IL:Rezko Connection: Obama's Achilles Heel?

The Rezko Connection: Obama's Achilles Heel?
1/10/2008

BRIAN ROSS and RHONDA SCHWARTZ

ABC News

Obama's Connection With an Accused Political Fixer Raises Questions.

In sharp contrast to his tough talk about ethics reform in government, Sen. Barack Obama, D-Ill., approached a well-known Illinois political fixer under active federal investigation, Antoin "Tony" Rezko, for "advice" as he sought to find a way to buy a house shortly after being elected to the United States Senate.

The parcel included an adjacent lot which Obama told the Chicago Tribune he could not afford because "it was already a stretch to buy the house."

On the same day Obama closed on his house, Rezko's wife bought the adjacent empty lot, meeting the condition of the seller who wanted to sell both properties at the same time.

Rezko had been widely reported to be under investigation by the U.S. attorney and the FBI at the time Obama contacted him and has since been indicted on corruption charges by a federal grand jury in a case that prosecutors say involves bribes, kickbacks and "efforts to illegally obtain millions of dollars."

This week, a federal judge in Chicago ordered the Rezko trial to begin Feb. 25.

Obama maintains his relationship with Rezko was "above board and legal" but has admitted bad judgment, calling his decision to involve Rezko "a bone-headed mistake."


Rezko's behind-the-scenes connection in the Obama house deal became public as Rezko revealed personal financial details as he sought to post bail.

While Rezko's wife paid the full asking price for the land, Obama paid $300,000 under the asking price for the house. The house sold for $1,650,000 and the price Rezko's wife paid for the land was $625,000.


http://www.weareillinois.org/connect/ne ... ewsID=2787

Obama donates money linked to Rezko
1/22/2008

AP

Democratic presidential candidate Barack Obama is giving charity more than $40,000 in past political contributions linked to Chicago real estate developer and fast-food magnate Antoin "Tony" Rezko, who is facing federal corruption charges, his campaign said Saturday.

The contributions are from seven people who contributed to Obama's House and Senate campaigns. None of the money was for his current presidential bid.

"Recent public information has called into question contributions to the Obama campaign from a donor and fundraiser," Obama spokesman Bill Burton said in a statement Saturday. "It is the policy and practice of the campaign to review all such new information and dispose of questionable funds such as the potential illegal 'straw donations' that campaigns, like other presidential campaigns this cycle, must address as new facts emerge.

"Our consistent practice in these circumstances is to give the funds to charity out of an abundance of caution," Burton said.

The decision to dispose of the money came after it was reported Saturday that Obama is the unnamed "political candidate" mentioned in one paragraph of a 78-page prosecution document that outlines the case against Rezko.

Rezko, a longtime fundraiser for Obama, is charged with fraud, attempted extortion and money laundering. Prosecutors say he conspired to get campaign money and payoffs from firms seeking to do business before two state boards.

Obama has not been accused of any wrongdoing.

The returned money includes three $10,000 contributions from donors that the campaign identified as having connections to Rezko. They are Michel Malek, Craig Morgan and Elie Maloof.

When prosecutors unsealed their charges against Rezko in October 2006, Obama gave $11,500 in Rezko contributions to charities.