Ill. gov.'s legal woes worsen as fundraisers defect

[December 17, 2008]  CHICAGO (AP) -- Jailed political fundraiser Antoin "Tony" Rezko's attorneys sent a strong signal Tuesday that he has resumed his on-again, off-again cooperation with federal prosecutors in the criminal case against Gov. Rod Blagojevich, and another one-time adviser to the governor served notice that he intends to plead guilty to tax charges.

Rezko has been among the Democratic governor's top fundraisers and advisers and can provide prosecutors with a penetrating glimpse into the workings of Blagojevich's inner circle. He was convicted in June of scheming to squeeze companies seeking state business for payoffs.

There were signs that Rezko's relationship with prosecutors had soured in recent weeks. But on Tuesday, both sides agreed to postpone his sentence indefinitely, a sign that prosecutors think their sometimes reluctant witness has more to tell them.

While Rezko squared things with federal prosecutors, attorneys for former Blagojevich campaign chairman Christopher Kelly said he intends to plead guilty to tax charges next month. Among other things, Kelly, a roofing contractor and consultant, is charged with using company funds to pay gambling debts and in at least one case writing the payment off as a business expense.

Kelly could also give the government an inside look at the workings of the Blagojevich administration. But chief defense counsel Michael Monico said Tuesday that "cooperation isn't part of the agreement" under which Kelly will plead guilty.

Rezko's chief defense counsel, Joseph Duffy, and a spokesman for the U.S. attorney's office, Randall Samborn, declined to comment.

"Merry Christmas, everyone," Duffy said, donning his hat and walking out of the courthouse into a snowstorm, leaving behind a blizzard of questions from reporters.

Rezko's apparent decision to resume helping federal prosecutors added a fresh legal worry for Blagojevich, who is accused of scheming to sell or trade the U.S. Senate seat left vacant by Barack Obama's election as president. The Democratic governor is also accused of pressuring the Chicago Tribune to fire editorial writers calling for his impeachment.

Rezko has raised money for numerous Illinois politicians, including Obama. But he did not raise money for Obama's presidential campaign and the president-elect has not been accused of any wrongdoing.

Rezko faces many years behind bars unless he cooperates with prosecutors and gets a deal in exchange. His need for such a deal is all the greater because he is due to go to trial early next year on unrelated charges of swindling the General Electric Capital Corp. out of $10 million in the sale of a group of pizza restaurants.

When a cooperating witness has prison time hanging over his head, prosecutors most often try to defer the sentencing until his cooperation is entirely finished. That way they can evaluate how well he cooperated and how much of a break he deserves.

After Rezko began cooperating with prosecutors in August, his sentencing was deferred indefinitely. After relations between Rezko and the prosecutors apparently soured late last month, he asked for and received a sentencing date -- Jan. 6. But that was erased on Tuesday and the sentencing has again been postponed indefinitely.

[Associated Press; By MIKE ROBINSON]

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