Rezko's money woes mount

The Chicago Sun-Times reports:

A former Rezko business associate went to court Thursday to try to get the former top political fund-raiser and adviser to Gov. Blagojevich declared bankrupt and force an investigation into his finances.


Lawyers for Semir Sirazi said Rezko owes him $18 million from business deals in which Sirazi put up assets to secure Rezko loans. In 2006, Rezko promised to pay Sirazi if he sold his stake in various properties, according to Sirazi's lawyer, Gregory Scandaglia.

Rezko then sold his interest in 62 acres in the South Loop to a company owned by London billionaire Nahdmi Auchi. But Sirazi didn't get any of the $3.8 million proceeds, Scandaglia said. Rezko later told U.S. District Judge Amy J. St. Eve that much of the money went toward his legal fees, and some to his wife, Rita Rezko, and other family members.

Rezko's failure to disclose that sale prompted St. Eve to order him jailed Jan. 28, pending his trial. She later allowed him to go free once more on bail.

Rezko, 52, of Wilmette, was convicted Wednesday of far-reaching corruption under the governor's administration. He immediately surrendered to begin doing prison time.

To recoup what Sirazi is owed, Scandaglia said he will seek the appointment of a bankruptcy trustee to sell off Rezko's remaining assets. The trustee also would have the power to investigate Rezko's past financial transactions. "We think that there are distributions that were made that the trustee will have the ability to undo," Scandaglia said.

Howard Adelman, Rezko's lawyer in the bankruptcy case, said in court Thursday he'll seek to dismiss Sirazi's petition.

For more on the subject of the 62 Acres and Alderman Ed Burke click on this.