Prosecutor: Illinois political fundraiser used clout to launch shakedown scheme

CHICAGO: A top political fundraiser parlayed his success at amassing enormous amounts of campaign money for Illinois Gov. Rod Blagojevich into the access and influence to launch a $7 million shakedown scheme in state government, a prosecutor told jurors in his closing argument.

The trial of Antoin "Tony" Rezko initially attracted much attention because he raised funds for Illinois Sen. Barack Obama, but testimony barely touched on the Democratic presidential contender. And neither Obama nor Blagojevich has been accused of wrongdoing.

Assistant U.S. Attorney Reid J. Schar said in his closing argument Monday in the nine-week trial that there was no mystery concerning how Rezko obtained control of two powerful state boards and used them to pressure companies and individuals hoping for state business to pay sizable kickbacks.

"The answer to that question is access and clout and it stems from Rezko's ability to raise a lot of money," Schar said. "He is one of the top fundraisers for Gov. Rod Blagojevich."

But during his closing argument, defense attorney Joseph J. Duffy scoffed at that, saying he believed Rezko had raised more money for St. Jude's Children's Hospital, President George W. Bush and Sen. Barack Obama than for Blagojevich. He claimed that the prosecutors had greatly overstated Rezko's actual influence within the Blagojevich administration.

Schar scornfully dismissed defense claims that Rezko had actually been a responsible businessman and even gave up a lucrative state contract to make certain he did not appear to be engaging in political improprieties.

"The defendant was concerned about the discovery of impropriety," Schar said. "As for impropriety itself, he had no problem with that."

Rezko, 52, is charged with scheming with millionaire attorney Stuart P. Levine to split a $1.5 million kickback from a contractor who wanted to build a hospital in the McHenry County suburb of Crystal Lake.

He is also charged with scheming with Levine to pressure kickbacks out of money management firms wanting to invest assets of the $40 billion fund that pays the pensions of retired downstate and suburban school teachers.

Rezko, a real estate developer and fast-food entrepreneur who bankrolled a number of Illinois political campaigns, denies he had anything to do with such a scheme.

But Schar said Rezko gained power over the Health Facilities Planning Board, which wields authority over hospital construction projects, by stacking it with obedient members whose vote he could reliably control.

The chairman himself was reappointed after delivering a $1,000 campaign contribution to Rezko and two others contributed $25,000 each before getting appointed, Schar noted.

Schar relied heavily on testimony from Levine, whom the defense renounced as a liar and swindler.

Levine testified that in April 2004 he met for dinner with Rezko and outlined a wide-ranging scheme for collecting $7 million in payoffs. Schar pointed to recordings of Levine phone conversations following the meeting as indicative that Rezko approved the scheme.

Rezko's attorney ripped into Levine as an admitted lifelong liar whose brain was all but rendered useless by three decades of abusing powerful narcotics.

During cross examination of Levine, he admitted that bribery and fraud — including the swindling of an estate of an elderly relative who had befriended him — had long been his way of life.

Duffy is expected to continue his closing arguments Tuesday, and the prosecution is expected to offer a rebuttal.

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