Pantagraph.com Weather forecast, local radar and more
NewsMonday, March 3, 2008 9:30 AM CST
Comments Comments (18) | E-mail this page E-mail this page | Print this page Print this page | Enlarge type Enlarge type | Reduce type Reduce type | Search archives Search archives | RSS RSS feeds | Add to My Yahoo! Add to My Yahoo!
Corruption trial likely to include mention of Obama, Blagojevich
By Mike Robinson
Associated Press
Advertisement

CHICAGO -- Just three months after former Illinois Gov. George Ryan was locked up in a federal prison camp, a new corruption case that has already dragged his successor and Barack Obama into an embarrassing spotlight is going to trial. | PDF: The case against Rezko | PDF: Indictment

Antoin “Tony” Rezko, a Chicago businessman described by Hillary Rodham Clinton in a nationally televised debate as a “slum landlord” represented by Obama, is charged with using political clout to run a multimillion-dollar extortion scheme.

It’s a scheme prosecutors say was rife with sneaky deals and strong-arm tactics, all aimed at landing millions of dollars in bogus fees from firms hoping to handle investments from a teachers’ pension fund and obscure state boards.

Rezko, one of the top fundraisers for Democratic Gov. Rod Blagojevich, is charged with money laundering, attempted extortion, fraud and aiding bribery.

Blagojevich has not been charged with wrongdoing. But two members of his inner circle are under indictment and U.S. District Judge Amy J. St. Eve has publicly outed the governor as the anonymous “Public Official A” who appears in court papers as a beneficiary of the alleged scheme.

The former head of the Friends of Rod Blagojevich campaign fund is expected to be the government’s leadoff witness after jury selection, which begins Monday in what is expected to be a three-month trial.

Even in a state with a traditionally tolerant view of political boondoggling, there is amazement at the charges of high-level corruption so soon after Ryan and his administration collapsed in a sea of scandal. He’s serving a 6½-year term.

“It’s stunning to me that this trial is being held at all in light of what happened to George Ryan,” said Jay Stewart, head of Chicago’s Better Government Association.

Governor pained by nasty black eye

It all centers on Rezko, 52, a Syrian-born real estate developer and fast-food tycoon who once raised thousands of dollars for both Blagojevich and Obama — much to the chagrin of both.

Blagojevich is obviously pained by the nasty black eye.

“My reaction is it doesn’t matter what letter of the alphabet it is,” the 51-year-old, two-term governor told reporters last week. “What was described there doesn’t describe me or how I do things.”

Obama’s presidential campaign, meanwhile, has given to charity nearly $150,000 in contributions that came from Rezko or his associates over the years. Obama, a former lawmaker now in his first term in the Senate, once backed a proposal to grant public money to a company formed by Rezko, and the purchase of his home got tangled up with Rezko — something he called a “boneheaded” mistake.

While Obama’s name may come up during testimony, the focus of the case is alleged corruption on two state boards appointed by Ryan, a Republican, and subsequently by Blagojevich.

There’s a dizzying array of unidentified “co-schemers” and “individuals” in the scam, including Christopher Kelly, the governor’s chief fundraiser who has been indicted on charges of filing false tax returns.

The prosecution’s star witness is expected to be attorney Stuart Levine, who allegedly put the shakedown scheme together with Rezko. Prosecutors say Levine once sat on a private plane with Blagojevich and was told by the governor: “You stick with us and you will do very well for yourself.”

Levine was a member of both Illinois boards, each of which is empowered to make decisions involving hundreds of millions of dollars.

The Illinois Health Facilities Planning Board’s permission is needed for any construction involving hospitals. The Teachers Retirement System is the $30 billion nest egg that pays the pensions of thousands of retired teachers.

Prosecutors say the scheme got under way five years ago when Rezko, with the help of Levine, pocketed $250,000 — the bulk of a finder’s fee paid by a firm that received $50 million to invest for the pension fund.

Before it was over, they say, Rezko and Levine were plotting to shake down seven such firms, including one allegedly told it had to pay a mysterious consultant $50,000 and fax the signed contract to a sun-splashed Caribbean tax haven by the end of the day — or lose the deal.

Hollywood producer Thomas Rosenberg was allegedly told that he had to make a $2 million payoff or a $1.5 million contribution to “Public Official A’s” campaign fund or his Capri Capital firm would be frozen out. Rosenberg balked, prosecutors say, and the schemers backed off.

Prosecutors say Rezko got power in state government because he “raised hundreds of thousands of dollars” for Blagojevich.

Rezko’s attorney, Joseph Duffy, is certain to rip into the credibility of Levine, who has pleaded guilty.

There is plenty of ammunition.

Witnesses have already made it clear that Levine was a heavy drug user — cocaine, marijuana, crystal methamphetamine and ketamine (Special K). Secretaries heard snorting sounds coming from his office and saw him with bloody tissues and blood dripping from his nostrils. A wiretap picked up Levine asking over the telephone if his caller got “the stuff.”

Duffy plans to claim Levine’s memory is faulty, though he has been barred from talking about what prosecutors call Levine’s “personal social activities.” Just what these social activities are — Duffy refers to them in court papers as Levine’s “secret life” — is under court seal and remains secret.

Fitzgerald, a common annoyance for election officials

The case is a major initiative by U.S. Attorney Patrick J. Fitzgerald, the hard-nosed, crime-busting prosecutor brought in from New York to clean house in this corruption-riddled state. He also prosecuted administration insider I. Lewis (Scooter) Libby in Washington’s CIA leak investigation.

Rezko has been held in jail, attending hearings in an orange jumpsuit and leg-irons, since Jan. 28 when St. Eve ruled that he had defied an order to keep her informed of his financial status.

She said a $3.5 million loan from London-based billionaire Nadhmi Auchi, now appealing a fraud conviction in France, showed Rezko had access to overseas money and thus might be able to skip out before the trial.

Besides the pain for Obama and Blagojevich, the case has been embarrassing to both political parties.

Attorney Joseph Cari, a former Democratic National Committee official, says he was the one who told the investment firm to fax the contract. He pleaded guilty to attempted extortion.

Lobbyist Bob Kjellander, a former Republican National Committee treasurer, funneled $400,000 to a go-between to pay Rezko’s debts, prosecutors say. He has been charged with no wrongdoing in connection with the case.

Rezko has resolutely insisted that he will not plead guilty and make a deal with prosecutors to tell whatever he might now about state politics.

Prosecutors would plainly like to have a friendly talk with him.

“A lot of Illinois politicians would like to shoot him out of the sky the way they shot down that satellite recently,” Roosevelt University political scientist Paul Green said. “Because Tony Rezko knows a lot. He really knows a lot.”

Rezko has little to look forward to. Even if he escapes a long sentence in this case, he faces another court ordeal. He is charged separately with swindling the General Electrical Capital Corp. out of $10 million in the sale of a chain of pizza parlors.

Take a look
Antoin "Tony" Rezko, a fundraiser and political confidant for Gov. Rod Blagojevich, leaves the federal building in Chicago on Oct. 19, 2006. Jury selection begins Monday in his trial. (AP Photo/Nam Y. Huh, File)
Video
Most commented stories
Browse online archives
Recent issues:
Reader comments on this story - 18 total

Note: All views and opinions expressed in reader comments are solely those of the individual submitting the comment, and not those of the Pantagraph or its staff.

Political Heretic wrote on Mar 4, 2008 6:34 PM:

" To gad. Hey, buddy! You never did tell offer a retort for why Obama's statement was kooky. What's up? "

Political Heretic wrote on Mar 3, 2008 9:21 PM:

" To McLovin It. No, I don't understand the culture I live in, and I'm proud of it! What a bunch of selfish, shallow, greedy, anti-intellectual, bigoted, lazy, conformist lumps of mash potatoes we are. You are what you own. Integrity and ethics are facades to be claimed but not actualized. Promises little more than a way to get you what you want. Politics the same. Religion as an excuse to hate, collect in segregated clicks, and compare clothes. So easily deceived when it suits our prejudices. Love something almost none of us really experience, a desire for a status symbol in it's place. Completely and utterly falling short of the greatness we're capable of, but we'd rather watch American Idol instead. No. I DON'T understand, and I don't want to. I'd rather live a REAL human life, thank you. "

McLovin It wrote on Mar 3, 2008 7:32 PM:

" "I guess I just don't understand the society I live in. " At least he admits it... "

Political Heretic wrote on Mar 3, 2008 3:56 PM:

" How is it a gaff? I keep hearing that Obama's statement was naive, but how? His assertion, I believe, was that IF we have operable intelligence that Al-Qaeda is operating somewhere in Pakistan, AND Musharraff is unwilling to do anything, that we would. How is this kooky? Is it kooky to want to avenge the 9/11 victims by terminating the organization who were in charge of it? In fact, we just killed 13 militants in Pakistan with a predator drone. Yes, it was under GWB's command, but so what? It was still a good move and no one called it kooky. I see a double standard here. Now, invading a country that wasn't involved in 9/11 at all, and wasn't any threat to us, thereby sending the entire region into chaos, THAT's kooky. Yet 80% of the people were initially for it. I guess I just don't understand the society I live in. "

dwarf wrote on Mar 3, 2008 3:06 PM:

" Goody! I was waiting for the next installment in 'Investigations Of Everyone Obama's Ever Known'! "

gad wrote on Mar 3, 2008 2:46 PM:

" meh, that post is just plain silly. "

gad wrote on Mar 3, 2008 2:43 PM:

" ok heretic, ya got me, i was talking about barry. the platform planks, textbook leftist. 'cept for that kooky pakistan one. i know ya have to back up barry's gaff on that subject but listen to yourself. "

Meh wrote on Mar 3, 2008 2:05 PM:

" gad, the difference between the Obama bashing and Bush bashing is this. The vast majority of Obama bashing comes from Rush listeners who would confuse Obama with Fat Albert in a line up. They know nothing about him or his policies but are content to bash with the nonsense spewed forth from Rush and email forwards from their mother-in-laws.

Bush bashing, for the most part, comes from genuine disagreement with the Regime's policies and Mr. Bush's personal views.

For the Obama bashing to equal the Bush bashing, the Obama bashers would actually have to know something about the man. "

Political Heretic wrote on Mar 3, 2008 1:01 PM:

" To gad. Were you refering to someone else as other than Obama as the "prophet"? If so, please correct me. As for his platform points I agree with, here's a short list. Iraq must be ended as soon as possible. Abortion should stay legal. Gay people should be allowed civil unions. The death penalty is flawed only in it's arbitrary implementation but should remain an option in extreme cases. Marijuana would become a drug doctors could prescribe in cases where they feel it is the best for the patient. If Pakistan refuses to help us get Al-Qaeda, we should go in and get them ourselves. Would you like more? "

gad wrote on Mar 3, 2008 9:40 AM:

" so howcome people here can bash bush without letup, but i can't poke a little fun at barry. that doesn't seem fair. since this is indeed 2008 i went to obama's website, on the internet, and did some reading. wow! what alot of views and solutions he has for all the worlds problems (paper don't refuse ink). "

Meh wrote on Mar 3, 2008 8:55 AM:

" The "prophet" thing is funny. I heard so many comments back around the 2004 elections about how Bush was "doing God's work", how he was a "great Christian", and how "it was like having Jesus in the White House!" W in the White House was viewed as some sort of second coming. Deny all you want, but its true.

If you want to know what Obama's views are, remember that this is 2008 and visit his web site. If you want to hate Obama, at least hate him for his actual views, not what comes through the Rush filter. "

gad wrote on Mar 3, 2008 7:06 AM:

" hey heretic....you named obama, not me. so tell us what obama's platform is since you seem to be the only one that knows, 'cept for the change and hope part. "

Deputy Dog wrote on Mar 3, 2008 4:40 AM:

" The Great "O" will bring change to D.C., this looks like the same ol same ol to me. "

BigBrother wrote on Mar 2, 2008 10:50 PM:

" Its a shame that any of our elected officials would be involved with crooks and scheisters. If I were a teacher in the state of Illinois I would start saving some money back for retirement. Blago and the boys are skimming off the top of that fund. Even if he did not directly do any of the crimes Blago knew about them and appointed people to positions that could help. Promising people wealth if they played ball. Time to clean house in Illinois. "

Political Heretic wrote on Mar 2, 2008 7:56 PM:

" To gad. The prophet?!? Oh yes, the latest bit of rhetoric from the right! Obama's supporters are supposably so blinded by his charisma that they see him as a religious figure, right? This coming from conservatives after seven years of proclaiming that your God choose GWB as president, that he is Jehovah's representative on earth, and that we MUST invade Iraq because it's the duty of Christians to crusade in the middle east and convert the unbelievers. Talk about calling the kettle black. Personally, I support Obama, and it has NOTHING to do with his charisma. It's because I agree with his platform and feel he would be the most effective in getting it passed, period. Quick transferring your own tendencies onto those of us who recognized a bad leader back in 2000 and 2004, and know a good leader now. "

Not so Political wrote on Mar 2, 2008 7:32 PM:

" Does Hillary remember White water ?? We do !! "

gad wrote on Mar 2, 2008 3:01 PM:

" wouldn't it be something if rezko takes out blago AND the prophet. "

Political Heretic wrote on Mar 2, 2008 1:11 PM:

" Here's a wonderful example of how differing newspapers, with differing agendas, place the stories they receive. The Chicago Tribune has the story buried so deep that you have to use the search engine to find it. The Chicago Sun-Times, supposably the more conservative paper, doesn't have the story at all. Yet here in the Pantagraph it is front and center. So the question is, is the story more or less relevant than these paper's placing would indicate? My experience says the Pantagraph never passes on a chance to put a "Blago is corrupt" story on the front page. Heck, the man probably couldn't pass wind in public without the Pantagraph blazing it across their headline. Sad thing is, there is corruption going on here, less with Obama and more with Blago, but why the never ending placing of these stories at the top? To make those in central Illinois hate Blago more (good luck at that) or does it just sell newspapers? Would a Pantagraph moderator like to comment? "
Add your own comments

Please read the rules before posting comments.

You must be logged in to leave comments.
If you don't have a member ID, please register.

*Member ID:
*Password:
Remember login?
(requires cookies)
  Forgot Your Password?
 
Lee Enterprises Customer Service | 301 W. Washington St., PO Box 2907, Bloomington, IL 61701-2907 | Ph. 309-829-9000 | 800-747-7323
Copyright © 2008, Pantagraph Publishing Co. and Lee Enterprises. All rights reserved. | Terms of Use | Privacy Policy