Thursday, March 20, 2008

Rezko trial: Shakedown of hospital CEO alleged

In the nation's most corrupt state, it's understandable, sadly, that a CEO of a hospital could be the victim of an alleged shakedown scheme.

From the Daily Herald:

With a friend like Antoin "Tony" Rezko, the sky was the limit when it came to financial gain through political power, a once-influential state official said today.

On his third day on the stand, former Illinois Health Facilities Planning Board member Stuart Levine told a federal jury he convinced Rezko, a successful fundraiser with ties to Gov. Rod Blagojevich, to support Mercy Health System's plans for a hospital in Crystal Lake in exchange for kickbacks.

Also, Levine related how he conspired with construction company executive Jacob Kiferbaum to shake down Edward Hospital CEO Pam Davis over her institution's application to build a second facility in Plainfield.

Levine testified he and banker Nicholas Hurtgen would bump into Davis and Kiferbaum at a breakfast meeting, and make it appear to be a chance run-in. From there Levine's plan was to convince the CEO she would get the okay for the new Plainfield hospital--if she hired Kiferbaum.

More from the Daily Herald:

Ironically (Levine) acknowledged being aware state ethics laws forbid health board members from discussing pending votes with applicants.

"I knew I was attempting to do an illegal deal," Levine said.

Hurtgen, formerly of Bear Stearns, was indicted on various fraud charges last year. Kiferbaum pleaded guilty to one extortion count in 2005.

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