Feds ratchet up pressur
Rezko shows up in court at last -- nearly broke?
October 20, 2006
BY STEVE WARMBIR, NATASHA KORECKI AND LISA DONOVAN Staff Reporters
The guessing game of "Will Tony Rezko show up?" is over.
Antoin "Tony" Rezko -- the 51-year-old jet-setting businessman and crony of Gov. Blagojevich -- returned to Chicago Thursday from a two-month overseas jaunt to face charges in two fraud schemes, one tied directly to state government.
Rezko's appearance in federal court Thursday obliterated speculation that he was on the lam in the Middle East.
And it sparked even more speculation on whether Rezko would cooperate with the ongoing federal investigation of the Blagojevich administration as the pressure on him is ratcheted up.
The indictments last week against Rezko -- a chief fund-raiser for the governor and a trusted adviser -- marked the closest the feds have come yet to Blagojevich's inner circle.
One indictment charges Rezko with taking part in a scheme to shake down kickbacks from investment firms seeking state business. The other accuses Rezko of fraudulently obtaining $10 million in business loans.
Pinstripes, tracking bracelet
Despite all the dollar signs, Rezko could be all but broke, his attorney, Joseph Duffy, suggested in court.
Rezko's got about $5,000 in the bank, Duffy said. Rezko had to rely on a group of friends and family to put up nine properties worth about $1.5 million to secure his bonds, set at $3.5 million in the two cases.
Rezko put up his own two homes in Wilmette and Lake Geneva, worth $7 million to $8 million, but Rezko has little to no equity in them, Duffy said.
A federal judge did add a new accessory to the natty, gray pinstriped suit Rezko wore on Thursday -- an electronic ankle bracelet.
Rezko was put under house arrest, at least until he provides a detailed financial affidavit in two weeks. Prosecutors made it clear they wanted more financial information, noting Rezko transferred $400,000 last year to a Lebanon bank.
Prosecutors asked for a hefty bond, saying Rezko would have an incentive to flee once he realizes the strength of the case against him.
Agents got him at O'Hare
In the one case alone, he's facing 14 years. The feds have Rezko on tape and others on tape talking about him, in secretly made recordings.
Prosecutors appeared eager to share with Rezko the extent of their evidence.
"We're poised to provide discovery," prosecutor Carolyn McNiven said.
FBI agents took Rezko into custody about noon Thursday at O'Hare Airport.
Outside the courthouse, Duffy blasted earlier speculation that Rezko wouldn't return. And one member of the family and friends who put up their homes to secure Rezko's freedom had a succinct answer when asked if Rezko would be exonerated.
"Definitely," the man said.
Soon after, Rezko left the courthouse without comment, speeding off in a BMW 750i.
swarmbir@suntimes.com
nkorecki@suntimes.com
ldonovan@suntimes.com
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