To answer your question about why would he lie, he is lying because he broke the law when not reporting an extortion attempt(and anyone who thinks Blago hasn't broken a law just because no one accepted yet is fooling themselves), he committed a felony by not reporting it, so he has plenty of reason to lie, he knows that if he admits to talking to Blago he had to know Blago was trying to sell the seat.
Now I understand, thanks!!!