Insiders to testify on Rezko's clout
FRAUD TRIAL | Gov's staffers to detail Rezko's 'significant influence,' feds say
Insiders from Gov. Blagojevich’s administration will testify in the upcoming fraud trial of political fund-raiser Tony Rezko that Rezko was “one of a handful of extremely powerful political leaders” who had “significant influence” on gubernatorial appointments, according to a new federal court filing.
The document shows in the most detail yet how deeply federal investigators are probing into the inner workings of the governor’s office.
(Sun-Times files)
Witnesses for the prosecution include people “who helped select and process” gubernatorial appointees to state boards and commissions, according to the filing.
Prosecutors for the first time also said they have “internal governor’s office documents” that show Rezko was the “political sponsor” of four people who became members of a scandal-tainted government board that was involved in kickback schemes Rezko allegedly helped orchestrate.
“Individuals who helped select and process candidates for boards and commissions will testify that Rezko had weekly meetings with the head of patronage for the [Blagojevich] administration, where Rezko provided names of individuals he wanted appointed to certain boards,” prosecutors wrote in a 31-page document filed late Wednesday.
Until now, prosecutors had not disclosed that people involved in the governor’s process for vetting appointees would be testifying against Rezko. The revelation marks yet another headache for Blagojevich, who already is being dogged by government accusations that Rezko tried to shake down a company seeking state business for $1.5 million in political contributions to the governor’s campaign fund.
The governor’s office responded to the development with the following statement:
“The Governor has always been interested in finding well-qualified people from diverse backgrounds to serve in state government,” Blagojevich spokeswoman Abby Ottenhoff said. “We’ve said before that Mr. Rezko recommended candidates to the administration, as did many other people including members of the United States Congress, local elected officials, members of the Illinois General Assembly, Supreme Court Justices, supporters and others — from both political parties.”
Blagojevich has denied being part of the Rezko case, though sources familiar with the case say he is the uncharged “Public Official A” referenced in recent court filings.
The Chicago Sun-Times in Thursday’s editions identified dozens of other people who are tied to the Rezko case but have been identified by prosecutors only as letters of the alphabet. Like Blagojevich, none of those people has been charged in the case.
The filing by prosecutors was a response to Rezko’s defense attorneys attempts to keep certain evidence out of the trial, which is to start March 3.
The case has drawn national attention because of Rezko’s fund-raising ties to Democratic presidential contender Barack Obama, who was involved in a real estate transaction with Rezko’s wife at a time in 2006 when Rezko was widely known to be under federal investigation.
Besides outlining that unnamed people familiar with the governor’s hiring process will testify against Rezko, prosecutors indicated they have several witnesses to support testimony by Stuart Levine, who has admitted guilt in the schemes and is cooperating with the government. Blagojevich re-appointed Levine to two state panels — the state Teachers’ Retirement System board and Illinois Health Facilities Planning Board — that Levine and Rezko allegedly used to illegally enrich themselves and others.
The government’s other witnesses include former TRS counsel Steven Loren, lawyer and Democratic fund-raiser Joseph Cari and construction magnate Jacob Kiferbaum — all of whom also have pleaded guilty. Loren and Cari are expected to testify about Rezko’s role in the teachers pension board fraud schemes, while Kiferbaum will discuss Rezko’s involvement in a kickback scheme involving construction of new hospitals overseen by the health-facilities board.
The document also spells out alleged wrongdoing by Springfield power broker William F. Cellini, who sources say is the “Co-Schemer A” referenced in court filings. Rezko has argued that Cellini should not be a part of the evidence against him because the government has not charged Cellini with any crimes or even interviewed him.
But prosecutors said Cellini “participated in a number of corrupt aspects of the scheme” and “there are many other explanations that can account for the failure to charge or interview an individual other than innocence.”
Rezko, 52, of Wilmette was jailed last month after prosecutors said he received a $3.5 million payment from an Iraqi-born billionaire and was taking other steps that made it appear he might flee the country.
Contributing: Rummana Hussain