Politics

Judge Names Blagojevich In Corruption Case

Governor Is 'Public Official A' In Case Against Fundraiser Tony Rezko

CHICAGO (AP) ― Any thin veil still hiding the identity of the person prosecutors in the Antoin "Tony" Rezko political corruption case call "Public Official A" was abruptly ripped away Monday -- by a federal judge.

Judge Amy J. St. Eve revealed that Public Official A -- described by federal prosecutors for months as tangled in political corruption -- is Gov. Rod Blagojevich.

She said that Rezko, one of the governor's key campaign fundraisers, schemed to squeeze Hollywood producer and Chicago businessman Thomas Rosenberg for a $2 million payoff or a $1.5 million campaign contribution.

Prosecutors have said the money was for Public Official A. The money was to go to Blagojevich, St. Eve said in court papers.

The disclosure hardly came as a shock. News organizations including The Associated Press have long reported Blagojevich was Public Official A.

The only one denying it has been Blagojevich, who repeatedly has said he believed he was not the official in question. A spokeswoman did not immediately return a telephone message Monday.

Rezko, 52, a real estate developer and fast-food entrepreneur, is charged with scheming with millionaire attorney Stuart Levine to shake down companies seeking business or regulatory approval from the state.

Jury selection is scheduled to get under way before St. Eve March 3.

Federal prosecutors routinely disguise the identities of people mentioned in indictments and other court papers, calling them such names as Public Official A, Individual B or co-schemer C. The idea is to protect the reputations of individuals who have not been charged with a crime and not tie them needlessly to corruption.

In court papers, prosecutors have already told how Rosenberg sought $220 million in business for an investment firm, Capri Capital, from the Illinois Teachers Retirement System, the $30 billion nest egg that pays the pensions of downstate and suburban school teachers.

Prosecutors had already alleged that Rezko and Levine, who has pleaded guilty and figures to be a witness, schemed to squeeze Rosenberg for a $2 million payoff or a $1.5 million campaign contribution.

They said in the indictment the contribution was to be for "a certain public official." In later filings, they called him Public Official A.

St. Eve for the first time Monday said the campaign contribution was to go to Blagojevich.

She also noted that Rosenberg, far from agreeing to pay the shakedown money, threatened to tell law enforcement officials what was going on.

Capri Capital got its investment from the pension fund and was not required to pay anything.

St. Eve also disclosed that prosecutors are planning to present evidence that Rezko offered a seat on the Illinois State Board of Investment -- another pension fund -- in return for a $50,000 donation to Blagojevich.

That allegation is based on the word of a former Rezko business partner, but Rezko and his attorneys claim its not the truth, she said.

In another surprise, St. Eve disclosed prosecutors believe that much of $809,000 that went to Springfield Republican consultant Robert Kjellander in connection with the sale of state bonds was funneled through Glenview businessman Joseph Aramanda to four Rezko "assignees."

The money was reported to the Securities and Exchange Commission by the Bear, Stearns investment firm as a fee for Kjellander. But prosecutors said that $600,000 of the money went to the Rezko assignees.

Bear, Stearns handled the sale of $10 million in state bonds. Just what Kjellander's role in the sale was had never been made clear.

Kjellander is the former treasurer of the Republican National Committee and has been one of Springfield's most influential lobbyists.

But St. Eve barred prosecutors from presenting evidence that any money was transferred through Aramanda.

In another development, the U.S. 7th Circuit Court of Appeals turned down a request from Rezko for release on bond while he is on trial.

Rezko had been free on $2 million bond. But St. Eve ordered him jailed on Jan. 28, saying he had disobeyed an order to keep her posted on any changes in his financial status.

Among other things, he failed to report a $3.5 million loan from London-based Iraqi billionaire Nadhmi Auchi. The loan was later forgiven in exchange for a prime slice of Chicago real estate.

St. Eve said his access to overseas money suggested that he might be able to skip out before the trial.

Rezko had grumbled that conditions in the government's Metropolitan Correctional Center were so horrible that he even had to share underwear with some of his fellow inmates.

The appeals court, however, said St. Eve was right and that it was up to the trial judge to take such precautions against the possibility that the defendant might take off to avoid going to trial.

(© 2008 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

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