Ill. Fundraising Trial Begins in Chicago

[March 04, 2008]  CHICAGO (AP) -- Jury selection began Monday in the federal fraud trial of businessman Antoin "Tony" Rezko, a former fundraiser for Sen. Barack Obama who is charged with buying power and influence by bombarding Illinois political leaders with campaign money.

The case is the biggest political corruption trial in Illinois since former Gov. George Ryan was convicted of racketeering in 2006 and sent to prison.

Politicians around the country are watching the trial because Rezko, a 52-year-old Chicago real estate developer, poured cash into Obama's campaigns when Obama was getting his political start.

Obama has sent some $85,000 in Rezko-related contributions to charity.

But Rezko pumped even more money into the campaigns of Illinois Gov. Rod Blagojevich and prosecutors say that's what touched off corruption. "Rezko parlayed his success in raising significant sums of money for Gov. Blagojevich into power," they said in court papers.

While Blagojevich has been accused of no wrongdoing, the case has put him in an embarrassing spotlight.

Two members of his inner circle are under indictment, and last week Judge Amy J. St. Eve disclosed that Blagojevich is the anonymous "Public Official A" who has repeatedly been tied to corruption in the government's court papers.

The 24-count indictment charges that Rezko plotted with millionaire attorney Stuart Levine to muscle payoffs out of firms seeking state permission to expand hospitals and hoping to invest money for the fund that pays the pensions of downstate and suburban school teachers.

One firm seeking to invest money for the pension fund allegedly was told to hire a consultant it had never heard of for $50,000 and fax the signed contract to a sun-splashed Caribbean tax haven that day, or else.

Levine has pleaded guilty and now shapes up as the star witness.

Jury selection in Rezko's case may take three days or more and the trial is estimated to last three months.

[Associated Press; By MIKE ROBINSON

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