Oscar-winning producer takes stand in Rezko trial

The producer of the 2004 Academy Award-winning movie "Million Dollar Baby" testified Thursday that he threatened to expose a shakedown scheme by Gov. Rod Blagojevich's inner circle over a $220 million state investment deal.

"I told (Bill) Cellini I would take them down," Tom Rosenberg told jurors at the corruption trial of Antoin "Tony" Rezko. "I told Cellini that I would tell this story on the corner of State and Madison … I told him that if there wasn't a grand jury already in session … there soon would be."

But on cross-examination, Rosenberg -- a prolific movie producer who also ran real estate investment firms and dabbled in politics -- faced questions alluding to insider deals of his own.

Rezko is accused of shaking down state teacher fund investment firms for millions of dollars in kickbacks and campaign contributions by using his influence with Blagojevich.

Cellini is not charged with any wrongdoing. He is a bi-partisan political insider, having profited from numerous state-tied ventures, including a casino, a real estate investment firm and a construction lobbying group.

Prosecutors say Rezko and others pressured Rosenberg in 2004 to fork over $1.5 million to Blagojevich's campaign fund, or pay a "finder's fee" bribe of $2.2 million, to land a teacher pension funds investment of $220 million.

Rosenberg balked, threatened to go public and the funds later went to his company, Capri Capital, without a campaign contribution or bribe, according to court testimony.

On cross-examination, Rezko's attorney Joseph Duffy pointed out Rosenberg never had substantive conversations with his client. He also insisted the shakedown was actually managed by Stuart Levine, a trustee of the state pension board with a history of scheming and drug abuse.

Duffy suggested Levine wanted the money for himself, not Blagojevich's war chest.

Levine, who has pleaded guilty and is cooperating with prosecutors, had an acrimonious history with Rosenberg and tried to shake him down before, according to court testimony.

Duffy also peppered Rosenberg with questions about his history of earning a living off public contracts while he was working as a fundraiser for political officeholders.

In one case, Duffy questioned why Levine was paying Rosenberg about $60,000 a year as a consultant on a dental insurance contract with Chicago and the state board of education.

Rosenberg said it was a retainer and conceded that for at least two years he was not working for the money.

"What did you do for Mr. Levine for $60,000?" Duffy asked.

"I don't understand the question," Rosenberg at first responded, and he later said, "I wasn't doing anything."

Rosenberg said he didn't use political contacts to land the dental insurance contracts or his company's state pension fund investments.

At the time Rosenberg was seeking the $220 million in teacher pension funds, his company had about $800 million in such funds -- nearly half of the company's $2 billion portfolio.

Rosenberg told jurors he worked in the administration of Chicago Mayor Harold Washington and that he helped raise money and consult for Chicago Mayor Jane Byrne and Democratic presidential candidates Jimmy Carter and Walter Mondale.