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Source:
http://www.chicagotribune.com/news/politics/chi-rezko_governor_bdmar02,0,694950.story?page=1
Trial knocks on governor's door
March 2, 2008
Chicago Tribune
Bob Secter and Ray Long
Illinois has a rich and infamous history of
political corruption trials, but the trajectory of the case against
Antoin "Tony" Rezko -- a chief
fundraiser for Gov.
Rod Blagojevich -- may be without
parallel.
Perhaps never before has a sitting Illinois governor become so enmeshed in a
criminal proceeding of such breadth.
Rezko's trial, set to begin with jury selection Monday,
is expected to shed unflattering light on the inner workings of an
administration that Blagojevich vowed would clean up state government after
his predecessor left in scandal.
Boiled to its essence, the prosecution's
complex case against Rezko involves allegations that he and other insiders
exploited their relationship with Blagojevich to seek millions of dollars in
kickbacks from firms seeking state business or regulatory approval.
The government's case is expected to include testimony about separate
conversations between Blagojevich and two political insiders in which he
allegedly gave a thumbs-up to pay-to-play politics. In one conversation,
according to court documents, Blagojevich was said to have explicitly raised
the notion of rewarding campaign donors with state contracts, legal work and
investment banking.
Blagojevich has not been charged with any wrongdoing and steadfastly
maintains his commitment to reform. He is not expected to testify at the
trial.
Last week, Blagojevich said he hadn't been following the case and didn't
know much about it. But he denied being involved in any of the questionable
acts attributed to him by prosecutors in pretrial filings in which he was
referred to by a pseudonym, Public Official A.
"I'm simply going to say, whatever letter of the alphabet you want to put on
something, what's described there does not describe how I operate or how I
do things, and all I'm going to say about a court case that I'm not involved
in is that there's not anything for me to say," Blagojevich said at an
unrelated news conference.
The case is attracting nationwide attention, in part because Rezko also
befriended Democratic presidential candidate
Barack Obama on his way up the
political ladder and prosecutors have signaled that the U.S. senator's name
is likely to come up. Some cash Rezko allegedly obtained through shakedowns
of state contractors ended up in Obama's campaign coffers.
Obama, however, is expected to be a footnote in the trial, Blagojevich and
his administration will be a central focus.
Rewards started early
Blagojevich could crusade as an ethics reformer when he first ran for
governor in 2002 because the administration of outgoing Republican Gov.
George Ryan was mired in a licenses-for-bribes scandal.
Almost immediately after Blagojevich took over, prosecutors say, Rezko and
others in the governor's inner circle began manipulating state government to
reward their friends and Blagojevich's political contributors.
A key figure in the federal investigation is Christopher Kelly, long the
chief fundraiser for Blagojevich. Kelly has not been charged in the case,
though he was indicted last year by a federal grand jury on separate federal
tax-fraud allegations.
Kelly and Rezko were central to Blagojevich's successful campaign for
governor in 2002 and formed the nucleus of his kitchen cabinet once he took
office. They held sway over government appointments and filled several key
positions in the new administration with friends and business associates.
Prosecutors say they also threw around their weight to shake down would-be
state contractors.
"Rezko parlayed his success in raising significant sums of money for Gov.
Blagojevich into power by gaining access to high-ranking Illinois officials,
being given deference in filling board and job positions, and by influencing
how certain boards conducted business," prosecutors alleged last week in a
pretrial filing. The government's case against Rezko relies heavily on the
assertions of political operatives Stuart Levine and Joseph Cari, who have
pleaded guilty in the case and are cooperating with prosecutors.
Prosecutors say Rezko, Kelly and others conspired to keep Levine on two
pivotal state boards, where Levine rigged decisions to extort money for
himself, Rezko and others from would-be state contractors. Cari is a
longtime Democratic fundraiser and was once finance director for the
national party.
In a December court filing that outlined a road map to their case,
prosecutors highlighted a conversation about fundraising that Cari alleges
to have had with Blagojevich, who was referred to in the document as Public
Official A.
Blagojevich "stated he had a lot of ways of helping his friends and that
Rezko and [Kelly] were his point people in helping his friends and
coordinating fundraising," according to government lawyers. "[Blagojevich]
also informed Cari that he could award contracts, legal work, and investment
banking to help with fundraising."
The same filing also describes an alleged
conversation between Levine and Blagojevich as they shared a flight on a
private plane from New York. During the ride, Levine was said to have
thanked Blagojevich for reappointing him to a state panel that regulated
hospital expansion.
Blagojevich "responded that Levine should only talk with 'Tony' or [Kelly]
about the board, 'but you stick with us and you will do very well for
yourself,'" the prosecution document stated.
Defense lawyers insist such eyewitness accounts have been fabricated to buy
lighter punishment for Levine and Cari. They also have vigorously attacked
Levine as a chronic user of hard drugs who lacks credibility.
Ryan indicted after office
Scandal has touched many previous governors, but in vastly different ways.
Federal agents had been circling around Ryan's administration for years.
Still, it wasn't until just days before Ryan was to leave office that
prosecutors first publicly suggested he had a role in the
licenses-for-bribes scandal, which began when he was secretary of state.
The federal indictment that would lead to Ryan's conviction and imprisonment
came nearly a year after his departure.
Even former Republican Gov. Jim Edgar had a brush with scandal during his
second term when prosecutors charged that a multimillion-dollar public aid
contract was steered to a company run by some of his biggest political
donors.
The scandal sent two mid-level state workers and two officials of the
company, Management Services Inc., to prison.
Edgar was never accused of wrongdoing. But he did testify for the defense,
becoming the first sitting Illinois governor in decades to take the witness
stand in a criminal case.
In Springfield, where Blagojevich's unpopularity with Republicans and
Democrats alike helped fuel last year's record standoff on the state budget,
the consensus among lawmakers was that the trial will weaken him further,
whatever the outcome.
"The governor came here riding a white horse and he was our ethics czar and
he definitely doesn't deserve a pass," said Sen.
Susan Garrett (D-
Lake Forest). "But I think it's
really more important that we as legislators and leaders look into why this
continues to happen over and over again."
Rep. Rosemary Mulligan (R-
Des Plaines) said Blagojevich
brought his current troubles on himself.
"Innuendo can kill you even if it proves not to be true," said Mulligan.
"Part of the problem is he was so cocky about [saying] he was going to do
this like nobody else had ever done it before. He was just asking for people
to scrutinize him."
Rezko's reach
The following have either been implicated in the indictment or are expected
to testify in the trial of political fundraiser Antoin Rezko.
Stuart Levine
A Highland Park lawyer and Republican insider whose account of his time on
two state boards will make up the backbone of the government's case against
Rezko. Levine is expected to tell jurors he plotted with Rezko to control
majorities on the boards and bring in kickbacks.
William Cellini
A Republican power broker who remained a
political heavyweight after Gov. Rod Blagojevich took office, and was
influential when it came to making recommendations for state offices. He is
uncharged in the case, but is named as Co-Schemer A, allegedly working with
Levine from early on in the scheme to use control of the board of the
Teachers Retirement System to force illegal payments.
Chris Kelly
One of Blagojevich's closest advisers and chief fundraiser on his two
campaigns. He is uncharged in the Rezko case but is referred to in case
documents as Co-Schemer B. He allegedly had knowledge of the pay-to-play
scheme that would bring in campaign money and supported it, a contention his
lawyers have denied.
Sheldon Pekin
A Chicago businessman who acted as an agent for investment firm
Glencoe Capital, which paid him a
"finder's fee," in a TRS deal. Part of those funds allegedly were directed
by Rezko, through Levine, to Rezko associate Joseph Aramanda. Pekin is not
charged, but is expected to testify for the government.
Joseph Aramanda
A Rezko confidant who was an executive of the Rezko company that ran a group
of pizza franchises. Aramanda is not charged and is not expected to testify.
He allegedly accepted $250,000 from Pekin and passed some of the funds on to
other Rezko associates.
Tom Rosenberg
A Hollywood producer and a principal for Capri Capital, which allegedly was
a target of an extortion attempt. Players in the case are accused of
plotting to tell him Capri would lose a pending $220 million investment deal
with TRS unless either Levine was given a 1 percent fee or a $1.5 million
donation was made to the campaign fund of Gov. Rod Blagojevich. Cellini,
named as Co-Schemer A, is accused of first approaching Rosenberg, who
threatened to go to authorities. Rosenberg is expected to testify.
Steven Loren
A lawyer who acted as outside counsel for TRS, and who followed Levine
orders to draw up sham contracts to make some of the alleged transactions
look legitimate. He has pleaded guilty in the case and is expected to
testify.
Joseph Cari
A nationally prominent Democratic fundraiser, including a post as national
finance chairman for the Gore campaign in 2000, he was also managing
director of a private equity firm that sought TRS business. He has pleaded
guilty in the case and is expected to be a witness. Cari was accused of
acting as a go-between in a deal that would have seen a finder's fee passed
to Rezko associate Charles Hannon through a sham "consultant."
Jacob Kiferbaum
Owner of a construction firm that agreed to
pay kickbacks for being able to build a hospital whose expansion Levine was
steering through the Illinois Health Facilities Planning Board. He has
pleaded guilty and is expected to testify.
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