Ata: Blago Ran Pay-to-Play Through Rezko

Rod Blagojevich Trial Extended Coverage >>

Chicago - In the Rod Blagojevich trial Thursday, Democratic Fundraiser Joseph Cari and Rezko associate Ali Ata testified about how the Friends of Blagojevich ran their fundraising and alleged pay-to-play schemes.

• Ali Ata described how Rezko dealt with him and told the jury he was named executive director of the Illinois Finance Authority after making two, $25,000 contributions to the Blagojevich campaign.
• Cari testified, “If you did not play ball the way they wanted, there would be repercussions.”   He said Stuart Levine involved him in a deal he was brokering with the Teachers Retirement System (TRS), where the company JER was supposed to hire a consultant of Levine's choosing. Cari said when you wanted to do business with the state, you were subjected to shakedowns and he once told another individual “that’s the way it’s done in Illinois.”
• Under cross-examination, Cari did admit all threats came from Stuart Levine and not Rod Blagojevich. The defense also caught that when Cari testified at the Rezko trial, he said the “powers that be” were Kelly and Rezko, but did not mention Blagojevich as he did Thursday at this trial. On redirect, the prosecution had Cari read that he mentioned Blagojevich in reference to the same question at his grand jury testimony before the Rezko trial.
• Blagojevich tweeted ( @governorrod ) Thursday morning, "Getting ready for another day. One day at a time."  The day before, he thanked everyone for their emails of support.
• Wednesday, the prosecution questioned Rezko associate Joseph Aramanda.  Aramanda testified about how when he owed Rezko money, Rezko had him act as a middle man for investments for the Teachers Retirement System (TRS). Aramanda said he became uncomfortable when Rezko wanted him to be involved in a deal worth tens of billions to Rezko , Lon Monk , Chris Kelly and Rod Blagojevich .
• Judge Zagel ruled that all FBI tapes will be released to the public after the prosecution has played them in court. The tapes will be released at the end of each day. ( Listen to the tapes>> )
   

UPDATE: 4:50 p.m.

Sam Adam, Jr. argued to the jury that neither Blagojevich or Monk told Ata he had to hold fundraisers to get a state job, and that Ata held the fundraisers on his own.

The judge admonished Adam for asking witnesses questions that require legal conclusions.

Ata said he did not have any direct conversations with Blagojevich about getting a state job because Rezko and Kelly made it "very clear" that all appointments would go through them.

UPDATE: 4:40 p.m.

Ata said Rezko asked him for cash many times, and he gave Rezko cash four times totaling around $125,000.

Ata said in early 2004, Rezko told him not to call on the phone because he thought he was being watched. Rezko showed him "bug detecting devices" he had in his office.

In November, 2005, Ata was approached by the FBI and served a subpoena. Ata said the FBI asked him if his contribuitons got him state positions. Ata says he was "not truthful" in his conversations with the FBI.

Ata testified that immediately after he was served the subpoena, he was contacted by people on Rezko's behalf telling him not to cooperate.

Ata said before he was served w/ the subpoena, he spoke with Rezko several times about the ongoing FBI investigation.
Rezko say the people who were co-operating with the FBI "would be dealt with."

Ata also testified Rezko said he was working with a top Republican to have Patrick Fitzgerald removed from the U.S. Attorney's office. Ata said Rezko was working with Republican powerbroker Bob Kjellander who was working with Karl Rove to make this change.
Removing Fitzgerald, Ata said, would end the investigation into Rezko.

The prosecution ends its questioning.

Defense attorney Sam Adam, Jr. began his cross examination by asking Ata about his position in the Arab-American community.

Adam asked Ata about an occasion when the FBI questioned Ata at his workplace shortly after 9/11. Ata said he would like to think he has been a "good American" since he became a citizen in the early 1970s.

At this point, Judge Zagel excused the jury to question Adam about his line of questioning.

Zagel told Adam he is barring that line of questioning because there is no basis for it.

The jury was brought back in.

UPDATE: 4:10 p.m.

Ata said in 2003 and 2004, he would go to Rezko's Elston Avenue office twice a month. He would frequently see other high ranking state employees including: Kelly King Dibble of housing and development, and Brenda Russell, director of employment.

Ata said on one occassion, Dibble seemed disturbed after leaving Rezko's office. Ata said he understood she was being fired because she was not a team player and did not carry out certain orders from Rezko.

Ata said Rezko told him Dibble was fired because she objected to hiring someone who was working for Cellini.

Ata said cellini

told him Dibble was fired because she objected to hiring a Rezko friend or relative.

Ata said this concerned him because you either followed Rezko's orders or not show up to work the next day.

UPDATE: 3:40 p.m.

Ata testified Rezko talked to him in 2003 about heading up the Illinois Finiance Authority. Ata looked into the new agency and told Rezko he would consdier the position.

Ata said Rezko asked for a $50,000 contribution in July 2003. Ata said he could do $25,000 and made the donation on July 25, 2003 as part of a fundraiser at Navy Pier. After said after giving Rezko the check, Blagojevich thanked him for the contribution and said he was aware Ata was considering a job with his administration. Ata testified Blago said the job "better be one where you make some money."

Ata said he was surprsied by that statment, Rezko was not.

Ata said he was nominated for the job by Blagojevich. Ata started the job on Jan 1, 2004.

Court takes a 15 minute break.

UPDATE: 3:15 p.m.

Ali Ata takes the stand as a witness for the prosecution.

Ata worked with Tony Rezko on some of Rezko's real estate projects.

Ata says he prepared and signed a false tax return based on fraudulent tax documents related to a property purchased and sold by Tony Rezko. Ata said he pleaded guilty to this and to making false statements to the FBI in 2005 as part of a plea agreement. Ata faced five years in jail, but the plea deal will reduce his sentence to 12 to 18 months.

Ata said he met Blagojevich 15 years ago through Blagojevich's father in law, Richard Mell, and donated to Blagojevich's run for congress. Ata became a regular contributor and fundraiser for Blagojevich, including during his first run for governor.

Ata said he held two Blagojevich fundraisers and made his own peresonal donations, raising $10,000 at the first fundraiser and he contributed $5,000 on his own. A second fundraiser in August, 2002 raised about $25,000.

Ata made a personal contribution of $25,000 to Blagojevich on Aug. 30, 2002. Ata said he gave a check to Rezko at Rezko's office on Elston Avenue while Blagojevich and Lon Monk were in an adjacent conference room.

Ata said Rezko used the phrase "team player" often -- meaning he was a supporter, someone who could be depended on financially.
The prosecution asked Ata what opportunties Rezko had discussed with him, including positions with the Capital Development Board and Dept. of Human Services.

Days after Blagojevich won his first term, Ata attended a celebration party at Rezko's house. Ata said Kelly and Monk were there.

Ata said Rezko told him in late 2002 he should be getting the position as director of the Capital Develoopment Board.

Ata said Rezko came to him in early 2003 to say he would not get that position. Rezko told Ata that position belongs to a person in Springfield and must stay that way.

After that, Ata said Rezko asked Ata to help him with a project reviewing state building leases. Ata was supposed to look for ways to consoloidate leases. Ata said Rezko said he was working with Vince Cellini on this project.

UPDATE: 2:50 p.m.

Goldstein asked Hayden about her other previous political jobs for different state officials.

Goldstein asked Hayden about the vetting process -- which included a criminal background check, a credit check, a Google/internet search and a Lexis/Nexis search on the candidates applying for state board positions. Plus PIQ-- personal information questionnaire – in which five pages asked for biographical information that was used to do criminal background check.

Hayden said the majority of board positions were unpaid.

Hayden said there wasn’t a column on the vetting sheet for who contributed to Blagojevich.

Goldstein also asked Hayden about the initials on the list of candidates. He asked about other politicians who make recommendations --Emil Jones, Mike Madigan, Dick Durbin, Barack Obama, and Pat Quinn.

Hayden said those politicians all made recommendations based on the vetting sheet shown in court.

Goldstein said there were 15 spots on the IFA board and that not all of Rezko- or Kelly-recommended candidates were appointed to the board. Hayden agreed.

Goldstein asked Hayden if Blagojevich ever sat down with her and told her who he wanted appointed to state boards. Hayden answered no, she needed Lon Monk's approval as to who was appointed to state boards.

Hayden said she vetted Ali Ata and discussed his appointment with Monk.

The defense ended its cross examination of Hayden.

On re-direct, the prosecution asked if Monk told her about discussions between him and Blagojevich for board apptiments. Hayden said no. 

UPDATE: 2:06 p.m.

The prosecution asked Hayden about Stuart Levine being reappointed to TRS.

She testified that Rezko called to tell her to get moving on it; Hayden said she'd call Lon Monk. She said Rezko laughed, because he said he already talked to Monk and for her to go ahead and call if she wanted.

Hayden did call Monk about Levine.

Monk said it was OK to go ahead and get paperwork to have Levine reappointed.

When the prosecution asked Hayden if she saw any newspaper articles about Levine in June 2004, she said yes, adding that the article had to do with a controversial decision by the Illinois Health Services Board about a hospital.

Hayden said that Monk then told her not to take Rezko calls anymore because his phones had been tapped by the FBI.

The prosecution is done questioning the witness.

Blagojevich defense attorney Aaron Goldstein has begun cross-examining Hayden.

UPDATE: 2:02 p.m.

The prosecution asked Hayden about when the Illinois Finance Authority was formed and why. Hayden said it was formed under Blagojevich’s first administration and he appointed all members to this board.

Then the prosecution asked Hayden about a "vetting" sheet she used to track the application progress of the candidates for these board positions. There is a column marked "affiliation" -- Hayden said she used it to track if a candidate served on one of the eight boards consolidated into the finance authority. The "party' column was the candidate's party affiliation -- it technically didn’t matter for this board, but Hayden tracked it anyway.

Hayden was asked about a line in which Emil Jones recommended certain candidates.

They asked about the initials "TR" under the candidate's name on vetting sheet -- Hayden said TR means Rezko recommended that candidate.

The same went for "CK,” which meant Chris Kelly recommended the candidate.

The prosecution showed Hayden minutes from a past IFA meeting; it listed members present at meeting. Hayden read off five names of board members who were present and appointed by Rezko or Kelly.

Regarding the vetting sheet, the prosecution asked about Emil Jones recommending two candidates to IFA.. Hayden said neither candidate was appointed before the board’s first meeting. There were also candidates on the list who were recommended by Mike Madigan that were not appointed to the board, according to Hayden.

She said candidates recommended by David Wilhelm were not vetted, which means they were not serious candidates and that they were appointed to the board as well.

Hayden said candidates recommended by John Filan were not appointed either, nor were candidates recommended by U.S. Sen. Dick Durban or Congressman Luis Gutierrez.

According to documents, Ali Ata was appointed as executive director of IFA. He was a candidate who was nominated by Blagojevich and approved by the board.

Hayden said the governor had to present at least two executive director candidates to the board to be approved. Hayden told Monk about it and he said he had someone. Hayden said she later received the name Michael Horst as the other candidate and that he wasn’t vetted because he wasn’t a serious candidate, but both names were given to the board to vote on.

UPDATE: 1:45 p.m.

Court is back in session after the lunch break.

Former Illinois Director of Boards and Commissions Jill Hayden is on the stand being questioned by the proseuction about how board appointments were made while Blagojevich was governor.

UPDATE: 12:48 p.m.
Court has broken for lunch.

Before the break, the prosecution called Jill Hayden, the former director of boards and commissions for Illinois under Blagojevich, as its next witness. She is currently the director of government affairs for a health care trade association and lobbies mostly on Medicaid issue.

Hayden testified that Blagojevich had about 1,500 board positions he could make appointments to on approximately 300 different boards, and her former job was to keep track of candidates applying for these board positions.

Hayden testified she spoke with Blagojevich one to two times a year when she was director of boards and commissions. She spoke with him about legislation to consolidate all boards.

Hayden testified some people applied for positions on their own or from the Office of Intergovernmental Affairs, which she testified was the patronage office for the governor.

She would go over applicant names with Lon Monk to decide who would be vetted and vetted only the serious candidates. Vetting involved background checks, including meeting job requirements and if they had any political issues or ties that might embarrass Blagojevich.

If Monk told her a certain person should be appointed, they would send necessary paper work to that person and then file it with Illinois Secretary of State Office. Hayden testified she kept track of who recommended applicants for future communication regarding them and so Monk could keep track of who recommended the candidate.

Hayden met Rezko and Kelly on Blagojevich’s transition team, she said, and talked with them over the phone about certain candidates. Rezko would check on the status of their appointments. She testified Rezko also recommended candidates through the Office of Intergovernmental Affairs.

Hayden said when Rezko or Kelly recommended

someone, they were taken more seriously and had a better chance of being appointed.

UPDATE: 12:35 p.m.
Under redirect, the prosecution asked if Levine was speaking only for himself when he said he'd have to pull the JER deal if they didn’t sign the consultant. Cari said no, Levine was talking about Blagojevich, Kelly and Rezko.

The prosecution asked Cari to read from his grand jury statement, signed Sept. 2005, before testifying in the Rezko trial. Cari read that statement, that Cari referred to the powers that be as Rezko, Kelly and Blagojevich.

Cari admitted to lying to FBI and said he regrets it, but lied because if it was found out he cooperated, he was concerned the ramifications from the government and his people would be severe. He said he didn’t mention the Blagojevich fundraising conversation to agents because he wasn’t asked about it.

The defense on follow-up asked Cari to confirm his grand jury statement was a script written by the feds. The prosecution on redirect asked Cari if he had the chance to review it and make changes to it, and Cari said yes.

During the testimony, Rod Blagojevich did something he has rarely done, he stood up, walked toward his attorney who was cross-examining Cari and suggested a final question. He made sure his attorney pointed out that Cari did not lose his state business when he failed to deliver campaign contributions.

UPDATE: 12:07 p.m.
Blagojevich defense attorney Mike Gillespie asked Cari if he ever called his good friend David Wilhelm to tell him to stop working for Blagojevich because of the quid pro quo scheme for state contracts. Cari says he didn’t call Wilhelm because Wilhelm had already distanced himself from Blagojevich. Gillespie then asked Cari why he told Blagojevich's people to call Wilhelm for fundraising when Cari said he wouldn’t fundraise for them. Cari replied, “They wanted names. I wanted to get them off my back."

Gillespie also asked how often Cari spoke with agents and prosecutors. Cari said, several times, the first time at his house for two hours. He testified he lied to them about not knowing Levine in the first conversation because he didn’t know where the investigation was going and had clients at his private equity firm he concerned about. He lied to protect his clients and firm until he knew where the investigation was going.

In that first meeting, Cari testified agents and prosecutors asked if Cari had a business or personal relationship with Levine, and Cari said he didn’t have a businesses relationship with Levine. Cari said he wasn’t conducting any transactions with him.

Cari told agents he did nothing wrong and would help them with whatever they needed, including copies of documents.

Cari confirmed the first time he mentioned the conversation in which Blagojevich mentioned governors could ask for donations for contracts was Jan 19, 2005, approximately 82 days after he began talking to investigators.

Cari then answered questions about his plea agreement with the government, in which he pled to helping Levine extort JER. The maximum sentence for the crime is 20 years, and under the plea deal, the government is agreeing to recommend two and a half years. Cari can also ask for probation.

Gillespie asked Cari if he'd lie to stay out of jail, and Cari strongly said no. The defense was then done questioning the witness.

UPDATE: 11:43 a.m.
Blagojevich defense attorney Mike Gillespie asked Cari if he ever told Levine he didn’t want to fundraise for Blagojevich because it was a quid pro quo, and Cari said no.

Gillespie then asked about a meeting between Cari, Kelly and David Wilhelm. Cari said they were asking him about national campaign fundraising. Gillespie asked if Kelly said they would take away business from HealthPoint if Cari didn’t fundraise for them, and Cari said no.

Cari confirmed the only person who threatened him like that was Levine.

Cari testified Blagojevich said a sitting governor has the ability to hand out state contracts and then go back and ask for money on a plane ride to New York City. Gillespie stressed the word "ask" -- that Blagojevich said a sitting governor can ask for contributions in exchange for state contracts.

Gillespie then asked Cari who Levine meant when he said "the political powers that be” during their phone call. Cari said he meant Rezko, Kelly and Blagojevich.

Gillespie then read from the Rezko trial transcripts, in which Cari was asked the same question, but Cari only mentioned Rezko and Kelly, not Blagojevich.

Cari also testified that when Cari’s firm HealthPoint got an allocation from TRS in April 2003, no one told him he had to make a Blagojevich campaign contribution.

UPDATE: 11:02 a.m.
Blagojevich defense attorney Mike Gillespie began cross-examining Cari. Cari testified he donated to Jim Ryan's gubernatorial campaign when Ryan was running against Blagojevich, saying he met Ryan in a cancer support group when Cari's wife was battling cancer.

She and Ryan formed a relationship based on their health experiences.

Cari testified he didn’t get calls from Blagojevich about getting the consultant Levine recommended for the TRS/JER deal be signed; the only one calling him about it was Levine, and Levine kept putting more pressure on him to get it signed. Cari testified Levine said he'd pull his business from Cari’s law firm and investment firm if the consultant was not signed.

Cari testified "it was clear" if he didn’t play ball the way Blagojevich wanted, there'd be consequences. Cari mentioned he had clients that did business with the state.

Gillespie suggested Cari was concerned with keeping Levine happy so he'd continue to keep making money. Gillespie cited that all threats to have business pulled from Cari’s firm came from Levine only, because Levine didn’t mention Blagojevich’s name when he said Cari's law firm and investment firm would lose business if the deal fell through.

UPDATE: 10:44 a.m.
Cari testified JER did not hire the consultant that Levine had recommended, but he still tried to help JER get the TRS deal. Cari called JER CEO Debbie Harmon about the deal and told Harmon's assistant that he was agitated that the consultant wasn’t being hired, and said Harmon would lose her job if she didn’t get back to Cari.

Harmon called Cari back, and Cari testified he told Harmon he was calling about the consulting contract that needed to be signed before next TRS board meeting. Harmon said she was looking into it and that her in house lawyer was evaluating the contract. Cari testified he told her if the contract for the consultant was not signed, JER would lose the TRS deal. Cari told Harmon that in Illinois, the governor’s administration picks the investment bankers for deals like this, and Harmon said she understood.

On the night of May 20, 2004, Cari organized a conference call with TRS attorneys, JER attorneys and others, during which Cari explained the deal would fall through if the consultant contract was not signed.

A JER attorney said they got a consulting contract faxed to them from a firm in the Caribbean and didn’t know who it was. Cari testified he said, “We are all lawyers on this call. Do what you need to do to protect your client,” and then Cari hung up.

JER did not sign the consulting contract but still got TRS work.

The prosecution was then finished questioning Cari.

UPDATE: 10:31 a.m.
The prosecution played a taped conversation between Stuart Levine and Joe Cari from May 6, 2004 at 4:05 p.m.

On tape, Levine says "those guys were taken care of from beginning to end. I’m getting a little nervous."

Cari testified Levine was talking about the JER investment firm getting money from TRS and Levine moving it along. Cari testified Levine said he was 'nervous' because the consultant he recommended be hired by JER hadn’t been, and JER might not get money from TRS.

When Levine said on the tape "I hate to have to undo things," Cari testified that meant Levine would pull back the TRS deal for JER if they didn’t hire the consultant he recommended.

Cari testified Levine said Blagojevich and Rezko would be upset if Levine had to "pull back" on this deal.

Cari said JER stood to make approximately $75 to $80 million if they got state business from TRS.

UPDATE: 10:11 a.m.
The prosecution resumed questioning Democratic fundraiser Joe Cari about efforts by Blagojevich to recruit him to fundraising for him in 2003 to 2004. Cari testified while at a Blagojevich fundraiser in New York City, Stuart Levine told him Blagojevich, Chris Kelly and Tony Rezko were "putting together a mechanism where they would appoint people to state boards" giving out finance and investment work and then would go back and ask them for campaign contributions for Blagojevich.

At a dinner at same night at 21 Restaurant in New York, Cari testified Kelly was '”adamant" that Kelly wanted to take all the checks from the Blagojevich fundraiser that night immediately back to chicago. Cari testified he told Kelly no, because the proper procedure is to make copies of all the checks before you cash them to make sure you have a paper trail of who donated, including names, addresses, etc.

Cari testified he met Rezko for the first time in 2004 via a meeting set up by Levine in Rezko's office. Rezko told him Cari was following up with him on the conversation he had with Blagojevich in New York about fundraising, even though Cari testified he didn’t tell Rezko about that conversation.

In that conversation, Cari testified Rezko told him that he made the decisons as to who got state work and communicated that decision to Monk. When Rezko asked him to fundraise for Blagojevich, Rezko told him if he did so, Cari's law firm and investment firm would benefit significantly. Cari testified he turned him down for personal reasons.

UPDATE: 9:17 a.m.
Blagojevich arrives at the Dirksen Federal Building with his wife Patti.  Blagojevich appeared to want