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Fast Eddie bombshell

LEVINE TESTIMONY | Star witness in Rezko trial says he paid bribes to former 10th Ward Ald. Vrdolyak to win government contracts for his clients

March 19, 2008

When the witness stepped into the courtroom, Tony Rezko turned and fixed his gaze.

Sitting at the defendant's table, the onetime political fund-raiser for Gov. Blagojevich and Sen. Barack Obama kept his dark eyes locked on the star witness, following his every step across the courtroom.

The witness then stepped to the stand and raised his right hand. The man who Rezko's lawyers call a liar -- multimillionaire turned $800-a-week messenger deliveryman Stuart P. Levine -- swore to tell the truth.

Rezko leaned back into his chair.

Then it began.

In his first 45 minutes of testimony at Rezko's corruption trial Tuesday, Levine didn't waste time rocking the political landscape. The former lawyer, business consultant and HMO magnate testified he once passed bribes to former powerhouse Ald. Edward "Fast Eddie" Vrdolyak, to win government contracts for clients and at least one of his own companies.

Levine spoke calmly, using the same tone to describe his 30-plus year drug habit as he did to talk about facing up to natural life in prison for his crimes. His demeanor was in stark contrast to the sometimes panicked-sounding, stammering voice of his heard on recordings played in court.

Levine, 62, is accused with Rezko of orchestrating kickback schemes involving firms seeking business from Blagojevich's administration. Rezko is charged with using his clout with the administration to see to it that Levine was reappointed to two state boards that were at the heart of those schemes, and then conspiring with Levine to steer deals to friends and associates.

Court ended for the day Tuesday before Levine began talking much about Rezko, but he's expected to be on the stand for at least a week.

The Highland Park businessman began cooperating with the government in January 2006. He pleaded guilty and cut a deal to serve a 67-month prison sentence.

One of Rezko's supporters watching the trial could be heard scoffing at that sentence when Levine talked about it. Rezko could face upwards of 20 years in prison if convicted.

Levine said he met with the government more than 100 times in debriefing sessions about the schemes. He testified he quickly learned his lesson after he was caught lying about his relationship with Vrdolyak.

When Assistant U.S. Attorney Christopher Niewoehner asked why he lied to prosecutors about Vrdolyak, Levine replied, "I tried to protect him."

When asked why he stopped lying about the former 10th Ward alderman, Levine said: "I realized that the government realized I was lying."

Levine then explained he used Vrdolyak in a bribe scheme as he sought government contracts for a company Levine represented in a consulting role, as well as Chicago HMO, a firm he owned with a late relative, Ted Tannebaum.

Levine said he passed bribes to Vrdolyak on behalf of a dental services firm seeking a contract from the Chicago Board of Education and for Chicago HMO, which was seeking business from a postal workers' union. Levine testified it was his understanding that the bribes were to be shared with others.

Vrdolyak's lawyer, Michael Monico, denied the allegations, noting his client was not charged with them. Monico also said even if they were true, he presumed the statute of limitations would have run out by now.

"It is so grossly unfair to raise these allegations when we aren't there to defend ourselves," Monico said. Vrdolyak is charged in a separate case involving the sale of a former medical school building. Levine wore a wire on Vrdolyak and is expected to testify at Vrdolyak's September trial.

But Levine's testimony Tuesday was the first direct allegation that Vrdolyak actually took a payoff.

Levine also said he handed out bribes dating back to the 1980s to help his clients win contracts to supply tires to the city of Chicago Streets and Sanitation Department and school-bus services to the Chicago Board of Education. He did not say to whom he paid those bribes.

Levine -- a former top fund-raiser for former Attorney General Jim Ryan -- also detailed his lengthy history with GOP power brokers Bill Cellini and Robert Kjellander, saying he hired them at times as lobbyists.

When Levine met Rezko, he said Rezko told him they had mutual friends: Cellini and Kjellander.

Levine, dressed in a black suit, seemed to avoid looking at Rezko until he had to -- when he was asked to identify the defendant. Rezko stood up and appeared to flush.

Rezko's lawyers are expected to try to undercut Levine's credibility by saying his memory has been clouded by his drug habit and what they've called his "secret life."

When Levine was asked to detail the drugs he's used, he stopped and looked off.

"Can you repeat the question?"

Levine then said he "experimented with LSD, marijuana, cocaine, Quaaludes, ecstasy, crystal methamphetamine and ketamine," between 1972 and May 2004.