Blago cohort Rezko won't serve more time for fraud

CHICAGO — An imprisoned former fundraiser for Rod Blagojevich was sentenced Thursday after pleading guilty to a wire fraud scheme unrelated to the former Illinois governor, but will not face additional time behind bars.

Tony Rezko was sentenced to 7 1/2 years in prison for running a scheme that netted more than $13 million in business loans. U.S. District Judge James Zagel said the sentence would run at the same time as the 10 1/2-year sentence Rezko already is serving for plotting to squeeze kickbacks from companies doing state business during Blagojevich's tenure.

As part of the wire fraud sentence, Rezko agreed to drop his appeal in the kickbacks case. He already has spent 3 1/2 years in custody.

"Mr. Rezko and his family had decided they wanted to bring closure to this matter and it's time for them to move on with their life," Rezko attorney Joe Duffy said.

The former fast-food entrepreneur and real estate developer was once a well-connected fundraiser for Blagojevich, President Barack Obama and other politicians. On Thursday, Rezko stood before Zagel in a green prison shirt and shower shoes, asking for leniency in a sometimes-raspy voice.

"Your Honor, I deeply regret the actions that brought me to be here," Rezko said. "I ask God for forgiveness and the court for mercy."

Authorities say Rezko tried to defraud lender GE Capital by appearing to sell some of his fast-food restaurants to employees.

Prosecutors said Rezko attempted to drive up the amount of money GE Capital would lend him by giving the group falsified documents that made the restaurants appear more profitable, while planning to not enforce terms of the sales to his employees.

Rezko already has made some restitution payments. He was ordered to pay an additional $4 million.

Zagel briefly alluded to Rezko's role in a wide-ranging federal investigation into state corruption, noting the "significant damage" he did, before sentencing him within the terms of his agreement with prosecutors.

Several of the figures linked to Rezko in the corruption probe have since been convicted. Zagel gave Blagojevich a 14-year prison sentence this month, days after Judge Amy St. Eve sentenced Rezko to 10 1/2 years, minus time served.