Levine weaves tawdry tale

Rezko jury hears of bribes, Vrdolyak ties, drug use

March 19, 2008|By Bob Secter and Jeff Coen, TRIBUNE REPORTERS

The government's star witness in the corruption trial of Antoin "Tony" Rezko took the stand Tuesday and in just 48 minutes laid out a stunning personal tale of bribery, treachery, rampant drug abuse and a precipitous fall from grace.

In a brief but vivid prologue to what is expected to be days of testimony, one-time political insider Stuart Levine said he had illegally greased contracts to sell tires to the city's Streets and Sanitation Department and supply school buses to the Chicago Board of Education and even health insurance to members of a postal workers union.

Levine, 62, identified one of his partners in bribery as former Chicago Ald. Edward Vrdolyak, who is facing federal criminal charges in a related case.

Prosecutors say Levine and Rezko worked hand in hand to corrupt two state boards in a scheme to extort kickbacks from firms seeking government business or regulatory approval. Levine, a member of both panels, allegedly took direction from Rezko, a friend and fundraiser of Gov. Rod Blagojevich.

Testifying as part of a plea deal with prosecutors, Levine quickly made it clear how thoroughly his high-flying life had unraveled since federal agents swooped down on him several years ago.

He made $9 million to $10 million early this decade in a variety of investments, consulting jobs and business ventures, Levine told jurors. And now? "Currently I'm an independent contractor for Chicago Messenger Service," Levine said. "I deliver packages." He said he makes $800 a week.

Levine was charged with corruption along with Rezko but pleaded guilty and agreed to testify. Technically, Levine could be sentenced to life in prison, but he said he hoped prison time would be limited to about 51/2 years in return for his cooperation with the government.

"If I lie, the plea agreement is null and void," Levine said under questioning from Assistant U.S. Atty. Christopher Niewoehner.

Dressed in a crisp black suit, Levine spoke clearly and without hesitation, giving answers that seemed focused and well-coached. He displayed the demeanor of a practiced public speaker and lawyer and hardly the picture of a strung-out drug abuser that Rezko's attorneys hope will damage his credibility.

Levine appeared polished from the start, giving a firm "I do" when asked by U.S. District Judge Amy St. Eve if he swore to tell the truth.

Prosecutors quickly moved to confront the drug issue head on, with Niewoehner asking for an inventory of his excess.

"I experimented with LSD, marijuana, cocaine, quaaludes, Ecstasy, crystal methamphetamine, ketamine," answered Levine, explaining that his drug use spanned from 1972 to 2004, when federal agents confronted him about corruption.

Levine said he agreed to cooperate with the government in January 2006 and was interviewed "certainly more than 100 times" by federal prosecutors and agents. Levine said he initially lied in those sessions to protect Vrdolyak but ultimately decided to be straight when he realized federal agents were on to his deception.

Vrdolyak's attorney, Michael Monico, called Levine's allegations "categorically false and untrue."

"It's hard to imagine a witness with less credibility than Stuart Levine," said Monico, adding that he was upset that the allegations were leveled during the Rezko trial when Vrdolyak was not present.

"It was unfair," Monico said. "We had no opportunity to defend ourselves."

Early days

In introducing himself to jurors, Levine ticked off an often tawdry resume that began innocently enough when he went into law practice in 1971 with Jim Ryan, his old study partner from Chicago-Kent College of Law. When Ryan, a Republican, ran for Illinois attorney general and governor years later, Levine was a major financial backer.

Levine said he later struck out on his own as a lawyer but ultimately ended up managing business interests for his mother's cousin, wealthy investor Ted Tannebaum.

While working for Tannebaum in the 1980s, Levine said, he paid $50,000 in bribes on behalf of Consumer Tire & Supply Co. to help it win a Streets and Sanitation tire-supply deal.

Around that time, Levine said, he also helped Willett bus company buy its way into city school business.

"They wanted contracts with the Chicago Board of Education to supply school buses," said Levine, adding that he took in hundreds of thousands of dollars and paid bribes on the company's behalf.

On top of that, Levine confessed to paying bribes to get members of a postal union to sign up for health insurance with an HMO in which he had invested. Levine told jurors that he passed money to Vrdolyak, who was acting as a consultant for the firm, Chicago HMO, and Vrdolyak then forwarded the bribe money to someone else. Levine also said Chicago HMO had hired Republican power brokers William Cellini and Robert Kjellander as consultants, though he did not accuse them of any illegal activity.