Courtroom Wire:

Notes From Tony Rezko’s

 Corruption Trial

Monday, April 21, 2008

CHICAGO —  Real estate developer Antoin “Tony” Rezko is on trial in a Chicago federal courtroom on political corruption charges for allegedly buying influence with Illinois Gov. Rod Blagojevich’s administration.

Rezko doesn’t deny his role as a high-powered money man for major Democrats — including presidential candidate Barack Obama when Obama served in the Illinois Legislature — but he refutes prosecutors allegations that he tried to shake down companies that wanted to do business with the state.

FOX News producers Marla Cichowski and Ruth Ravve are in the courtroom, following daily developments. Here are their reports.

Monday, April 21
(3:30 p.m. ET)

A direct connection was made by a witness today to Tony Rezko and the bogus “consulting” fees required of investment firms, in exchange for access to millions in Illinois state funds.

Richard Driehaus, the founder and owner of Driehaus Capital Management (DCM), took the stand today to recall a significant dinner meeting in 2003, where he was first introduced to Rezko. Driehaus says he was told Rezko was “close to the state of Illinois” and could be a potential client.

According to Driehaus, Rezko had no interest in learning much DCM, and only seemed to care about whether Driehaus would pay a “finder’s fee” if his company was given state business.

Driehaus said he tried to clarify where the finder’s fee would be going, but when he asked, Rezko became angry. Driehaus described Rezko as becoming “very, very verbal,” and saying, “He has a very strong personality and he can be very direct.”

Driehaus then said the conversation became very “uncomfortable” until he told Rezko, “I don’t pay money to get money” and then the conversation was over.

Right now, former attorney Steve Loren is on the stand. Loren is explaining how board members for the Illinois Teachers’ Retirement System Board were chosen.

Earlier in the day, Former Illinois TRS Board investor Scott Parrish was questioned about TRS’ relationship with various investment firms. Agreements with those firms, such as Sterling Partners, required a kickback, or finder’s fee.

Parrish says against his better judgment, TRS Executive Director Jon Bauman pressured him to recommend the firms to the TRS Board. Bauman was allegedly tightly controlled at that time, by prosecution star witness Stuart Levine, who sat on the overseeing board and approved Bauman’s salary.

Prosecutors claim the “finder’s fee” was actually a kickback that Levine and Rezko intended to share. Ultimately though, the board didn’t approve Sterling.

Rezko was able to walk into court on his own today, for the first time since his trial began. Federal District Judge Amy St. Eve released Rezko on bond last Friday, after an $8.7 million bond was posted.

Lee ADDS: Obama prays nightly that Rezko will not divulge his ties respecting political contributions to his campaigns!