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Last Updated: Thu, 09/22/2011 – 11:42am

More than two months after a Chicago nurse got criminally charged for stealing half a million taxpayer dollars from minority outreach programs one media outlet has dared to reveal that a close friend, advisor and donor of President Obama’s is embroiled in the scandal.

It’s the taboo portion of the story that’s been ignored by the mainstream media and conveniently omitted in government press releases announcing the June federal indictment a month after it was filed. The one-time director of the Chicago Chapter of the National Black Nurses Association (Margaret Davis) faces two decades in prison for defrauding various state grant programs out of approximately $500,000, according to federal authorities.

What the feds haven’t revealed is that the state agency that gave Davis all the money, the Illinois Department of Public Health, was run by one of Obama’s closest pals, Dr. Eric Whitaker, when the cash was disbursed. We know this only because Chicago’s conservative-leaning newspaper has been digging around. This week it published a lengthy article connecting the dots between Whitaker and the corruption scheme.

The state’s convicted felon governor (Rod Blagojevich) appointed Whitaker health director in 2003 after Obama, a state senator at the time, recommended him.  During Whitaker’s four-year tenure, the agency spent millions of taxpayer dollars on highly questionable publicity campaigns to educate African-Americans and other minorities about common diseases in their communities, mainly AIDS.

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Obama finds refuge among close friends on vacation

Aug. 26, 2011 2:13 PM ET

THE WATCHDOGS: A blinged-out Hummer that a Chicago not-for-profit organization used was improperly purchased with state funds, the Illinois Department of Public Health determined. read more….


Fraud case targets grants awarded by President Obama’s friend

By CHRIS FUSCO & DAVE McKINNEYStaff Reporters / September 19, 2011 2:26AM