Nov 3, 2006 2:46 pm US/Central
Rezko Asked To Submit New Financial Statement
Political Fundraiser Accused In Kickback Scheme
CHICAGO (AP) ―
A political fundraiser accused of shaking down firms seeking state business is $50 million in debt and was ordered Friday to submit a revised financial statement with the federal judge presiding over the case.
U.S. District Judge Amy J. St. Eve raised concerns that the statement
Antoin "Tony" Rezko filed on Thursday might be incomplete.
Rezko has pleaded not guilty to charges he plotted to squeeze millions of dollars in kickbacks out of investment firms that wanted state business. He has been a close ally and fundraiser for
Gov. Rod Blagojevich and the governor has denied knowing of any wrongdoing.
The financial statement Rezko filed Thursday says he is $50 million in debt, prosecutors said.
Rezko's lawyers said he has an asset that could cover the debt, but prosecutors disputed that claim, saying the first $27 million in profits collected from the asset belongs to someone else.
"It's $50 million in debt, but the debt is secured by real estate projects," Defense attorney Joseph Duffy said. "We're trying to sort through the value of those projects now."
Duffy said evaluating Rezko's worth has been difficult because of the number of his real estate projects, but that his client would comply with the court's request.
A defendant's financial status is used to determine bond.
Nine properties owned by friends and family have been posted along with a Rezko home in
Lake Geneva, Wis., to secure his $2 million bond.
The government could seek to have that amount increased if they determine it does not adequately ensure his future appearance in court.
Prosecutors asked Rezko to provide more information about possible international assets and whether there were any properties belonging to Rezko's wife and children that should be disclosed.
"We just registered concerns," said Assistant U.S. Attorney Christopher S. Niewoehner. The international assets include a contract Rezko is negotiating involving a power plant in Iraq, he said.
Also among the "concerns" is a vacant lot next to the home of
U.S. Sen. Barack Obama owned by Rezko's wife.
Niewoehner said a newspaper article about the lot brought the issue to their attention.
"According to the paper, his wife owns that lot which would be a reason to explore her assets since she only makes $37,000 a year," Niewoehner said.
St. Eve set a Nov. 17 deadline for Rezko to submit a new financial report.
(© 2006 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)
Get breaking news alerts
Click to enlarge
Stumble It!
