Rezko trial witness tells of pressure for $750,000 payoff

It wasn't enough that Stuart Levine was raking in kickback after kickback from finder's fees associated with mammoth deals on state pension fund deals.

He wanted the mammoth investments themselves, Levine told his partner in crime, Robert Weinstein, on a tape recording played in court Tuesday.

So he and Weinstein were plotting to start a real-estate investment management company that would do business directly with the Teachers Retirement System and help them get their hands on at least $500 million they could invest and make money with.

Weinstein predicted the two could make $500,000 to $1 million a year off the business.

"I'm looking forward to the cash flow," said Weinstein in the call, recorded May 1, 2004.

But whether Tony Rezko, now facing trial on federal corruption charges, knew of the plan is another matter. Levine testified that he had brought it up with Rezko, although not at the infamous "Standard Club" dinner with Rezko on April 14, 2004.

Levine maintains that Rezko and Levine were to be secret investors in the company, whose creation was ripe because the TRS, whose board Levine sat on, was at that very time looking for another real-estate management firm.

"I don't remember the exact date that I discussed it with him," Levine told Assistant U.S. Attorney Chris Niewoehner.

In the call, Levine predicted he could get $500 million invested with their company without batting an eye.

"How about just directly into my bank account," joked Weinstein.

Rezko would go for the front company, Weinstein predicted, because Levine had been up front with him at the Standard Club meeting about what bribes Levine currently had in motion and about sharing them with Rezko.

"You're an incredibly honorable guy," Weinstein tells Levine.

As the tape played, Rezko shook his head, laughed to himself and removed his glasses, rubbing his eyes.

In an earlier call of April 14, 2004, Levine recounted to Weinstein how Rezko suggested that Levine's friend, crooked construction contractor Jacob Kieferbaum could be brought in to get some of the $300 million in school-construction business that the state might fund.

"We've never been in the center like we are now, Bob," Levine told Weinstein.

"Don't salivate," replied Weinstein.

"I'm drooling," said Levine.

Levine also recalled to Weinstein how he had had a grudge against Thomas Rosenberg, a principal officer in Capri Investments, which managed more than $1 billion in state pension funds. Levine said he felt he had a commitment from Rosenberg to pay him a kickback in exchange for Levine pushing through a TRS investment in 2001. But aside from releasing Levine from $50,000 year lobbying payments to Rosenberg for one of Levine's companies, Rosenberg had never paid up, Levine testified.

So Levine said he deliberately kept TRS from investing further money with Capri in 2004.

Rosenberg eventually approached Alison Davis, a law partner of Barack Obama and Judson Miner, for help, and Levine said Rezko told him Davis approached him.

Rezko said Rosenberg was interested in helping Blagojevich raise funds and coincidentally had a matter before the TRS board he needed help with, Levine said. He said Rezko assured him he would send Rosenberg to him.

Eventually, according to testimony, Rosenberg threatened to go to police, and Levine and Rezko relented, letting Capri have its investment but vowing not to give him further money.