CHICAGO | A former Chicago political leader who led white aldermen in a spectacular feud with the city's first black mayor 25 years ago pleaded guilty Monday for his role in a real estate kickback scheme just as his trial was about to get under way.
Edward R. Vrdolyak pleaded guilty to conspiracy to commit mail and wire fraud "to avoid a lengthy and bitter trial," defense attorney Michael Monico said.
The 71-year-old former alderman and one-time Cook County Democratic chairman was accused of arranging a kickback for attorney Stuart Levine in the sale of a piece of property for $15 million.
Vrdolyak acknowledged in his plea agreement that Levine made certain that a development company, Smithfield Properties, would be the buyer of the property. He said he was to get a $1.5 million fee from the buyer and split it with Levine.
The charges stem from the same investigation that led to the fraud conviction of political fundraiser Antoin "Tony" Rezko, who helped bankroll the campaigns of Gov. Rod Blagojevich and U.S. Sen. Barack Obama's state races, though not Obama's presidential run.
U.S. Attorney Patrick J. Fitzgerald said the plea shows that no one is so deeply entrenched in this corruption-plagued city's power elite as to be untouchable by federal investigators.
"The notion that there are certain people in Chicago who cannot or will not be held accountable took a serious hit today," Fitzgerald told reporters.
U.S. District Judge Milton I. Shadur set Jan. 9 for sentencing. The charge carries a maximum sentence of five years in prison and a $250,000 fine. Prosecutors said they would seek ask Shadur to sentence Vrdolyak to 41 months, and Monico said he would ask the judge for a lesser sentence.
Levine had been a member of the board of trustees of Finch University of Health Sciences-Chicago Medical School. As such, he arranged to make sure the developer, Smithfield Properties, would be successful in buying the property and that other potential purchasers would be turned away.
In return, $1.5 million was to be paid to Vrdolyak, and Vrdolyak and Levine were to split the sum, according to Vrdolyak's plea agreement.
Levine, who was expected to be the government's star witness at Vrdolyak's trial, has pleaded guilty to mail fraud and money laundering charges involving Rezko and a plan to use political clout to squeeze various businesses for $7 million in kickbacks.
Levine testified at the Rezko trial that he had been involved in several shady deals with Vrdolyak.
Vrdolyak -- known as "Fast Eddie" -- was leader of 29 rebellious white aldermen, remnants of the once mighty Chicago Machine, who clashed daily with Mayor Harold Washington, the favorite of black voters and of anti-Machine independents.
Washington eventually was able to command a majority on the City Council, and Vrdolyak's rebellion fizzled.
