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Friday, October 13, 2006

Rezko a no-show in court

Rezko a no-show in court
By Rudolph Bush and Jeff Coen
Copyright © 2006, Chicago Tribune
Published October 13, 2006, 3:01 PM CDT

Antoin "Tony" Rezko, the key adviser to Gov. Rod Blagojevich indicted on influence-peddling charges, failed to appear at two court hearings today, and federal prosecutors questioned whether he intends to return from an overseas business trip.

Rezko, 51, of Wilmette, is out of the country but plans to be back to answer the charges within a week, according to defense attorney Joseph J. Duffy.

Assistant U.S. Atty. Christopher Niewoehner told U.S. District Judge Amy St. Eve this afternoon that the travel excuse "suggests Mr. Rezko has other priorities than attending this case."

At the urging of prosecutors, St. Eve declined to block execution of a warrant for Rezko's arrest.

Duffy argued the arrest warrant could complicate Rezko's travel, and that he could be detained if he were to switch planes in London, for example.

Niewoehner said the government has no interest in slowing Rezko down and would help facilitate his return to the United States, but insisted the warrant stand.

"We don't necessarily take the word of Mr. Rezko that he is returning," the prosecutor said.

The judge asked Duffy to make Rezko's itinerary available to prosecutors and to the court as soon as possible, and extended the arraignment six days.

"I do expect him to be here," St. Eve told Duffy.

Outside of court Duffy was asked which Middle Eastern country Rezko is conducting his business in. "I reported what I knew," Duffy said.

Rezko was due to appear before St. Eve to be arraigned on charges of fraud involving allegations he used his relationships with high-ranking Illinois officials to try to extort millions of dollars from firms seeking to do business with the state.

Earlier today, at another hearing in federal court, Duffy assured U.S. District Judge James B. Zagel that his client was not on the run. Zagal also gave Duffy until next week to get Rezko in his courtroom.

After the 10 a.m. hearing, outside the courtroom, Duffy criticized federal prosecutors for not taking up an offer from Rezko "to make himself available … if they wanted him to explain his conduct or had any questions about his actions" before indicting him.

"The indictment was returned unbeknownst to myself and Mr. Rezko, and it was unexpected," Duffy said. "I spoke with Tony this morning," Duffy added. "He understands his obligations as a citizen, and he looks forward to coming back."

The arraignment hearing before Zagel was to answer to fraud charges stemming from the allegedly bogus sale of Rezko's pizza restaurants. Duffy called those charges "nothing more than the result of some civil litigation that's been going on for years against G.E. (General Electric Credit Corp.)"

Rezko, a member of Blagojevich's inner circle and one of his chief fundraisers, is accused of trying to force illegal payments from investment firms that were seeking business with the Teachers' Retirement System. Rezko allegedly used the position of his co-defendant, Stuart Levine, to pressure the firms.

Levine, once a member of two state boards, is a cooperating witness for the government.

Rezko's whereabouts have been a concern for federal investigators for weeks as the cases against him progressed. He was indicted under seal Oct. 5, and federal prosecutors moved to unseal the documents Wednesday as a federal warrant for his arrest was issued.

Tribune staff reporter Matt O'Connor and the Associated Press contributed to this report.

rrbush@tribune.com

jcoen@tribune.com

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