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Rezko witness: Gov was told of threat to 'take them down'

April 2, 2008

A Chicago businessman-turned-Hollywood producer who believed he was being shaken down by two of Gov. Blagojevich’s campaign fund-raisers threatened to “take them down” if they didn’t back off, according to a recording played at the Tony Rezko corruption trial today.

And the governor was made aware of the “situation” and agreed the producer shouldn’t get any more state business, star prosecution witness Stuart Levine testified this afternoon.

The secretly recorded, May 2004 conversation was between Levine and longtime Illinois Republican Party power William Cellini.

An agitated-sounding Cellini is heard telling Levine about a conversation he had with Tom Rosenberg, a principal in the firm Capri Capital who also has produced movies including the hit “Million Dollar Baby.”

According to prosecutors, Levine and Cellini had plotted to shake down Rosenberg for a $1.5 million campaign contribution for Blagojevich in exchange for the $220 million investment deal he sought from a state board. Cellini has not been charged with any crime.

Levine, who has pleaded guilty to taking part with Rezko in schemes to get kickbacks from companies seeking state business, testified that the decision to approach Rosenberg for cash came after Rezko and fellow Blagojevich fund-raiser Chris Kelly learned Rosenberg won big-money deals with the state but hadn’t given to Blagojevich’s campaign fund. On the recording, Cellini tells Levine that Rosenberg angrily rebuked Cellini’s attempt to squeeze him for a campaign donation.

“ ‘I’ll take them down,’ ” Cellini recounts Rosenberg telling him, speaking about Kelly and Rezko. “ ‘They’re known by the G” — the government — “as to what they’re doing. They’ve got 48 hours. If they’re going to do this to me and think they’re going to blackmail me — I’m going to take them down.’

“ ‘This is extortion. It’s known by too many people about what they’re doing. I would never go to those two guys.’ ”

According to what Cellini is heard saying on the recording, he was then warned by Rosenberg to stay away from Rezko and Kelly.

“ ‘When the sky starts falling,’ ” Cellini says Rosenberg told him, “ ‘everybody who’s associated with these two are going to be drug through the mud.’ ”

In another recording, played in court this afternoon, Cellini and Levine discussed how “the big guy” — Blagojevich — was made aware of the situation involving Rosenberg.

On the witness stand after the tape was played, Levine talked about a May 11, 2004, meeting in Rezko’s office in which Levine, Kelly and Rezko were trying to come up with a strategy to handle Rosenberg’s threats to go to authorities.

“Mr. Rezko indicated to me that he had made the governor aware of the situation and the things Mr. Rosenberg had said,” Levine told jurors.

Levine said Rezko told him Blagojevich agreed that Rosenberg’s firm should get the $220 million deal from the state Teachers’ Retirement System, but that the governor also “agreed with Mr. Rezko this should be the last thing that Mr. Rosenberg gets from the state.”

Levine testified Rezko told him that, after that, “The governor indicated he doesn’t care what happens to Mr. Rosenberg. He feels he owes Mr. Rosenberg nothing.”

In response, Abby Ottenhoff, spokeswoman for Blagojevich, emailed this statement: "We don't endorse or allow the awarding of contracts based on campaign contributions. We never have. We never will. And anyone who suggests otherwise is not telling the truth."