Rezko trial witness details 'the fix' to get state approval for hospital project

With a friend like Antoin "Tony" Rezko, the sky was the limit when it came to financial gain through political power, a once-influential state official said today.

On his third day on the stand, former Illinois Health Facilities Planning Board member Stuart Levine told a federal jury he convinced Rezko, a successful fundraiser with ties to Gov. Rod Blagojevich, to support Mercy Health System's plans for a hospital in Crystal Lake in exchange for kickbacks.

Also, Levine related how he conspired with construction company executive Jacob Kieferbaum to shake down Edward Hospital CEO Pam Davis over her institution's application to build a second facility in Plainfield.

During questioning, Levine, said that Thomas Beck, former chairman of the health facilities board took his marching orders from Rezko.

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Rezko, who is facing corruption charges, has pleaded innocent.

"I never witnessed someone who was able to influence the governor as I saw Mr. Rezko could," Levine said.

Prosecutors played back a tape where Levine told Kieferbaum after a meeting with Davis about the Naperville institutution's expansion plan, "I have never been in a better position than I am now, because there's never been such tight control of the central apparatus. This guy is making decisions and can have whatever he wants done."

Levine is cooperating with federal prosecutors in exchange for a more lenient sentence on charges of extorting bribes from businesses seeking contracts with two state panels he served on, the health planning board and the Teachers Retirement Fund.

On Wednesday, Levine, who has admitted to previous drug use, told prosecutors while on a fundraising trip with Blagojevich, he thanked the governor him for reappointing him to the health board. Levine said Blagojevich told him to stick with him and he'd do well, which he took to mean he'd do well financially.

Blagojevich has denied any wrongdoing and has not been charged with anything. In a written response Wednesday, Blagojevich's spokeswoman said of Levine's claim, "Stuart Levine's assertions about the governor are wrong. As we've said before, that's not how the governor does business."

Federal prosecutors allege Levine schemed with Kiferbaum and banker Nicholas Hurtgen to obtain contracts for construction and financing of the Plainfield hospital in exchange for health board approval.

But what Levine didn't know was that Davis was working with the FBI and wiretapping conversations.

Levine described to prosecutors how he and Hurtgen arranged a breakfast meeting where he would meet Davis and Kieferbaum as if by accident. The idea was for Levine to convince Davis she would get approval for the second hospital if she hired Kieferbaum. Ironically he acknowledged being aware state ethics laws forbid health board members from discussing pending votes with applicants.

"I knew I was attempting to do an illegal deal," Levine said.

After the breakfast, Levine spoke with Kieferbaum in a conversation taped and played back at the trial. The two men joked about how well the meeting had gone.

"It went perfectly. She understood," Kieferbaum said.

Levine talked about how he told Davis at the "accidental" meeting that Kieferbaum was honorable and could get things done.

"We'll find out what she's made of," he said in reference to Davis. "If she has no honor #8230; she can't be that stupid."

Earlier this morning, Levine told how Kieferbaum asked him for his support on the Crystal Lake project in 2003. Levine then met with Rezko in the fall and was told the Mercy hospital plan was flawed and didn't stand a chance at the health board.

"I said, 'Would it make a difference if you and I made a lot of money if Mercy got its certificate of need?'" Levine recounted

"I told Mr. Rezko, Kieferbaum would be capable of raising significant political contributions for the governor plus pay a substantial bribe," Levine said.

Rezko responded, "you bet," Levine said.

Levine's testimony follows his descriptions on Wednesday of Rezko's hopes that Rod Blagojevich would one day become president of the United States.

According to Levine, Rezko said "that, um, uh (pause) he had raised a great deal of money for Gov. Blagojevich and that he had great hopes and expectations that Gov. Blagojevich would run for president."

Rezko went on to say that he knew it was a long shot but still hoped it would happen and was "working toward" a presidential run, said Levine.

As it turned out, Blagojevich's presidential hopes were dashed by his affiliation with Rezko, Chris Kelly and Levine, all associates of the governor and all of whom would go on to be indicted, accused of either selling their influence with Blagojevich or unrelated tax crimes.

But much of what prosecutors believe to be the case against Rezko comes from Levine, who faces serious credibility problems, both because of his admitted propensity for lying and because of copious drug use that defense attorneys say affected his memory.

So Wednesday, prosecutors tried to lay the groundwork to establish that Levine was, in fact, as close to Rezko as he boasted to others. Wednesday, Levine linked himself to Rezko in the following ways:

bull; Levine showed plane manifest lists of him ferrying Rezko, his wife Rita, William Cellini, Cellini's wife Julie and Levine's wife Sheri to Washington, D.C., in December 2003 to attend a Christmas reception at the White House. The invitation for Levine and Rezko was arranged by Illinois' Republican National Committeeman Robert Kjellander, Levine said.

bull; Levine produced a seating chart for the Oct. 28, 2003, Friends of the Israeli Defense Forces dinner that showed Blagojevich friend John Wyma, former Wisconsin Gov. Tommy Thompson, the Rezkos and the Levines all slated to be seated at the same table. The Blagojeviches were down to be seated at another table with Lester and Renee Crown. Neither governor attended in the end, Levine acknowledged.

bull; Prosecutors displayed another flight manifest that showed Levine had shuttled Rezko's family back from Puerto Vallarta, Mexico, on April 3, 2004, after they both vacationed there separately, but did meet up for dinner. Rezko was not on the flight because he left April 1 to arrange an April 3 party for an "Iraqi billionaire" he hoped to do business with. Court documents have identified that billionaire as Nadhmi Auchi.

But as far as putting any illegal acts at Rezko's footsteps, much of Levine's testimony consisted of what he understood Rezko to mean when he said things.

Levine testified that shortly after he met Rezko in November 2002, Levine approached Rezko to try to get his help for a client, dental insurer CompDent, in getting a contract with Cook County government.

"I told Mr. Rezko that I had represented CompDent for years, that they paid excellent fees," said Levine. "I indicated to Mr. Rezko that any fees that I would make #8230; that I would share with Mr. Rezko."

But Levine did not say Rezko agreed to share fees, only that he said he would call Orlando Jones, the godson of then-Cook County Board President John Stroger, to help Levine. But CompDent withdrew its proposal after the FBI came knocking at Levine's door, he said.

Levine also said he had a private talk with Rezko about Levine's service on the Teachers Retirement System board, to which he was appointed by Blagojevich. "I told Mr. Rezko that up until this time I had not benefited personally, financially, from being a trustee of the TRS," Levine said.

"Mr. Rezko said to me, anything that 'I, Mr. Rezko, decide to do at TRS,' I (Levine) would be a partner," Levine said. Levine said he interpreted that to mean that any money Rezko made from TRS he would share with Levine.

Levine responded "I told Mr. Rezko #8230; that I thought we could do a lot of business together."

By that, Levine testified, "I meant that there were a lot of deals, illegal deals, that I could bring to the Teachers Retirement System."

And in another interpretation, Levine said, "Mr. Rezko indicated to me that he preferred not to have business discussions over the phone. I understood him to mean #8230; any illegal activities should not be discussed over the phone."