Jun 5, 2007 8:21 pm US/Central
Rezko Pleads Not Guilty To New Criminal Charges
Third Wire Fraud Indictment Unveiled
CHICAGO (STNG) ―
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Businessman and political fundraiser Antoin Rezko pleaded not guilty Tuesday to a third wire fraud count contained in a new indictment in connection with an alleged scheme to fraudulently obtain more than $10 million in loans for restaurants and defraud investors.
Rezko, 52, of Wilmette, pleaded not guilty to three counts of wire fraud, two of which were contained in the initial indictment returned in October 2006. U.S. District Judge James B. Zagel ordered the $1.5 million bond originally set for Rezko to stand, according to Assistant U.S. Attorney Carolyn McNiven. The judge also set a status hearing for Dec. 6.
Co-defendant Ali D. Ata, 55, of Lemont, is slated to be arraigned at 10 a.m. Wednesday before Zagel on one count of aiding and abetting wire fraud in a superseding indictment returned last week by a federal grand jury.
According to the indictment, Ata maintained investments in business ventures controlled by Rezko.
The indictment alleges Rezko fraudulently caused General Electric Capital Corp. of Bellevue, Wash., to extend more than $10 million in loans to finance what Rezko portrayed as sales of two different groups of Papa John's pizza restaurants in the Chicago and Milwaukee areas. In fact, the indictment alleges, the sales were sham transactions at inflated prices and involved the presentation of false financial information to GECC.
The indictment also accuses Rezko of defrauding investors in his pizza business by concealing the fact that he was transferring the company's assets to himself and a straw purchaser. The new indictment alleges that as part of the fraud scheme in February 2004, at Rezko's request and to assist him in defrauding GECC, Ata signed a letter on IFA letterhead that falsely made it appear that an unnamed investor had applied for financing in connection with the acquisition of the restaurants.
(Source: Sun-Times News Group Wire © Chicago Sun-Times 2006. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)
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