Rezko had big influence

Rezko had b
October 13, 2006
By Christopher Wills The Associated Press
SPRINGFIELD -- Antoin "Tony" Rezko was a political adviser to Gov. Rod Blagojevich, but he also was much more.

He did business with Patti Blagojevich's real estate firm. He connected Blagojevich to vast amounts of campaign money. He helped the new governor build his administration. He gave gifts to the governor's family.

He was, in the governor's words, a friend.

And now Rezko stands accused of using his influence to shake down businesses for millions of dollars -- allegations that may threaten Blagojevich's bid for re-election and raise questions about the governor's actions.

Born in Syria in 1955, Rezko moved to Chicago after graduating high school and studied engineering and construction management. He ended up going into business and making millions as a real estate developer and owner of Panda Express restaurants.

He also began donating money to Illinois politicians and helping them raise it elsewhere. Among the recipients of his aid: the late Chicago Mayor Harold Washington, former Cook County Board President John Stroger and a state representative named Rod Blagojevich.

Rezko grew close to Blagojevich.

"When his wife and my wife and the four of us would start socializing, we became friends," Rezko told the Chicago Tribune last year in a rare interview. "Now his family is friends with my family, our daughters are friendly."

It also was a business relationship.

Blagojevich's wife, Patti, owns River Realty and began working with Rezko in 1997. She made nearly $39,000 from him in 2004, the last year the two did business. Blagojevich's office never has explained what work she did for Rezko.

Likewise, Blagojevich hasn't disclosed what gifts his family has accepted from Rezko.

Last year, Blagojevich amended the financial disclosure forms he must submit to the state to add that he had taken at least $500 worth of gifts from a number of people, including Rezko. This year's form also shows gifts of at least $500 from Rezko. Blagojevich won't provide any additional information about the gifts.

As Rezko was growing closer to the Blagojevich family, he also was helping Blagojevich raise money. BY the time of the 2002 race for governor, Blagojevich was able to come up with $23 million in campaign funds thanks in part to Rezko's aid.

When Blagojevich won, Rezko helped again by recommending people to serve in the new administration. He had business ties to many of them. The heads of the commerce department, the housing development agency, the main administrative agency -- all were recommended by Rezko.

"We were brand new, and I was the first Democrat in 26 years, and we were looking for recommendations from all kinds of people," Blagojevich said in a March 1 interview with The Associated Press.

Rezko also recommended Stuart Levine, a member of the Health Facilities Planning Board and the Teachers' Retirement System. Levine was first appointed to the boards by former Republican Gov. George Ryan, but was reappointed by Blagojevich.

Levine ended up being indicted by federal prosecutors for influence-peddling on both boards, and Wednesday's indictment ties Rezko to the misconduct at the teachers' pension fund.

Essentially, the indictment alleges Levine and Rezko told investment firms that they would have to cough up money if they wanted to do any business with the pension fund. If they didn't, Levine would use his position on the board to blacklist the investment firms.

Among the allegations in the indictment are that Rezko demanded one of the firms make a $1.5 million contribution to "a certain public official." That official was Blagojevich, according to a person familiar with the investigation, who spoke only on condition of anonymity because the probe is continuing.

The governor has not been charged with any crime. Blagojevich insists he did nothing wrong and that, if the charges against Rezko are true, he was duped by his friend.

Although Blagojevich now questions Rezko's honesty, he stood by his friend long after questions emerged.

The city of Chicago, for instance, found last year that Rezko used a minority front for three of his Chinese restaurants so that they could operate in O'Hare International Airport.

Levine was indicted twice last year, with the second indictment raising allegations about Rezko and another Blagojevich adviser, Christopher Kelly. And as the year ended, the Chicago Tribune reported that federal prosecutors were looking into Rezko's and Kelly's ties to restaurants at Illinois tollway rest stops.

But in March 2006, Blagojevich said the pair had gone out of their way to avoid any business related to state government.

"You can argue, frankly, their quality of life has gone down since they've been helping me," Blagojevich said. "As a friend, I feel very bad about the position I've put them in because of them being willing to help me. These guys are both, in my personal experience with them, honest people, good people."

Associated Press reporter Mike Robinson contributed to this report from Chicago.

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