Skip navigation

Prosecutors move to delay Rezko sentencing


< Prev | 1 | 2

One of the matters that prosecutors have been interested in learning is who paid for the renovation of Blagojevich's Chicago home. Rezko's now defunct Chicago Construction Services was the contractor on the project. One person familiar with the renovation contacted Monday afternoon, speaking only on condition of anonymity because of grand jury secrecy, said he was subpoenaed by federal prosecutors and asked about the project.

"They were looking for basic business dealings, who paid, how much, that sort of thing," he said. He said the governor's wife, Patti, paid the bill.

At Rezko's trial in May, former state employee Ali Ata, who got his job as head of the Illinois Finance Authority from Blagojevich through Rezko, testified as the government's surprise witness that he had to provide $25,000 to Rezko to pay contractors who were threatening to put a lien on the house if the bill was not paid. Ata earlier pleaded guilty to tax fraud and lying to the FBI about how Rezko got him his job.

Story continues below ↓
advertisement | your ad here

Besides bankrolling a large portion of Blagojevich's campaign, Rezko raised substantial funds for Obama's past campaigns in Illinois — although none for his current presidential run.

Obama's campaign says it has sent to charity $159,000 traceable to Rezko's past fundraising.

Testimony rarely touched on Obama
While Blagojevich was frequently mentioned at Rezko's trial, the testimony rarely touched on Obama, who has been accused of no wrongdoing.

Unmentioned at the trial was a purchase by Rezko's wife, Rita, of property adjacent to the Obama home near the University of Chicago on the city's South Side. Obama and his wife, Michelle, purchased their home the same day that Rezko's wife closed on her property. And she later sold some of her property to the Obamas to enlarge their lot. Obama later said that allowing Rezko to do what appeared to be a favor was a "bonehead" move.

Rezko was convicted in June of mail fraud, wire fraud, attempted extortion and money laundering. Several of the charges carry 20-year maximum sentences and while Rezko would not be expected to served that much time for a first offense he is still looking at the possibility of years in federal prison. A deal with prosecutors could reduce his time considerably.

Moreover, Rezko faces the prospect of a second trial early next year on federal charges of swindling the General Electrical Capital Corp. out of $10 million in the sale of a group of pizza restaurants.

And beyond that, by his own account his is running out of money and an arrest warrant has been issued in Las Vegas accusing him of failing to pay hundreds of thousands of dollars in casino bills.

Copyright 2008 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


< Prev | 1 | 2

Sponsored LinksGet listed here
Online College Courses
Boost your career with an online Degree. Pick from Leading Colleges!
www.EarnMyDegree.com

Sponsored links

Resource guide