Monday, January 28, 2008

Rezko's shady kick-back scam - the scheme involved sham contracts, straw companies and "skimming" from a pension fund


Details are emerging about Tony Rezko, fundraiser to Obama and Clinton, and his shady schemes to line his own pockets, according to prosecutors and journalist accounts. Rezko was invloved in efforts to illegally skim millions in bogus "finder's fees" from various Illinois firms. There are sham contracts and "kickbacks" and plans for straw companies to receive funds for managing pension fund accounts. One $10,000 payout goes into a political campaign account, prosecutors say. Christopher Kelly, the governor's chief fundraiser, was indicted last month on charges of filing false tax returns. Accounts include a dizzying array of unidentified "co-schemers" and "individuals" - including an investor who pushes back after being approached for either a $1.5 million campaign contribution to Blagojevich or an unnecessary consulting fee of $2 million.The alleged schemers back off, prosecutors say, though Rezko vows the investor never will do business with Illinois boards again and that the man "means nothing" to Blagojevich.


Rezko faces a highly anticipated Feb. 25 trial. More here.