
Longtime Republican leader William Cellini once had effective control of the state’s Teachers Retirement System board and sometimes used that for his personal benefit, newly filed court documents allege.
The information is contained in a new filing by federal prosecutors Friday outlining their case against Antoin “Tony” Rezko, a political adviser to Gov. Rod Blagojevich.
Rezko allegedly was part of a scheme — along with former TRS board member Stuart Levine — to get kickbacks from investment firms wanting to do business with the multibillion-dollar retirement system.
In outlining the case, prosecutors make repeated references to activities of “Co-Schemer A,” described as someone with a “significant interest in a real estate asset management firm that had a long-standing business relationship with TRS…”
The document says Co-Schemer A is the same person identified as Individual A in an indictment handed down against Rezko and Levine last year. At the time, TRS executive director Jon Bauman confirmed that Cellini was the person referred to as Individual A.
Cellini has not be charged with any wrongdoing. A telephone message left at his Springfield home Friday evening seeking comment was not returned.
The newly filed documents say that in 2001, Levine, then a member of the TRS board, “working in concert with Co-Schemer A … had established effective control over the TRS board by forming and maintaining a group of TRS trustees that consistently voted together on matters important to Co-Schemer A and Levine.”
Prosecutors go on to allege: “At times, Levine and Co-Schemer A used their influence on the TRS board for their personal benefit.”
Shortly after Blagojevich took office in 2003, his administration began considering the idea of combining investment activities from all five state-funded pension systems into one entity.
“Levine and Co-Schemer A were opposed to the proposal to consolidate the pension boards because it might cause them to lose their control at TRS,” the documents say, adding that Co-Schemer A talked to Rezko and Co-Schemer B about trying to stop the plan.
Co-Schemer B has been identified as Blagojevich fundraiser Christopher Kelly, an indicted Chicago roofing and consulting millionaire.
“In exchange for their help in stopping the consolidation proposal, Co-Schemer A said that Co-Schemer A and Levine would use their influence on the TRS Board to help investment funds that Rezko or Co-Schemer B recommended receive investments from TRS,” the documents say. “Levine understood from Co-Schemer A’s description that Rezko and Co-Schemer B would ask Levine and Co-Schemer A to help investment firms receive TRS money because those investment firms had and would make political contributions to Public Official A.”
Public Official A has previously been identified as Blagojevich.
The plan to consolidate pension system investments eventually was dropped.
“The idea of steering a finder’s fee for the benefit of the co-schemers was first discussed by Levine and Co-Schemer A in early 2003,” according to the documents. “Co-Schemer A told Levine that Individual T, a local politician and close political ally of Public Official A’s, had put pressure on Rezko to allow Individual T to make money in some way from the state administration.”
Prosecutors contend Levine thought he could arrange for the person to get part of a finder’s fee from an investment company. The deal apparently feel through.
At least one TRS staffer gave nicknames to Levine and Co-Schemer A.
The documents refer to a 2004 telephone conversation between the two that was taped by federal investigators. In it, Co-Schemer A told Levine that a TRS staffer referred to Levine as the “Rabbi” and Co-Schemer A as the “Pope.” Prosecutors say it underscores the deference TRS staff paid to the two.
Dana Heupel of GateHouse News Service contributed to this report. Doug Finke can be reached at (217) 788-1527 or doug.finke@sj-r.com.


