Ex-Obama Booster Nears Deal, Feds Hint

Tony Rezko's Sentencing Delayed; Political Player Convicted Of Fraud, Extortion May Spill Secrets

(AP)  Federal prosecutors on Monday sent the strongest hint yet that convicted influence peddler Antoin "Tony" Rezko is ready to spill his political secrets, moving to postpone his sentencing indefinitely while they and defense attorneys "engage in discussion that could affect their sentencing postures."

Speculation has simmered for weeks that the 53-year-old key fundraiser for Gov. Rod Blagojevich and Sen. Barack Obama was whispering what he knows about corruption in Illinois government to federal prosecutors in hopes of getting a lighter sentence.

Rezko raised more than $1 million for Blagojevich's campaign fund and was one of the governor's key advisers. He was frequently by the governor's side in the early days of his administration and could be in a position to shed considerable light on federal investigations into patronage hiring and a host of other issues involving Blagojevich.

The governor has not been charged with wrongdoing. A spokesman did not immediately respond to an e-mail message after business hours seeking comment.

U.S. District Judge Amy J. St. Eve had set Sept. 3 as a firm date for sentencing Rezko on his conviction for launching a $7 million scheme to use his clout with the Blagojevich administration to squeeze kickbacks out of a contractor and seven money management firms wanting to do business with the state. Then she postponed the sentencing date to Oct. 28.

Federal prosecutors filed a two-page brief with the court late Monday asking for the Oct. 28 date to be stricken and the sentencing postponed indefinitely. The wording left little doubt that Rezko offered enough to make the government consider some sort of sentencing break.

"The parties agree that the Oct. 28, 2008, sentencing date, as well as dates related to sentencing filings, should be stricken while the parties engage in discussion that could affect their sentencing postures," the three-paragraph brief said.

Federal spokesman Randall Samborn declined to comment on the latest development. Defense attorneys Joseph Duffy and William Ziegelmueller were not immediately reached for comment. Messages were left on their office voicemails late Monday.

Two attorneys familiar with the investigation, speaking only on condition of anonymity because grand jury matters are secret, said last week that federal prosecutors were contacting the lawyers of a number of campaign contributors and others with information that only Rezko could have given them. One of the lawyers said it was plain the prosecutors were laying the groundwork for questioning Rezko further.

One of the matters that prosecutors have been interested in learning is who paid for the renovation of Blagojevich's Chicago home. Rezko's now defunct Chicago Construction Services was the contractor on the project. One person familiar with the renovation contacted Monday afternoon, speaking only on condition of anonymity because of grand jury secrecy, said he was subpoenaed by federal prosecutors and asked about the project.

"They were looking for basic business dealings, who paid, how much, that sort of thing," he said. He said the governor's wife, Patti, paid the bill.

At Rezko's trial in May, former state employee Ali Ata, who got his job as head of the Illinois Finance Authority from Blagojevich through Rezko, testified as the government's surprise witness that he had to provide $25,000 to Rezko to pay contractors who were threatening to put a lien on the house if the bill was not paid. Ata earlier pleaded guilty to tax fraud and lying to the FBI about how Rezko got him his job.

Besides bankrolling a large portion of Blagojevich's campaign, Rezko raised substantial funds for Obama's past campaigns - although none for his current presidential runs.

Obama's campaign says it has sent to charity $159,000 traceable to Rezko's past fundraising.

While Blagojevich was frequently mentioned at Rezko's trial, the testimony rarely touched on Obama, who has been accused of no wrongdoing.

Unmentioned at the trial was a purchase by Rezko's wife, Rita, of property adjacent to the Obama home near the University of Chicago on the city's South Side. Obama and his wife, Michelle, purchased their home the same day that Rezko's wife closed on her property. And she later sold some of her property to the Obamas to enlarge their lot. Obama later said that allowing Rezko to do what appeared to be a favor was a "bonehead" move.

Rezko was convicted in June of mail fraud, wire fraud, attempted extortion and money laundering. Several of the charges carry 20-year maximum sentences and while Rezko would not be expected to served that much time for a first offense he is still looking at the possibility of years in federal prison. A deal with prosecutors could reduce his time considerably.

Moreover, Rezko faces the prospect of a second trial early next year on federal charges of swindling the General Electrical Capital Corp. out of $10 million in the sale of a group of pizza restaurants.

And beyond that, by his own account his is running out of money and an arrest warrant has been issued in Las Vegas accusing him of failing to pay hundreds of thousands of dollars in casino bills.

[grangerwoods]

VIDEOS JOHNNY MAC DID NOT SEE
PALIN IS ANTI-AMERICAN

http://www.youtube.com/watch?v=mIi4rbIXbkw

Listen very very close from the 6 minute mark to the end!

http://www.youtube.com/watch?v=F4iCDBIAde8&feature=related

Her own confirmation!

[wiser5606]

all accusations these people throw at each other is to keep you focused on that and not the issues. obama knew ayres, mccain knew keating, palin''s husband is a crazy. it''s all the same ***. i guess you can''t expect a clean campaign when thats all the public wants. which candidate has a real plan to pay for this bail out. which candidate has a step by step plan to fix the economy. thats what i want to know. for the rest of it i suggest you subscribe to the mythbuster newsletter and take a nap.

[rbaggett1]

I find no fault with what Obama has done. I have had business dealings with individuals that were legit but only to find out later down the road that those individuals were scoundrels. Does that make me a crook? If we want to talk about real dirty dealings between politicians and businessmen, then let''s talk about Mr. McCain and Mr. Keating b/c its relevant to our current economical crisis.

BTW McCain/Palin supporters, don''t get excited about Rezko spilling any beans before the election. Once Obama is President he can pardon Rezko. Tony knows this is his best strategy,,, if he were to actually have any dirt on him which I personally doubt. If Obama becomes President and never pardons Tony Rezko, then you know that Obama was always legit.

On the other hand, if he makes claims about Obama being part of his dirty dealings, then you better believe there is a is a dirty rat, and that would be republicans b/c it makes no sense otherwise for Rezko to rat out Obama. The FBI would have to cut his sentence to 4 years (Republicans might have a hard time figuring this one out).

My personal opinion is this, Washington is scared to death of Obama because he''s been bought. Bought 100% by the American people like me! I donated $200 for the first time ever to any campaign... and I''m a 35 year old white male!

Barack the Vote in Novemeber 08!!!!!!!!!!!

[xrepublic4u]

MCCAIN IS RUNNING HIS CAMPAIGN A LOT LIKE HITLER RAN HIS!

[silver1237]

It''s so amusing, how this cat obama hangs out with all these thugs, Terrorists, Racists, Extortionist,
and each time one is uncovered his idiot supporters make an excuse for it and give him a hall pass. These accusations are not coming from the right anymore, there coming from your own side (CNN). It would seem to me that after the last eight years you would not want the "wool pulled over your eyes". McCain is weak and his support is questionable, but this Obama character really scares the Hell out me. He''s just to shady and everyone is making excuses for him. You supporters better really do your homework here before ya get all carried away with him. Let''s quit making the same mistakes in this country. Ask Obama this; What has he done to really earn this position at 47 years old? What has he sacrificed? What he he changed of any significance? You won''t find anything. So you just vote bacause he has Charisma? Please Cmon.....

[oonagh1]

mdwoman is a poor speller. Left out an ''a''.

[dagrandma]

FREEDOMBIKER: I just watched the youtube link you suggested. I don''t see what the problem is. Are you saying it''s okay for the City of Chicago to give awards to Mr. Ayres but it''s not okay for Barack Obama to visit his home (just once apparently) or serve on boards with him? Just exactly what is the problem?

[ixoye_02]

John McCain is a disgrace. And as a former longtime republican, I''ve contributed enough money to these traitors to say that. How can a veteran not support congressional bills that take care of veterans and provides some benefits for their service to country? I don''t care about skeletons that really don''t amount to much....but I am talking about real support for our troops who are coming or have come home from war. Why would McCain not speak out about the horrible conditions found at Walter Reed hospital, while McCain basks in the idea that all veterans would support McCain? And why does McCain lie about Obama when McCain cannot even get his own record on the issues out and open to the public. Based on McCain''s record towards veterans in the congress, I would vote for Obama. At least, I get some honest answers. And if McCain thinks that McCain is more honest that Obama, then I''ve got a bus for you...the Straight C-R-A-P express. Moreover, Palin is not qualified to be commander-in-chief and president. And McCain is showing reckless judgement in selecting Palin, who just doesn''t quite have enough brains to get America on the right track....look at GW Bush if you want some recent example.

[dagrandma]

I cannot understand why no one in the mainstream media has much to say about Mr. Rezko''s Republican ties. Anything he may or may not have done for Senator Obama pales in comparison for what he has done for McCain''s twin, George W. Bush. Look it up on NPR.

[aceshigh333-2009]

It''''ll be right nnext to McCain''''s and Keatings

Posted by Interobserv

McCain was innocent, twice..
Skeletons are about to jump out B.O.''s closet. B.O. is crooked and a lier and it''s about ready to catch up.