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* Stay with me to the end, but you might wonder when reading this Tribune story if the federal charges against Bill Cellini will actually stick…
In the filing, the government alleges that Cellini, who was a presence in Illinois politics for four decades, discussed his longevity in a February 2004 meeting on an upcoming allocation of $4.8 billion in pension board money.
Cellini recounted to the group — which included Stuart Levine, who was also charged with public corruption — about a meeting he had just had with Rezko and Kelly.
“Upon arriving, [Cellini] said he had just come from a meeting with Rezko and Kelly, and he was upset with them,” the document reads. “He told Rezko and Kelly that they were moving too fast and were going to get themselves in trouble. Defendant said he told Rezko and Kelly that they should take [Cellini] as an example: He had been doing this for 30 years and had always stayed above the fray.”
Is that really proof of wrongdoing? Cellini was obviously worried about the Blagojevich guys’ over the top ways…
“He (Cellini) said: ‘I know that their (modus) operandi is different than what ours was. … I know that uh, we would not call somebody after they got something or before they were gonna get something. … As the general rule they do. That will set up a pattern that could be used and then all they (investigators) gotta do is ask some of these people and these guys will cave in like a herd of turtles.’”
* Here’s the heart of the case…
The government has charged Cellini with conspiring to commit extortion with Rezko, Kelly and ex-TRS board member and Cellini ally Stuart Levine. Prosecutors said the four men conspired in the spring of 2004 to withhold $220 million in Teachers’ Retirement System investment funds from a firm named Capri Capital unless Thomas Rosenberg, a principal in the firm, made a $1.5 million campaign contribution to Blagojevich or paid a $2 million fee to Rezko, Kelly and Levine.
Cellini has denied any wrongdoing. His attorney, Dan Webb, said in July that Cellini received no financial benefits, paid no money and didn’t receive any money.
“He didn’t do anything,” Webb said.
You may not remember it, but Tony Rezko was acquitted of the charges related to the alleged Rosenberg shakedown. Levine was the star witness in that particular count. Levine failed miserably because the defense successfully argued that he had concocted the whole thing in his head. Levine’s drug-addled ways and the fact that he was under threat of going to prison for many, many years were both offered as reasons for his lies.
* OK, now let’s switch from the news coverage to the actual federal proffer, which was filed this week and which you can read by clicking here.
This all started when Levine told Cellini he wanted to kill Capri’s Teachers Retirement System deal because he and Rosenberg were enemies. Levine put a brick on Rosenberg’s TRS deal by using his influence at the board. Cellini was allegedly at a private meeting when this was discussed. Rosenberg called Cellini for help, and he agreed, even though he knew what was going on from the beginning. Up until that point, this all was just petty business politics, albeit more than a little tawdry.
* But then Allison Davis, an associate of Rosenberg’s - “Individual E” in Fedspeak - allegedly approached Tony Rezko about Rosenberg raising campaign money for Rod Blagojevich…
[According to Levine] Rezko said that he had been approached by an African-American man whose skin was white, Individual E, who told Rezko that Rosenberg was interested in raising money for the governor, and had a matter pending before TRS. Rezko said that when Individual E mentioned Rosenberg and Capri, Rezko remembered what Levine had mentioned about Capri at their private meeting a few weeks earlier. Kelly asked Levine about the extent of Capri’s state business, and Levine explained that Capri was due to receive a $220 million allocation at TRS and, overall, was managing hundreds of millions of dollars of TRS’s assets. Kelly responded that with that much state business, Capri and Rosenberg should be contributing a great deal of money to Blagojevich.
Levine suggested that Rosenberg be given a choice: make a $1.5 million campaign contribution to Blagojevich, or pay a $2 million fee.
Levine also told Rezko and Kelly that [Cellini] had already had one conversation with Rosenberg, in which Rosenberg sought [Cellini’s] help to get the allocation. Rezko suggested that Levine call [Cellini] and make him aware that Rosenberg had approached Rezko about raising money for the governor. Further, Rezko suggested [Cellini] should contact Rosenberg to make him aware that by approaching Rezko about fundraising, [Cellini] was no longer in a position to help Capri get its allocation; this was now a fundraising issue that Rosenberg would have to address with Rezko and Kelly.
However, Rezko’s defense successfully claimed during Rezko’s trial that Levine had made up this story as well.
And, more importantly, Allison Davis told the feds that the alleged fundraising conversation with Rezko never happened. Levine, according to Rezko’s defense, made it all up, start to finish.
* Anyway, Rosenberg told Cellini he didn’t send anybody to talk to Rezko and Kelly, and said heads would roll if that had actually happened. After checking around, Rosenberg talked to Cellini again…
Rosenberg told defendant that he would walk away from business at TRS before giving Rezko and Kelly any money for a campaign contribution. Rosenberg told defendant that he would take Rezko and Kelly down, telling the public and the governor himself about the attempted shakedown.
Not long after that, Rezko and Blagojevich allegedly decided that it was best not to mess with Rosenberg any more. The matter was dropped and Rosenberg’s company got its full TRS investment allocation. The Rezko legal team said there was nothing to be dropped because there was no shakedown attempt. Rezko’s jury agreed.
In between the first contact with Levine and the alleged finale, however, Cellini made several phone calls to, as the prosecutors put it, further the the alleged shakedown conspiracy and then covered his tracks.
For instance, Rezko allegedly assigned Levine the responsibility of telling Rosenberg about the details of what they wanted, either the $1.5 million in campaign contributions or the $2 million “fee.” Rezko, of course, denied that this conversation ever took place, and he was acquitted. Cellini did attempt to get Rosenberg to call Levine, but Rosenberg testified at Rezko’s trial that Cellini himself did not try to solicit campaign money from him. Still, according to the feds, what Cellini did was illegal.
* Back to the proffer…
Throughout the conspiracy, defendant and his co-conspirators, including Stuart Levine, Tony Rezko, Chris Kelly, Steve Loren, and Individual A (TRS’s executive director), sought to conceal their agreement and acts. Defendant told multiple lies to Rosenberg in an effort to hide his own role, and Levine’s, and Rezko and Kelly’s, in the shakedown attempt. Defendant also took measures to placate people he thought might expose his role in the conspiracy. In addition, defendant and others discussed the possibility of removing the U.S. Attorney for the Northern District of Illinois in an effort to stop any investigation into the co-conspirators and others.
As a result of his actions, defendant was charged in an indictment with participating in a conspiracy. First, the indictment charges defendant with conspiring to defraud TRS beneficiaries and the people of the State of Illinois of their intangible right to Levine’s honest services, all in violation of Title 18, United States Code, Section 371. Second, the indictment charges defendant with conspiring to commit extortion by attempting to obtain political contributions for Blagojevich from Rosenberg and Capri in exchange for releasing the $220 million allocation of funds from TRS, all in violation of Title 18, United States Code, Section 1951.2/ Defendant is also charged with attempted extortion under Title 18, United States Code, Section 1951, and solicitation of funds under Title 18, United States Code, Section 666(a)(1)(B).
* So, what about all those worries that Cellini expressed about the Blagojevich crew? Let’s turn now to the government’s motion in limine…
Defendant’s expressed concerns that Rezko and Kelly were “moving too fast” to place firms at TRS reflect defendant’s consciousness that scrutiny drawn to Rezko and Kelly would harm him as well, and tend to show that defendant had knowingly joined a conspiracy that was at risk of being exposed by the imprudent conduct of defendant’s co-conspirators. Further, defendant’s statement that he had been “doing this for 30 years and had always stayed above the fray” places defendant’s criticisms in context, making it clear that defendant’s beef with Rezko and Kelly was not that they were engaged in exchanging state action for campaign contributions, but, rather, that their methods were too obvious. Defendant’s expressed concern therefore demonstrates the criminal nature of the conspiracy and defendant’s knowing participation in it.
The same holds true for defendant’s recorded statements regarding Rezko and Kelly. Defendant’s criticism of Rezko and Kelly’s methods, and his comparison of those methods to those he had previously employed successfully – i.e., without detection – evince defendant’s consciousness of guilt which, in turn, shows defendant’s participation in the conspiracy (otherwise, the tactics of Rezko and Kelly would not be a cause of concern for defendant). The statements are thus relevant to show the criminal nature of the conspiracy and defendant’s knowing participation therein.
The defense will surely argue that Cellini’s statements made clear that he knew the Blagojevich people were crooks and was doing his best to stay within the law. Whoever wins that argument could win the case.
* In related news…
Rod Blagojevich may have to wait for his day of reckoning.
As it now stands, the former governor’s scheduled sentencing date next month directly conflicts with a trial in a related case.
U.S. District Judge James Zagel set Blagojevich’s sentencing for Oct. 6. However, on Oct. 3, the trial of Springfield power broker William Cellini — which entails allegations involving Blagojevich fund-raisers — is scheduled to start before the same judge and some of the same prosecutors.
While Cellini attorney Dan Webb said Wednesday he believes his client’s trial date isn’t going to move, Blagojevich lawyer Sheldon Sorosky said he wouldn’t be surprised if his client’s sentencing does. […]
In court on Wednesday, a federal judge held firm an Oct. 21 Rezko sentencing date even though prosecutors asked for the date to be moved until after the Cellini trial. They didn’t say why, but the same prosecution team is working on both trials.
Rezko lawyer William Ziegelmueller said he opposed the date being moved again.
posted by Rich Miller
Thursday, Sep 8, 11 @ 2:57 am
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Interesting take Rich. Where did you got to law school and how much do you charge an hour? Who will testify against him and what will they say? Maybe that’s the nail in the coffin.
Comment by Anonymous Thursday, Sep 8, 11 @ 6:18 am
I think many are still interested in the full list of the Stu Levine calls just to see what other bright lites shine.
Gotta wonder when IL “journalist” will be asking.
Should we also assume the new mentions of Rezko will bring out all the wing nuts comments about the President too?
Comment by CircularFiringSquad Thursday, Sep 8, 11 @ 6:51 am
After “30 years of doing this”, a guy like Cellini has a large number of enemies or people he’s stepped on in some way. The Feds have got to have plenty of witnesses they could bring in to establish a pattern. But this case will ultimately be won or lost I think by how compelling each side’s expert accountant’s testimony is. They have to break down a very complex story into digestible chunks for the jury. I hope they get it right.
Comment by Gregor Thursday, Sep 8, 11 @ 7:23 am
Any educator that reads this and does not believe their money is not better off in a 401K plan that they control and not with the state is too ignorant and corrupt to be allowed to continue teaching. This is such a mess and the IEA/NEA who are supposed to be watching this stuff have basically said nothing about it.
Comment by the Patriot Thursday, Sep 8, 11 @ 7:52 am
Cellini has been operating on the fringe of legal behavior for years, always crafty enough to work the system for millions while appearing to be just another solid Illinois family man working hard for the asphalt industry. He will be a lot harder to nail than Blago and his crew.
Comment by Stooges Thursday, Sep 8, 11 @ 8:03 am
Would be so typical Illinois if the Feds let Cellini walk, the guy who personally probably profited from IL government more than almost anyone in history (maybe or maybe not always legally), and instead focused on mostly big show trials of often times piddly stuff.
Comment by just sayin' Thursday, Sep 8, 11 @ 8:25 am
Webb will probably have some fun defining the “this” in the “30 years of doing this”.
Whatever “this” means, it looks like “this” is paying some legal bills.
Comment by CoffeeParty Thursday, Sep 8, 11 @ 8:27 am
Very tricky. Cellini will have to convince the jury that he “received no financial benefits” while the government is outlining for the jury his 30+ years of making a living off his business with the state.
Comment by Cheswick Thursday, Sep 8, 11 @ 8:39 am
While I have no love for Cellini, I hope that our justice system doesn’t allow him to be convicted if this is all they have.
Comment by Small Town Liberal Thursday, Sep 8, 11 @ 8:45 am
When the heck is Stuart Levine getting sentenced?
Comment by Belly Up Thursday, Sep 8, 11 @ 8:53 am
For a guy who had been “doing this for 30 years,” Cellini demonstrated incredible recklessness in doing business with ham-handed oafs like Kelly and Rezko. Those guys were begging for federal attention with their clumsy and obvious ways.
You’d think a guy like Cellini — who’s banked a bundle over the years — would have been smart enough to realize that some scores you just have to leave alone.
Comment by wordslinger Thursday, Sep 8, 11 @ 8:53 am
Wow, if that is all the case hinges on I think the Feds over-reachyed with this one. BC has become rich off of the state and but I dont think that is a crime, otherwise we had better round up a whole host of people and companies that have made millions off of state contracts. He has never been convicted (or as far as I recall)charged with any criminal wrongdoing in conjunction with state business up until this mess.
Comment by Kerfuffle Thursday, Sep 8, 11 @ 9:13 am
Republicans (such as DuPage Chairman Ramey) love to lambaste Democrats for their ethical shortcomings. The Celinni and Levine cases should be a reminder about people who live in glass houses.
Comment by reformer Thursday, Sep 8, 11 @ 9:30 am
Regardless of the outcome of his trial, and whether or not he committed any crimes, this prosecution pulls the curtain back on decades worth of insider deals, cronyism and people like Cellini, Levine and others who were simply out to make a buck off the state. We all knew something didn’t smell right, and now we know we weren’t simply imagining things. If what Cellini did is not corruption, it is still not what we expect from state leaders.
The case may be weak, but the history still stinks.
Comment by 47th Ward Thursday, Sep 8, 11 @ 10:13 am
I have no doubt that Cellini will be acquitted, and if this is all they’ve got then I’m glad. The notion of criminalizing politics may be in order.
All that being said, however, I recall a headline some years ago in the Sun-Times estimating Mr. Cellini’s net worth at $50+ million and calling him the “King of Clout”. Given his success and fortune, the question to me was why he was wallowing in the muck with that ham-handed crew of Blago’s?
Comment by LincolnLounger Thursday, Sep 8, 11 @ 10:16 am
reformer,
You are really conflating Ramey’s personal tragedy with decades of Democrat corruption? Yep, just the same.
Comment by Cincinnatus Thursday, Sep 8, 11 @ 10:29 am
–You are really conflating Ramey’s personal tragedy with decades of Democrat corruption?–
Getting popped for DUI is a “personal tragedy?” Like he’s a victim or something?
Conflating?
Comment by wordslinger Thursday, Sep 8, 11 @ 10:33 am
- Like he’s a victim or something? -
Obviously word. Illinois Democrats drove him to drinkin’ and drivin’. Tragedy of Shakespearean proportion.
Comment by Small Town Liberal Thursday, Sep 8, 11 @ 10:45 am
The feds keep complaining about the laughably absurd “plan” to replace the US attorney. It doesn’t reflect well on them.
Comment by The Captain Thursday, Sep 8, 11 @ 10:59 am
Wordslinger,
There is a backstory that many of you do not know about. Just sayin’
Comment by Cincinnatus Thursday, Sep 8, 11 @ 11:02 am
–There is a backstory that many of you do not know about. –
Undoubtedly it involved many drinks and getting behind the wheel. Ramey’s standing up, taking responsibility and not making excuses.
Comment by wordslinger Thursday, Sep 8, 11 @ 11:14 am
- There is a backstory that many of you do not know about. -
Oh, I didn’t realize it was ok to drink and drive if you were sad about something. Have some consistency, Cinci, do you have the same sympathy for all of the kids who grow up with tragedy and end up on welfare? I don’t think a DUI should be the end of the world, nor should it define one’s character, but excusing it because someone had a rough day is pathetic.
Comment by Small Town Liberal Thursday, Sep 8, 11 @ 11:20 am
- Ramey’s standing up, taking responsibility and not making excuses. -
Agreed, and my remarks were not meant to disparage Rep. Ramey. He appears to be doing the right thing.
Comment by Small Town Liberal Thursday, Sep 8, 11 @ 11:22 am
Cinci
I was comparing Celinni and Levine to corrupt Dems. I listed Ramey because of his wont to attack Democrat shortcomings. Ramey also loves to rail about illegal immigrants. “The law is the law!”
Comment by reformer Thursday, Sep 8, 11 @ 11:26 am
Blago skates again!
Comment by Tommy Boy Thursday, Sep 8, 11 @ 12:00 pm
A lawyer I once knew often said that before he would guess on the likely success of a close case, he wanted to see the jury. I suspect this is one of those instances where that rule may hold true. And Mr. Celinni is a wealthy man, who probably will have the best consultants money can buy to assist his attorney in picking a jury.
Comment by Cook County Commoner Thursday, Sep 8, 11 @ 12:13 pm
So from what I just read, it appears the chicken plucker from the northend of Springfield was the smartest guy in the room. Smart enough to fleece state government for 30 years, not get caught and now about to walk from the Feds case.
Comment by Bitterman Thursday, Sep 8, 11 @ 1:20 pm
Call me an oversimplifier, but it seems that Fitz and his fellow U.S. Attorneys are merely drawing a line in the sand and dares anyone to step over said line. Was Cellini the worst out of this group - and did he even do anything?! To the feds, it doesn’t matter because Cellini had basic intent and bothered to show up in the first place. But to those who think the feds (and Fitz especially) are overreaching, perhaps the time has come to stop people like Cellini from bilking the state out of a small fortune and then go for more. I admire the feds (especially Fitz) for doing this. Our state runs in the red; we have an unsavory history of corruption and shakedowns; and we are facing an unprecedented pension problem. At the very least, it’s comforting to know that some people actually look out for taxpayers and want to stop corruption, no matter how small or unintentional it may be.
And to those who brought up Cellini’s net worth, let’s not forget that the most prolific of corporate and Wall Street crooks are typically the most wealthy and already at the top of the food chain.
Comment by Team Sleep Thursday, Sep 8, 11 @ 1:53 pm
- LincolnLounger - Thursday, Sep 8, 11 @ 10:16 am:
===him the “King of Clout”. Given his success and fortune, the question to me was why he was wallowing in the muck with that ham-handed crew of Blago’s? ===
Two thoughts. One, it’s hard to stop (anything, but especially making money) when you’re having fun, and these crew members were the replacements for the previous crew who facilitated (for lack of a better word) his way of life the prior 25 years.
Two, and this is my personal theory, assuming he would have even been willing to fold up shop and take his $50 million and go home never to be heard from again, it wasn’t just him. There were and are other known and unknown interests that he represents, who were all shaking in their boots at the prospect of being shut out by this new Democratic administration coming in after 25 years of business as usual. I think Bill felt compelled to stay in the game for the sakes of those people who don’t have the luxury of folding up and going home — not that they’d feel any culpability for Bill’s current predicament. But, anyway, gone were the Thompson and successor crews, in was the Blago crew.
(I hope some of this makes sense.)
Comment by Cheswick Thursday, Sep 8, 11 @ 1:54 pm
He try to get the us attorney removed…
Comment by Just Because Thursday, Sep 8, 11 @ 4:17 pm
===He try to get the us attorney removed… ===
Actually, he told somebody that somebody else was in charge of that.
Comment by Rich Miller Thursday, Sep 8, 11 @ 4:21 pm
CircularFiringSqaud; these are not new mentions of Rezko, Rezko was convicted over 3 years ago and is still waiting to be sentenced and Fitzgerald has been “threatening” to use his testimony ever since…but has not come through??? There are plenty of people who you refer to as “wing nuts” that have been waiting for clearification on the Rezko/Obama relationship. The fact that Judge Zagel refused the Blago defense the 302’s to the Fitzgerald/ Obama 2 hour interview after numerous request and direct testimony from Tom Balanoff who directly tied Obama into the Senate negotiations is not the “transparency” Obama promised in his 2008 campaign.
In case you missed Chris Fusco and Tim Novaks article a little over a month ago I attached it…
http://www.suntimes.com/news/watchdogs/6394342-452/ex-rezko-partner-being-sentenced-tuesday.html
Comment by Bessie Friday, Sep 9, 11 @ 10:02 am