CHICAGO | A businessman said Wednesday that a Democratic fundraiser threatened his firm with the loss of state of Illinois business unless it signed a $750,000 contract with a total stranger, saying "this is how the governor handles patronage here -- or words to that effect."

Clyde Robinson told political fundraiser Antoin "Tony" Rezko's fraud trial that the threat came from Joseph Cari, a prominent Chicago attorney and a former finance chairman of the Democratic National Committee.

The contract outlining an agreement to pay a consultant was faxed to the Virginia offices of Robinson's firm, JER Partners, from an asset management company in the Turks & Caicos Islands, a sunsplashed vacation paradise near Jamaica.

JER had never heard of the consultant or the offshore asset management company when the fax arrived in May 2004.

But Robinson, JER's director of investor relations, testified that Cari called and put heavy pressure on the firm to sign the contract.

Cari said that if JER didn't sign, its proposal to invest $80 million in Illinois teachers' pension assets would be "yanked from the agenda," Robinson said.

"He said this is how the governor handles patronage here -- or words to that effect," Robinson testified.

Assistant U.S. Attorney Carrie E. Hamilton asked him what governor he was talking about.

"The governor of Illinois," Robinson testified.

A message seeking comment was left with Gov. Rod Blagojevich's office Wednesday. Spokeswoman Abby Ottenhoff said Tuesday that "the governor barely knows Mr. Cari." Blagojevich has not been charged with any wrongdoing.

Cari testified Wednesday that it was the government's star witness against Rezko, Stuart P. Levine, and one of his law partners who hounded Cari into making that phone call, which could send him to federal prison for years.

Cari initially balked, but when pressed, acknowledged he had been heavily pressured by both Levine and one of his law partners to warn JER it had to pay $750,000 or lose its chance to invest $80 million in pension assets.

Prosecutors say the 52-year-old Rezko used his political clout as a top fundraiser for Blagojevich to squeeze a contractor and several money management firms for kickbacks. Levine has admitted he took part in such a scheme and took the stand as the government's star witness in hopes of a light sentence.

Rezko denies taking part in any fraud scheme.