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Levine: Blago guaranteed my success

LEVINE | Testifies he got impression he could cash in on his role on 2 state boards by working with fund-raisers

March 20, 2008

Gov. Blagojevich's woes escalated Wednesday, with the star prosecution witness in Tony Rezko's corruption trial testifying he had a politically explosive conversation with the governor aboard a private jet.

Businessman Stuart Levine told jurors Blagojevich left him with the impression he could cash in on his position on two state boards.

" 'Never discuss any state board with me,' " Levine testified Blagojevich told him in the Oct. 29, 2003, conversation. " 'You discuss them with Tony Rezko or [fellow Blagojevich fund-raiser] Chris Kelly.'

" 'But you stick with us,' " he said the governor added, " 'and you'll do very well for yourself.'

"I took it to mean I would have an opportunity to make a lot of money," Levine explained to jurors.

The chat, Levine testified, took place on a day Levine had chartered a jet to take the governor and some of his Cabinet members to meetings and fund-raising events in New York. Blagojevich and seven others flew out of Chicago that morning. Only Levine, Kelly and Blagojevich returned home on the plane that night, when Levine said the conversation took place.

Blagojevich has not been charged with any crime. And Wednesday, a spokeswoman for the governor denied any wrongdoing.

"Stuart Levine's assertions about the governor are wrong," Blagojevich spokeswoman Abby Ottenhoff said. "As we've said before, that's not how the governor does business."

Blagojevich's administration has been under federal scrutiny since 2005. Levine's testimony comes as the Democratic governor continues to feud about legislative matters with House Speaker Michael Madigan (D-Chicago) and other lawmakers in his own party.

Levine, in his second day on the witness stand, told of a jet-setting lifestyle in which dignitaries honored him at a $3,000-a-table dinner one day, and, on another, he flew bigwigs to attend a White House reception.

The 62-year-old Highland Park businessman has pleaded guilty to corruption and fraud involving Rezko and state boards. Rezko, 52, of Wilmette, allegedly schemed with Levine to split kickbacks tied to those boards.

Levine also brought Blagojevich's former chief of staff, Lon Monk, into the mix Wednesday, saying Rezko essentially had Monk wrapped around his finger. "Mr. Rezko told me that all major decisions that were made in the governor's office were cleared by Mr. Monk through Mr. Rezko," Levine told jurors.

It appeared that Levine's political loyalty lay where there was the most cash. It was after Blagojevich was elected in 2003 that Levine, previously a longtime GOP supporter, cozied up to Rezko, a Blagojevich friend and campaign fund-raiser.

"I was very interested in cultivating a relationship with Mr. Rezko," Levine said. "I felt that Mr. Rezko and I could make a lot of money together."

But Rezko cautioned him, according to Levine's much-anticipated testimony, that any talk of business would need to be in person. "Any discussions with me about any illegal activity we were involved with should not be held on the phone," Levine said.

Rezko grew animated at times as Levine testified, shaking his head slightly, quietly laughing and often leaning over to his lawyers to tell them something.

Prosecutors tried to portray the two men as close, showing, for instance, that Levine chartered a private plane so he could travel with Rezko, Springfield power broker William Cellini and their wives to a Dec. 3, 2003, Christmas reception at the White House hosted by President Bush. Also attending was former Republican National Committee treasurer Robert Kjellander of Springfield. Levine said Kjellander got him his invitation.

Levine also said he met up with Rezko's family on a 2004 Puerto Vallarta spring-break trip. He said Rezko told him he had to leave Mexico early to return to Chicago to organize a reception for an Iraqi-born billionaire whom Rezko was trying to get to invest in a big development he planned in the South Loop. Levine flew Rezko's wife and three children back to Chicago with him and his family on a chartered jet.

Levine said his discussions with Rezko included talk of Levine's roles on two state boards: the Illinois Health Facilities Planning Board and the state Teachers' Retirement System board. Levine said Rezko once told him: " 'Stuart, anything that I decide to do at TRS, you will be a partner in.' "

After that, Levine said he and Rezko started to meet more frequently. When Levine and Rezko talked about the governor, Rezko told him he had high aspirations for Blagojevich.

"He had raised a great deal of money for Gov. Blagojevich," Levine said. "He had great hopes and expectations that Gov. Blagojevich would run for president."