Ex-Chicago politician gets $50K fine, probation

[February 27, 2009]  CHICAGO (AP) -- A former Chicago politician who pleaded guilty for his role in a $1.5 million real estate kickback scheme was sentenced Thursday to five years of probation and fined $50,000.

Federal prosecutors had asked for a 41-month prison term. In handing down the sentence, Judge Milton I. Shadur said Edward R. Vrdolyak's actions had not cost the loss of money and therefore, prison was unwarranted.

"It would be the wrong message under all the circumstances here to impose a custodial sentence," Shadur said.

U.S. Attorney Patrick J. Fitzgerald said in a statement that "we strongly but respectfully disagree with the sentence of probation imposed on defendant Vrdolyak."

"We will carefully consider out options, including an appeal," Fitzgerald said.

Vrdolyak, 71, pleaded guilty to a single count of mail fraud for arranging to sell a piece of real estate owned by the Finch University of Health Sciences-Chicago Medical School to a developer. He and longtime friend Stuart Levine -- a member of the school's board -- schemed to share the $1.5 million payoff, prosecutors said.

Levine later became the government's star witness in its case against Tony Rezko, one of the top fundraisers for impeached former Gov. Rod Blagojevich.

Vrdolyak said he knew what he did was wrong but agreed to set up the payoff because Levine was desperate for money and had become suicidal.

The judge said a request by prosecutors for Vrdolyak to pay $1.5 million in restitution was "serious overkill," pointing out a feature of Vrdolyak's plea agreement requiring him to pay the money to the school.

Shadur and prosecutors also argued over whether Vrdolyak's actions had cost the medical school any money.

There was "nothing in the record of even his intent to shortchange the school," Shadur said.

Vrdolyak's case was an outgrowth of the federal government's Operation Board Games, which has led to the conviction of Rezko and fraud and bribery charges against Blagojevich.

Vrdolyak, an attorney and former alderman and mayoral candidate, is known among Chicago political circles as "Fast Eddie" and has a reputation as a skilled back-room deal maker. He has not been a major player in city politics for decades.

[Associated Press; By MIKE ROBINSON]

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