Tuesday Rezko Update: A Whisper Was All It Took

Mike Robinson Reporting

CHICAGO (AP) – The Jury was told a millionaire attorney and admitted fixer publicly whispered in the ear of a state planning board member who then changed a vote and approved an $81 million hospital construction project, as political fund-raiser Antoin "Tony" Rezko’s fraud trial continued Tuesday.
The April 2004 vote clearing the way for construction of Mercy Hospital at Crystal Lake in McHenry County was a key to a plan by Rezko and attorney Stuart Levine to split a $1 million payoff, according to federal prosecutors at Rezko's trial.
Rezko, a fund-raiser for Gov. Rod Blagojevich, and Levine were expecting the bribe from a contractor and in return were arranging for the Illinois Health Facilities Planning Board to approve the hospital construction, prosecutors say.
But the planning board had turned down the hospital on its first vote and when it came up again months later, the Illinois Public Health Department's staff continued to voice objections.
The planning board has life-or-death power over proposals to build or expand hospitals, nursing homes and other health care facilities in Illinois. Many millions of dollars ride on its decisions.
When the Mercy Hospital matter came up for a second vote on April 21, 2004, it fell short by one of five needed votes. One board member, Dr. Imad Almanseer, registered his vote as "P" -- standing for "present" or "pass."
Donald Jones, an Illinois Department of Public Health official, testified Tuesday: "Stuart Levine was a board member and got up from his seat and whispered in Dr. Almanseer's ear.
"Dr. Almanseer changed his vote and at that point the project had five votes," Jones testified. As a result, the project was approved, he said.
"Had you ever seen anything like that during a vote?" Assistant U.S. Attorney Reid J. Schar asked Jones. Jones replied: "No."
On Monday, jurors had seen documents showing Rezko had urged the Blagojevich administration to put Almanseer on the board.
Prosecutors maintain it was Rezko's clout with the administration, combined with Levine's board membership, that made the bribe scheme work.
A former employee of the governor's Office of Intergovernmental Affairs, Jennifer Thomas, testified that she met with Rezko and her boss in Rezko's office to talk multiple times to about who got hired for state jobs and got seats on boards such as the health facilities board.
The trial expected to take three to four months is only in its third day; so far, prosecutors have not presented evidence tying Rezko into an actual scheme to get a payoff.
But Levine, who has pleaded guilty and now figures to be the government's star witness, is expected to take the stand.
The hospital payoff scheme is only one part of the 24-count indictment that charges Rezko with fraud, attempted extortion and money laundering.
In addition, Rezko and Levine allegedly planned to pressure firms wanting to invest money for the $30 billion state teachers pension fund to pay $7 million in kickbacks. The scheme fizzled, however, because FBI agents confronted Levine before the money was paid out, prosecutors say.
Rezko denies he had any part in a bribery or kickback scheme.
Defense attorney William Ziegelmueller questioned Jones repeatedly about pressures put on the Department of Public Health and the board itself to approve the hospital construction project.
Jones acknowledged that Mercy Hospital hired the law firm of state Rep. Jack D. Franks to lobby the board and a number of lawmakers, as well as state department heads who wrote letters urging approval of the project.
Among those signing the letters was Jack Lavin, director of the state's Commerce and Economic Development Department who is a former Rezko employee.
The letters pressed the case for the 70-bed hospital, saying it would be a boon to the elderly, stimulate business and raise the tax base.

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