From the Sun-Times:

Feds: Not so fast, Eddie
VRDOLYAK | Feds charge once-controversial alderman in $1.5 million kickback scheme involving politically connected businessman who allegedly wore wire

May 11, 2007
BY NATASHA KORECKI Federal Courts Reporter

It was a wire that allegedly tripped up the once-powerful, slick "Fast Eddie" Vrdolyak.

The former 10th Ward alderman had long bragged he was too careful to get entangled with the feds. But sources say he was caught on tape in a series of incriminating conversations with politically connected businessman Stuart Levine, who wore a wire.

Edward R. Vrdolyak -- among the most prominent and controversial Chicago politicians in the 1980s -- can be heard talking to Levine about a $1.5 million kickback scheme, sources say. In later recordings, Vrdolyak, 69, perhaps catching on, can be heard saying he wanted to help Levine but didn't want to take part in anything illegal, several sources with knowledge of the recordings said.

But one source said the damage had been done: "It's enough."

U.S. Attorney Patrick Fitzgerald would not acknowledge the wire at a news conference where he announced a four-count indictment against Vrdolyak. According to the charges, Vrdolyak discussed ways to pass Levine a kickback, including disguising it through a loan to Levine's wife or in cash.

'Mr. Vrdolyak is not guilty'
Vrdolyak lawyer Michael Monico insisted his client was innocent. "We do not believe that the charges will withhold the scrutiny of a public trial," he said. "He did not engage in a scheme with Mr. Levine. He did not pay him any money, and he did not agree to pay him any money.

"Mr. Vrdolyak is not guilty of these charges."

Vrdolyak was not arrested Thursday and will appear in court at a later date.

Vrdolyak has been aware of the federal scrutiny since last year. He may have considered pleading guilty in the past but did not consider cooperating, sources said. Last August, the Chicago Sun-Times first reported a federal grand jury was focusing on him.

Vrdolyak is accused of scheming with Levine to receive a $1.5 million kickback from the $15 million sale of a building that formerly housed the Dr. William M. Scholl School of Podiatric Medicine at 1001 N. Dearborn.

Levine sat on the board of the Chicago Medical School, now Rosalind Franklin, and on its real estate committee at the time the school put its property up for sale. In 2002, unknown to the board, Levine allegedly called Vrdolyak and asked to find a buyer. Vrdolyak came back with Smithfield Properties Development LLC. The two schemed so that Levine would convince the board to sell to Smithfield, and in return, Vrdolyak and Levine would get a cut of the money, according to charges.

Cooperation 'candid, complete'
Smithfield balked when asked to pay $2 million to a Levine charitable fund, authorities said. Instead, it agreed to pay Vrdolyak 10 percent of the purchase price, or $1.5 million, after certain conditions were met. The sale went through in 2004. But the investigation -- and Levine's cooperation -- became known before the payment was made, authorities said.

Levine has agreed to pay the government $1.5 million in restitution. A Smithfield representative could not be reached for comment.

Chicago's FBI chief, Robert Grant, called the scheme "a game to get as much money as they can, rather than serve the greater good of our community."

Levine, whose cooperation brought charges against Gov. Blagojevich fund-raiser Antoin "Tony" Rezko, has pleaded guilty to wide-ranging public corruption charges, including a kickback scheme tied to the Teachers Retirement System, a multibillion-dollar pension fund.

"Stuart's cooperation has been candid, complete," Levine lawyer Jeffrey Steinback said. "And in some respects, plain painful for him."

Contributing: Abdon Pallasch, Fran Spielman, David Roeder

Five things to know about Vrdolyak

May 11, 2007
1) Nicknamed "Fast Eddie" by Chicago Daily News writer Jay McMullen and "Darth Vrdolyak" by comedian Aaron Freeman.

2) Made a name for himself by leading the "coffee rebellion" of Young Turk aldermen against the autocratic rule of Mayor Richard J. Daley's City Council floor leader, Ald. Tom Keane (31st).

3) The first Mayor Daley's last public appearance on the day he died was shooting hoops with Vrdolyak at the dedication of a city gym in Vrdolyak's ward.

4) Reputed to be the only University of Chicago law student charged with "assault to commit murder" while a student. He was acquitted.

5) After two failed bids for mayor, Vrdolyak has shunned the limelight for the past 18 years, making a handsome living from his law practice -- aside from the month in 2005 the state yanked his law license for misleading clients, and making $1 million a year as counsel for the Town of Cicero before ally Betty Loren-Maltese was convicted and lost the mayor's seat there.

Abdon M. Pallasch