Feds charge 3 in kickback scheme

BY CHRIS FUSCO, DAVE MCKINNEY, ABDON PALLASCH AND STEVE WARMBIR

The pension fund for suburban and Downstate teachers became a kickback playground for a politically connected businessman who enlisted the help of two prominent Chicago lawyers to enrich himself and his friends, federal authorities alleged Wednesday. "This is how things are done in Illinois," the feds quoted one of the lawyers charged in the case as saying. Businessman Stuart P. Levine, 59, of Highland Park, allegedly orchestrated the schemes involving hundreds of thousands of dollars in "finder's fees" paid to consultants representing companies with which the state Teachers' Retirement System invested or considered investing money.

Levine -- appointed to the TRS board by former GOP Gov. George Ryan and reappointed by Gov. Blagojevich shortly before he resigned in July 2004 -- was charged with attempted extortion, soliciting bribes, mail fraud and wire fraud. He will plead not guilty, his attorney said.

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