Phone tapes give Levine testimony added credibility

The tale of the tapes moved prosecutors closer toward defendant Antoin "Tony" Rezko on Friday, with recordings of Rezko being played for the first time.

The tapes played weren't explicitly incriminating, but prosecutors hope that references in them will bolster star witness Stuart Levine's story enough that jurors believe the substance of what he has said about Rezko.

With Levine already having admitted to lying to federal investigators even after he agreed to cooperate with them, Levine's credibility will be a key issue. So prosecutors are relying on tapes of Levine's phone calls -- which Levine did not know were being recorded -- to make him more believable

Among Levine's most damaging testimony against Rezko was that Rezko agreed to split a $1.5 million bribe to approve the Mercy Hospital application for a Crystal Lake site. Levine was on the Illinois Health Facilities Planning Board at the time.

Rezko and Levine agreed that Rezko and Chris Kelly, key fundraisers for Gov. Rod Blagojevich who controlled appointments to the planning board, would appear to control the board through its chairman, Thomas Beck. While unseemly, such strawman boards were not illegal and were, in fact, a well-known means of operation for Gov. Rod Blagojevich's administration and past governors, Levine testified.

That common political mechanism would appear to control the board, and then, secretly, Levine and Rezko would occasionally affect outcomes when opportunities for bribes arose, the two agreed, Levine testified.

In a tape of Rezko and Levine made May 18, 2004, Rezko tells Levine to ignore prior direction by Kelly that Levine should be the one to instruct a new board member, Danalynn Rice, on how to vote on key issues. Rezko said when Rice called, Levine should have her call Beck.

"We'll do it the way we have been handling it in the last few months," Rezko says. "Tom should not know you and I are having this conversation."

"You and I will still do what we need to do," assures Rezko.

Levine said he interpreted that as a reference to the Mercy Hospital bribe and other upcoming bribe opportunities.

After talking about the planning board, Assistant U.S. Attorney Chris Niewhoener moved along to the Teachers Retirement System, where, prior to Blagojevich's election, Republican powerhouse Bill Cellini was the man pulling the strings, Levine said.

Cellini, Levine said, orchestrated the takeover from teachers' representatives by Cellini cronies. Once that was done, they installed retirement system staffer Jon Bauman as executive director in an unscheduled vote, he said.

"Jon Bauman was the individual that Bill Cellini wanted," Levine said. The two had known each other for a long time and Cellini even helped Bauman get his job on the TRS in the first place, Levine said.

"Jon Bauman was a person who would do as Mr. Cellini asked," Levine said.

An upset Jon Bauman, who had declined to respond on comments made about him earlier this week in court because he may have to testify at the trial, decided to speak out Friday.

"I just can't hold myself back after some of the stuff this week," he said. "I have never been anybody's water boy. My family and the Cellini family are longtime friends, (but) any business involving Bill Cellini at TRS was conducted strictly on the basis of merits."

Bauman pointed out that he was recommended for the post by an independent recruiter who was picked by both factions of the board at the time.

"A person cannot survive very long in this position if they are not both competent and able to serve at a very high level of integrity," Bauman said. "There are personal consequences if we breach (our fiduciary duty), and I'll soon be celebrating my 15th year of service here, almost half of which has been as executive director."

That tenure, Bauman said, suggests he has served with integrity.

While Levine suggested Bauman carried water for Cellini, he did not testify to any improper behavior by Bauman.

He did say of himself, however, that once the takeover of the TRS board was complete, he helped Republican National Committeeman Robert Kjellander land a $150 million investment in August 2002 for the Carlyle Group, for which Kjellander was working. Although Levine didn't take a bribe beforehand for the vote, he said Cellini and Kjellander later rewarded him by forgiving his $75,000 per year payments to Kjellander for lobbying work he was doing for Levine's private clients.

Cellini's lawyer and Kjellander could not be reached for comment Friday.

Levine testified he also helped friend and fellow board member John Glennon when Glennon wanted the board to invest in the John Buck Co.'s real estate fund in October 2002.

Also in October, Levine helped friend Neil Bluhm, who was pushing for a $75 million investment in Walton Street Real Estate Fund.

Both measures passed.