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'Fitzgerald would be terminated'

FEDERAL COURT | Rezko said prosecutor to be fired, 'investigation will be over': witness

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April 29, 2008

As the federal investigation into corruption in state government intensified in 2004, a business associate of Tony Rezko received a grand jury subpoena. But Rezko, a campaign fund-raiser for Gov. Blagojevich, told the associate, Elie Maloof, there was no reason to talk, Maloof testified Monday.

" 'The federal prosecutor will no longer be the same federal prosecutor,' " Maloof said Rezko told him.

He told jurors in Rezko's corruption trial that Rezko explained that U.S. Attorney "Patrick Fitzgerald would be terminated, and [then-U.S. House Speaker] Dennis Hastert will name his replacement. The investigation will be over."

Maloof, 47, of Vernon Hills, once helped run some of Rezko's Papa John's Pizza fast-food franchises. He said Rezko told him the person to replace Fitzgerald would "stop the investigation."

Hastert didn't return calls seeking comment.

It was the second time allegations have surfaced in the Rezko trial that there were behind-the-scenes efforts to fire Fitzgerald. Last week, prosecutors said another witness -- Ali Ata, former chairman of the Illinois Finance Authority -- will testify that Rezko told him Republican power broker Bob Kjellander was going to use his clout with former White House adviser Karl Rove to get Fitzgerald dumped. Kjellander and Rove denied that. Ata is expected to testify Thursday.

Monday, Maloof also testified that Rezko told him not to bring up his name with investigators because it would link back to Blagojevich.

Maloof said the conversation took place in February 2004 at Rezko's Wilmette mansion. Maloof said that, as they talked, Rezko mentioned the possibility that "the feds were listening."

Maloof has been in the news over a prior allegation that he made $11,000 in straw contributions to Barack Obama's U.S. Senate campaign on Rezko's behalf -- money Obama later gave to charity. Maloof did not mention Obama in court.

Under questioning by Rezko lawyer William Ziegelmueller, Maloof made clear he knows the president appoints U.S. attorneys -- and not Rezko or the Blagojevich administration.

"Did you think Gov. Blagojevich would have anything to do with appointing the person prosecuting Mr. Rezko?" Ziegelmueller asked.

"No," Maloof said.