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Figure in Rezko case indicted

June 28, 2008

His name came up repeatedly in Tony Rezko’s corruption trial, and his voice was heard time and again on FBI wiretaps.

Now Robert Weinstein — a confidant of the star witness in Rezko’s trial — has been indicted.

Weinstein, a doctor, is accused in a three-count indictment of raiding the Chicago Medical School and the North Shore Supporting Organization, a charity, of millions of dollars.

Weinstein, who has homes in Northbrook and Delray Beach, Fla., is accused of siphoning $6 million from NSO with Levine and diverting money from a development project at 2020 W. Ogden, according to the federal indictment.

Levine and Weinstein were trustees of the medical school and NSO. The medical school is now known as Rosalind Franklin University of Medicine and Science in North Chicago.

Levine and Weinstein misused their trustee positions and pocketed money belonging to the organizations, prosecutors charged. Levine has pleaded guilty and has been cooperating with the government since 2006.

Weinstein, whose attorney could not be reached for comment, is also accused of lying to the feds about what Stuart Levine — a witness against Rezko — told him about Rezko’s influence over the state health planning board. Weinstein told FBI agents that Levine never told him Rezko influenced the board. The feds say they caught him on tape saying otherwise.

Levine testified for 15 days in Rezko’s trial, often serving up colorful tales of his own crimes. Some of them were carried out with Weinstein, who was used by Levine as a conduit to hide money, the feds say.

Weinstein didn’t testify at Rezko’s two-month corruption trial, but jurors still heard from him. The two could be heard chattering on surveillance tapes about illicit state deals, and Levine would often boast to Weinstein about how he carried out various scams, including those involving a state hospital and pension boards.

After allegations came to light in 2004, Rosalind Franklin University reconstituted its board, CEO K. Michael Welch said.

Levine and Weinstein's relationship dates back decades. They were players in Chicago HMO when Levine's late cousin, multimillionaire Theodore Tannebaum, controlled the company. The controversial Chicago HMO served welfare recipients and held contracts to provide health care for major public entities in Chicago.

Weinstein served as Chicago HMO's president at a time when the company was under scrutiny by the state attorney general and was a target of a Sun-Times investigation in the late 1980s.