Possible change of heart ..Rezko talked with prosecutors, may aid probe, sources say

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Could this be our October surprise?

Possible change of heart Rezko talked with prosecutors, may aid probe, sources say By David Kidwell, John Chase and Jeff Coen | Chicago Tribune reporters 5:24 PM CDT, September 27, 2008 Antoin "Tony" Rezko, a convicted influence peddler who was once one of Gov. Rod Blagojevich's most trusted confidants, has met with federal prosecutors and is considering cooperating in the corruption probe of the governor's administration, sources told the Tribune.

Rezko's possible change of heart—after years of steadfast refusal—has sent ripples through a tight circle of prominent defense attorneys who represent dozens of potential witnesses and targets in the wide-ranging probe.

His cooperation would give prosecutors investigating the governor and his wife access to someone they have described as an ultimate political insider at the center of a pervasive pay-to-play scheme.

Rezko's trial this year laid bare a culture of scams, bribes and backroom deals stretching from City Hall to the Statehouse. It even became fodder in the presidential campaign of Democratic nominee Barack Obama, whose fundraising and personal ties to Rezko go back more than a decade.

Related links The Rezko case

Gavel-to-gavel | Complete coverage

Antoin "Tony" Rezko on trial Photos Rezko trial highlights Graphic Rezko jury's findings, count by count Graphic Names linked to Rezko Multimedia Rezko has made no deal in the wake of his June corruption conviction, sources familiar with the situation said, but has had preliminary talks with prosecutors before an October sentencing that could put him in prison for years. Still, there are indications Rezko has already provided investigators with information.

Four attorneys have told the Tribune in recent days that federal prosecutors have telephoned them and other attorneys either with news Rezko is talking, or armed with details only Rezko could know. The lawyers speculated prosecutors are using the preliminary talks with Rezko to shake loose more cooperation from other witnesses.

"I had very recent a conversation with an assistant U.S. attorney that led me to believe they were getting specific information from either Mr. Rezko or Mr. Rezko's lawyer," said a defense attorney who said he represents a figure in the case. None of the attorneys interviewed would agree to be quoted by name, saying they didn't want to hurt their clients.

The U.S. attorney's office in Chicago declined to comment, as did Rezko's attorney William Ziegelmueller.

Rezko's potential worth to federal authorities extends to every aspect of their investigation, including probes of state hiring and real estate deals involving the governor's wife. Prosecutors have portrayed Rezko, a former restaurant magnate and real estate developer, as intricately involved in some of the most guarded decisions since the earliest days of the administration.

During his trial, prosecutors described Rezko as having a direct line to the governor and his top aides on issues including policy and the appointments of key department heads and members of state regulatory boards. And, they charged, Rezko traded those positions and favors for some of the millions in campaign contributions he raised for the governor, and for the allegiance of those he lifted to influential posts.

One key aspect of the federal investigation centers on the real estate dealings of the governor's wife, Patricia, who was paid hundreds of thousands of dollars over the years as a broker for Rezko, his associates and others with business before the state. Federal investigators have subpoenaed records and conducted interviews regarding her real estate dealings. The governor and his wife have denied wrongdoing.

During the trial, three convicted political insiders testified about private meetings with the governor that prosecutors cited as evidence of a scheme to buy state jobs and business with campaign donations. Each testified that Blagojevich implied campaign donors would profit from his influence.

One of those witnesses, former Illinois Finance Authority Executive Director Ali Ata, testified that he attended a meeting at Rezko's offices with Rezko and the governor before he was hired. At the meeting, Ata said, he brought a $25,000 check that was placed on the table in front of Blagojevich, who then mentioned a state job.

Rezko has adamantly denied guilt and vowed never to cooperate with federal investigators.

Two months before his conviction on fraud charges, Rezko typed a letter to his trial judge accusing "overzealous" prosecutors of pressuring him to talk about wrongdoing involving Obama or Blagojevich. Rezko said there was none to talk about.

"They are pressuring me to tell them the 'wrong' things that I supposedly know about Governor Blagojevich and Senator Obama," Rezko wrote U.S. District Judge Amy St. Eve in an April bid to be released on bail during his trial.

"I have never been party to any wrongdoing that involved the governor or the senator," Rezko continued. "I will never fabricate lies about anyone else for selfish purposes

Possible change of heart -- chicagotribune.com