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Producer describes Rezko's shakedown

THREAT ALLEGED | Says Rezko pal sought cash for gov's campaign in exchange for contract

April 25, 2008

A Chicago businessman-turned Hollywood producer told jurors in Tony Rezko's corruption trial Thursday that a $220 million state deal he had was blocked because he didn't contribute to Gov. Blagojevich's campaign.

Tom Rosenberg, best known as the producer of the Oscar-winning movie "Million Dollar Baby," said he was shaken down for the money in a scheme orchestrated by Rezko and another top Blagojevich fund-raiser, Chris Kelly.

But Rosenberg -- a principal in Capri Capital, which had handled investments for the Teachers' Retirement System of Illinois -- later acknowledged, under questioning by Rezko attorney Joseph Duffy, that he didn't speak with either Rezko or Kelly about the matter.

Duffy also asked him: "Did anybody come to you personally and say, 'Capri needs to make a contribution to the governor?' "

"No," Rosenberg said.

He said it worked this way: The TRS board met in February 2004. Every other firm seeking a piece of its pension money to invest got it -- except for Capri. Rosenberg said he called Republican power broker William Cellini to find out why. He said Cellini told him Kelly and Rezko discovered that Capri Capital already managed billions of dollars in state assets and that the Rosenberg firm shouldn't get any more state business without contributing to the governor's campaign.

"They made the consequences clear: They stopped the allocation from going through," Rosenberg said. "I expected Mr. Cellini to . . . offer me an amount to pay to the Blagojevich campaign."

Prosecutors have said Rosenberg was expected to make a $1.5 million campaign contribution.

Rosenberg said he balked, and Cellini called him. "Chris Kelly told him to tell me that Chris Kelly was crazier than me," Rosenberg said. "I thought he was indicating a threat to me."

Rezko, 52, of Wilmette, is accused of scheming to coerce millions of dollars in kickbacks from firms seeking state business.

Rosenberg -- who is wrapping up production of a movie called "The Ugly Truth" -- said he called Cellini again.

"I told him that I wouldn't give them a dime," Rosenberg said. "I told Cellini I would tell this story on the corner of State and Madison . . . I told them, if there wasn't a grand jury in session against Rezko and Kelly, that there shortly will be."

Cellini backed off, Rosenberg said, and later called and said everyone denied ever wanting any money from him.

He said Cellini smoothed things over with Jon Bauman, the pension fund's executive director, relaying to Rosenberg that Bauman told him if the "pope," Cellini, didn't have a problem with it, he didn't either.

"In their two-man church, Cellini was the pope, and Bauman was the parishioner," Rosenberg said.

In May 2004, Rosenberg got his $220 million state deal.