Blagojevich, Obama come up on first day of Rezko trial

The first day of the trial of Antoin "Tony" Rezko began as many thought, or perhaps feared, it would -- with mentions of both Gov. Rod Blagojevich and U.S. Sen. Barack Obama.

Assistant U.S. Attorney Carrie Hamilton invoked the governor seven times in her opening statement -- five times by name -- but it was Rezko's defense attorney, Joseph Duffy, who mentioned Obama, among other state and local politicians with whom Rezko worked.

Aside from the association of knowing a man now on trial for fraud and extortion, nothing Duffy described directly tainted the U.S. senator and presidential hopeful. Rezko raised money for Obama and once tried to hire him as a lawyer for his company, but Obama declined, Duffy said.

Gov. Blagojevich fared a little worse, with Hamilton describing him as the intended recipient of the $1.5 million campaign donation Rezko and others tried to extort out of a businessman seeking an investment from the state.

Beyond those two highlights, the first day of Rezko's trial stuck mainly to the script -- rehashing events already revealed in pretrial documents filed in the case.

At the heart of the government's case are allegations that Rezko conspired with Republican power broker Stuart Levine -- a member of both the Teachers Retirement System and the Illinois Health Facilities Planning Board -- to pry kickbacks or campaign contributions from people seeking investments from the teachers pension fund or those seeking regulatory approval from the health planning board.

In one instance, Rezko and Levine conspired to reap rewards from an investment of pension money by Glenco Capital. Investors in Illinois are allowed to use "finders," who can collect a fee, usually a percentage of the deal, for getting the investment firm in the door with the retirement system, Hamilton said.

Levine knew Glencoe's finder -- Sheldon Pekin -- and got him to agree to share much of his $375,000 finder's fee on a $50 million investment, Hamilton said. Pekin gave $250,000 of that to Joseph Aramanda, a friend of Rezko. Some of that money eventually benefited Rezko, the government has charged.

"They're not supposed to consider whether an investment could put money in their own pockets," Hamilton told the jury. "They're supposed to consider one thing -- what is best for the teachers."

But Duffy told jurors it wasn't Rezko who was corrupt, but Levine. Caught on tape in a web of crimes and lies, Levine resorted to the last con he had available to him: lying about Rezko to save his own skin, Duffy said.

"The government in this case has embraced probably the most corrupt individual you'll see in your lifetime," Duffy said.

Levine did not implicate Rezko immediately, and often answered that he didn't remember, when agents asked him questions throughout the course of 41 interviews, Duffy said. Often, he would tell them he had to think about a topic or try to remember.

"Remarkable! He came back in a few days with an explanation," scoffed Duffy, to the snickers of some of Rezko's family and friends, who filled two benches in the courtroom of Judge Amy St. Eve.

"Wait until I cross-examine him," said Duffy, who also launched into a history of Levine's drug abuse, which reportedly cost hundreds of thousands of dollars a year.

"Mr. Levine's days at times would include the substance Special K -- and it wasn't the cereal," he said.

Instead, it was ketamine, an animal tranquilizer that Levine took in liberal amounts, as well as cocaine, ecstasy, pot and crystal meth, he said.

But Hamilton countered that the government has more than just Stuart Levine's word. They have the testimony of Sheldon Pekin. And they have tapes, many of which refer to Rezko's involvement.

But, said Duffy, there is no tape where Rezko even alludes to the alleged transactions, let alone discusses them with Levine, even though some of Levine's conversations with Rezko were taped.

Hamilton also cast a disparaging light on Republican power broker William Cellini, saying he participated in a scheme to extort either a $2 million kickback or a $1.5 million campaign contribution from businessman Thomas Rosenberg. She also accused former health planning board chairman Tom Beck of taking his "marching orders" from Rezko on key votes.

After opening arguments Thursday, jurors heard testimony from former Blagojevich campaign finance director Kelly Glynn, FBI agent Charles Willenborg and former Blagojevich administration lawyer Susan Lichtenstein.

Thursday's proceedings were delayed about two hours after a juror arrived late. During the lull, Rezko, who wore a charcoal gray suit, white shirt and red-checked tie, joked and winked at his family. During testimony, the Syrian-born immigrant stared ahead seriously, his fist on his chin and mouth.

The trial resumes Monday.