In the run-up to election day we heard a great deal about Tony Rezko, and how his criminal associations reflected poorly on Obama. Little did we suspect then that the biggest crook Rezko knows is the governor of Illinois. With the arrest of Governor Blagojevich this morning, it becomes clear that Tony Rezko played a significant role in putting him in jail. Rezko’s name appears 170 times in the criminal complaint against Blagojevich and Harris, and the FBI states early on (page 11) that he was cooperating with the investigation. At the same time, the FBI is apparently uncertain about just how reliable Rezko is:
Rezko, whose reliability has yet to be fully determined, has confirmed to the government in proffer sessions the essence of Ata’s testimony regarding Ata’s meeting with ROD BLAGOJEVICH, but has a different recollection regarding the timing and chronology of certain events and only recalls asking Ata for one $25,000 check for ROD BLAGOJEVICH. Rezko’s proffers have been substantial but are not complete and the government’s efforts to fact check and corroborate Rezko’s proffered information are not yet complete. Rezko has proffered with the government in hopes of receiving a recommendation from the government for a reduced sentence. During the proffer sessions, Rezko at times has provided accounts that differ from those of other witnesses, including Ata, but in broad terms Rezko’s account incriminates ROD BLAGOJEVICH in a “pay to play” criminal scheme. Because the government is not yet satisfied that Rezko’s accounts are full and complete, the government is not relying on Rezko’s account for probable cause. The government simply notes that while Rezko’s account varies at times from those of other witnesses, Rezko’s account of ROD BLAGOJEVICH’s activity, on balance, would add to the probable cause set forth herein, not subtract. Where Rezko’s proffered recollection differs significantly from those of witnesses upon whose testimony the government is relying, this affidavit notes those differences.
Rezko’s involvement is clear in a number of cases of corruption. He helped Blagojevich extort campaign contributions from Mercy Hospital, and told investigators about the plan:
During his testimony, Levine described a plan to manipulate the Planning Board to enrich himself and Friends of Blagojevich. The plan centered on an entity commonly known as Mercy Hospital (“Mercy”) that was attempting to obtain a CON [Certificate of Need] to build a new hospital in Illinois. Levine knew the contractor hired to help build the hospital. In approximately November 2003, on behalf of the contractor, Levine checked with Rezko to determine whether Rezko wanted Mercy to obtain its CON. Rezko informed Levine that Mercy was not going to receive its CON. According to Levine, he asked Rezko whether it would matter to Rezko if Mercy’s construction contractor paid a bribe to Rezko and Levine and, in addition, made a contribution to ROD BLAGOJEVICH. Levine testified that Rezko indicated that such an arrangement would change his view on the Mercy CON. Rezko has admitted that he manipulated the Mercy vote based on Mercy’s agreement to make a contribution to ROD BLAGOJEVICH, which agreement he states was communicated to ROD BLAGOJEVICH, but denies that Levine offered a personal bribe to Rezko as well.
Rezko eventually informed the planning board that the Governor now wanted the CON to be approved, and the board changed its ruling. Rezko also helped the governor attempt to extort campaign donations from a private firm slated to manage the Teachers’ Retirement System:
Capri Capital (“Capri”) was a real estate investment management firm that had a long-standing relationship with TRS. In February 2004, Capri was expected to receive $220 million from TRS to manage. Levine originally acted to stall the allocation in February 2004. Eventually, however, the $220 million allocation was going to proceed until Levine, Rezko, Kelly, and Cellini conspired to extort Capri and Thomas Rosenberg, one of Capri’s owners. In short, according to Levine, Levine and Rezko agreed that if Rosenberg wanted to get the $220 million for Capri, Rosenberg was either going to have to make a $1.5 million donation to ROD BLAGOJEVICH or pay Levine and Rezko a 1% fee. According to Rezko, he recalls agreeing that Rosenberg would have to make a campaign contribution to ROD BLAGOJEVICH, but is not sure whether a finder’s fee was discussed.
Rezko helped secure the governor’s support for not integrating the TRS into the state retirement system. In exchange, several members of the TRS board agreed to steer investments from the retirement fund to interests designated by Blagojevich. This gave the governor a way to pay off supporters without it appearing to come from state coffers. He was a go-between for Blagojevich and a job-seeking fundraiser, when Blagojevich first sought the governor’s mansion. Rezko made sure that Ali Ata demonstrated his reliability as a fundraiser before getting Blagojevich to promise him a high-paying state position:
In or about July 2003, Rezko asked Ata to make an additional $50,000 contribution to the campaign of ROD BLAGOJEVICH. Ata agreed to contribute the same amount as he had previously, namely $25,000. Ata made this contribution on or about July 25, 2003, by check payable to ROD BLAGOJEVICH’s campaign. Ata gave this check to Rezko. Thereafter, Ata had a conversation with ROD BLAGOJEVICH at a large fund raising event at Navy Pier. During this conversation, ROD BLAGOJEVICH told Ata that Ata had been a good supporter, indicated that ROD BLAGOJEVICH was aware that Ata had made another substantial donation to ROD BLAGOJEVICH’s campaign, and told Ata that he understood that Ata would be joining his administration. Ata responded that he was considering taking a position, and ROD BLAGOJEVICH stated that it had better be a job where Ata could make some money.
It’s clear that Rezko was a key part of Blagojevich’s corrupt fundraising practices — at least until he went to prison for refusing to testify. Now it’s equally clear that he has been an important voice confirming some of the charge against Blagojevich. Given Rezko’s criminal background and sleazy activities, why did Barack Obama allow himself to become beholden to Rezko?
