More headaches for Tony Rezko
civil action | $34 million sought by business associates and creditors
Two pending criminal trials in federal court and the prospect of a lengthy prison term if convicted.
There's no question what Tony Rezko's biggest legal worries are.
(Sun-Times/AP files)
(Sun-Times file)
But no matter how those cases turn out, they aren't the only legal problems Rezko faces.
Besides the criminal cases, the real estate developer and fast-food magnate -- whose fund-raising prowess once boosted the campaign bank accounts of Gov. Blagojevich and U.S. Sen. Barack Obama, among others -- also faces a daunting array of lawsuits. Rezko and his businesses currently are the target of about 30 lawsuits. In all, he's being sued for more than $34 million, state and federal court records show.
The civil cases against Rezko range from an accusation that shoddy construction at a Rezko-developed property caused an injury, to claims that Rezko and others defrauded investors and partners out of millions on real estate deals.
Freeborn and Peters, the law firm representing Rezko in many of the civil cases, would not comment.
Rezko, 52, of Wilmette, is asking judges to put off the civil cases until he's done with the two criminal cases he faces, and also to keep him from having to answer pretrial questions in the civil cases.
"After all, if Rezko is forced to testify about matters that relate to, or could relate to, the issues raised in his indictments, he could involuntarily waive his Fifth Amendment right against self-incrimination," Freeborn and Peters has argued in court. "But if Rezko invokes his Fifth Amendment right and does not testify, he runs a high risk that a jury will be permitted to draw negative inferences from his silence and he will lose his civil case."
Rezko is set for trial March 3 in the first criminal case. He's accused of taking part in a scheme to extort companies for cash and for campaign contributions for Blagojevich in return for state pension business. The second criminal case involves allegations of business fraud.
Even if Rezko is found "not guilty" on the criminal charges and any or all of his accusers in the civil cases ultimately win, they're likely to have a hard time collecting.
Rezko has told a federal judge he's broke, that legal expenses and other costs have exhausted the millions of dollars he made in real estate and investments including Papa John's and Panda Express restaurant franchises. Rezko's lawyers have said he's more than $50 million in debt.
"I've been watching what's going on with his criminal stuff because of the litigation I'm handling," says attorney Vincent Lavieri, who recently settled three civil cases against Rezko businesses for undisclosed amounts and has one more still pending.
In two of the cases he settled, Lavieri represented homeowners who said Rezko didn't pay real estate taxes on the undeveloped land their homes were built on -- allowing others to buy the properties in a tax sale.
Steve Patterson