney, declined to comment on the deals offered by investigators but presented a united front.
"Everyone is standing together and going to trial," she said.
Thomas Bergstrom, Ravinder Chawla's attorney, called the case "eminently triable."
Attorneys for Hardeep Chawla declined to comment yesterday.
Wright is still Kelly's chief of staff, with an annual salary of $91,179. He took some time off in January when the investigation became public but has been back at work in City Hall since.
The indictment accuses Wright of using his job to help the Chawla brothers deal with city agencies, including 2005 negotiations with the city Law Department to reduce by about $13,000 a bill for $53,000 in taxes, penalties and interest owed by a company controlled by Hardeep Chawla.
As a "reward," Hardeep Chawla wrote Wright a $1,000 check at Christmas that year. Wright listed that as a Christmas gift on a city financial disclosure form in April 2006.
