Ex-aide of gov indicted in loan-fraud scheme
FEDS | Accused of using post to help Rezko get $10 mil.
While executive director of the Illinois Finance Authority, Ali D. Ata is accused of signing a letter bearing the state agency's name to help Rezko fraudulently secure $10 million in loans.
Federal authorities say Ata, 55, of Lemont, signed the letter at Rezko's request to make it appear an investor had won partial state backing for a deal to acquire two groups of Rezko's Papa John's pizza restaurants in Chicago and Milwaukee.
They say Ata knew Rezko wanted to show the letter to General Electric Capital Corp. as he tried to get the group to lend money on the deal. Ata signed the letter, prosecutors contend, even though he knew it was phony.
Rezko, 52, of Wilmette was charged in the scheme last year and pleaded not guilty. The new indictment adds a third count of wire fraud against Rezko. Ata was added as a defendant in the case, charged with one count of aiding and abetting wire fraud.
Ata's lawyer said his client will fight the charges.
"We will enter a plea of not guilty at his initial appearance, and we intend to defend vigorously against the allegations," Ata's lawyer, Thomas McQueen, said.
Ata gave $65,000 to Blagojevich's gubernatorial fund and thousands of dollars more when Blagojevich was in Congress.
Blagojevich appointed Ata in January 2004 to a $127,000-a-year job as executive director of the Illinois Finance Authority.
Ata left that post after a little more than a year amid a critical audit, but almost immediately he was awarded a $55,200-a-year contract to be a consultant for the agency.
Ata declined to sign the three-year deal after the Chicago Sun-Times raised questions about a foreclosure case he did not disclose when the governor hired him.
But both Ata and the governor's office defended his time leading the Finance Authority, citing millions of dollars they say he helped save taxpayers.
Ata and Rezko are longtime business associates.