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Politics : THE WHITE HOUSE
SPY 683.38+0.1%Nov 12 4:00 PM EST

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To: longnshort who wrote (24835)10/30/2008 5:56:47 PM
From: DuckTapeSunroof  Read Replies (1) of 25737
 
U.S. Indicts Alleged Rezko Accomplice
(Update1)

By Andrew Harris
bloomberg.com

Oct. 30 (Bloomberg) -- William F. Cellini, an Illinois Republican Party leader, was indicted by a U.S. prosecutor for his alleged role in the fraud scheme that led to the conviction of Antoin ``Tony'' Rezko, a former fundraiser for Barack Obama's U.S. and state senate campaigns.

Cellini, 73, of Springfield, the state's capital, was charged with conspiracy to commit mail fraud and extortion, attempted extortion and soliciting a bribe, according to a statement today by Chicago U.S. Attorney Patrick Fitzgerald.

Cellini is accused of plotting with Rezko and Chicago-area businessman Stuart Levine to extort money from the Capri Capital investment firm and its then-principal, Thomas Rosenberg. If convicted on either extortion count, Cellini could receive a federal prison sentence of as long as 20 years, Fitzgerald said.

Rezko was convicted in June for his role in a plot to receive millions of dollars in kickbacks from firms doing business with the Illinois teachers' pension plan and another panel controlling hospital construction. He is awaiting sentencing. Obama, the Democratic presidential candidate, wasn't accused of wrongdoing in the case.

Cellini is a former chairman of Argosy Gaming Co. in Alton, Illinois
. His lawyer, Dan Webb of Winston & Strawn in Chicago, said today in a statement that his client is ``completely innocent'' of the charges. ``Bill is confident that a jury will find him not guilty,'' Webb said.

This month, Cellini voluntarily resigned from his post as treasurer of the Sangamon County, Illinois, Republican Party, said Bruce Stratton, its treasurer and general counsel.

`Competent, Hard Working'

Stratton said today in a phone interview that he has known and worked with Cellini for about 30 years and described him as ``a very competent, hard working and skillful business person.''

``I have every confidence when this is all over, he will be vindicated,'' Stratton said.

At Rezko's trial, Rosenberg, now a Hollywood producer and principal of Lakeshore Entertainment Group, testified that Levine, a board member of the Illinois Teachers Retirement System, had demanded $500,000 from him when Capri sought a 2002 investment from the teachers' pension plan.

Prosecutors said Rezko and Levine then demanded from Rosenberg a $2 million kickback or $1.5 million in political contributions in 2004 in exchange for his firm receiving a $220 million investment from the pension plan.

Levine, who pleaded guilty, testified that the $1.5 million was intended for the campaign of Illinois Governor Rod Blagojevich, a Democrat. Jurors heard a phone call, recorded by the Federal Bureau of Investigation, in which Cellini told Levine that Rosenberg was angry about the donation demand.

Rosenberg's Testimony

Rezko was acquitted of charges related to Rosenberg and Capri Capital.

``Tom Rosenberg testified that Bill Cellini never asked him for any money and that Rosenberg never paid any money to Cellini or anyone else,'' Webb said.

The governor's office has denied any role in the plot. No date has been set for Cellini's first court appearance, said Randall Samborn, a U.S. Attorney's Office spokesman.

The case is U.S. v. William F. Cellini Sr., in the Northern District of Illinois, Eastern Division (Chicago).

To contact the reporter on this story: Andrew Harris at the federal court in Chicago at aharris16@bloomberg.net.
Last Updated: October 30, 2008 16:13 EDT
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