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Source: Government Is 'Closing In' On Blagojevich

Feds Put Rezko's Sentencing On Hold Indefinitely

CHICAGO (CBS) ― A judge has now agreed to delay the sentnecing of former political fundraiser Antoin "Tony" Rezko indefintely. Despite mounting evidence that Rezko is now cooperating with federal prosecutors, Gov. Rod Blagojevich insists he is unconcerned that Rezko may now turn on him.

Prosecutors have admitted in court they are in talks with Rezko. On Wednesday morning U.S. District Judge Amy St. Eve put Rezko's sentencing on hold after a request by prosecutors to postpone it. They asked Judge St. Eve for the delay "to engage in discussions that could affect his sentencing."

Meanwhile, Rezko's attorneys continue discussions that could lead to his helping the government.

"We are trying to work toward an agreement that would affect sentencing," defense attorney Bill Ziegelmueller told reporters after the two-minute hearing. "But obviously no agreement is in place."

Ziegelmueller says Rezko's conditions in jail indicate that has been under intense pressure to cooperate.

"He's still in solitary confinement, or what amounts to solitary confinement," said attorney Bill Ziegelmueller. "The (Metropolitan Correctional Center) differs with that characterization, but it's pretty solitary. He doesn't get out. There's no cellmate. There's no ability to walk around the cell block. It amounts to, he's in the area they have for discipline purposes." 

Rezko was not at Wednesday's hearing. Prosecutors left the courtroom quickly and breezed down the hall without stopping to answer questions.
St. Eve canceled the October sentencing date and set a date for a fresh hearing Dec. 16 -- enough time to see how valuable Rezko's information could turn out to be. 

None of this looks good for Blagojevich.

But Blagojevich is calling on the convicted influence-peddler and shakedown artist to simply, "tell the truth."

The governor talked at some length Tuesday about the U.S. Attorney's investigation into allegations of "pay-to-play" in his administration. He spoke out on the same day one of his former high ranking aides told CBS 2 News, "It appears the "G" [meaning the government] is closing in" on Blagojevich.

Asked if he would resign if indicted, Blagojevich said, "I'm not going to answer stupid questions like that."

But those thoughts must be crossing the governor's mind. Within the past few weeks, Rezko has apparently changed his mind about cooperating with the feds in their investigation and may be angling to get his sentence for government corruption reduced.

And CBS 2 has reported that some federal investigators already believe they have sufficient evidence against the governor to bring an indictment.

CBS 2's Mike Parker asked the governor, "Don't you sometimes feel that you're a character in an Edgar Allan Poe story, that the walls are closing in somehow?"

Blagojevich responded, "Again let me reiterate, I know what I do and I do things right and I can say that sometimes people make mistakes, even friends of yours make mistakes."

And, the governor urged Rezko, the man he called "a friend of mine," to tell the feds the truth.

"So let the truth just be what it is and when you believe in the truth and you know what the truth is, in respect to yourself you feel good about things," Blagojevich said.

The governor suggested that Rezko already told the truth earlier in this legal drama.

"Tony Rezko sent a letter to a federal judge where he expressly said that neither Sen. Obama nor I did anything wrong," Blagojevich said. "And now we've got to respect the process as we've been doing and let it all unfold."

Blagojevich said again Tuesday that his heart goes out to Rezko and his family. But when asked if he had reached out to his friend since his conviction, the governor said this, "I don't think he's in a place where he can take a phone call."

It now appears Rezko's sentencing is about to be delayed indefinitely while his talks with the feds go on.

Blagojevich hasn't been charged with any wrongdoing.

Rezko was convicted for launching a $7 million scheme to use his clout with the Blagojevich administration to squeeze kickbacks out of a contractor and money management firms wanting to do business with the state.

CBS 2's Mike Parker, Joanie Lum and the Associated Press contributed to this report.

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