 Joe Aramanda testified on Wednesday that Rezko told him of plans to
kick back tens of millions of dollars in fees from the Teachers'
Retirement System to Blagojevich, Lon Monk and fundraiser Chris
Kelly in 2004.Aramanda is the first prosecution witness to affirm
star witness Monk's claim that Blagojevich was in cahoots with Rezko.
But Blagojevich's defense team called the timing of the
allegation into question.
Aramanda is still close to Rezko, despite testifying in his 2008
trial. Defense attorney Mike Gillespie tried to use this
relationship to raise doubts about his testimony.
"Your first mention to anybody about this conversation is after
you visited Mr. Rezko in jail?" Gillespie said.
"I guess so," Aramanda replied.
Aramanda had been under investigation by federal authorities for
his ties to Rezko and several outstanding business loans when he
agreed to testify in the Rezko and Blagojevich trials in exchange
for immunity.
Rezko helped Aramanda secure a position as a consultant for the
retirement system in 2004. He acted as a middleman between financial
firms and the investment arm of the retirement fund.
Aramanda said he was "uncomfortable" with the alleged proposal to
kick back future fees to the quartet and turned down the offer. He
refused a $125,000 payment from his consulting job because he
"thought it was wrong."
His reluctance to kick back money directly did not stop Rezko
from allegedly using him as a middleman in other schemes, according
to the prosecution.
Aramanda said on Monday he received a $600,000 loan from lobbyist
and Rezko friend Bob Kjellander in October 2003. The loan came just
one month after Kjellander collected more than $800,000 from Bear
Sterns for his help in securing the contract for a $10 billion
pension obligation bond sale.
The prosecution is trying to prove Blagojevich rigged that
contract to Bear Sterns for a $500,000 kickback. The government
believes Rezko used Aramanda to deliver that money to the alleged
conspirators.
Aramanda owed Rezko $475,000 from previous business dealings and
said the former developer came calling shortly after the loan was
finalized. Within a few days of receiving the loan, he wired almost
$500,000 to Rezko associates.
IRS agent Shari Schindler traced $461,000 transferred from
Aramanda's account. She found that $240,000 ended up in accounts
belonging to Kelly and Rezko within two weeks of the initial
transfer.
Aramanda testified that he also sent $50,000 to another Rezko
associate in March 2003. The payment came out of a $125,000 paycheck
he received for his consulting work with the retirement fund.
Money may have ended up in the pockets of Blagojevich's top
fundraisers, but prosecutors have yet to establish that any money
reached the former governor.
Motive is becoming a key argument for prosecutors, which is why
Joe Cari's testimony could play a vital role in the government's
case. Cari was the financial chairman for the Democratic National
Committee for former Vice President Al Gore's presidential run in
2000.
[to top of second column] |
Cari testified that Blagojevich discussed his presidential
aspirations en route to a 2003 fundraiser in New York. Blagojevich
allegedly told Cari he had a great way to raise money for a national
campaign.
"(Blagojevich said) that as a sitting governor he had a better
chance of raising money (than senators) because he would be giving
out state business and would go back to those people for money,"
Cari said.
Cari said Blagojevich specifically cited investment and pension
fund contracts, as well as legal consultation, for possible
fundraising opportunities.
Blagojevich wanted to bring Cari onto his campaign fund, but the
fundraiser turned down the offer.
Cari is testifying in exchange for a reduced sentence in
connection with charges of attempted extortion of the Teachers'
Retirement System.
The findings may have been damaging to Blagojevich's alleged
co-conspirators, but his defense team was more concerned with
another matter.
Defense attorney Aaron Goldstein and Gillespie both asked
Schindler and Aramanda about alleged donations to campaign funds for
President Barack Obama.
Federal Judge James Zagel put an end to both lines of questioning
as out of line.
The defense tried to subpoena Obama earlier this year but was
rebuffed by the administration and courts. The questions could be a
tactic to open the possibility of bringing a sitting president to
court -- a daunting task.
Such a move would add even more drama to an already prominent
trial -- an unwelcome development for Zagel, who voiced his concern
about the celebrity defendant.
The former governor and lead defense lawyer Sam Adam Jr. shared
some harsh words about star prosecution witness and former
Blagojevich top aide Lon Monk with the media on Wednesday.
"What we have here is a backhanded plea for sympathy entirely
without detail," Zagel said of the comments. "You are not supposed
to appeal to emotion."
The judge stopped short of barring the defense from speaking to
the media and urged both sides to come to a "lawyerly agreement"
about media appearances. Zagel even encouraged the prosecution to
"fight fire with fire" if need be.
An agreement is expected by Monday.
Public image has been a top priority for Blagojevich -- and
continued to be despite Zagel's warning.
Once out of the courthouse, the former governor signed autographs
and posed for pictures -- even moving out of the building's overhang
to help get better lighting for a picture with one couple.
The prosecution will continue its examination of Cari on Thursday
and also plans to call Jill Hayden and former Rezko associate Ali
Ata to the stand.
[Illinois
Statehouse News; By BILL McMORRIS]
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