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Chicago Developer Worked As Mole In Rezko Case

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May 5, 2007 5:12 pm US/Central

Chicago Developer Worked As Mole In Rezko Case

Thomas Assissted In Series Of Corruption Investigations

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CHICAGO (AP) ― A Chicago real estate developer with ties to indicted entrepreneur Antoin "Tony" Rezko has worked as an undercover informant in a series of federal corruption cases, according to published reports.

John Thomas, who pleaded guilty to theft and fraud charges in New York in 2004, has assisted the government for at least a year, Saturday editions of the Chicago Tribune and the Chicago Sun-Times reported.

The Tribune reported that it knew of Thomas' role as a federal operative in May 2006, but decided not to publish its story after U.S. Attorney Patrick Fitzgerald asked editors to withhold the information because it would derail the investigation and put people in danger.

The newspaper published its report after authorities said the story would no longer jeopardize the investigation. Thomas assisted the government in its ongoing investigation into fraudulent commercial real estate financing, the Tribune reported.

The Sun-Times, citing unnamed sources, said Thomas was an informant in the federal investigation into Rezko, his partner Daniel Mahru and other political corruption cases.

Rezko, a developer and influential Democratic fundraiser, was indicted in October on charges of shaking down investment firms that wanted to do business with the state. He has pleaded not guilty.

Thomas, who changed his name from Bernard Barton Jr. in 2000 after moving to Chicago, told the Sun-Times that he was not currently working as a mole.

His lawyer, Jeffrey Steinback, declined to comment on any involvement with federal authorities, but called his client "a bright guy who's always working."

"(He's) made a sincere commitment to start his life over," Steinback told the Sun-Times. "He's got a young family. It's not all angles like it appears to be."

Steinback did not immediately return a message on Saturday.

In 2001, after their Chicago billboard advertising firm declared bankruptcy, Thomas and his business partner Louis M. Giordano formed Carnegie Realty Partners; the company arranged multimillion dollar real estate deals by buying buildings and helping other developers secure loans, the Tribune reported.

One of Carnegie's clients was Rezko and Mahru's company, Rezmar Corp, and Thomas helped Rezmar obtain financing for a 24-story condo building -- a deal that ultimately failed, both papers reported.

Carnegie also worked with Mahru on at least two other occasions, according to the newspapers. The Tribune reported that several of the company's deals resulted in lawsuits.

Mahru, who hasn't been charged with any wrongdoing, told the Sun-Times that he wouldn't comment on reports that Thomas was used as a mole to collect evidence against him.

"He's turned his life around, doing extremely well," Mahru said. "I've had nothing but honorable dealings with him."

Messages seeking comment were left on Saturday with the U.S. attorney's office spokesman, Randall Samborn, as well as with Rezko lawyer Joseph Duffy.

(© 2007 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)

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