Rezko trial: "I don't pay money to get money."

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A highly successful Chicago fund manager and philanthropist Richard Driehaus takes the stand.

Driehaus said he met Tony Rezko at the home of mutual acquaintance Charles Hannon. Hannon, a longtime Rezko family friend, previously testified Rezko told Driehaus about an opportunity to do business with the state. Driehaus bolstered that testimony today. He said after a dinner at the Hannon Winnetka mansion, he and Rezko talked business in the basement.

Rezko asked Driehaus about getting in on a deal where he would manage funds for the state. But in return, Driehaus testified he had to funnel consulting money to the person of Rezko's choosing.
Driehaus said his exchange with Rezko became heated.
It ended with Driehaus allegedly telling Rezko: "I don't pay money to get money."

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11 Comments

It's like a nightmare for Rezko...it just keep getting worse and worse.

At some point, this testimony starts getting silly. Driehaus is a very credible-and skilled-investment manager. He and his firm, as he said, don't need to pay money to get money. Besides, finders' fees to SEC-regulated money managers (stock and bond firms as opposed to real estate and private equity companies) are regulated by SEC rules and the penalties are significant if the money manager doesn't disclose them to the client up front. TRS has had an outright ban on paying these fees to stock and bond managers for many years. Someone could promise someone else a kajillion bucks for getting that business and they would never collect a nickel.

look at the sorry state of illinois a liar(blagojobitch) a sleezy guy(rezko) a drug addict(levine) and a gambler(kelly) are running the state of illinois. but they are not the pathetic ones it is you rather, the very stupid taxpayers of illinois. have you ever asked yourself where is the outrage in all that had been known on what goes on in the governor's inner circle, the people of illinois are burdened with mortgage defaults, high unemployment, high gas prices, high food prices the people of illinois cannot take this any more. we need someone to do something about this governor and do it fast.

BibWindy: I'm afraid you are missing the point - it's clear that Rezko was asking for finder's fees to be paid to a person of his direction if/when Driehaus were to receive state-related money to invest. Without addressing the legality of the practice, the fact is that finder's fees are regularly paid to individuals who assist/discover/direct assets to money managers who covet them. These fees are varied in currency - tickets, vacations, private jet plane rides, etc. (you imagine it, they'll deliver it). What I find amusing is Driehaus' response as if he is above the practice altogether - he is not. He is just much too smart to handle it in the bumble-headed, back-alley and naive way in which Rezko et al have seemed to handle their affairs. He must have smelled a rat even over the lingering scent of the Chateau Petrus....

Interesting point, Professor, and perhaps correct when you and I were in college. While I also agree that Rezko et al seemed to be about as subtle as a kick in the groin, I don't know in the 21st century "Spitz and Fitz" environment that an SEC registered investment manager is going to risk their business on plane tickets or a cruise for some knucklehead. The stakes are too high, and the management fees are too low (for stocks and bonds.) On the other hand, Chicago's own William Blair & Co. coughed up over $1 million to the late Orlando Jones for an "introduction" to the State Investment Board for a stock account as reported here in the Sun-Times. Where was Fitzgerald on that one? It's not like Jones, Levine and Rezko all weren't pals.

You mean, that Rezko did not flee to Syria yet ?

That's the problem!Poeple like BibWindy who give these carpetbaggers an air of credibility in their guise as lobbyist,businesmen, etc. They are crooked oppurtunists who work the law to the limits, always leaving just enough room to squirm out in the name of "I'm just a business man". What a crock. They are criminals and they were criminals before they took their first buck!

Professor Calculus: I think your letter was directed to LoopLawyer, the persons name is attached to the bottem of the post. Although, I think your right, these people are corrupt to the bone.

Prof-

I concure with you. Still, there are finder's fees and then there is graft. As you so articulate- this is clearly the later.

William Blair- Well, follow the money and the familiar ties. Who are people at William Blair related to? Perhaps someone already under indictment is related to someone at William Blair?

LoopLaywer:

From what I hear Hurtgen has a father-in-law at William Blair.

http://www.suntimes.com/news/metro/rezko/555294,CST-NWS-watchdog13.stng

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Natasha Korecki

Natasha Korecki is the Federal Courts Reporter for the Chicago Sun-Times, covering federal news, corruption investigations and trials.

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This page contains a single entry by Natasha Korecki published on April 21, 2008 1:28 PM.

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