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All eyes on Rezko power ties

CORRUPTION TRIAL | Obama, governor among big names to be dropped

February 26, 2008

There's a strong chance White House hopeful Barack Obama's name will surface at indicted political fund-raiser Tony Rezko's trial, which is to begin next week.

In a ruling released Monday, a federal judge also made clear that Gov. Blagojevich, too, stands to come up at trial, as she made public what Blagojevich has long denied: that the governor is the "Public Official A" who's repeatedly referenced in Rezko court documents.

Obama's name was not mentioned, but U.S. District Judge Amy St. Eve said she would allow prosecutors to present evidence about a portion of a $375,000 finder's fee that a Rezko associate, Joseph Aramanda, obtained through an alleged kickback scheme orchestrated by Rezko.

Prosecutors, she ruled, will be allowed to ask about how money from that fee allegedly was used "to make a political contribution" in Aramanda's name "because Rezko had already donated the maximum amount by law."

The ruling does not identify Obama as the recipient of that contribution. But sources have identified him as the "political candidate" who prosecutors say received a $10,000 donation from Aramanda -- at Rezko's direction -- during Obama's 2004 run for the U.S. Senate.

Obama has donated that contribution to charity. Aramanda's lawyer could not be reached for comment.

In addition, Rezko allegedly directed another associate, Elie Maloof, "to donate for the same reason," St. Eve wrote.

"The evidence is admissible," she added.

As with the Aramanda contribution, Obama has donated a $10,000 contribution from Maloof -- who was out of the country and could not be reached -- to charity. The two contributions are among $157,835 in Rezko-linked donations that Obama has given away.

Rezko was once part of Obama's senatorial finance committee.

Informed of the ruling, Obama spokesman Bill Burton said, "We had no knowledge of any straw donations and have returned any of the donations about which we have any reasonable question.

"By now it is well-established that Sen. Obama is not involved in the matters at issue in the [Rezko] trial."

Also in the ruling, St. Eve outed Blagojevich as the "Public Official A" whose campaign fund was to benefit through an alleged extortion of Hollywood producer Thomas Rosenberg.

Rezko allegedly tried to extort a $1.5 million Blagojevich contribution from Rosenberg in exchange for directing a $220 million state investment to Rosenberg's former company, Capri Capital. Rosenberg balked and threatened to go to authorities, prosecutors allege.

The ruling disclosed another alleged transaction involving Blagojevich's campaign fund. Rezko promised a businessman an appointment to a state post in exchange for a $50,000 political donation to the governor, according to prosecutors.

Joseph Cacciatore allegedly asked Rezko to help his brother, Phil, land a spot on the Illinois Banking Board. Rezko said it would happen if he kicked in $25,000 to the governor's campaign fund. Rezko offered to contribute another $25,000 through one of his companies on behalf of Cacciatore, according to the ruling.

Rezko recommended Phil Cacciatore to the board in 2004. Records show Joseph Cacciatore donated $25,000 to Blagojevich's campaign war chest in 2002.

But Phil Cacciatore, vice president of Lakeside Bank, said he never sought the banking board appointment from anyone -- including his brother. He said his brother didn't offer to pay money in exchange for the appointment.

"Not only was it a non-paying position. It was the strangest position in the world because it technically never met," Cacciatore said. "The one meeting that was scheduled, there was no quorum."

Cacciatore said he hasn't talked to federal authorities or Rezko's attorneys about the appointment but said that his brother was asked to submit an affidavit. He also said he resigned from the state banking board about a year ago.

The Blagojevich campaign also disputed the allegation that the $25,000 contribution from Joseph Cacciatore bought his brother the banking board seat.

"The governor certainly would not tolerate any suggested connection between a campaign donation and an appointment of any kind," campaign spokesman Doug Scofield said.

Scofield said the campaign has donated to charity contributions it received directly from Rezko, though not his various businesses..

"The campaign has felt because of the allegations against Tony, returning or giving to charity the money he has given is an appropriate thing to do," Scofield said. "Beyond that, I don't think it's appropriate to comment on businesses that he's been alleged to be involved in."