Monday, February 25, 2008

Judge in Tony Rezko trial reveals names in alleged extortion plot: Gov. Rod Blagojevich identified as 'Public Official A'

The Chicago Tribune reports:
For months, federal prosecutors have alleged that Antoin "Tony" Rezko tried to extort a $1.5 million contribution to the campaign of "Public Official A" from a Hollywood producer seeking investment business from the state.

And for months, Gov. Rod Blagojevich has repeatedly denied he was "Public Official A."

But a week before Rezko's much-anticipated trial, a federal judge revealed that Blagojevich was to have been the recipient of the $1.5 million campaign contribution at the center of the alleged extortion plot.

Prosecutors haven't alleged any wrongdoing against Blagojevich. Blagojevich spokeswoman Abby Ottenhoff did not directly address the judge's use of the governor's name in her ruling. But Ottenhoff dismissed the suggestion that Blagojevich had any involvement in the alleged incident.

In the nine-page ruling, U.S. District Judge Amy St. Eve also disclosed allegations by prosecutors that Illinois Republican heavyweight Robert Kjellander diverted much of a controversial $809,000 fee for a state bond deal to a close Rezko associate. She barred that evidence.

Kjellander acknowledged he made a $600,000 loan to the Rezko associate whom Kjellander called an acquaintance. "I did nothing improper, and I don't believe anyone is accusing me of anything improper in making that loan," Kjellander said.

In another ruling, the judge allowed testimony at trial about an allegation that Rezko offered the relative of a politically connected developer a post on the state's banking board in exchange for a $25,000 donation to Blagojevich's campaign fund.

Rezko, a former adviser and fundraiser for Blagojevich, is set to go on trial on March 3 on charges he extorted firms seeking to do business with the state.

Later Monday, a federal appeals court in Chicago sided with prosecutors that Rezko should remain jailed pending trial.

A three-judge panel of the 7th Circuit U.S. Court of Appeals affirmed St. Eve's decision late last month to hold Rezko at a federal Loop jail after prosecutors raised questions about a $3.5 million overseas payment he kept quiet from authorities.

"Perhaps all of these transactions are innocent, but district judges must act when the risks of flight change materially and a plan of concealment could well make life as a fugitive tolerable for the defendant," the appeals court wrote Monday.
Illinois voters sure have a sense of style.